Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FARO | ||
Entity Registrant Name | FARO TECHNOLOGIES INC | ||
Entity Central Index Key | 917,491 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 17,253,011 | ||
Entity Public Float | $ 906,879,697 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 108,783 | $ 140,960 |
Short-term investments | 24,793 | 10,997 |
Accounts receivable, net | 88,927 | 72,105 |
Inventories, net | 65,444 | 53,786 |
Prepaid expenses and other current assets | 28,795 | 16,311 |
Total current assets | 316,742 | 294,159 |
Property and equipment: | ||
Machinery and equipment | 76,048 | 66,514 |
Furniture and fixtures | 6,749 | 6,945 |
Leasehold improvements | 20,304 | 19,872 |
Property and equipment at cost | 103,101 | 93,331 |
Less: accumulated depreciation and amortization | (72,684) | (61,452) |
Property and equipment, net | 30,417 | 31,879 |
Goodwill | 67,274 | 52,750 |
Intangible assets, net | 33,054 | 22,540 |
Service and sales demonstration inventory, net | 39,563 | 39,614 |
Deferred income tax assets, net | 14,719 | 15,606 |
Other long-term assets | 4,475 | 2,030 |
Total assets | 506,244 | 458,578 |
Current liabilities: | ||
Accounts payable | 20,093 | 11,569 |
Accrued liabilities | 36,327 | 27,362 |
Income taxes payable | 5,081 | 4,676 |
Total current liabilities | 97,523 | 75,885 |
Unearned service revenues - less current portion | 15,505 | 11,815 |
Deferred income tax liabilities | 736 | 695 |
Income taxes payable - less current portion | 12,247 | 15,952 |
Other long-term liabilities | 3,624 | 2,165 |
Total liabilities | 129,635 | 106,512 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock - par value $0.01, 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock - par value $.001, 50,000,000 shares authorized; 18,676,059 and 18,277,142 issued; 17,253,011 and 16,796,884 outstanding, respectively | 19 | 18 |
Additional paid-in capital | 251,329 | 223,055 |
Retained earnings | 175,353 | 168,624 |
Accumulated other comprehensive loss | (18,483) | (7,822) |
Common stock in treasury, at cost - 1,423,048 shares and 1,480,258, respectively | (31,609) | (31,809) |
Total shareholders’ equity | 376,609 | 352,066 |
Total liabilities and shareholders’ equity | 506,244 | 458,578 |
Current portion of unearned service revenues | ||
Current liabilities: | ||
Contract with customer, liability, current | 32,878 | 29,674 |
Customer deposits | ||
Current liabilities: | ||
Contract with customer, liability, current | $ 3,144 | $ 2,604 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,676,059 | 18,277,142 |
Common stock, shares outstanding | 17,253,011 | 16,796,884 |
Treasury stock, shares | 1,423,048 | 1,480,258 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SALES | |||
Sales | $ 403,627 | $ 360,917 | $ 325,584 |
COST OF SALES | |||
Cost of sales (exclusive of depreciation and amortization, shown separately below) | 175,282 | 156,280 | 147,624 |
GROSS PROFIT | 228,345 | 204,637 | 177,960 |
OPERATING EXPENSES | |||
Selling and marketing | 116,920 | 103,544 | 79,870 |
General and administrative | 47,652 | 43,807 | 40,813 |
Depreciation and amortization | 18,313 | 16,588 | 13,868 |
Research and development | 39,706 | 35,376 | 30,125 |
Total operating expenses | 222,591 | 199,315 | 164,676 |
INCOME FROM OPERATIONS | 5,754 | 5,322 | 13,284 |
OTHER EXPENSE (INCOME) | |||
Interest income | (429) | (319) | (212) |
Other expense (income), net | 1,139 | (190) | 822 |
Interest expense | 486 | 4 | 48 |
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE | 4,558 | 5,827 | 12,626 |
INCOME TAX (BENEFIT) EXPENSE | (372) | 20,343 | 1,519 |
NET INCOME (LOSS) | $ 4,930 | $ (14,516) | $ 11,107 |
NET (LOSS) INCOME PER SHARE - BASIC (in dollars per share) | $ 0.29 | $ (0.87) | $ 0.67 |
NET (LOSS) INCOME PER SHARE - DILUTED (in dollars per share) | $ 0.29 | $ (0.87) | $ 0.67 |
Weighted average shares - Basic (in shares) | 17,043,167 | 16,711,534 | 16,654,786 |
Weighted average shares - Diluted (in shares) | 17,348,456 | 16,711,534 | 16,681,710 |
Product | |||
SALES | |||
Sales | $ 311,102 | $ 277,922 | $ 256,010 |
COST OF SALES | |||
Cost of sales (exclusive of depreciation and amortization, shown separately below) | 124,802 | 110,143 | 107,965 |
Service | |||
SALES | |||
Sales | 92,525 | 82,995 | 69,574 |
COST OF SALES | |||
Cost of sales (exclusive of depreciation and amortization, shown separately below) | $ 50,480 | $ 46,137 | $ 39,659 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 4,930 | $ (14,516) | $ 11,107 |
Currency translation adjustments | (10,661) | 16,739 | (4,700) |
Comprehensive (loss) income | $ (5,731) | $ 2,223 | $ 6,407 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury |
Beginning Balance (in shares) at Dec. 31, 2015 | 16,588,118 | |||||
Beginning Balance at Dec. 31, 2015 | $ 327,644 | $ 18 | $ 206,996 | $ 172,329 | $ (19,861) | $ (31,838) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 11,107 | 11,107 | ||||
Currency translation adjustment, net of income tax | (4,700) | (4,700) | ||||
Restricted stock issued and stock based compensation under incentive plans (in shares) | 20,925 | |||||
Restricted stock issued and stock based compensation under incentive plans | 5,374 | 5,374 | ||||
Stock options exercised, net of shares withheld for employee taxes (in shares) | 71,748 | |||||
Stock options exercised, net of shares withheld for employee taxes | 674 | 674 | ||||
Tax impact from restricted stock and stock options | (442) | (442) | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 16,680,791 | |||||
Ending Balance at Dec. 31, 2016 | 339,657 | $ 18 | 212,602 | 183,436 | (24,561) | (31,838) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (14,516) | (14,516) | ||||
Currency translation adjustment, net of income tax | 16,739 | 16,739 | ||||
Restricted stock issued and stock based compensation under incentive plans (in shares) | 19,881 | |||||
Restricted stock issued and stock based compensation under incentive plans | 6,450 | 6,450 | ||||
Stock options exercised, net of shares withheld for employee taxes (in shares) | 86,994 | |||||
Stock options exercised, net of shares withheld for employee taxes | 3,284 | 3,284 | ||||
Reissuance of treasury shares (in shares) | 9,218 | |||||
Reissuance of treasury shares | $ 310 | 281 | 29 | |||
Ending Balance (in shares) at Dec. 31, 2017 | 16,796,884 | 16,796,884 | ||||
Ending Balance at Dec. 31, 2017 | $ 352,066 | $ 18 | 223,055 | 168,624 | (7,822) | (31,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of the adoption of ASU 2016-09 | Accounting Standards Update 2014-09 | 142 | 438 | (296) | |||
Net income (loss) | 4,930 | |||||
Currency translation adjustment, net of income tax | (10,661) | (10,661) | ||||
Restricted stock issued and stock based compensation under incentive plans (in shares) | 15,960 | |||||
Restricted stock issued and stock based compensation under incentive plans | 7,620 | 7,620 | ||||
Stock options exercised, net of shares withheld for employee taxes (in shares) | 382,957 | |||||
Stock options exercised, net of shares withheld for employee taxes | 17,028 | $ 1 | 17,027 | |||
Reissuance of treasury shares (in shares) | 57,210 | |||||
Reissuance of treasury shares | $ 3,827 | 200 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 17,253,011 | 17,253,011 | ||||
Ending Balance at Dec. 31, 2018 | $ 376,609 | $ 19 | $ 251,329 | 175,353 | $ (18,483) | $ (31,609) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of the adoption of ASU 2016-09 | Accounting Standards Update 2014-09 | $ 1,799 | $ 1,799 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES: | |||
Net income (loss) | $ 4,930 | $ (14,516) | $ 11,107 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 18,313 | 16,588 | 13,868 |
Compensation for stock options and restricted stock units | 7,620 | 6,450 | 5,374 |
Provision for bad debts | 907 | 370 | 898 |
Loss on disposal of assets | 192 | 451 | 860 |
Provision for excess and obsolete inventory | 5,757 | 1,734 | 4,134 |
Deferred income tax benefit | 689 | (1,740) | (2,002) |
Income tax benefit from exercise of stock options | 0 | 0 | (357) |
(Increase) decrease in: | |||
Accounts receivable, net | (15,995) | (6,766) | 6,727 |
Inventories | (20,532) | (10,926) | (6,729) |
Prepaid expenses and other assets | (11,310) | (253) | 3,588 |
Increase (decrease) in: | |||
Accounts payable and accrued liabilities | 11,195 | 1,103 | 534 |
Income taxes payable | (3,286) | 20,011 | 618 |
Net cash provided by operating activities | 6,323 | 10,355 | 37,583 |
INVESTING ACTIVITIES: | |||
(Purchases of) Proceeds from sale of investments | (14,000) | ||
(Purchases of) Proceeds from sale of investments | 32,000 | 0 | |
Purchases of property and equipment | (11,021) | (8,970) | (7,720) |
Payments for intangible assets | (1,900) | (2,377) | (1,657) |
Acquisition of business, net of cash received | (27,067) | (5,596) | (27,708) |
Payments to Acquire Equity Method Investments | (1,786) | 0 | 0 |
Net cash (used in) provided by investing activities | (55,774) | 15,057 | (37,085) |
FINANCING ACTIVITIES: | |||
Payments on capital leases | (157) | (108) | (8) |
Payments of contingent consideration for acquisitions | (888) | (521) | (774) |
Income tax benefit from exercise of stock options | 0 | 0 | 357 |
Proceeds from issuance of stock related to stock option exercises | 20,855 | 3,594 | 674 |
Net cash provided by financing activities | 19,810 | 2,965 | 249 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (2,536) | 6,414 | (1,934) |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (32,177) | 34,791 | (1,187) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 140,960 | 106,169 | 107,356 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 108,783 | 140,960 | 106,169 |
Customer deposits | |||
Increase (decrease) in: | |||
Increase (decrease) in contract with customer, liability | 513 | (461) | (1,310) |
Unearned service revenues | |||
Increase (decrease) in: | |||
Increase (decrease) in contract with customer, liability | $ 7,330 | $ (1,690) | $ 273 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business —FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) design, develop, manufacture, market and support software driven, three-dimensional (“3D”) measurement and imaging solutions. This technology permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. Our devices are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction as well as for investigation and reconstruction of accident sites or crime scenes. We sell the majority of our products through a direct sales force across a broad number of customers in a range of manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety forensics, cultural heritage, dental and other applications. Our FaroArm ® , FARO ScanArm ® , FARO Laser Tracker TM , FARO Cobalt Array Imager, FARO Laser Projector, and their companion CAM2 ® , BuildIT, and BuildIT Projector software solutions, provide for Computer-Aided Design (“CAD”) based inspection, factory-level statistical process control, high-density surveying and laser-guided assembly and production. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD and 3D software to improve productivity, enhance product quality, and decrease rework and scrap in the manufacturing process, mainly supporting applications in our 3D Manufacturing (formerly known as “Factory Metrology” and “3D Factory”) vertical. Our FARO Focus, FARO ScanPlan and FARO Scanner Freestyle 3D X laser scanners, and their companion FARO SCENE, BuildIT, FARO As-Built TM , and FARO Zone public safety forensics software offerings, are utilized for a wide variety of 3D modeling, documentation and high-density surveying applications in our Construction Building Information Modeling (“Construction BIM,” formerly known as “Construction BIM-CIM”) and Public Safety Forensics verticals. Our FARO ScanArm ® , FARO Cobalt Array Imager, FARO Scanner Freestyle 3D X laser scanners and their companion SCENE software, and other 3D structured light scanning solutions specific to the dental industry, also enable a fully digital workflow used to capture real world geometry for the purpose of empowering design, enabling innovation, and speeding up the design cycle, supporting our 3D Design (formerly known as “Product Design”) vertical. Our line of galvanometer-based scan heads and laser scan controllers are used in a variety of laser applications and are integrated into larger components and systems, supporting our Photonics vertical. Reporting Segments —In 2016, we evaluated our reporting segment structure based on our new management organization and the changes implemented in connection with our initiatives to reorganize our business around certain vertical markets. We report our segment information in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting (“FASB ASC Topic 280”). We evaluate business performance based upon several metrics, using revenue growth and segment profit as the primary financial measures. During 2018, the following changes were made to our verticals and reporting segments: • In the first quarter of 2018, we combined our historical Factory Metrology and 3D Machine Vision verticals under a single reporting segment, 3D Factory, which replaced our Factory Metrology reporting segment, due to the linkage between the two historical verticals related to the type or class of customers served, the nature of the products and services provided, and the nature of the production processes. The 3D Machine Vision vertical was previously reported in our Other reporting segment. • In the first quarter of 2018, we renamed our Construction BIM-CIM vertical and reporting segment “Construction BIM.” • In the first quarter of 2018, we renamed our Other reporting segment “Emerging Verticals.” • In the third quarter of 2018, we merged the historical Factory Metrology and 3D Machine Vision verticals into one vertical named “3D Factory” for greater consistency with our realigned reporting segments. • In the third quarter of 2018, we segregated the operations of our acquisitions of Laser Control Systems Limited (“Laser Control Systems”) and Lanmark Controls, Inc. (“Lanmark”), along with the operations resulting from our acquisition of substantially all of the assets of Instrument Associates, LLC d/b/a Nutfield Technology (“Nutfield”), into a vertical that we named “Photonics.” The creation of this vertical enables us to better focus on our product range directed at laser steering. These operations were historically reported in the 3D Factory reporting segment in the first six months of 2018 and the historical Factory Metrology reporting segment in 2017 and are now included in the Emerging Verticals (formerly known as “Other”) reporting segment. Due to this change, we performed a qualitative goodwill impairment analysis in the third quarter of 2018, and management concluded there was no goodwill impairment at the time of this vertical reporting change. • In the third quarter of 2018, we renamed our Product Design vertical “3D Design.” • In the fourth quarter of 2018, we renamed our 3D Factory vertical and reporting segment “3D Manufacturing.” There were no changes in our total consolidated financial condition or results of operations previously reported as a result of the changes in our verticals and reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2017 have been restated throughout this Annual Report on Form 10-K to reflect the above changes in our reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2016 were restated but were not impacted by the above changes in our reporting segments. Each of our reporting segments continue to employ consistent accounting policies. As a result of our assessments of our reporting segments, we now report our activities in the following three reporting segments: • The 3D Manufacturing reporting segment contains solely our 3D Manufacturing vertical, which provides both standardized and customized solutions for 3D measurement and inspection in an industrial or manufacturing environment. Applications include alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and set-up, and assembly guidance. • The Construction BIM reporting segment contains solely our Construction BIM vertical and provides solutions for as-built data capturing and 3D visualization in building information modeling applications, allowing our customers in our architecture, engineering and construction markets to quickly and accurately extract two-dimensional (“2D”) and 3D measurement points. Applications include as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation. • The Emerging Verticals reporting segment includes our 3D Design, Public Safety Forensics and Photonics verticals. Our 3D Design vertical provides advanced 3D solutions to capture and edit 3D shapes of products, people, and/or environments for design purposes in product development, computer graphics, and dental and medical applications. Our Public Safety Forensics vertical provides solutions to public safety officials and professionals to capture environmental or situational scenes in 2D and 3D for crime, crash and fire scene investigations and environmental safety evaluations. Our Photonics vertical develops and markets galvanometer-based laser measurement products and solutions. All operating segments that do not meet the criteria to be reporting segments are aggregated in the Emerging Verticals reporting segment and have been combined based on the aggregation criteria and quantitative thresholds in accordance with the provisions of FASB ASC Topic 280. Our reporting segments have been determined in accordance with our internal management structure, which is based on operating activities. Each segment is responsible for its own product management, sales, strategy and profitability. See Note 18, “Segment Reporting” for further information. Principles of Consolidation —Our consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly owned. All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss). Variable Interest Entity —We do not invest in any investees over which we exert significant influence or have effective control. As such, our investee is currently accounted for using the equity method of accounting. Our equity in the net income (loss) from our equity method investment is recorded as income (loss) with a corresponding increase (decrease) in the investment. Distributions received from the equity investee reduce the investment. Distributions from the equity investee representing our share of the equity investee's earnings are treated as cash proceeds from operations, while distributions in excess of the equity investee's earnings are considered a return of capital and treated as cash proceeds from investing activities in our consolidated statements of cash flows. Revenue Recognition, Product Warranty and Extended Warranty Contracts —Revenue is recognized as performance obligations within a contract are satisfied in an amount that reflects the consideration we expect to receive in exchange for satisfaction of those performance obligations, or standalone selling price. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances, with the exception of software licenses. With respect to software licenses, we use the residual method for allocating the contract price to performance obligations relating to software licenses. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Fees billed to customers associated with the distribution of products are classified as revenue. We warrant our products against defects in design, materials and workmanship for one year . A provision for estimated future costs relating to warranty expense is recorded when products are shipped. We separately sell extended warranties. Extended warranty revenues are recognized on a straight-line basis over the term of the warranty. Costs relating to extended warranties are recognized as incurred. Revenue from sales of software only is recognized when no further significant production, modification or customization of the software is required and when the risks and rewards of ownership have passed to the customer. These software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be a separate performance obligation. We generally establish standalone sales price for this PCS component based on our maintenance renewal rate. Maintenance renewals, when sold, are recognized on a straight-line basis over the term of the maintenance agreement. Revenues resulting from sales of comprehensive support, training and technology consulting services are recognized as such services are performed and are deferred when billed in advance of the performance of services. Payment for products and services is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Revenues are presented net of sales-related taxes. Cash and Cash Equivalents —We consider cash on hand and amounts on deposit with financial institutions with maturities of three months or less when purchased to be cash and cash equivalents. We have deposits with foreign banks totaling $77.5 million and $98.8 million as of December 31, 2018 and 2017 , respectively. Accounts Receivable and Related Allowance for Doubtful Accounts —Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 to 90 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. We make judgments as to the collectability of accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which adjusts gross trade accounts receivable to their net realizable value. The allowance for doubtful accounts is based on an analysis of all receivables for possible impairment issues and historical write-off percentages. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally charge interest on past due receivables. Inventories —Inventories are stated at the lower of cost or net realizable value using the first-in first-out (“FIFO”) method. Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring and imaging devices utilized by sales representatives to present our products to customers. Management expects sales demonstration inventory to be held by our sales representatives for up to three years , at which time it is refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. Management expects these refurbished units to remain in finished goods inventory and be sold within 12 months at prices that produce reduced gross margins. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal. Service inventory is typically used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over its remaining useful life, typically three years . See Note 6, “Inventories” for further information regarding inventories. Reserve for Excess and Obsolete Inventory— Since the value of inventory that will ultimately be realized cannot be known with exact certainty, we rely upon both past sales history and future sales forecasts to provide a basis for the determination of the reserve. Inventory is considered potentially obsolete if we have withdrawn those products from the market or had no sales of the product for the past 12 months and have no sales forecasted for the next 12 months. Inventory is considered potentially excess if the quantity on hand exceeds 12 months of expected remaining usage. The resulting potentially obsolete and excess parts are then reviewed to determine if a substitute usage or a future need exists. Items without an identified current or future usage are reserved in an amount equal to 100% of the FIFO cost of such inventory. Our products are subject to changes in technologies that may make certain of our products or their components obsolete or less competitive, which may increase our historical provisions to the reserve. Property and Equipment —Property and equipment purchases exceeding a thousand dollars are capitalized and recorded at cost. Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows: Machinery, equipment and software 2 to 5 years Furniture and fixtures 3 to 10 years Leasehold improvements are amortized on a straight-line basis over the lesser of the life of the asset or the remaining term of the lease. Depreciation expense was $12.9 million, $12.3 million and $10.9 million in 2018 , 2017 and 2016 , respectively. Accelerated methods of depreciation are used for income tax purposes in contrast to book purposes, and as a result, appropriate provisions are made for the related deferred income taxes. Business Combinations —We allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Critical estimates are also made in valuing earn-outs, which represent arrangements to pay former owners based on the satisfaction of performance criteria. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Goodwill and Intangible Assets — Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. We do not amortize goodwill; however, we perform an annual review each year, or more frequently if indicators of potential impairment exist, to determine if the carrying value of the recorded goodwill or indefinite lived intangible assets is impaired. We evaluate goodwill for impairment annually as of October 1, or when an indicator of impairment exists. If an asset is impaired, the difference between the carrying value of the asset reflected in the financial statements and its current fair value is recognized as an expense in the period in which the impairment occurs. See Note 7, “Goodwill” and Note 8, “Intangible Assets” for further information regarding goodwill and intangible assets, respectively. Each period, and for any of our reporting units, we can elect to perform a qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If we believe, as a result of our qualitative assessment, that it is not more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying amount, then the first and second steps of the quantitative goodwill impairment test are unnecessary. If we elect to bypass the qualitative assessment option, or if the qualitative assessment was performed and resulted in the Company being unable to conclude that it is not more likely than not that the fair value of a reporting unit containing goodwill is greater than its carrying amount, we will perform the two-step quantitative goodwill impairment test. We perform the first step of the two-step quantitative goodwill impairment test by calculating the fair value of the reporting unit using a discounted cash flow method and market approach method, and then comparing the respective fair value with the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, we perform the second step of the quantitative goodwill impairment test to measure the amount of the impairment loss, if any. Management has concluded there was no goodwill impairment for the years ended December 31, 2018, 2017, and 2016. Other intangible assets principally include patents, existing product technology and customer relationships that arose in connection with our acquisitions. Other intangible assets are recorded at fair value at the date of acquisition and are amortized over their estimated useful lives of 3 to 20 years. As of December 31, 2018 and 2017, there were no indefinite-lived intangible assets. Product technology and patents are recorded at cost. Amortization expense is computed using the straight-line method over the lives of the product technology and patents of 7 to 20 years. The remaining weighted-average amortization period for all our intangible assets is eight years . Long-Lived Assets —Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of an asset group may not be fully recoverable, comparing projected undiscounted future cash flows to the carrying value of the asset group. Management has concluded that there were no indicators of impairment of these assets during the years ended December 31, 2018 , 2017 and 2016 . Research and Development —Research and development costs incurred in the discovery of new knowledge and the resulting translation of this new knowledge into plans and designs for new products prior to the attainment of the related products’ technological feasibility are recorded as expenses in the period incurred. To date, the time incurred between the attainment of the related products' technological feasibility and general release to customers has been short. Reserve for Warranties —We establish at the time of sale a liability for the one-year warranty included with the initial purchase price of our products, based upon an estimate of the repair expenses likely to be incurred for the warranty period. The warranty period is measured in installation-months for each major product group. The warranty reserve is included in accrued liabilities in the accompanying consolidated balance sheets. The warranty expense is estimated by applying the actual total repair expenses for each product group in the prior period and determining a rate of repair expense per installation-month. This repair rate is multiplied by the number of installation-months of warranty for each product group to determine the provision for warranty expenses for the period. We evaluate our exposure to warranty costs at the end of each period using the estimated expense per installation-month for each major product group, the number of units remaining under warranty, and the remaining number of months each unit will be under warranty. We have a history of new product introductions and enhancements to existing products, which may result in unforeseen issues that increase our warranty costs. While such expenses have historically been within expectations, we cannot guarantee this will continue in the future. Income Taxes —We review our deferred tax assets on a regular basis to evaluate their recoverability based upon expected future reversals of deferred tax assets and liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. Our evaluation of the need for the valuation allowance is significantly influenced by our ability to maintain profitability and our ability to predict and achieve future projections of taxable income. We recognize tax benefits related to uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities. For those positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. In the ordinary course of business, we are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. See Note 12, “Income Taxes” for further information regarding income taxes. Earnings (Loss) Per Share ( “ EPS ” ) —Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a loss for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 15, “Earnings (Loss) Per Share.” Accounting for Stock-Based Compensation —We have two stock-based employee and director compensation plans, which are described more fully in Note 14, “Stock Compensation Plans.” We measure and record compensation expense using the applicable accounting guidance for share-based payments related to stock options, restricted stock, and performance-based awards granted to our directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated, at the date of grant, using the Black-Scholes option-pricing model. The fair value of restricted stock awards and stock options with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. In valuing our stock options, significant judgment is required in determining the expected volatility of our common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility for stock options is based on the historical and implied volatility of our own common stock while the volatility for our restricted stock units with a market condition is based on the historical volatility of our own stock and the stock of companies within our defined peer group. The expected life of stock options is derived from the historical actual term of option grants and an estimate of future exercises during the remaining contractual period of the option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure as they represent future expectations based on historical experience. Further, our expected volatility and expected life may change in the future, which could substantially change the grant-date fair value of future awards of stock options and, ultimately, the expense we record. The fair value of restricted stock, including performance awards, without a market condition is estimated using the current market price of our common stock on the date of grant. We expense stock-based compensation for stock options, restricted stock awards, and performance awards over the requisite service period. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with both performance and service conditions, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award, taking into account the probability that we will satisfy the performance conditions. Furthermore, we expense awards with a market condition over the three -year vesting period regardless of the value that the award recipients ultimately receive. All tax-related cash flows resulting from share-based payments are reported as operating activities in the statement of cash flows in the deferred income tax benefit line item. We elect to account for forfeitures related to the service condition-based awards as they occur. Concentration of Credit Risk —Financial instruments that expose us to concentrations of credit risk consist principally of short-term investments and operating demand deposit accounts. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and believe we are not exposed to any significant credit risk on our operating demand deposit accounts. Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Impact of Recently Adopted Accounting Standards —In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. FASB ASC Topic 805 recognized three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller used in operating a set were not required if market participants could acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) re |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Selected cash payments and non-cash activities were as follows: Years ended December 31, 2018 2017 2016 Supplemental cash flow information: Cash paid for interest $ 4 $ 9 $ 28 Cash paid for income taxes $ 5,813 $ 2,488 $ 2,576 Supplemental noncash investing and financing activities: Transfer of service and sales demonstration inventory to fixed assets $ 964 $ 2,844 $ 511 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following tables present our revenues by Sales type as presented in our consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands): Years ended December 31, 2018 2017 2016 Product Sales Products transferred to a customer at a point in time $ 311,102 $ 277,922 $ 256,010 Products transferred to a customer over time — — — $ 311,102 $ 277,922 $ 256,010 Years ended December 31, 2018 2017 2016 Service Sales Service transferred to a customer at a point in time $ 42,932 $ 36,164 $ 31,529 Service transferred to a customer over time 49,593 46,831 38,045 $ 92,525 $ 82,995 $ 69,574 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands): Years ended December 31, 2018 2017 2016 Total Sales to External Customers United States $ 156,242 $ 141,595 $ 133,924 EMEA (1) 127,261 115,061 101,751 APAC (1) 105,038 90,730 78,094 Other Americas (1) 15,086 13,531 11,815 $ 403,627 $ 360,917 $ 325,584 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada, Mexico, and Brazil (Other Americas). For revenue related to our measurement and imaging equipment and related software, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances, with the exception of software licenses. With respect to software licenses, we use the residual method for allocating the contract price to performance obligations relating to software licenses. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Software arrangements generally include short-term maintenance that is considered post-contract support (“PCS”), which is considered to be a separate performance obligation. We generally establish standalone sales price for this PCS component based on our maintenance renewal rate. Maintenance renewals, when sold, are recognized on a straight-line basis over the term of the maintenance agreement. Payment for products and services is collected within a short period of time following transfer of control or commencement of delivery of services, as applicable. Further, customers frequently purchase extended warranties with the purchase of measurement equipment and related software. Warranties are considered a performance obligation when services are transferred to a customer over time and as such, we recognize revenue on a straight-line basis over the warranty term. Extended warranty sales include contract periods that extend between one month and three years. We capitalize commission expenses related to deliverables transferred to a customer over time and amortize such costs ratably over the term of the contract. As of December 31, 2018, the deferred cost asset related to deferred commissions was approximately $2.7 million . For classification purposes, $1.8 million and $0.9 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our consolidated balance sheet as of December 31, 2018. The unearned service revenue liabilities reported on our consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties and software maintenance. The current portion of unearned service revenues on our consolidated balance sheets is what we expect to recognize to revenue within twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. The Unearned service revenues - less current portion on our consolidated balance sheets is what we expect to recognize to revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. Customer deposits on our consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. These amounts are generally related to performance obligations which are delivered in less than 12 months. During the year ended December 31, 2018, we recognized $25.0 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. The nature of certain of our contracts gives rise to variable consideration, which may be constrained, primarily related to an allowance for sales returns. We are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of Sales. Our allowance for sales returns was approximately $0.1 million as of December 31, 2018. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | ALLOWANCE FOR DOUBTFUL ACCOUNTS Activity in the allowance for doubtful accounts was as follows: Years ended December 31, 2018 2017 2016 Balance, beginning of year $ 1,957 $ 1,829 $ 1,417 Provision (net of recovery) 907 370 898 Amounts written off, net of recoveries (1,116 ) (242 ) (486 ) Balance, end of year $ 1,748 $ 1,957 $ 1,829 |
Short Term Investments
Short Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments Schedule [Abstract] | |
Short Term Investments | SHORT-TERM INVESTMENTS Short-term investments at December 31, 2018 consisted of U.S. Treasury Bills totaling $24.8 million , consisting of $9.0 million maturing on March 14, 2019, $10.9 million maturing on June 6, 2019, and $4.9 million maturing on June 20, 2019. Short-term investments at December 31, 2017 consisted of U.S. Treasury Bills totaling $11.0 million that matured on January 11, 2018. The interest rates on the U.S. Treasury Bills held on December 31, 2018 and maturing on March 14, 2019, June 6, 2019, and June 20, 2019 were 2.2% , 2.4% , and 2.3% , respectively, and were less than one |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost or net realizable value using the first-in first-out method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force, for demonstrations and held for sale; and 3) service inventory - completed product and parts used to support our service department and held for sale. Shipping and handling costs are classified as a component of cost of sales in our consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it is refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. We expect these refurbished units to remain in finished goods inventory and to be sold within 12 months at prices that produce reduced gross margins. Service inventory is used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs and which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over the remaining life, typically three years . Inventories consist of the following: December 31, 2018 December 31, 2017 Raw materials $ 39,859 $ 36,328 Finished goods 25,585 17,458 Inventories, net $ 65,444 $ 53,786 Service and sales demonstration inventory, net $ 39,563 $ 39,614 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Our goodwill at December 31, 2018 and 2017 is related to our acquisitions. We evaluate each reporting unit’s fair value as compared to its carrying value on October 1st of each year or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value. As of December 31, 2017, we evaluated each reporting unit's fair value as compared to its carrying value, and used step 1 of the quantitative goodwill impairment test, where the fair value of the reporting units was measured using a discounted cash flow model and incorporated discount rates commensurate with the risks involved for each reporting unit and a market approach. The key assumptions used in this discounted cash flow model include discount rates, growth rates, cash flow projections and terminal value rates. These rates were susceptible to change and required significant management judgment. The market approach relied on an analysis of publicly-traded companies similar to us and derived a range of revenue and profit multiples. The publicly-traded companies used in the market approach were selected based on our defined peer group. The resulting multiples were then applied to each reporting unit to determine fair value. As of October 1, 2018, we performed a qualitative assessment, on a reporting unit level, to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We did not identify any such event or circumstance at that time. Impairments to goodwill are charged against earnings in the period the impairment is identified. We focus on five operating segments: 3D Manufacturing, Construction BIM, Public Safety Forensics, 3D Design, and Photonics. As of December 31, 2018 and 2017 , we did not have any goodwill that was identified as impaired. The increase in goodwill during 2018 and 2017 reflected the acquisitions completed in those periods and changes in foreign exchange rates. December 31, 2018 Beginning Additions Foreign Ending 3D Manufacturing $ 40,802 $ — $ (1,316 ) $ 39,486 Construction BIM 6,521 1,010 (226 ) 7,305 Public Safety Forensics 3,070 — (107 ) 2,963 3D Design — 9,130 (180 ) 8,950 Photonics 2,357 6,283 (70 ) 8,570 Total $ 52,750 $ 16,423 $ (1,899 ) $ 67,274 December 31, 2017 Beginning Additions Foreign Ending 3D Manufacturing $ 37,861 $ — $ 2,941 $ 40,802 Construction BIM 6,078 — 443 6,521 Public Safety Forensics 2,805 55 210 3,070 3D Design — — — — Photonics — 2,357 — 2,357 Total $ 46,744 $ 2,412 $ 3,594 $ 52,750 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets consist of the following: As of December 31, 2018 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 26,588 $ 12,332 $ 14,256 Patents and trademarks 14,647 6,601 8,046 Customer relationships 12,027 2,588 9,439 Other 8,693 7,380 1,313 Total $ 61,955 $ 28,901 $ 33,054 As of December 31, 2017 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 19,459 $ 10,885 $ 8,574 Patents and trademarks 13,948 5,720 8,228 Customer relationships 5,889 1,685 4,204 Other 7,443 5,909 1,534 Total $ 46,739 $ 24,199 $ 22,540 Amortization expense was $5.4 million, $4.5 million and $2.9 million in 2018 , 2017 and 2016 , respectively. The estimated amortization expense for each of the years 2019 through 2023 and thereafter is as follows: Years ending December 31, Amount 2019 $ 5,333 2020 4,886 2021 4,717 2022 4,231 2023 3,804 Thereafter 10,083 $ 33,054 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consist of the following: As of December 31, 2018 2017 Accrued compensation and benefits $ 17,745 $ 16,144 Accrued warranties 2,571 2,628 Professional and legal fees 2,154 1,541 Taxes other than income 3,550 3,787 General services administration contract contingent liability (see Note 13) 5,267 — Other accrued liabilities 5,040 3,262 $ 36,327 $ 27,362 Activity related to accrued warranties was as follows: Years ended December 31, 2018 2017 2016 Balance, beginning of year $ 2,628 $ 2,594 $ 2,309 Provision for warranty expense 4,096 4,045 3,544 Fulfillment of warranty obligations (4,153 ) (4,011 ) (3,259 ) Balance, end of year $ 2,571 $ 2,628 $ 2,594 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and requires enhanced disclosures about assets and liabilities measured at fair value. Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are used to determine fair value. These models employ valuation techniques that involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Assets and liabilities recorded at fair value on a recurring basis in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by the guidance on fair value measurements, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and are as follows: Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets. Level 2 - Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. Historically, we have presented short-term investments in the fair value table presented below. As our short-term investments in the accompanying consolidated balance sheets are comprised of U.S. Treasury Bills, these investments are classified as held-to-maturity investments and are not recorded at fair value on a recurring basis in our consolidated balance sheets. As such, we have removed short-term investments from the table below. December 31, 2018 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,531 Total $ — $ — $ 5,531 December 31, 2017 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 412 Total $ — $ — $ 412 (1) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired based on the former owners attaining future product release milestones. We use a probability-weighted discounted cash flow model to estimate the fair value of contingent consideration liabilities. These probability weightings are developed internally and assessed on a quarterly basis. For the year ended December 31, 2018, we paid $0.9 million as part of these arrangements. For the year ended December 31, 2017, we paid $0.5 million as part of these arrangements. The remaining change in the fair value of the contingent consideration from December 31, 2017 to December 31, 2018 was related to various business acquisitions we made during the year ended December 31, 2018, which included Laser Controls System, Lanmark and Opto-Tech SRL and its subsidiary Open Technologies SRL (collectively, “Open Technologies”), as well as changes in foreign currency exchange rates. The undiscounted maximum payment as of December 31, 2018 under the arrangements was $6.0 million |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | OTHER EXPENSE (INCOME), NET Other expense (income), net consists of the following: Years ended December 31, 2018 2017 2016 Foreign exchange transaction losses (gains) $ 1,386 $ (162 ) $ 1,356 Other (247 ) (28 ) (534 ) Total other expense (income), net $ 1,139 $ (190 ) $ 822 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) before income tax (benefit) expense consists of the following: Years ended December 31, 2018 2017 2016 Domestic $ (1,723 ) $ 2,468 $ (1,527 ) Foreign 6,281 3,359 14,153 Income before income taxes $ 4,558 $ 5,827 $ 12,626 The components of the income tax (benefit) expense for income taxes are as follows: Years ended December 31, 2018 2017 2016 Current: Federal $ (1,694 ) $ 18,951 $ 409 State 120 507 40 Foreign 1,394 2,072 3,482 Current income tax (benefit) expense (180 ) 21,530 3,931 Deferred: Federal (486 ) 1,038 (2,357 ) State (153 ) (580 ) (229 ) Foreign 447 (1,645 ) 174 Deferred income tax benefit (192 ) (1,187 ) (2,412 ) Income tax (benefit) expense $ (372 ) $ 20,343 $ 1,519 Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax (benefit) expense are summarized below: Years ended December 31, 2018 2017 2016 Tax expense at statutory rate $ 956 $ 1,981 $ 4,427 State income taxes, net of federal benefit (195 ) 81 (50 ) Foreign tax rate difference (1,003 ) (2,057 ) (1,939 ) Research and development credit (919 ) (1,037 ) (917 ) Change in valuation allowance 464 678 162 Equity based compensation (198 ) 33 (255 ) Manufacturing credit — (191 ) (61 ) Permanent impact of non-deductible cost 1,120 766 412 Provision to return adjustments 345 777 (61 ) Impact of Tax Cuts and Jobs Act of 2017 (1,000 ) 19,355 — Other 58 (43 ) (199 ) Income tax (benefit) expense $ (372 ) $ 20,343 $ 1,519 The components of our net deferred income tax asset and liabilities are as follows: As of December 31, 2018 2017 Net deferred income tax asset - Non-current Warranty cost $ 533 $ 695 Inventory reserve 1,559 419 Unearned service revenue 6,684 5,364 Employee stock options 4,222 4,366 Tax Credits 485 1,785 Loss carryforwards 7,038 8,782 Other, net 759 1,479 Total deferred tax assets 21,280 22,890 Valuation Allowance (1,924 ) (1,631 ) Total deferred tax assets net of valuation allowance 19,356 21,259 Net deferred income tax liability - Non-current Bad debt reserve (116 ) (2 ) Depreciation (2,996 ) (3,675 ) Goodwill (1,612 ) (1,574 ) Intangible assets (649 ) (1,097 ) Total deferred tax liabilities (5,373 ) (6,348 ) Net deferred tax assets $ 13,983 $ 14,911 On December 22, 2017, the United States enacted the U.S. Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Reform”), resulting in significant modifications to existing law. Under the U.S. Tax Reform, changes include lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory tax on accumulated earnings in foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to United States taxation. The statutory corporate tax rate reduction is effective for tax years beginning on or after January 1, 2018. In accordance with the U.S. Tax Reform, we recorded a provisional amount of $19.4 million of additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The portion of this $19.4 million provisional amount that related to the transition tax on the mandatory deemed repatriation of foreign earnings was $17.4 million based on our best estimate and guidance available at that time. The portion of the $19.4 million that related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $2.0 million at that time. Securities and Exchange Commission Staff Accounting Bulletin 118 (“SAB 118”) was issued and provided additional clarification regarding the application of FASB ASC Topic 740 if a company did not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Reform. December 22, 2018 marked the end of the measurement period for SAB 118. As additional guidance was released during the SAB 118 remeasurement period, we completed our transition tax analysis, which resulted in an income tax benefit of $1.0 million and a $1.8 million decrease of our deferred tax assets recorded in the fourth quarter of 2018 related to adjustments to the transition tax on mandatory deemed repatriation of foreign earnings. Our domestic entities had deferred income tax assets in the amount of $7.2 million and $7.7 million as of December 31, 2018 and December 31, 2017, respectively. At December 31, 2018 and 2017, our foreign subsidiaries had deferred tax assets primarily relating to net operating losses of $6.5 million and $7.9 million , respectively, some of which expire in the next 1 to 9 years and others which can be carried forward indefinitely. The valuation allowance for deferred tax assets as of December 31, 2018 and 2017 was $1.9 million and $1.6 million , respectively. The net change in the total valuation allowance for each of the years ended December 31, 2018, 2017 and 2016 was a $0.3 million , a $0.7 million and a $0.1 million increase, respectively. The valuation allowance as of December 31, 2018 and 2017 was primarily related to foreign net operating loss carryforwards that, in the judgment of management, were not more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax-planning strategies in making this assessment. Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of a global business, there are many transactions for which the ultimate tax outcome is uncertain. We review our tax contingencies on a regular basis and make appropriate accruals as necessary. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2018 : Jurisdiction Open Years Examination United States - Federal Income Tax 2015-2018 N/A United States - various states 2014-2018 N/A Germany 2014-2018 N/A Switzerland 2018 N/A Singapore 2014-2018 N/A We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is not material. We do not currently anticipate that the total amount of unrecognized tax benefits will result in material changes to our financial position. We are subject to income taxes at the federal, state and foreign country level. Our tax returns are subject to examination at the U.S. federal level from 2015 forward and at the state level are subject to a three to four |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases — We lease buildings and equipment under non-cancellable operating leases through 2026 . Some of these leases include cost-escalation clauses. Such cost-escalation clauses are recognized on a straight-line basis over the lease term. The following is a schedule of future minimum lease payments required under non-cancellable operating leases with initial terms in excess of one year, in effect at December 31, 2018 : Years ending December 31, Amount 2019 $ 7,474 2020 4,679 2021 1,724 2022 1,313 2023 1,270 Thereafter 3,168 Total future minimum lease payments $ 19,628 Rent expense for 2018 , 2017 , and 2016 was $8.6 million , $7.5 million and $7.7 million , respectively. Purchase Commitments — We enter into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 120 days as well as materials necessary to service customer units through the product lifecycle and for warranty commitments. As of December 31, 2018 , we had approximately $56.9 million in purchase commitments that are expected to be delivered within the next 12 months. To ensure adequate component availability in preparation for new product introductions, as of December 31, 2018 , we also had $2.3 million in long-term commitments for purchases to be delivered after 12 months. Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations. U.S. Government Contracting Matter — We have sold our products and related services to the U.S. Government (the “Government”) under General Services Administration (“GSA”) Federal Supply Schedule contracts (the “GSA Contracts”) since 2002 and are currently selling our products and related services to the Government under two such GSA Contracts. Each GSA Contract is subject to extensive legal and regulatory requirements and includes, among other provisions, a price reduction clause (the “Price Reduction Clause”), which generally requires us to reduce the prices billed to the Government under the GSA Contracts to correspond to the lowest prices billed to certain benchmark customers. Late in the fourth quarter of 2018, during an internal review we preliminarily determined that certain of our pricing practices may have resulted in the Government being overcharged under the Price Reduction Clauses of the GSA Contracts (the "GSA Matter"). As a result, we have begun remediation efforts, including but not limited to, the identification of additional controls and procedures to ensure future compliance with the pricing and other requirements of the GSA Contracts. We have also retained outside legal counsel to assist with these efforts and to conduct a review of our pricing and other practices under the GSA Contracts (the “Review”). On February 14, 2019, we reported the GSA Matter to the GSA and its Office of Inspector General. Over the six-year period ended December 31, 2018, our sales to the Government under the GSA Contracts were approximately $53.5 million in the aggregate. Our sales to the Government under the GSA Contracts represented approximately 3.5% of our total sales for the year ended December 31, 2018. As a result of the GSA Matter, for fourth quarter 2018, we reduced our total sales by a $4.8 million estimated cumulative sales adjustment, representative of the last six years of estimated overcharges to the Government under the GSA Contracts. In addition, for the fourth quarter of 2018, we recorded $0.5 million of imputed interest related to the estimated cumulative sales adjustment, which increased other expense and resulted in an estimated total liability of $5.3 million for the GSA Matter. This estimate is based on our preliminary review as of the date of this Annual Report on Form 10-K and is subject to change based on the results of the Review being conducted by our outside legal counsel and discussions with the Government. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS We have two compensation plans that provide for the granting of stock options and other share-based awards to key employees and non-employee members of the Board of Directors. The 2009 Equity Incentive Plan (“2009 Plan”), and the 2014 Equity Incentive Plan (“2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors. We were authorized to grant awards for up to 1,781,546 shares of common stock under the 2009 Plan, as well as any shares underlying awards outstanding under our 2004 Equity Incentive Plan (the “2004 Plan”) as of the effective date of the 2009 Plan that thereafter terminated or expired unexercised or were canceled, forfeited or lapsed for any reason. There were 122,943 options outstanding at December 31, 2018 under the 2009 Plan at exercise prices between $43.33 and $57.54 . The options outstanding under the 2009 Plan have a 10 -year term ( 7 years on grants beginning in 2010) and vest over a 3 -year period. In May 2014, our shareholders approved the 2014 Plan authorizing us to grant awards for up to 1,974,543 shares of common stock, as well as any shares underlying awards outstanding under the 2004 Plan and 2009 Plan as of the effective date of the 2014 Plan that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason. In May 2018, our shareholders approved an amendment to the 2014 Plan, which increased the number of shares available for issuance under the 2014 Plan by 1,000,000 shares. A maximum of 2,974,543 shares are available for issuance under the 2014 Plan, as amended, plus the number of shares (not to exceed 891,960 ) underlying awards outstanding under the 2004 Plan and the 2009 Plan as of May 29, 2014 that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason. There were 670,047 options outstanding at December 31, 2018 under the 2014 Plan at exercise prices between $29.98 and $61.30 . The options outstanding under the 2014 Plan have a 7 -year term and generally vest over a 3 -year period. No awards were outstanding under the 2004 Plan as of December 31, 2018, and we will not make any further grants under the 2004 Plan or the 2009 Plan. Upon election to the Board, each non-employee director receives an initial equity grant of shares of restricted common stock with a value equal to $100,000 , calculated using the closing share price on the date of the non-employee director’s election to the Board. The initial restricted stock grant vests on the third anniversary of the grant date, subject to the non-employee director’s continued membership on the Board. Annually, the non-employee directors are granted restricted shares equal to 50% of their compensation on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. In addition, the Lead Director is annually granted restricted shares with a value equal to $40,000 on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. The shares of restricted stock granted annually to our non-employee directors and our Lead Director vest on the day prior to the following year’s annual meeting date, subject to a non-employee director’s continued membership on the Board. We record compensation cost associated with our restricted stock grants on a straight-line basis over the vesting term. Also, beginning in October 2018, our non-employee directors may elect to have their annual cash retainers and annual equity retainers paid in the form of deferred stock units pursuant to the 2014 Plan and the 2018 Non-Employee Director Deferred Compensation Plan. Each deferred stock unit represents the right to receive one share of our common stock upon the non-employee director's separation of service from the Company. We record compensation cost associated with our deferred stock units over the period of service. Annually, upon approval by our Compensation Committee, we grant stock options and restricted stock units to certain employees. We also grant stock options and restricted stock units to certain new employees throughout the year. Prior to 2016, these awards vested in three equal annual installments beginning one year after the grant date. The fair value of these stock-based awards is determined by using (a) the current market price of our common stock on the grant date in the case of restricted stock units or (b) the Black-Scholes option valuation model in the case of stock options. In 2015, we granted performance-based stock options and restricted stock units to certain executives. These awards vested in three annual installments beginning one year after the grant date if the applicable performance measures or strategic objectives were achieved. The related stock-based compensation expense was recognized over the requisite service period, taking into account the probability that we would satisfy the performance measures or strategic objectives. In addition to certain strategic objectives, the performance-based stock options and restricted stock units granted in 2015 were earned and vested based on (1) our achievement of specified revenue and EPS targets, and (2) our total shareholder return (“TSR”) relative to the TSR attained by companies within our defined peer group. Due to the TSR presence in certain performance-based grants, the fair value of these awards was determined using the Monte Carlo Simulation valuation model. We expensed these market condition awards over the three -year vesting period regardless of the value that the award recipients ultimately receive. In March 2018 , our Compensation Committee determined that 7,743 performance-based stock options and 266 restricted stock units were earned and vested for the 2017 performance period and 17,160 stock options and 640 restricted stock units were determined to be unearned, as the required metrics were not achieved. As of December 31, 2018, all performance-based stock options and restricted stock units granted in 2015 were either vested or were forfeited because they were not earned. We did no t grant performance-based stock options and restricted stock units to our employees during 2018 . Instead, our annual grant in March 2018 consisted of stock options and restricted stock units that are subject to only time-based vesting. The number of stock options and restricted stock units granted was based on the employee’s individual objectives, performance against operational metrics assigned to the employee, and overall contribution to the Company over the last year. The restricted stock unit awards vest in full on the three -year anniversary of the grant date. The stock options vest in three equal annual installments beginning one year after the grant date. The fair value of these stock-based awards is determined by using (a) the current market price of our common stock on the grant date in the case of restricted stock units or (b) the Black-Scholes option valuation model in the case of stock options. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted-average grant-date fair value of the stock options that were granted during the years ended December 31, 2018 , 2017 , and 2016 and valued using the Black-Scholes option valuation model was $23.43 , $14.51 and $12.90 per option, respectively. For stock options granted during the years ended December 31, 2018 , 2017 , and 2016 valued using the Black-Scholes option valuation model, we used the following assumptions: Years ended December 31, 2018 2017 2016 Risk-free interest rate 2.65 % 1.88% - 2.02% 1.06% - 1.57% Expected dividend yield — % — % — % Expected option life 4 years 5 years 4 years Expected volatility 45 % 45.2 % 45.0% - 47.0% Weighted-average expected volatility 45.0 % 45.2 % 46.1 % Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The risk-free interest rate was based on the yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the expected life of the option being valued. There were no market condition awards granted during the years ended December 31, 2018 , 2017 and 2016 and, as such, the Monte Carlo Simulation valuation model was not used to determine the fair value of the stock options and restricted stock units granted during 2018 . A summary of stock option activity and weighted average exercise prices follows: Options Weighted- Weighted-Average Aggregate Intrinsic Outstanding at January 1, 2018 1,156,763 $ 45.93 Granted 174,439 61.30 Forfeited (81,222 ) 51.66 Exercised (439,877 ) 47.21 Unearned performance-based options (17,160 ) 59.97 Outstanding at December 31, 2018 792,943 $ 47.59 4.4 $ 2,160 Options exercisable at December 31, 2018 427,006 $ 48.84 2.1 $ 862 The aggregate intrinsic value of stock options exercised during the years ended December 31, 2018 , 2017 , and 2016 was $7.5 million , $1.2 million and $1.7 million , respectively. The total fair value of stock options vested during the years ended December 31, 2018 , 2017 , and 2016 was $3.7 million , $4.1 million and $3.8 million , respectively. The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the year ended December 31, 2018 : Shares Weighted-Average Non-vested at January 1, 2018 257,492 $ 34.75 Granted 102,458 60.26 Forfeited (29,692 ) 39.36 Vested (18,618 ) 35.03 Unearned performance-based awards (640 ) 51.15 Non-vested at December 31, 2018 311,000 $ 42.66 We recorded total stock-based compensation expense associated with our stock incentive plans of $7.6 million , $6.5 million and $5.4 million in 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there was $10.3 million in total unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements. The expense is expected to be recognized over a weighted average period of 1.8 years |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted earnings (loss) per share is presented below: Years Ended December 31, 2018 2017 2016 Shares Per-Share Shares Per-Share Shares Per-Share Basic earnings (loss) per share 17,043,167 $ 0.29 16,711,534 $ (0.87 ) 16,654,786 $ 0.67 Effect of dilutive securities 305,289 — — — 26,924 — Diluted earnings (loss) per share 17,348,456 — $ 0.29 16,711,534 $ (0.87 ) 16,681,710 $ 0.67 Securities excluded from the determination of weighted average shares for the calculation of diluted earnings (loss) per share, as they were potentially antidilutive 393,970 1,049,563 1,046,947 |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plan | EMPLOYEE RETIREMENT BENEFIT PLAN We maintain a 401(k) defined contribution retirement plan for our eligible U.S. employees. Costs charged to operations in connection with the 401(k) plan during 2018 , 2017 and 2016 aggregated $2.1 million, $1.7 million, and $1.4 |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITY A variable interest entity (“VIE”) is an entity that has one of three characteristics: (1) it is controlled by someone other than its shareowners or partners, (2) its shareowners or partners are not economically exposed to the entity's earnings (for example, they are protected against losses), or (3) it lacks sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties. On April 27, 2018, we invested $1.8 million in Present4D GmbH (“Present4D”), a software solutions provider for professional virtual reality presentations and training environments, in the form of an equity capital contribution. This contribution represents a minority investment in Present4D. This investment's business purpose is to coordinate the design and development of modules supporting compatibility with virtual reality for our existing software offerings. As of our investment date, Present4D was thinly capitalized and lacked the sufficient equity to finance its activities without additional subordinated financial support and is classified as a VIE. We do not have power over decisions that significantly affect Present4D’s economic performance and do not represent its primary beneficiary. After April 27, 2020, Present4D may request additional equity financing of up to $1.8 million from us in exchange for additional share capital, which additional equity financing would be at our discretion. We have not provided support to Present4D during the periods presented outside of our initial investment of $1.8 million . We do not intend to provide future support to Present4D, and we will continue to evaluate whether we intend to obtain the aforementioned additional share capital in the future. Our 16.5% portion of Present4D’s net loss for the year ended December 31, 2018 was approximately $0.1 million . Present4D is currently accounted for using the equity method of accounting. Our equity in the net loss from this equity method investment is recorded as loss with a corresponding decrease in the investment. Our investment in this unconsolidated VIE at December 31, 2018 was $1.7 million and is included in Other long-term assets in our consolidated balance sheet as of December 31, 2018. $1.8 million |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS In April 2017, we completed the acquisition of substantially all of the assets of Nutfield, a component technology business located in Hudson, New Hampshire, which specializes in the design and manufacture of advanced galvanometer-based optical scanners, scan heads and laser kits, for a total purchase price of approximately $5.5 million . This acquisition supports our long-term strategy to expand our presence in key markets and improve our existing product lines with innovative technology. The results of the acquired business’ operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the years ended December 31, 2018 and December 31, 2017. On March 9, 2018, we acquired all of the outstanding shares of Laser Control Systems, a laser component technology business located in Bedfordshire, United Kingdom, which specializes in the design and manufacture of advanced digital scan heads and laser software, for a purchase price of $1.7 million . An additional $0.7 million in contingent consideration may be earned by the former owners if certain milestones are met. This acquisition supports our Photonics vertical and our long-term strategy to expand our presence and product portfolio in Photonics applications. The results of Laser Control Systems’ operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the year ended December 31, 2018. On March 16, 2018, we acquired all of the outstanding shares of Photocore AG, a vision-based 3D measurement application and software developer in Zurich, Switzerland, for a total purchase price of $2.4 million . This acquisition supports our Construction BIM vertical and our long-term strategy to improve our existing software offerings with innovative technology in photogrammetry. The results of PhotoCore AG’s operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the year ended December 31, 2018. On July 6, 2018, we acquired all of the outstanding shares of Lanmark, a high-speed laser marking control boards and laser marking software provider located in Acton, Massachusetts, for a purchase price of $6.3 million . An additional $1.0 million in contingent consideration may be earned by the former owners if certain milestones are met. This acquisition supports the development of components used in new 3D laser inspection product development in order to further expand the product portfolio of our Photonics vertical. The results of Lanmark’s operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the year ended, December 31, 2018. On July 13, 2018, we acquired all of the issued and outstanding corporate capital of Open Technologies, a 3D structured light scanning solution company located in Brescia, Italy, for an aggregate purchase price of up to € 18.5 million ( $21.6 million ), subject to post-closing adjustments based on actual net working capital, net financial position and transaction expenses. The aggregate purchase price includes up to € 4.0 million ( $4.7 million ) in contingent consideration that may be earned by the former owners if certain product development milestones are met. The U.S. Dollar amounts have been converted from Euros based on the foreign exchange rate in effect on the closing date of the acquisition. This acquisition supports our 3D Design vertical and our long-term strategy to establish a presence in 3D measurement technology used in other industries and applications, especially dental and medical. The results of Open Technologies’ operations as of and after the date of acquisition have been included in our consolidated financial statements as of and for the year ended, December 31, 2018. The acquisitions of Nutfield, Laser Control Systems, Photocore AG, Lanmark and Open Technologies constitute business combinations as defined by FASB ASC Topic 805, Business Combinations . Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The purchase price allocation marked as “Preliminary” below is based on the information that was available to make estimates of the fair value and may change as further information becomes available and additional analyses are completed. While we believe such information provides a reasonable basis for estimating the fair values, we may obtain more information and evidence during the measurement period that result in changes to the estimated fair value amounts. The measurement period ends on the earlier of one year after the acquisition date or the date we receive the information about the facts and circumstances that existed at the acquisition date. Subsequent adjustments, if necessary, will be recognized during the period in which the amounts are determined. These refinements include: (1) changes in the estimated fair value of certain intangible assets acquired; and (2) changes in deferred tax assets and liabilities related to the fair value estimates. The purchase price allocations marked as “Final” below represent our final determination of the fair value of the assets acquired and liabilities assumed for such acquisitions. Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition: Nutfield (Final) Laser Controls Systems (Final) Photocore AG (Final) Lanmark (Final) Open Technologies (3) (Preliminary) Accounts receivable $ 160 $ — $ — $ 610 $ 2,735 Inventory 539 — — 299 1,852 Other assets 96 — — 76 634 Deferred income tax assets 131 — — — — Intangible assets 2,329 1,400 1,435 1,366 10,388 Goodwill (1) 2,357 928 1,010 5,355 9,130 Accounts payable and accrued liabilities (12 ) — — (159 ) (2,926 ) Other liabilities (2) (104 ) (579 ) — (971 ) (5,201 ) Deferred income tax liabilities — — — (325 ) — Total purchase price, net of cash acquired $ 5,496 $ 1,749 $ 2,445 $ 6,251 $ 16,612 (1) The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. A portion of the goodwill is expected to be tax deductible for Nutfield. (2) For Laser Control Systems, Lanmark and Open Technologies, this total consists primarily of the fair value of the projected contingent consideration. (3) Amounts converted from Euros to U.S. Dollars based on the foreign exchange rate on the closing date of the acquisition. Following are the details of the purchase price allocated to the intangible assets acquired for the acquisitions noted above: Nutfield (Final) Laser Control Systems (Final) Photocore AG (Final) Lanmark (Final) Open Technologies (Preliminary) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ 29 1 $ — 0 $ — 0 $ — 0 $ — 0 Brand — 0 26 1 22 1 26 1 103 1 Non-competition agreement 144 5 29 3 9 3 — 0 — 0 Technology 1,970 10 1,319 7 1,343 7 760 7 4,441 7 Customer relationships 95 10 26 10 61 10 580 10 5,844 10 Favorable in-place lease 91 12 — 0 — 0 — 0 — 0 Fair value of intangible $ 2,329 10 $ 1,400 7 $ 1,435 7 $ 1,366 8 $ 10,388 8 The goodwill for the Nutfield, Laser Control Systems, Lanmark and Open Technologies acquisitions has been allocated to the Emerging Verticals reporting segment. The goodwill for the Photocore AG acquisition has been allocated to the Construction BIM reporting segment. Acquisition and integration costs are not included as components of consideration transferred, but are recorded as expense in the period in which such costs are incurred. To date, we have incurred approximately $0.9 million |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We have three reporting segments: 3D Manufacturing, Construction BIM, and Emerging Verticals. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reporting segments are aggregated in the Emerging Verticals category. We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software and 3D documentation systems in each of these reporting segments. These activities represent more than 99% of consolidated sales. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth. We use segment profit to evaluate the performance of our reporting segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly-titled measures reported by other companies. Our segment structure presented below represents a change from the prior year as further described in Note 1 “Summary of Significant Accounting Policies”. The amounts related to our reporting segment information for the year ended December 31, 2017 have been restated throughout this Annual Report on Form 10-K to reflect such changes in our reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2016 were restated but were not impacted by such changes in our reporting segments. Each of our reporting segments continue to employ consistent accounting policies. The following tables present information about our reporting segments, including a reconciliation of total segment profit to income (loss) from continuing operations included in the consolidated statements of operations for the years ended 2018 , 2017 , and 2016 : 3D Construction Emerging Total 2018 Total sales to external customers $ 264,430 $ 96,185 $ 43,012 $ 403,627 Segment profit $ 80,775 $ 27,513 $ 3,137 $ 111,425 General and administrative 47,652 Depreciation and amortization 18,313 Research and development 39,706 Income from operations $ 5,754 3D Construction Emerging Total 2017 Total sales to external customers $ 243,464 $ 86,349 $ 31,104 $ 360,917 Segment profit $ 77,537 $ 21,077 $ 2,479 $ 101,093 General and administrative 43,807 Depreciation and amortization 16,588 Research and development 35,376 Income from operations $ 5,322 3D Construction Emerging Total 2016 Total sales to external customers $ 236,313 $ 65,056 $ 24,215 $ 325,584 Segment profit $ 73,656 $ 14,799 $ 9,635 $ 98,090 General and administrative 40,813 Depreciation and amortization 13,868 Research and development 30,125 Income from operations $ 13,284 Total sales to external customers is based upon the geographic location of the customer. For the Years Ended December 31, 2018 2017 2016 Total sales to external customers United States $ 156,242 $ 141,595 $ 133,924 Americas-Other 15,086 13,531 11,815 Germany 53,251 49,860 44,041 Europe-Other 74,010 65,201 57,710 Japan 37,607 35,270 32,530 Asia-Other 67,431 55,460 45,564 $ 403,627 $ 360,917 $ 325,584 Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable. As of December 31, 2018 2017 2016 Long-Lived Assets United States $ 61,557 $ 54,703 $ 54,157 Americas-Other 10,702 13,834 13,486 Germany 30,154 26,611 23,734 Europe-Other 24,935 9,124 6,949 Japan 1,039 558 460 Asia-Other 2,358 2,246 1,915 $ 130,745 $ 107,076 $ 100,701 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 9, 2019, we entered into a letter agreement (the “Letter Agreement”) with Dr. Simon Raab, setting forth the terms of Dr. Raab’s retirement as our President and Chief Executive Officer and as a member of our Board of Directors. Dr. Raab will continue as our President and Chief Executive Officer and will remain on the Board of Directors until his successor is appointed. The Letter Agreement provides for the following compensation arrangements with Dr. Raab as an incentive to retain his services through the transition period: • Base salary - Dr. Raab’s base salary of $775,000 will continue until his retirement date. • Short-term incentive plan - Dr. Raab will be eligible to participate in our short-term incentive plan for 2019 with a target payout of 100% of his base salary conditioned upon our achievement of the 2019 financial targets approved by our Compensation Committee. In the event Dr. Raab’s retirement occurs prior to the end of 2019, he will be eligible to receive this incentive without pro ration. The payout to Dr. Raab under our short-term incentive plan could range from 0% to 200% of his base salary depending upon our achievement of our 2019 financial targets. • Long-term incentives - In lieu of an annual grant of stock options and in consideration for Dr. Raab’s commitment to provide transition assistance to his successor for a period of six months following his retirement date, on January 9, 2019, Dr. Raab received a grant of 24,606 restricted stock units, which will vest six months following his retirement date. In addition, all of Dr. Raab’s outstanding unvested stock options will fully vest as of his retirement date, and he will be permitted to exercise such options over the full term of each option grant. On January 29, 2019, we entered into a Second Amendment to Amended and Restated Lease Agreement (the “Second Amendment”) with Emma Investments, LLC (“Landlord”) with respect to our facility located at 125 Technology Park, Lake Mary, Florida (the “Building”). Pursuant to the Second Amendment, we have agreed to, among other items, extend the initial term of the lease for the approximately 35,000 square feet of production, research and development, service operations and manufacturing space in the Building leased under the original Amended and Restated Lease Agreement effective October 12, 2009, from June 30, 2019 to March 31, 2025. The Second Amendment also provides us with a tenant improvement allowance of up to $0.1 |
Quarterly Result of Operations
Quarterly Result of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Result of Operations (Unaudited) | QUARTERLY RESULT OF OPERATIONS (UNAUDITED) Quarter ended March 31, June 30, September 30, December 31, Sales (1) $ 92,834 $ 98,244 $ 99,705 $ 112,844 Gross profit (2) 53,786 57,691 52,317 64,551 Net income (loss) (3) 455 1,205 (2,488 ) 5,758 Net income (loss) per share: Basic $ 0.03 $ 0.07 $ (0.15 ) $ 0.33 Diluted $ 0.03 $ 0.07 $ (0.15 ) $ 0.33 (1) For the fourth quarter of 2018, sales were reduced by a $4.8 million estimated cumulative sales adjustment, representative of the last six years of estimated overcharges to the Government under the GSA Contracts. (2) For the third quarter of 2018, gross profit was reduced by a $4.7 million inventory reserve charge resulting from an analysis of our inventory reserves in connection with our new product introductions and acquisitions, which increased our reserve for excess and obsolete inventory. (3) For the fourth quarter of 2018, as additional guidance was released during the SAB 118 remeasurement period related to the U.S. Tax Reform, we completed our transition tax analysis, which resulted in an income tax benefit of $1.0 million . Quarter ended March 31, 2017 June 30, September 30, 2017 December 31, 2017 Sales $ 81,562 $ 82,682 $ 90,250 $ 106,423 Gross profit 43,749 46,760 52,034 62,094 Net (loss) income (1) (1,461 ) (3,625 ) 1,628 (11,058 ) Net (loss) income per share: Basic $ (0.09 ) $ (0.22 ) $ 0.10 $ (0.66 ) Diluted $ (0.09 ) $ (0.22 ) $ 0.10 $ (0.66 ) (1) For the fourth quarter of 2017, $19.4 million of additional income tax expense was recorded pursuant to the U.S. Tax Reform. $17.4 million of this expense related to a provisional amount of transition tax on the mandatory deemed repatriation of foreign earnings. $2.0 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Reportable Segments Policy | In 2016, we evaluated our reporting segment structure based on our new management organization and the changes implemented in connection with our initiatives to reorganize our business around certain vertical markets. We report our segment information in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting (“FASB ASC Topic 280”). We evaluate business performance based upon several metrics, using revenue growth and segment profit as the primary financial measures. During 2018, the following changes were made to our verticals and reporting segments: • In the first quarter of 2018, we combined our historical Factory Metrology and 3D Machine Vision verticals under a single reporting segment, 3D Factory, which replaced our Factory Metrology reporting segment, due to the linkage between the two historical verticals related to the type or class of customers served, the nature of the products and services provided, and the nature of the production processes. The 3D Machine Vision vertical was previously reported in our Other reporting segment. • In the first quarter of 2018, we renamed our Construction BIM-CIM vertical and reporting segment “Construction BIM.” • In the first quarter of 2018, we renamed our Other reporting segment “Emerging Verticals.” • In the third quarter of 2018, we merged the historical Factory Metrology and 3D Machine Vision verticals into one vertical named “3D Factory” for greater consistency with our realigned reporting segments. • In the third quarter of 2018, we segregated the operations of our acquisitions of Laser Control Systems Limited (“Laser Control Systems”) and Lanmark Controls, Inc. (“Lanmark”), along with the operations resulting from our acquisition of substantially all of the assets of Instrument Associates, LLC d/b/a Nutfield Technology (“Nutfield”), into a vertical that we named “Photonics.” The creation of this vertical enables us to better focus on our product range directed at laser steering. These operations were historically reported in the 3D Factory reporting segment in the first six months of 2018 and the historical Factory Metrology reporting segment in 2017 and are now included in the Emerging Verticals (formerly known as “Other”) reporting segment. Due to this change, we performed a qualitative goodwill impairment analysis in the third quarter of 2018, and management concluded there was no goodwill impairment at the time of this vertical reporting change. • In the third quarter of 2018, we renamed our Product Design vertical “3D Design.” • In the fourth quarter of 2018, we renamed our 3D Factory vertical and reporting segment “3D Manufacturing.” There were no changes in our total consolidated financial condition or results of operations previously reported as a result of the changes in our verticals and reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2017 have been restated throughout this Annual Report on Form 10-K to reflect the above changes in our reporting segments. The amounts related to our reporting segment information for the year ended December 31, 2016 were restated but were not impacted by the above changes in our reporting segments. Each of our reporting segments continue to employ consistent accounting policies. As a result of our assessments of our reporting segments, we now report our activities in the following three reporting segments: • The 3D Manufacturing reporting segment contains solely our 3D Manufacturing vertical, which provides both standardized and customized solutions for 3D measurement and inspection in an industrial or manufacturing environment. Applications include alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and set-up, and assembly guidance. • The Construction BIM reporting segment contains solely our Construction BIM vertical and provides solutions for as-built data capturing and 3D visualization in building information modeling applications, allowing our customers in our architecture, engineering and construction markets to quickly and accurately extract two-dimensional (“2D”) and 3D measurement points. Applications include as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation. • The Emerging Verticals reporting segment includes our 3D Design, Public Safety Forensics and Photonics verticals. Our 3D Design vertical provides advanced 3D solutions to capture and edit 3D shapes of products, people, and/or environments for design purposes in product development, computer graphics, and dental and medical applications. Our Public Safety Forensics vertical provides solutions to public safety officials and professionals to capture environmental or situational scenes in 2D and 3D for crime, crash and fire scene investigations and environmental safety evaluations. Our Photonics vertical develops and markets galvanometer-based laser measurement products and solutions. All operating segments that do not meet the criteria to be reporting segments are aggregated in the Emerging Verticals reporting segment and have been combined based on the aggregation criteria and quantitative thresholds in accordance with the provisions of FASB ASC Topic 280. Our reporting segments have been determined in accordance with our internal management structure, which is based on operating activities. Each segment is responsible for its own product management, sales, strategy and profitability. |
Principles of Consolidation Policy | Our consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly owned. All intercompany transactions and balances have been eliminated. |
Foreign Currency Translations Policy | The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive loss. Foreign currency transaction gains and losses are included in net income (loss). |
Revenue Recognition, Product Warranty and Extended Warranty Contracts Policy | Fees billed to customers associated with the distribution of products are classified as revenue. We warrant our products against defects in design, materials and workmanship for one year |
Cash and Cash Equivalents Policy | We consider cash on hand and amounts on deposit with financial institutions with maturities of three |
Accounts Receivable and Related Allowance for Doubtful Accounts Policy | Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 to 90 days |
Inventories Policy | Inventories are stated at the lower of cost or net realizable value using the first-in first-out (“FIFO”) method. Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring and imaging devices utilized by sales representatives to present our products to customers. Management expects sales demonstration inventory to be held by our sales representatives for up to three years , at which time it is refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. Management expects these refurbished units to remain in finished goods inventory and be sold within 12 months at prices that produce reduced gross margins. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal. Service inventory is typically used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over its remaining useful life, typically three years |
Reserve for Excess and Obsolete Inventory Policy | Since the value of inventory that will ultimately be realized cannot be known with exact certainty, we rely upon both past sales history and future sales forecasts to provide a basis for the determination of the reserve. Inventory is considered potentially obsolete if we have withdrawn those products from the market or had no sales of the product for the past 12 months and have no sales forecasted for the next 12 months. Inventory is considered potentially excess if the quantity on hand exceeds 12 months of expected remaining usage. The resulting potentially obsolete and excess parts are then reviewed to determine if a substitute usage or a future need exists. Items without an identified current or future usage are reserved in an amount equal to 100% |
Property and Equipment Policy | Property and equipment purchases exceeding a thousand dollars are capitalized and recorded at cost. Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows: Machinery, equipment and software 2 to 5 years Furniture and fixtures 3 to 10 years |
Business Combinations Policy | We allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Critical estimates are also made in valuing earn-outs, which represent arrangements to pay former owners based on the satisfaction of performance criteria. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one |
Goodwill and Intangible Assets Policy | Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. We do not amortize goodwill; however, we perform an annual review each year, or more frequently if indicators of potential impairment exist, to determine if the carrying value of the recorded goodwill or indefinite lived intangible assets is impaired. We evaluate goodwill for impairment annually as of October 1, or when an indicator of impairment exists. If an asset is impaired, the difference between the carrying value of the asset reflected in the financial statements and its current fair value is recognized as an expense in the period in which the impairment occurs. See Note 7, “Goodwill” and Note 8, “Intangible Assets” for further information regarding goodwill and intangible assets, respectively. Each period, and for any of our reporting units, we can elect to perform a qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If we believe, as a result of our qualitative assessment, that it is not more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying amount, then the first and second steps of the quantitative goodwill impairment test are unnecessary. If we elect to bypass the qualitative assessment option, or if the qualitative assessment was performed and resulted in the Company being unable to conclude that it is not more likely than not that the fair value of a reporting unit containing goodwill is greater than its carrying amount, we will perform the two-step quantitative goodwill impairment test. We perform the first step of the two-step quantitative goodwill impairment test by calculating the fair value of the reporting unit using a discounted cash flow method and market approach method, and then comparing the respective fair value with the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, we perform the second step of the quantitative goodwill impairment test to measure the amount of the impairment loss, if any. Management has concluded there was no goodwill impairment for the years ended December 31, 2018, 2017, and 2016. Other intangible assets principally include patents, existing product technology and customer relationships that arose in connection with our acquisitions. Other intangible assets are recorded at fair value at the date of acquisition and are amortized over their estimated useful lives of 3 to 20 years. As of December 31, 2018 and 2017, there were no indefinite-lived intangible assets. Product technology and patents are recorded at cost. Amortization expense is computed using the straight-line method over the lives of the product technology and patents of 7 to 20 years. The remaining weighted-average amortization period for all our intangible assets is eight years |
Long-Lived Assets Policy | Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of an asset group may not be fully recoverable, comparing projected undiscounted future cash flows to the carrying value of the asset group. |
Research and Development Policy | Research and development costs incurred in the discovery of new knowledge and the resulting translation of this new knowledge into plans and designs for new products prior to the attainment of the related products’ technological feasibility are recorded as expenses in the period incurred. |
Reserve for Warranties Policy | We establish at the time of sale a liability for the one-year warranty included with the initial purchase price of our products, based upon an estimate of the repair expenses likely to be incurred for the warranty period. The warranty period is measured in installation-months for each major product group. The warranty reserve is included in accrued liabilities in the accompanying consolidated balance sheets. The warranty expense is estimated by applying the actual total repair expenses for each product group in the prior period and determining a rate of repair expense per installation-month. This repair rate is multiplied by the number of installation-months of warranty for each product group to determine the provision for warranty expenses for the period. We evaluate our exposure to warranty costs at the end of each period using the estimated expense per installation-month for each major product group, the number of units remaining under warranty, and the remaining number of months each unit will be under warranty. We have a history of new product introductions and enhancements to existing products, which may result in unforeseen issues that increase our warranty costs. While such expenses have historically been within expectations, we cannot guarantee this will continue in the future. |
Income Taxes Policy | We review our deferred tax assets on a regular basis to evaluate their recoverability based upon expected future reversals of deferred tax assets and liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. Our evaluation of the need for the valuation allowance is significantly influenced by our ability to maintain profitability and our ability to predict and achieve future projections of taxable income. We recognize tax benefits related to uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities. For those positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. In the ordinary course of business, we are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. See Note 12, “Income Taxes” for further information regarding income taxes. |
(Loss) Earnings Per Share Policy | Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a loss for the period presented, the diluted loss per share calculation does not include our potential common stock, as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 15, “Earnings (Loss) Per Share.” |
Accounting for Stock-Based Compensation Policy | We measure and record compensation expense using the applicable accounting guidance for share-based payments related to stock options, restricted stock, and performance-based awards granted to our directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated, at the date of grant, using the Black-Scholes option-pricing model. The fair value of restricted stock awards and stock options with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. In valuing our stock options, significant judgment is required in determining the expected volatility of our common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility for stock options is based on the historical and implied volatility of our own common stock while the volatility for our restricted stock units with a market condition is based on the historical volatility of our own stock and the stock of companies within our defined peer group. The expected life of stock options is derived from the historical actual term of option grants and an estimate of future exercises during the remaining contractual period of the option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure as they represent future expectations based on historical experience. Further, our expected volatility and expected life may change in the future, which could substantially change the grant-date fair value of future awards of stock options and, ultimately, the expense we record. The fair value of restricted stock, including performance awards, without a market condition is estimated using the current market price of our common stock on the date of grant. We expense stock-based compensation for stock options, restricted stock awards, and performance awards over the requisite service period. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with both performance and service conditions, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award, taking into account the probability that we will satisfy the performance conditions. Furthermore, we expense awards with a market condition over the three |
Concentration of Credit Risk Policy | Financial instruments that expose us to concentrations of credit risk consist principally of short-term investments and operating demand deposit accounts. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and believe we are not exposed to any significant credit risk on our operating demand deposit accounts. |
Estimates Policy | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Impact of Recently Issued Accounting Standards Policy | In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. FASB ASC Topic 805 recognized three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller used in operating a set were not required if market participants could acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. The new guidance provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business. ASU 2017-01 provides more stringent criteria for sets without outputs and more narrowly defines the term output. ASU 2017-01 became effective for us on January 1, 2018 and was applied prospectively. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”), which removes the prohibition in FASB ASC Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized when the transfer occurs, instead of deferred until the transferred asset is sold to a third party or otherwise recovered through use of the asset. The new guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU 2016-16 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) (“ASU 2014-09”), amending its accounting guidance related to revenue recognition. Under this ASU and subsequently issued amendments, revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective method of adoption. The following is a summary of impacts by significant revenue stream: • Measurement equipment and related software: Under the prior accounting guidance, FASB ASC Topic 605, which is applicable to reporting periods before January 1, 2018, sales of measurement and imaging equipment and related software sales were generally recognized upon shipment, as we considered the earnings process complete as of the shipping date. The related software sold with our measurement and imaging equipment functions together with such equipment to deliver the tangible product’s essential functionality. Further, customers frequently purchase extended warranties with the purchase of measurement equipment and related software. Under the new adopted guidance, FASB ASC Topic 606, which is applicable to reporting periods beginning on or after January 1, 2018, we allocate the contract price to performance obligations based on our best estimate of the standalone selling price. We make this allocation estimate utilizing data from the sale of our applicable products and services to customers separately in similar circumstances, with the exception of software licenses. With respect to software licenses, we use the residual method for allocating the contract price to performance obligations relating to software licenses. Revenue related to our measurement and imaging equipment and related software is generally recognized upon shipment from our facilities or when delivered to the customer location, as determined by the agreed upon shipping terms, at which time we are entitled to payment and title and control has passed to the customer. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to our measurement and imaging equipment and related software. • Extended warranties: Under the prior accounting guidance, FASB ASC Topic 605, which is applicable to reporting periods before January 1, 2018, extended warranty sales were recognized on a straight-line basis over the term of the warranty. Extended warranty sales include contract periods that extend between one month and three years. The unearned service revenues reported in current and noncurrent liabilities on our consolidated balance sheets appropriately reflect the remaining performance obligations related to these contracts. Our adoption of the new guidance, FASB ASC Topic 606, which is applicable to reporting periods beginning on or after January 1, 2018, did not result in material changes to our accounting for revenue related to extended warranties. • Software: Under the prior accounting guidance, FASB ASC Topic 605, which is applicable to reporting periods before January 1, 2018, software-only sales were recognized when no further significant production, modification or customization of the software was required and when the following criteria were met: persuasive evidence of a sales agreement existed, delivery had occurred, and the sales price was fixed or determinable and deemed collectible. These software arrangements generally include short-term maintenance that is considered post-contract support. Maintenance renewals, when sold, were recognized on a straight-line basis over the term of the maintenance agreement. Our adoption of the new guidance, FASB ASC Topic 606, which is applicable to reporting periods beginning on or after January 1, 2018, did not result in material changes to our accounting for revenue related to software-only sales and maintenance renewals. The unearned service revenue liabilities reported on our consolidated balance sheets reflect the contract liabilities to satisfy the remaining performance obligations for extended warranties and software maintenance. The current portion of unearned service revenues on our consolidated balance sheets is what we expect to recognize to revenue within twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. The Unearned service revenues - less current portion on our consolidated balance sheets is what we expect to recognize to revenue extending beyond twelve months after the applicable balance sheet date relating to extended warranty and software maintenance contract liabilities. Customer deposits on our consolidated balance sheets represent customer prepayments on contracts for performance obligations that we must satisfy in the future to recognize the related contract revenue. These amounts are generally related to performance obligations which are delivered in less than 12 months. During the year ended December 31, 2018, we recognized $25.0 million of service revenue that was deferred on our consolidated balance sheet as of December 31, 2017. Under the prior accounting guidance, FASB ASC Topic 605, which is applicable to reporting periods before January 1, 2018, we recognized sales commission expense as incurred. Under the new guidance, FASB ASC Topic 606, which is applicable to reporting periods beginning on or after January 1, 2018, we must capitalize the commission expense and amortize such costs ratably over the term of the contract. In accordance with the practical expedient and modified retrospective method of adoption, we recorded a net increase to opening retained earnings as of January 1, 2018 of $1.8 million and recognized an associated $2.4 million deferred cost asset due to the cumulative impact of adopting the new guidance. As of December 31, 2018, the deferred cost asset related to deferred commissions was approximately $2.7 million . For classification purposes, $1.8 million and $0.9 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our consolidated balance sheet as of December 31, 2018. We have elected the practical expedient to account for shipping and handling as activities to fulfill the promise to transfer the good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Product Sales and shipping and handling costs incurred are recorded in Cost of Sales. Additionally, we have elected the practical expedient to exclude from Sales any value added, sales and other taxes that we collect concurrently with revenue-producing activities. These accounting policy elections are consistent with the manner in which we have historically recorded shipping and handling fees and taxes. The nature of certain of our contracts gives rise to variable consideration, which may be constrained, primarily related to an allowance for sales returns. In accordance with the adoption of the new guidance, we are required to estimate the contract asset related to sales returns and record a corresponding adjustment to Cost of Sales. Historically, our allowance for sales returns has not been material and was approximately $0.1 million as of December 31, 2018. As such, our adoption of the new guidance did not result in material changes to our accounting for variable consideration related to sales returns, and the corresponding contract asset related to such returns. See Note 3 “Revenues” for further information. Impact of Recently Issued Accounting Standards —In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which is intended to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the current guidance, performance of Step 2 requires us to calculate the implied fair value of goodwill by following procedures that would be required to determine the fair value of assets acquired and liabilities assumed in a business combination. Under the new guidance, we will perform our goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value up to the amount of the goodwill allocated to the reporting unit. The new guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test if it fails the qualitative assessment. As a result, all reporting units will be subject to the same impairment assessment. We will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 becomes effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for annual or any interim goodwill impairment tests after January 1, 2017. The amendments in this ASU will be applied on a prospective basis. Disclosure of the nature and reason for the change in accounting principle is required upon transition. This disclosure is required in the first annual period and in the interim period within the first annual period when we initially adopt the amendments in this ASU. We plan to adopt this guidance for our fiscal year ending December 31, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2018-11, Lease Topic 842: Targeted Improvements , was issued by the FASB in July 2018 and allows for a cumulative-effect adjustment transition method of adoption. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. We plan to adopt ASU 2016-02 in the first quarter of 2019 with a cumulative-effect adjustment made on January 1, 2019. We are in the process of calculating the impact of adoption of this ASU on our consolidated financial statements, and are currently finalizing the implementation of a lease management software to assist in this task. We believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for operating leases where we function as a lessee. We estimate the impact of the adoption of ASU 2016-02 will be between a $14 million to $17 million increase in right-of use assets and lease liabilities. |
Reclassifications Policy | Certain prior year amounts have been reclassified in the accompanying consolidated financial statements to conform to the current period presentation: • |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows: Machinery, equipment and software 2 to 5 years Furniture and fixtures 3 to 10 years |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash Payments and Non-Cash Activity | Selected cash payments and non-cash activities were as follows: Years ended December 31, 2018 2017 2016 Supplemental cash flow information: Cash paid for interest $ 4 $ 9 $ 28 Cash paid for income taxes $ 5,813 $ 2,488 $ 2,576 Supplemental noncash investing and financing activities: Transfer of service and sales demonstration inventory to fixed assets $ 964 $ 2,844 $ 511 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues by Sales type as presented in our consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands): Years ended December 31, 2018 2017 2016 Product Sales Products transferred to a customer at a point in time $ 311,102 $ 277,922 $ 256,010 Products transferred to a customer over time — — — $ 311,102 $ 277,922 $ 256,010 Years ended December 31, 2018 2017 2016 Service Sales Service transferred to a customer at a point in time $ 42,932 $ 36,164 $ 31,529 Service transferred to a customer over time 49,593 46,831 38,045 $ 92,525 $ 82,995 $ 69,574 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands): Years ended December 31, 2018 2017 2016 Total Sales to External Customers United States $ 156,242 $ 141,595 $ 133,924 EMEA (1) 127,261 115,061 101,751 APAC (1) 105,038 90,730 78,094 Other Americas (1) 15,086 13,531 11,815 $ 403,627 $ 360,917 $ 325,584 (1) |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts Roll Forward | Activity in the allowance for doubtful accounts was as follows: Years ended December 31, 2018 2017 2016 Balance, beginning of year $ 1,957 $ 1,829 $ 1,417 Provision (net of recovery) 907 370 898 Amounts written off, net of recoveries (1,116 ) (242 ) (486 ) Balance, end of year $ 1,748 $ 1,957 $ 1,829 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: December 31, 2018 December 31, 2017 Raw materials $ 39,859 $ 36,328 Finished goods 25,585 17,458 Inventories, net $ 65,444 $ 53,786 Service and sales demonstration inventory, net $ 39,563 $ 39,614 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill by Reporting Units | December 31, 2018 Beginning Additions Foreign Ending 3D Manufacturing $ 40,802 $ — $ (1,316 ) $ 39,486 Construction BIM 6,521 1,010 (226 ) 7,305 Public Safety Forensics 3,070 — (107 ) 2,963 3D Design — 9,130 (180 ) 8,950 Photonics 2,357 6,283 (70 ) 8,570 Total $ 52,750 $ 16,423 $ (1,899 ) $ 67,274 December 31, 2017 Beginning Additions Foreign Ending 3D Manufacturing $ 37,861 $ — $ 2,941 $ 40,802 Construction BIM 6,078 — 443 6,521 Public Safety Forensics 2,805 55 210 3,070 3D Design — — — — Photonics — 2,357 — 2,357 Total $ 46,744 $ 2,412 $ 3,594 $ 52,750 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Schedule | Intangible assets consist of the following: As of December 31, 2018 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 26,588 $ 12,332 $ 14,256 Patents and trademarks 14,647 6,601 8,046 Customer relationships 12,027 2,588 9,439 Other 8,693 7,380 1,313 Total $ 61,955 $ 28,901 $ 33,054 As of December 31, 2017 Carrying Value Accumulated Net Intangible Amortizable intangible assets: Product technology $ 19,459 $ 10,885 $ 8,574 Patents and trademarks 13,948 5,720 8,228 Customer relationships 5,889 1,685 4,204 Other 7,443 5,909 1,534 Total $ 46,739 $ 24,199 $ 22,540 |
Estimated Amortization Expense Schedule | The estimated amortization expense for each of the years 2019 through 2023 and thereafter is as follows: Years ending December 31, Amount 2019 $ 5,333 2020 4,886 2021 4,717 2022 4,231 2023 3,804 Thereafter 10,083 $ 33,054 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities Schedule | Accrued liabilities consist of the following: As of December 31, 2018 2017 Accrued compensation and benefits $ 17,745 $ 16,144 Accrued warranties 2,571 2,628 Professional and legal fees 2,154 1,541 Taxes other than income 3,550 3,787 General services administration contract contingent liability (see Note 13) 5,267 — Other accrued liabilities 5,040 3,262 $ 36,327 $ 27,362 |
Schedule of Activity Related to Accrued Warranties | Activity related to accrued warranties was as follows: Years ended December 31, 2018 2017 2016 Balance, beginning of year $ 2,628 $ 2,594 $ 2,309 Provision for warranty expense 4,096 4,045 3,544 Fulfillment of warranty obligations (4,153 ) (4,011 ) (3,259 ) Balance, end of year $ 2,571 $ 2,628 $ 2,594 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations. Historically, we have presented short-term investments in the fair value table presented below. As our short-term investments in the accompanying consolidated balance sheets are comprised of U.S. Treasury Bills, these investments are classified as held-to-maturity investments and are not recorded at fair value on a recurring basis in our consolidated balance sheets. As such, we have removed short-term investments from the table below. December 31, 2018 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,531 Total $ — $ — $ 5,531 December 31, 2017 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 412 Total $ — $ — $ 412 (1) Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired based on the former owners attaining future product release milestones. We use a probability-weighted discounted cash flow model to estimate the fair value of contingent consideration liabilities. These probability weightings are developed internally and assessed on a quarterly basis. For the year ended December 31, 2018, we paid $0.9 million as part of these arrangements. For the year ended December 31, 2017, we paid $0.5 million as part of these arrangements. The remaining change in the fair value of the contingent consideration from December 31, 2017 to December 31, 2018 was related to various business acquisitions we made during the year ended December 31, 2018, which included Laser Controls System, Lanmark and Opto-Tech SRL and its subsidiary Open Technologies SRL (collectively, “Open Technologies”), as well as changes in foreign currency exchange rates. The undiscounted maximum payment as of December 31, 2018 under the arrangements was $6.0 million |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense, Net | Other expense (income), net consists of the following: Years ended December 31, 2018 2017 2016 Foreign exchange transaction losses (gains) $ 1,386 $ (162 ) $ 1,356 Other (247 ) (28 ) (534 ) Total other expense (income), net $ 1,139 $ (190 ) $ 822 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Income (loss) before income tax (benefit) expense consists of the following: Years ended December 31, 2018 2017 2016 Domestic $ (1,723 ) $ 2,468 $ (1,527 ) Foreign 6,281 3,359 14,153 Income before income taxes $ 4,558 $ 5,827 $ 12,626 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax (benefit) expense for income taxes are as follows: Years ended December 31, 2018 2017 2016 Current: Federal $ (1,694 ) $ 18,951 $ 409 State 120 507 40 Foreign 1,394 2,072 3,482 Current income tax (benefit) expense (180 ) 21,530 3,931 Deferred: Federal (486 ) 1,038 (2,357 ) State (153 ) (580 ) (229 ) Foreign 447 (1,645 ) 174 Deferred income tax benefit (192 ) (1,187 ) (2,412 ) Income tax (benefit) expense $ (372 ) $ 20,343 $ 1,519 |
Reconciliation of Income Tax Expense (Benefit) | Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax (benefit) expense are summarized below: Years ended December 31, 2018 2017 2016 Tax expense at statutory rate $ 956 $ 1,981 $ 4,427 State income taxes, net of federal benefit (195 ) 81 (50 ) Foreign tax rate difference (1,003 ) (2,057 ) (1,939 ) Research and development credit (919 ) (1,037 ) (917 ) Change in valuation allowance 464 678 162 Equity based compensation (198 ) 33 (255 ) Manufacturing credit — (191 ) (61 ) Permanent impact of non-deductible cost 1,120 766 412 Provision to return adjustments 345 777 (61 ) Impact of Tax Cuts and Jobs Act of 2017 (1,000 ) 19,355 — Other 58 (43 ) (199 ) Income tax (benefit) expense $ (372 ) $ 20,343 $ 1,519 |
Schedule of Components of Net Deferred Income Tax Assets and Liabilities | The components of our net deferred income tax asset and liabilities are as follows: As of December 31, 2018 2017 Net deferred income tax asset - Non-current Warranty cost $ 533 $ 695 Inventory reserve 1,559 419 Unearned service revenue 6,684 5,364 Employee stock options 4,222 4,366 Tax Credits 485 1,785 Loss carryforwards 7,038 8,782 Other, net 759 1,479 Total deferred tax assets 21,280 22,890 Valuation Allowance (1,924 ) (1,631 ) Total deferred tax assets net of valuation allowance 19,356 21,259 Net deferred income tax liability - Non-current Bad debt reserve (116 ) (2 ) Depreciation (2,996 ) (3,675 ) Goodwill (1,612 ) (1,574 ) Intangible assets (649 ) (1,097 ) Total deferred tax liabilities (5,373 ) (6,348 ) Net deferred tax assets $ 13,983 $ 14,911 |
Summary of Income Tax Examinations | The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2018 : Jurisdiction Open Years Examination United States - Federal Income Tax 2015-2018 N/A United States - various states 2014-2018 N/A Germany 2014-2018 N/A Switzerland 2018 N/A Singapore 2014-2018 N/A |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Required under Non-Cancelable Operating Leases | The following is a schedule of future minimum lease payments required under non-cancellable operating leases with initial terms in excess of one year, in effect at December 31, 2018 : Years ending December 31, Amount 2019 $ 7,474 2020 4,679 2021 1,724 2022 1,313 2023 1,270 Thereafter 3,168 Total future minimum lease payments $ 19,628 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | For stock options granted during the years ended December 31, 2018 , 2017 , and 2016 valued using the Black-Scholes option valuation model, we used the following assumptions: Years ended December 31, 2018 2017 2016 Risk-free interest rate 2.65 % 1.88% - 2.02% 1.06% - 1.57% Expected dividend yield — % — % — % Expected option life 4 years 5 years 4 years Expected volatility 45 % 45.2 % 45.0% - 47.0% Weighted-average expected volatility 45.0 % 45.2 % 46.1 % |
Schedule of Stock Option Activity and Weighted Average Exercise Prices | A summary of stock option activity and weighted average exercise prices follows: Options Weighted- Weighted-Average Aggregate Intrinsic Outstanding at January 1, 2018 1,156,763 $ 45.93 Granted 174,439 61.30 Forfeited (81,222 ) 51.66 Exercised (439,877 ) 47.21 Unearned performance-based options (17,160 ) 59.97 Outstanding at December 31, 2018 792,943 $ 47.59 4.4 $ 2,160 Options exercisable at December 31, 2018 427,006 $ 48.84 2.1 $ 862 |
Schedule of Restricted Stock and Restricted Stock Units Activity and Weighted-Average Grant Date Fair Value | The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the year ended December 31, 2018 : Shares Weighted-Average Non-vested at January 1, 2018 257,492 $ 34.75 Granted 102,458 60.26 Forfeited (29,692 ) 39.36 Vested (18,618 ) 35.03 Unearned performance-based awards (640 ) 51.15 Non-vested at December 31, 2018 311,000 $ 42.66 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) | A reconciliation of the number of common shares used in the calculation of basic and diluted earnings (loss) per share is presented below: Years Ended December 31, 2018 2017 2016 Shares Per-Share Shares Per-Share Shares Per-Share Basic earnings (loss) per share 17,043,167 $ 0.29 16,711,534 $ (0.87 ) 16,654,786 $ 0.67 Effect of dilutive securities 305,289 — — — 26,924 — Diluted earnings (loss) per share 17,348,456 — $ 0.29 16,711,534 $ (0.87 ) 16,681,710 $ 0.67 Securities excluded from the determination of weighted average shares for the calculation of diluted earnings (loss) per share, as they were potentially antidilutive 393,970 1,049,563 1,046,947 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation to the Fair Values of Assets Acquired and Liabilities Assumed | Following is a summary of our allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition: Nutfield (Final) Laser Controls Systems (Final) Photocore AG (Final) Lanmark (Final) Open Technologies (3) (Preliminary) Accounts receivable $ 160 $ — $ — $ 610 $ 2,735 Inventory 539 — — 299 1,852 Other assets 96 — — 76 634 Deferred income tax assets 131 — — — — Intangible assets 2,329 1,400 1,435 1,366 10,388 Goodwill (1) 2,357 928 1,010 5,355 9,130 Accounts payable and accrued liabilities (12 ) — — (159 ) (2,926 ) Other liabilities (2) (104 ) (579 ) — (971 ) (5,201 ) Deferred income tax liabilities — — — (325 ) — Total purchase price, net of cash acquired $ 5,496 $ 1,749 $ 2,445 $ 6,251 $ 16,612 (1) The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. A portion of the goodwill is expected to be tax deductible for Nutfield. (2) For Laser Control Systems, Lanmark and Open Technologies, this total consists primarily of the fair value of the projected contingent consideration. (3) |
Summary of the Purchase Price Preliminarily Allocated to the Intangible Assets Acquired for the Acquisitions | Following are the details of the purchase price allocated to the intangible assets acquired for the acquisitions noted above: Nutfield (Final) Laser Control Systems (Final) Photocore AG (Final) Lanmark (Final) Open Technologies (Preliminary) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ 29 1 $ — 0 $ — 0 $ — 0 $ — 0 Brand — 0 26 1 22 1 26 1 103 1 Non-competition agreement 144 5 29 3 9 3 — 0 — 0 Technology 1,970 10 1,319 7 1,343 7 760 7 4,441 7 Customer relationships 95 10 26 10 61 10 580 10 5,844 10 Favorable in-place lease 91 12 — 0 — 0 — 0 — 0 Fair value of intangible $ 2,329 10 $ 1,400 7 $ 1,435 7 $ 1,366 8 $ 10,388 8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | The following tables present information about our reporting segments, including a reconciliation of total segment profit to income (loss) from continuing operations included in the consolidated statements of operations for the years ended 2018 , 2017 , and 2016 : 3D Construction Emerging Total 2018 Total sales to external customers $ 264,430 $ 96,185 $ 43,012 $ 403,627 Segment profit $ 80,775 $ 27,513 $ 3,137 $ 111,425 General and administrative 47,652 Depreciation and amortization 18,313 Research and development 39,706 Income from operations $ 5,754 3D Construction Emerging Total 2017 Total sales to external customers $ 243,464 $ 86,349 $ 31,104 $ 360,917 Segment profit $ 77,537 $ 21,077 $ 2,479 $ 101,093 General and administrative 43,807 Depreciation and amortization 16,588 Research and development 35,376 Income from operations $ 5,322 3D Construction Emerging Total 2016 Total sales to external customers $ 236,313 $ 65,056 $ 24,215 $ 325,584 Segment profit $ 73,656 $ 14,799 $ 9,635 $ 98,090 General and administrative 40,813 Depreciation and amortization 13,868 Research and development 30,125 Income from operations $ 13,284 |
Schedule of Net Sales to External Customers Based Upon Geographic Location | Total sales to external customers is based upon the geographic location of the customer. For the Years Ended December 31, 2018 2017 2016 Total sales to external customers United States $ 156,242 $ 141,595 $ 133,924 Americas-Other 15,086 13,531 11,815 Germany 53,251 49,860 44,041 Europe-Other 74,010 65,201 57,710 Japan 37,607 35,270 32,530 Asia-Other 67,431 55,460 45,564 $ 403,627 $ 360,917 $ 325,584 |
Schedule of Long Lived Assets Attributed to Geographic Area | Long-lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated, as applicable. As of December 31, 2018 2017 2016 Long-Lived Assets United States $ 61,557 $ 54,703 $ 54,157 Americas-Other 10,702 13,834 13,486 Germany 30,154 26,611 23,734 Europe-Other 24,935 9,124 6,949 Japan 1,039 558 460 Asia-Other 2,358 2,246 1,915 $ 130,745 $ 107,076 $ 100,701 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | . |
Quarterly Result of Operation_2
Quarterly Result of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Quarter ended March 31, June 30, September 30, December 31, Sales (1) $ 92,834 $ 98,244 $ 99,705 $ 112,844 Gross profit (2) 53,786 57,691 52,317 64,551 Net income (loss) (3) 455 1,205 (2,488 ) 5,758 Net income (loss) per share: Basic $ 0.03 $ 0.07 $ (0.15 ) $ 0.33 Diluted $ 0.03 $ 0.07 $ (0.15 ) $ 0.33 (1) For the fourth quarter of 2018, sales were reduced by a $4.8 million estimated cumulative sales adjustment, representative of the last six years of estimated overcharges to the Government under the GSA Contracts. (2) For the third quarter of 2018, gross profit was reduced by a $4.7 million inventory reserve charge resulting from an analysis of our inventory reserves in connection with our new product introductions and acquisitions, which increased our reserve for excess and obsolete inventory. (3) For the fourth quarter of 2018, as additional guidance was released during the SAB 118 remeasurement period related to the U.S. Tax Reform, we completed our transition tax analysis, which resulted in an income tax benefit of $1.0 million . Quarter ended March 31, 2017 June 30, September 30, 2017 December 31, 2017 Sales $ 81,562 $ 82,682 $ 90,250 $ 106,423 Gross profit 43,749 46,760 52,034 62,094 Net (loss) income (1) (1,461 ) (3,625 ) 1,628 (11,058 ) Net (loss) income per share: Basic $ (0.09 ) $ (0.22 ) $ 0.10 $ (0.66 ) Diluted $ (0.09 ) $ (0.22 ) $ 0.10 $ (0.66 ) (1) For the fourth quarter of 2017, $19.4 million of additional income tax expense was recorded pursuant to the U.S. Tax Reform. $17.4 million of this expense related to a provisional amount of transition tax on the mandatory deemed repatriation of foreign earnings. $2.0 million |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)segmentplan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($) | Jan. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Standard product warranty period | 1 year | ||||
Deposits with foreign banks | $ 77,500,000 | $ 98,800,000 | |||
Sales demonstration inventory turnover period (up to) | 3 years | ||||
Refurbished sales demonstration inventory turnover period | 12 months | ||||
Service inventory turnover period | 12 months | ||||
Service inventory not for sale, useful life | 3 years | ||||
Reserve percentage of FIFO obsolete and excess inventory | 100.00% | ||||
Depreciation expense | $ 12,900,000 | 12,300,000 | $ 10,900,000 | ||
Indefinite-lived intangible assets | $ 0 | 0 | |||
Intangible assets weighted-average amortization period | 8 years | ||||
Number of compensation plans | plan | 2 | ||||
Revenue recognized | $ 25,000,000 | ||||
Retained earnings | 175,353,000 | 168,624,000 | |||
Capitalized contract cost, net | $ 2,700,000 | ||||
Revenue, remaining performance obligation | $ 100,000 | ||||
Performance Shares | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting period, years | 3 years | ||||
Long Lived Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets impairment charges | $ 0 | $ 0 | $ 0 | ||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Account receivable period due | 30 days | ||||
Other intangible assets, useful life | 3 years | ||||
Minimum | Product technology and patents | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets, useful life | 7 years | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Account receivable period due | 90 days | ||||
Other intangible assets, useful life | 20 years | ||||
Maximum | Product technology and patents | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets, useful life | 20 years | ||||
Accounting Standards Update 2016-02 | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right-of-use asset | $ 14,000,000 | ||||
Lease liability | 14,000,000 | ||||
Accounting Standards Update 2016-02 | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right-of-use asset | 17,000,000 | ||||
Lease liability | 17,000,000 | ||||
Prepaid Expenses and Other Current Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Capitalized contract cost, net | 1,800,000 | ||||
Other Noncurrent Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Capitalized contract cost, net | $ 900,000 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Retained earnings | $ 1,800,000 | ||||
Capitalized contract cost, net | $ 2,400,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Machinery, Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 2 years |
Machinery, Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Cash Payments and Non-Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental cash flow information: | |||
Cash paid for interest | $ 4 | $ 9 | $ 28 |
Cash paid for income taxes | 5,813 | 2,488 | 2,576 |
Supplemental noncash investing and financing activities: | |||
Transfer of service and sales demonstration inventory to fixed assets | $ 964 | $ 2,844 | $ 511 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | $ 112,844 | $ 99,705 | $ 98,244 | $ 92,834 | $ 106,423 | $ 90,250 | $ 82,682 | $ 81,562 | $ 403,627 | $ 360,917 | $ 325,584 |
United States | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 156,242 | 141,595 | 133,924 | ||||||||
EMEA | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 127,261 | 115,061 | 101,751 | ||||||||
APAC | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 105,038 | 90,730 | 78,094 | ||||||||
Other Americas | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 15,086 | 13,531 | 11,815 | ||||||||
Service | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 92,525 | 82,995 | 69,574 | ||||||||
Service | Product or service transferred to customers at a point in time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 42,932 | 36,164 | 31,529 | ||||||||
Service | Product or service transferred to customers over time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 49,593 | 46,831 | 38,045 | ||||||||
Product | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 311,102 | 277,922 | 256,010 | ||||||||
Product | Product or service transferred to customers at a point in time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | 311,102 | 277,922 | 256,010 | ||||||||
Product | Product or service transferred to customers over time | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Sales | $ 0 | $ 0 | $ 0 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Capitalized contract cost, net | $ 2.7 | |
Revenue recognized | 25 | |
Revenue, remaining performance obligation | $ 0.1 | |
Prepaid Expenses and Other Current Assets | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Capitalized contract cost, net | 1.8 | |
Other Noncurrent Assets | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Capitalized contract cost, net | $ 0.9 | |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Extended product warranty term | 1 month | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Extended product warranty term | 3 years |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
Balance, beginning of year | $ 1,957 | $ 1,829 | $ 1,417 |
Provision (net of recovery) | 907 | 370 | 898 |
Amounts written off, net of recoveries | (1,116) | (242) | (486) |
Balance, end of year | $ 1,748 | $ 1,957 | $ 1,829 |
Short Term Investments - Additi
Short Term Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Short-term investments | $ 24,793 | $ 10,997 | |
Interest rate on U.S. Treasury Bills (less than for 2017) | 1.00% | ||
US Treasury Bill Securities | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Short-term investments | 24,800 | $ 11,000 | |
U.S. Treasury Security, Maturing on March 14th 2019 | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Interest rate on U.S. Treasury Bills | 2.20% | ||
U.S. Treasury Security, Maturing on March 14th 2019 | US Treasury Bill Securities | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Short-term investments | 9,000 | ||
U.S. Treasury Security, Maturing on June 6th 2019 | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Interest rate on U.S. Treasury Bills | 2.40% | ||
U.S. Treasury Security, Maturing on June 6th 2019 | US Treasury Bill Securities | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Short-term investments | 10,900 | ||
U.S. Treasury Security, Maturing on June 20th 2019 | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Interest rate on U.S. Treasury Bills | 2.30% | ||
U.S. Treasury Security, Maturing on June 20th 2019 | US Treasury Bill Securities | |||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | |||
Short-term investments | $ 4,900 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Raw materials | $ 39,859 | $ 36,328 |
Finished goods | 25,585 | 17,458 |
Inventories, net | 65,444 | 53,786 |
Service and sales demonstration inventory, net | $ 39,563 | $ 39,614 |
Service Inventory | ||
Property, Plant and Equipment [Line Items] | ||
Inventory, remaining life | 3 years |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of operating segments | segment | 5 | |
Goodwill impairment loss | $ | $ 0 | $ 0 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill by Reporting Units (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 52,750 | $ 46,744 |
Additions | 16,423 | 2,412 |
Foreign Currency Translation | (1,899) | 3,594 |
Ending Balance | 67,274 | 52,750 |
3D Manufacturing | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 40,802 | 37,861 |
Additions | 0 | 0 |
Foreign Currency Translation | (1,316) | 2,941 |
Ending Balance | 39,486 | 40,802 |
Construction BIM | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 6,521 | 6,078 |
Additions | 1,010 | 0 |
Foreign Currency Translation | (226) | 443 |
Ending Balance | 7,305 | 6,521 |
Public Safety Forensics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 3,070 | 2,805 |
Additions | 0 | 55 |
Foreign Currency Translation | (107) | 210 |
Ending Balance | 2,963 | 3,070 |
3D Design | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Additions | 9,130 | 0 |
Foreign Currency Translation | (180) | 0 |
Ending Balance | 8,950 | 0 |
Photonics | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,357 | 0 |
Additions | 6,283 | 2,357 |
Foreign Currency Translation | (70) | 0 |
Ending Balance | $ 8,570 | $ 2,357 |
Intangible Assets - Schedule (D
Intangible Assets - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, carrying Value | $ 61,955 | $ 46,739 |
Amortizable intangible assets, accumulated Amortization | 28,901 | 24,199 |
Amortizable intangible assets, net Intangible | 33,054 | 22,540 |
Product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, carrying Value | 26,588 | 19,459 |
Amortizable intangible assets, accumulated Amortization | 12,332 | 10,885 |
Amortizable intangible assets, net Intangible | 14,256 | 8,574 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, carrying Value | 14,647 | 13,948 |
Amortizable intangible assets, accumulated Amortization | 6,601 | 5,720 |
Amortizable intangible assets, net Intangible | 8,046 | 8,228 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, carrying Value | 12,027 | 5,889 |
Amortizable intangible assets, accumulated Amortization | 2,588 | 1,685 |
Amortizable intangible assets, net Intangible | 9,439 | 4,204 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, carrying Value | 8,693 | 7,443 |
Amortizable intangible assets, accumulated Amortization | 7,380 | 5,909 |
Amortizable intangible assets, net Intangible | $ 1,313 | $ 1,534 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 5.4 | $ 4.5 | $ 2.9 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 5,333 | |
2,020 | 4,886 | |
2,021 | 4,717 | |
2,022 | 4,231 | |
2,023 | 3,804 | |
Thereafter | 10,083 | |
Amortizable intangible assets, net Intangible | $ 33,054 | $ 22,540 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||||
Accrued compensation and benefits | $ 17,745 | $ 16,144 | ||
Accrued warranties | 2,571 | 2,628 | $ 2,594 | $ 2,309 |
Professional and legal fees | 2,154 | 1,541 | ||
Taxes other than income | 3,550 | 3,787 | ||
General services administration liability | 5,267 | 0 | ||
Other accrued liabilities | 5,040 | 3,262 | ||
Total accrued liabilities | $ 36,327 | $ 27,362 |
Accrued Liabilities - Activity
Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning Balance | $ 2,628 | $ 2,594 | $ 2,309 |
Provision for warranty expense | 4,096 | 4,045 | 3,544 |
Fulfillment of warranty obligations | (4,153) | (4,011) | (3,259) |
Ending Balance | $ 2,571 | $ 2,628 | $ 2,594 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Liabilities: | ||
Payment for contingent consideration | $ 900 | $ 500 |
Undiscounted maximum payment, based on certain milestone | 6,000 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration | 5,531 | 412 |
Total | $ 5,531 | $ 412 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange transaction losses (gains) | $ 1,386 | $ (162) | $ 1,356 |
Other | (247) | (28) | (534) |
Total other expense (income), net | $ 1,139 | $ (190) | $ 822 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (1,723) | $ 2,468 | $ (1,527) |
Foreign | 6,281 | 3,359 | 14,153 |
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE | $ 4,558 | $ 5,827 | $ 12,626 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||||
Federal | $ (1,694) | $ 18,951 | $ 409 | |
State | 120 | 507 | 40 | |
Foreign | 1,394 | 2,072 | 3,482 | |
Current income tax (benefit) expense | (180) | 21,530 | 3,931 | |
Deferred: | ||||
Federal | (486) | 1,038 | (2,357) | |
State | (153) | (580) | (229) | |
Foreign | 447 | (1,645) | 174 | |
Deferred income tax benefit | (192) | (1,187) | (2,412) | |
Income tax (benefit) expense | $ 1,000 | $ (372) | $ 20,343 | $ 1,519 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense at statutory rate | $ 956 | $ 1,981 | $ 4,427 | |
Tax expense (benefit), statutory rate | 34.00% | 34.00% | 34.00% | |
State income taxes, net of federal benefit | $ (195) | $ 81 | $ (50) | |
Foreign tax rate difference | (1,003) | (2,057) | (1,939) | |
Research and development credit | (919) | (1,037) | (917) | |
Change in valuation allowance | 464 | 678 | 162 | |
Equity based compensation | (198) | 33 | (255) | |
Manufacturing credit | 0 | (191) | (61) | |
Permanent impact of non-deductible cost | 1,120 | 766 | 412 | |
Provision to return adjustments | 345 | 777 | (61) | |
Impact of Tax Cuts and Jobs Act of 2017 | (1,000) | 19,355 | 0 | |
Other | 58 | (43) | (199) | |
Income tax (benefit) expense | $ 1,000 | $ (372) | $ 20,343 | $ 1,519 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Income Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Net deferred income tax asset - Non-current | ||
Warranty cost | $ 533 | $ 695 |
Inventory reserve | 1,559 | 419 |
Unearned service revenue | 6,684 | 5,364 |
Employee stock options | 4,222 | 4,366 |
Tax Credits | 485 | 1,785 |
Loss carryforwards | 7,038 | 8,782 |
Other, net | 759 | 1,479 |
Deferred income tax asset - Non-current | 21,280 | 22,890 |
Valuation Allowance | (1,924) | (1,631) |
Net deferred income tax asset - Non-current | 19,356 | 21,259 |
Bad debt reserve | (116) | (2) |
Depreciation | (2,996) | (3,675) |
Goodwill amortization | (1,612) | (1,574) |
Intangible assets | (649) | (1,097) |
Total deferred tax liabilities | (5,373) | (6,348) |
Net deferred tax assets | $ 13,983 | $ 14,911 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense | $ 19,400 | ||||
Tax cuts and jobs act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional income tax expense | 17,400 | $ 17,400 | |||
Income tax expense (benefit) | $ 1,000 | (372) | $ 20,343 | $ 1,519 | |
Decrease in deferred income taxes | 1,800 | 689 | (1,740) | (2,002) | |
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) | (2,000) | (2,000) | |||
Deferred income tax assets, domestic | 7,200 | 7,700 | 7,200 | 7,700 | |
Deferred income tax assets, foreign | 6,500 | 7,900 | 6,500 | 7,900 | |
Deferred Tax Assets, Valuation Allowance | $ 1,924 | $ 1,631 | 1,924 | 1,631 | |
Net increase (decrease) in total valuation allowance | $ (300) | $ (700) | $ 100 | ||
Minimum | |||||
Income Taxes [Line Items] | |||||
Deferred income tax assets, operating loss carryforwards expiration period | 1 year | ||||
Tax returns examination statute of limitations period | 3 years | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Deferred income tax assets, operating loss carryforwards expiration period | 9 years | ||||
Tax returns examination statute of limitations period | 4 years |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Required under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 7,474 |
2,020 | 4,679 |
2,021 | 1,724 |
2,022 | 1,313 |
2,023 | 1,270 |
Thereafter | 3,168 |
Total future minimum lease payments | $ 19,628 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 72 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Commitments and Contingencies [Line Items] | ||||||||||||
Rent expense | $ 8,600 | $ 7,500 | $ 7,700 | |||||||||
Purchase commitment, due in next twelve months | $ 56,900 | 56,900 | $ 56,900 | |||||||||
Long-term purchase commitments | 2,300 | |||||||||||
Sales | 112,844 | $ 99,705 | $ 98,244 | $ 92,834 | $ 106,423 | $ 90,250 | $ 82,682 | $ 81,562 | $ 403,627 | $ 360,917 | $ 325,584 | |
Minimum | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Length of purchase commitments, in days | 60 days | |||||||||||
Maximum | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Length of purchase commitments, in days | 120 days | |||||||||||
Government Contract | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Sales | 53,500 | |||||||||||
Charges to income from price adjustment clauses | 4,800 | 4,800 | ||||||||||
Imputed interest related to price adjustment clauses | 500 | |||||||||||
Total estimated liability | $ 5,300 | $ 5,300 | $ 5,300 | |||||||||
Total sales | Government Contract | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Total sales, percentage | 3.50% |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2018shares | Mar. 31, 2018shares | Dec. 31, 2018USD ($)plan$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | May 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of compensation plans | plan | 2 | |||||
Total intrinsic value of stock options exercised | $ | $ 7,500,000 | $ 1,200,000 | $ 1,700,000 | |||
Fair value of stock options vested | $ | 3,700,000 | 4,100,000 | 3,800,000 | |||
Allocated share-based compensation expense | $ | 7,600,000 | $ 6,500,000 | $ 5,400,000 | |||
Unrecognized stock-based compensation expense | $ | $ 10,300,000 | |||||
Weighted average, expected recognition period | 1 year 9 months 18 days | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding | 792,943 | 1,156,763 | ||||
Number of stock options unvested (in shares) | 17,160 | |||||
Employee Stock Option | Black-Scholes Option Valuation Model | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option weighted average grant date fair value (in dollars per share) | $ / shares | $ 23.43 | $ 14.51 | $ 12.90 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
Number of restricted stock units vested (in shares) | 18,618 | |||||
Number of restricted stock units unvested (in shares) | 640 | |||||
Number of performance based shares granted (in shares) | 102,458 | |||||
Performance Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock units vested (in shares) | 266 | |||||
Number of restricted stock units unvested (in shares) | 640 | |||||
Performance Based Restricted Stock Units | Share-based Compensation Award, Tranche One | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Based Restricted Stock Units | Share-based Compensation Award, Tranche Two | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Based Restricted Stock Units | Share-based Compensation Award, Tranche Three | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Based Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock options vested (in shares) | 7,743 | |||||
Number of stock options unvested (in shares) | 17,160 | |||||
Performance Based Employee Stock Options | Share-based Compensation Award, Tranche One | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Based Employee Stock Options | Share-based Compensation Award, Tranche Two | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Based Employee Stock Options | Share-based Compensation Award, Tranche Three | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
Number of performance based shares granted (in shares) | 0 | 0 | ||||
Prior to Fiscal Year 2016 | Employee Stock Option | Share-based Compensation Award, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Prior to Fiscal Year 2016 | Employee Stock Option | Share-based Compensation Award, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Prior to Fiscal Year 2016 | Employee Stock Option | Share-based Compensation Award, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Prior to Fiscal Year 2016 | Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Prior to Fiscal Year 2016 | Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Prior to Fiscal Year 2016 | Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Fiscal Year 2017 | Employee Stock Option | Share-based Compensation Award, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Fiscal Year 2017 | Employee Stock Option | Share-based Compensation Award, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
Fiscal Year 2017 | Employee Stock Option | Share-based Compensation Award, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting installment percentage | 33.33% | |||||
2004 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding | 0 | |||||
2009 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized for grant awards | 1,781,546 | |||||
Options outstanding | 122,943 | |||||
Exercise price, lower range | $ / shares | $ 43.33 | |||||
Exercise price, upper range | $ / shares | $ 57.54 | |||||
Expiration period, years | 10 years | |||||
2009 Plan | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
2009 Plan | 2010 Change In Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period, years | 7 years | |||||
2014 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized for grant awards | 2,974,543 | 1,974,543 | ||||
Number of additional shares authorized | 1,000,000 | |||||
Options outstanding | 670,047 | |||||
Exercise price, lower range | $ / shares | $ 29.98 | |||||
Exercise price, upper range | $ / shares | $ 61.30 | |||||
Expiration period, years | 7 years | |||||
2014 Plan | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
2004 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock authorized for grant awards | 891,960 | |||||
Director's Plan, Per Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares granted based on percent of director compensation | 50.00% | |||||
Director's Plan, Per Director | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, years | 3 years | |||||
Value of shares granted upon election | $ | $ 100,000 | |||||
Director's Plan, Per Director | Restricted Stock | Board of Directors Chairman | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Value of shares granted upon election | $ | $ 40,000 |
Stock Compensation Plans - Assu
Stock Compensation Plans - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Expected volatility | 45.00% | 45.20% | |
Employee Stock Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Risk-free interest rate, minimum | 1.88% | 1.06% | |
Risk-free interest rate, maximum | 2.02% | 1.57% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option life | 4 years | 5 years | 4 years |
Expected volatility, minimum | 45.00% | ||
Expected volatility, maximum | 47.00% | ||
Weighted-average expected volatility | 45.00% | 45.20% | 46.10% |
Performance Shares | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Risk-free interest rate, minimum | 0.95% | ||
Risk-free interest rate, maximum | 1.48% |
Stock Compensation Plans - As_2
Stock Compensation Plans - Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Expected volatility | 45.00% | 45.20% | |
Employee Stock Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.65% | ||
Risk-free interest rate, minimum | 1.88% | 1.06% | |
Risk-free interest rate, maximum | 2.02% | 1.57% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option life | 4 years | 5 years | 4 years |
Weighted-average expected volatility | 45.00% | 45.20% | 46.10% |
Performance Shares | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Risk-free interest rate, minimum | 0.95% | ||
Risk-free interest rate, maximum | 1.48% |
Stock Compensation Plans - Sche
Stock Compensation Plans - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Options | |
Outstanding at January 1, 2016 (in shares) | shares | 1,156,763 |
Granted (in shares) | shares | 174,439 |
Forfeited (in shares) | shares | (81,222) |
Exercised (in shares) | shares | (439,877) |
Unearned performance-based options (in shares) | shares | (17,160) |
Outstanding at December 31, 2016 (in shares) | shares | 792,943 |
Options exercisable at December 31, 2016 | shares | 427,006 |
Weighted- Average Exercise Price | |
Outstanding at January 1, 2017 (in dollars per share) | $ / shares | $ 45.93 |
Granted (in dollars per share) | $ / shares | 61.30 |
Forfeited (in dollars per share) | $ / shares | 51.66 |
Exercised (in dollars per share) | $ / shares | 47.21 |
Unearned performance-based options (in dollars per share) | $ / shares | 59.97 |
Outstanding at December 31, 2017 (in dollars per share) | $ / shares | 47.59 |
Options exercisable at December 31, 2017 (in dollars per share) | $ / shares | $ 48.84 |
Weighted-Average Remaining Contractual Term (Years) | |
Weighted-average remaining contractual term in years outstanding at December 31, 2017 | 4 years 4 months 24 days |
Weighted-average remaining contractual term in years options exercisable at December 31, 2017 | 2 years 1 month 6 days |
Aggregate Intrinsic Value as of December 31, 2018 | |
Aggregate intrinsic value outstanding at December 31, 2017 | $ | $ 2,160 |
Aggregate intrinsic value of options exercisable at December 31, 2017 | $ | $ 862 |
Stock Compensation Plans - Sc_2
Stock Compensation Plans - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Non-vested at January 1, 2017 (in shares) | shares | 257,492 |
Granted (in shares) | shares | 102,458 |
Forfeited (in shares) | shares | (29,692) |
Vested (in shares) | shares | (18,618) |
Unearned performance-based awards (in shares) | shares | (640) |
Non-vested at December 31, 2017 (in shares) | shares | 311,000 |
Weighted-Average Grant Date Fair Value | |
Non-vested at January 1, 2017 (in dollars per share) | $ / shares | $ 34.75 |
Granted (in dollars per share) | $ / shares | 60.26 |
Forfeited (in dollars per share) | $ / shares | 39.36 |
Vested (in dollars per share) | $ / shares | 35.03 |
Unearned performance-based awards (in dollars per share) | $ / shares | 51.15 |
Non-vested at December 31, 2017 (in dollars per share) | $ / shares | $ 42.66 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Basic ((loss) EPS (in shares) | 17,043,167 | 16,711,534 | 16,654,786 | ||||||||
Effect of dilutive securities (in shares) | 305,289 | 0 | 26,924 | ||||||||
Diluted (loss) EPS (in shares) | 17,348,456 | 16,711,534 | 16,681,710 | ||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted (loss) EPS, as they were antidilutive (in shares) | 393,970 | 1,049,563 | 1,046,947 | ||||||||
Basic (loss) EPS (in dollars per share) | $ 0.33 | $ (0.15) | $ 0.07 | $ 0.03 | $ (0.66) | $ 0.10 | $ (0.22) | $ (0.09) | $ 0.29 | $ (0.87) | $ 0.67 |
Effect of dilutive securities (in dollars per share) | 0 | 0 | 0 | ||||||||
Diluted (loss) EPS (in dollars per share) | $ 0.33 | $ (0.15) | $ 0.07 | $ 0.03 | $ (0.66) | $ 0.10 | $ (0.22) | $ (0.09) | $ 0.29 | $ (0.87) | $ 0.67 |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
401(K) plan costs | $ 2.1 | $ 1.7 | $ 1.4 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Apr. 27, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Variable Interest Entity [Line Items] | |||
Equity investments and advances to affiliates | $ 1.8 | ||
Net loss | $ 0.1 | ||
Potential additional investment (up to) | 1.8 | ||
Investment in VIE | $ 1.7 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 1.8 | ||
Present4D | |||
Variable Interest Entity [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 16.50% |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands, € in Millions | Jul. 13, 2018USD ($) | Jul. 13, 2018EUR (€) | Jul. 06, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 13, 2018EUR (€) | Mar. 09, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 27,067 | $ 5,596 | $ 27,708 | ||||||||||
Acquisition and integration costs | $ 900 | ||||||||||||
Nutfield (Final) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 5,500 | $ 5,496 | |||||||||||
Lanmark (Final) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 1,700 | ||||||||||||
Laser Controls Systems (Final) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 1,749 | ||||||||||||
Contingent consideration arrangements, range of outcomes, high | $ 700 | ||||||||||||
Photocore AG (Final) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 2,445 | ||||||||||||
Lanmark (Final) | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment to acquire business, paid with cash on hand | $ 6,251 | ||||||||||||
Consideration transferred | $ 6,300 | ||||||||||||
Contingent consideration arrangements, range of outcomes, high | $ 1,000 | ||||||||||||
Opto-Tech SRL | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | $ 21,600 | € 18.5 | |||||||||||
Contingent consideration arrangements, range of outcomes, high | $ 4,700 | € 4 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Minimum | |
Segment Reporting Information [Line Items] | |
Percentage of product sales to consolidated sales | 99.00% |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation to the Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 46,744 | $ 67,274 | $ 52,750 | $ 46,744 | ||||
Total purchase price, net of cash acquired | $ 27,067 | $ 5,596 | 27,708 | |||||
Nutfield (Final) | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable | $ 160 | |||||||
Inventory | 539 | |||||||
Other assets | 96 | |||||||
Deferred income tax assets | 131 | |||||||
Intangible assets | 2,329 | |||||||
Goodwill | 2,357 | |||||||
Accounts payable and accrued liabilities | (12) | |||||||
Other liabilities (2) | (104) | |||||||
Deferred income tax liabilities | 0 | |||||||
Total purchase price, net of cash acquired | $ 5,500 | $ 5,496 | ||||||
Laser Controls Systems (Final) | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable | $ 0 | |||||||
Inventory | 0 | |||||||
Other assets | 0 | |||||||
Deferred income tax assets | 0 | |||||||
Intangible assets | 1,400 | |||||||
Goodwill | 928 | |||||||
Accounts payable and accrued liabilities | 0 | |||||||
Other liabilities (2) | (579) | |||||||
Deferred income tax liabilities | 0 | |||||||
Total purchase price, net of cash acquired | $ 1,749 | |||||||
Photocore AG (Final) | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable | $ 0 | |||||||
Inventory | 0 | |||||||
Other assets | 0 | |||||||
Deferred income tax assets | 0 | |||||||
Intangible assets | 1,435 | |||||||
Goodwill | 1,010 | |||||||
Accounts payable and accrued liabilities | 0 | |||||||
Other liabilities (2) | 0 | |||||||
Deferred income tax liabilities | 0 | |||||||
Total purchase price, net of cash acquired | $ 2,445 | |||||||
Lanmark (Final) | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable | 610 | 610 | ||||||
Inventory | 299 | 299 | ||||||
Other assets | 76 | 76 | ||||||
Deferred income tax assets | 0 | 0 | ||||||
Intangible assets | 1,366 | 1,366 | ||||||
Goodwill | 5,355 | 5,355 | ||||||
Accounts payable and accrued liabilities | (159) | (159) | ||||||
Other liabilities (2) | (971) | (971) | ||||||
Deferred income tax liabilities | (325) | $ (325) | ||||||
Total purchase price, net of cash acquired | $ 6,251 | |||||||
Open Technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Accounts receivable | 2,735 | |||||||
Inventory | 1,852 | |||||||
Other assets | 634 | |||||||
Deferred income tax assets | 0 | |||||||
Intangible assets | 10,388 | |||||||
Goodwill | 9,130 | |||||||
Accounts payable and accrued liabilities | (2,926) | |||||||
Other liabilities (2) | (5,201) | |||||||
Deferred income tax liabilities | 0 | |||||||
Total purchase price, net of cash acquired | $ 16,612 |
Segment Reporting - Reportable
Segment Reporting - Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | $ 112,844 | $ 99,705 | $ 98,244 | $ 92,834 | $ 106,423 | $ 90,250 | $ 82,682 | $ 81,562 | $ 403,627 | $ 360,917 | $ 325,584 |
Segment profit | $ 64,551 | $ 52,317 | $ 57,691 | $ 53,786 | $ 62,094 | $ 52,034 | $ 46,760 | $ 43,749 | 228,345 | 204,637 | 177,960 |
General and administrative | 47,652 | 43,807 | 40,813 | ||||||||
Depreciation and amortization | 18,313 | 16,588 | 13,868 | ||||||||
Research and development | 39,706 | 35,376 | 30,125 | ||||||||
Income from operations | 5,754 | 5,322 | 13,284 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment profit | 111,425 | 101,093 | 98,090 | ||||||||
3D Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 264,430 | 243,464 | 236,313 | ||||||||
3D Manufacturing | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment profit | 80,775 | 77,537 | 73,656 | ||||||||
Construction BIM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 96,185 | 86,349 | 65,056 | ||||||||
Construction BIM | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment profit | 27,513 | 21,077 | 14,799 | ||||||||
Emerging Verticals | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 43,012 | 31,104 | 24,215 | ||||||||
Emerging Verticals | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment profit | $ 3,137 | $ 2,479 | $ 9,635 |
Business Combinations - Summary
Business Combinations - Summary of the Purchase Price Preliminarily Allocated to the Intangible Assets Acquired for the Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired, weighted average life | 8 years | |||||
Nutfield (Final) | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 2,329 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Nutfield (Final) | Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 29 | |||||
Intangible assets acquired, weighted average life | 1 year | |||||
Nutfield (Final) | Brand | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Nutfield (Final) | Non-competition agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 144 | |||||
Intangible assets acquired, weighted average life | 5 years | |||||
Nutfield (Final) | Technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,970 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Nutfield (Final) | Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 95 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Nutfield (Final) | Favorable in-place lease | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 91 | |||||
Intangible assets acquired, weighted average life | 12 years | |||||
Laser Controls Systems (Final) | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,400 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Laser Controls Systems (Final) | Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Laser Controls Systems (Final) | Brand | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 26 | |||||
Intangible assets acquired, weighted average life | 1 year | |||||
Laser Controls Systems (Final) | Non-competition agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 29 | |||||
Intangible assets acquired, weighted average life | 3 years | |||||
Laser Controls Systems (Final) | Technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,319 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Laser Controls Systems (Final) | Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 26 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Laser Controls Systems (Final) | Favorable in-place lease | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Photocore AG (Final) | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,435 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Photocore AG (Final) | Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Photocore AG (Final) | Brand | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 22 | |||||
Intangible assets acquired, weighted average life | 1 year | |||||
Photocore AG (Final) | Non-competition agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 9 | |||||
Intangible assets acquired, weighted average life | 3 years | |||||
Photocore AG (Final) | Technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,343 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Photocore AG (Final) | Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 61 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Photocore AG (Final) | Favorable in-place lease | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Lanmark (Final) | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 1,366 | |||||
Intangible assets acquired, weighted average life | 8 years | |||||
Lanmark (Final) | Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Lanmark (Final) | Brand | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 26 | |||||
Intangible assets acquired, weighted average life | 1 year | |||||
Lanmark (Final) | Non-competition agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Lanmark (Final) | Technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 760 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Lanmark (Final) | Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 580 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Lanmark (Final) | Favorable in-place lease | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Open Technologies | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 10,388 | |||||
Intangible assets acquired, weighted average life | 8 years | |||||
Open Technologies | Trade name | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Open Technologies | Brand | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 103 | |||||
Intangible assets acquired, weighted average life | 1 year | |||||
Open Technologies | Non-competition agreement | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years | |||||
Open Technologies | Technology | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 4,441 | |||||
Intangible assets acquired, weighted average life | 7 years | |||||
Open Technologies | Customer relationships | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 5,844 | |||||
Intangible assets acquired, weighted average life | 10 years | |||||
Open Technologies | Favorable in-place lease | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 0 | |||||
Intangible assets acquired, weighted average life | 0 years |
Segment Reporting - Net Sales t
Segment Reporting - Net Sales to External Customers Based Upon Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | $ 112,844 | $ 99,705 | $ 98,244 | $ 92,834 | $ 106,423 | $ 90,250 | $ 82,682 | $ 81,562 | $ 403,627 | $ 360,917 | $ 325,584 |
United States | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | 156,242 | 141,595 | 133,924 | ||||||||
Americas-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | 15,086 | 13,531 | 11,815 | ||||||||
Germany | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | 53,251 | 49,860 | 44,041 | ||||||||
Europe-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | 74,010 | 65,201 | 57,710 | ||||||||
Japan | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | 37,607 | 35,270 | 32,530 | ||||||||
Asia-Other | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Net sales to external customers | $ 67,431 | $ 55,460 | $ 45,564 |
Segment Reporting - Long Lived
Segment Reporting - Long Lived Assets Attributed to Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 130,745 | $ 107,076 | $ 100,701 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 61,557 | 54,703 | 54,157 |
Americas-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 10,702 | 13,834 | 13,486 |
Germany | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 30,154 | 26,611 | 23,734 |
Europe-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 24,935 | 9,124 | 6,949 |
Japan | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 1,039 | 558 | 460 |
Asia-Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 2,358 | $ 2,246 | $ 1,915 |
Subsequent Events (Details)
Subsequent Events (Details) - President, Chief Executive Officer, Member of Board of Directors - Subsequent Event - USD ($) $ in Thousands | Jan. 09, 2019 | Feb. 19, 2019 |
Subsequent Event [Line Items] | ||
Base salary until retirement | $ 775 | |
Restricted Stock Units (RSUs) | ||
Subsequent Event [Line Items] | ||
Shares of common stock authorized for grant awards | 24,606 | |
Short-term Incentive Plan | ||
Subsequent Event [Line Items] | ||
Target payout | 100.00% | |
Minimum | Short-term Incentive Plan | ||
Subsequent Event [Line Items] | ||
Target payout | 0.00% | |
Maximum | Short-term Incentive Plan | ||
Subsequent Event [Line Items] | ||
Target payout | 200.00% |
Subsequent Events - Building Re
Subsequent Events - Building Rent (Details) - Subsequent Event | Jan. 29, 2019USD ($)ft² |
Subsequent Event [Line Items] | |
Area of Building Leased | ft² | 35,000 |
Monthly Base Rent | |
Approved Lease Improvement Reimbursement | $ | $ 100,000 |
Quarterly Result of Operation_3
Quarterly Result of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | 72 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Sales | $ 112,844 | $ 99,705 | $ 98,244 | $ 92,834 | $ 106,423 | $ 90,250 | $ 82,682 | $ 81,562 | $ 403,627 | $ 360,917 | $ 325,584 | |
Segment profit | 64,551 | 52,317 | 57,691 | 53,786 | 62,094 | 52,034 | 46,760 | 43,749 | 228,345 | 204,637 | 177,960 | |
Net income | 5,758 | $ (2,488) | $ 1,205 | $ 455 | $ (11,058) | $ 1,628 | $ (3,625) | $ (1,461) | 4,930 | (14,516) | 11,107 | |
INCOME TAX (BENEFIT) EXPENSE | $ 1,000 | $ (372) | $ 20,343 | $ 1,519 | ||||||||
Net income (loss) per share: | ||||||||||||
Basic (loss) EPS (in dollars per share) | $ 0.33 | $ (0.15) | $ 0.07 | $ 0.03 | $ (0.66) | $ 0.10 | $ (0.22) | $ (0.09) | $ 0.29 | $ (0.87) | $ 0.67 | |
Diluted EPS (in dollars per share) | $ 0.33 | $ (0.15) | $ 0.07 | $ 0.03 | $ (0.66) | $ 0.10 | $ (0.22) | $ (0.09) | $ 0.29 | $ (0.87) | $ 0.67 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Provision for excess and obsolete inventory | $ 4,700 | $ 5,757 | $ 1,734 | $ 4,134 | ||||||||
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ (19,400) | |||||||||||
Tax cuts and jobs act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional income tax expense | 17,400 | 17,400 | ||||||||||
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) | $ (2,000) | $ (2,000) | ||||||||||
Government Contract | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Sales | $ 53,500 | |||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Charges to income from price adjustment clauses | $ 4,800 | $ 4,800 |