FARO (FARO) 10-Q 1 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 26, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	FARO TECHNOLOGIES INC
Trading Symbol	FARO
Entity Central Index Key	0000917491
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		17,328,630

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 110,696	$ 108,783
Short-term investments	24,831	24,793
Accounts receivable, net	76,237	88,927
Inventories, net	74,586	65,444
Prepaid expenses and other current assets	24,210	28,795
Total current assets	310,560	316,742
Property and equipment:
Machinery and equipment	80,586	76,048
Furniture and fixtures	6,141	6,749
Leasehold improvements	20,311	20,304
Property and equipment at cost	107,038	103,101
Less: accumulated depreciation and amortization	(76,188)	(72,684)
Property and equipment, net	30,850	30,417
Operating lease right-of-use asset	18,876	0
Goodwill	71,097	67,274
Intangible assets, net	29,507	33,054
Service and sales demonstration inventory, net	38,351	39,563
Deferred income tax assets, net	14,696	14,719
Other long-term assets	4,416	4,475
Total assets	518,353	506,244
Current liabilities:
Accounts payable	14,351	20,093
Accrued liabilities	31,389	36,327
Income taxes payable	3,747	5,081
Lease liability	6,446	0
Total current liabilities	92,969	97,523
Unearned service revenues - less current portion	16,319	15,505
Lease liability - less current portion	14,363	0
Deferred income tax liabilities	2,541	736
Income taxes payable - less current portion	12,247	12,247
Other long-term liabilities	3,326	3,624
Total liabilities	141,765	129,635
Commitments and contingencies - See Note 16
Shareholders’ equity:
Common stock - par value $.001, 50,000,000 shares authorized; 18,731,586 and 18,676,059 issued, respectively; 17,317,875 and 17,253,011 outstanding, respectively	19	19
Additional paid-in capital	252,840	251,329
Retained earnings	175,178	175,353
Accumulated other comprehensive loss	(20,047)	(18,483)
Common stock in treasury, at cost; 1,413,711 and 1,423,048 shares, respectively	(31,402)	(31,609)
Total shareholders’ equity	376,588	376,609
Total liabilities and shareholders’ equity	518,353	506,244
Current portion of unearned service revenues
Current liabilities:
Current portion of unearned service revenues	34,189	32,878
Customer deposits	34,189	32,878
Customer deposits
Current liabilities:
Current portion of unearned service revenues	2,847	3,144
Customer deposits	$ 2,847	$ 3,144

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Sales	$ 93,617	$ 92,834
Cost of Sales	38,598	39,048
Gross Profit	55,019	53,786
Operating Expenses
Selling and marketing	26,753	28,271
General and administrative	13,224	11,073
Depreciation and amortization	4,749	4,343
Research and development	9,935	9,406
Total operating expenses	54,661	53,093
Income from operations	358	693
Other expense (income)
Interest income, net	(144)	(73)
Other expense, net	195	184
Income before income tax expense	307	582
Income tax expense	155	127
Net income	$ 152	$ 455
Net income per share - Basic (in dollars per share)	$ 0.01	$ 0.03
Net income per share - Diluted (in dollars per share)	$ 0.01	$ 0.03
Weighted average shares - Basic (in shares)	17,280,365	16,837,754
Weighted average shares - Diluted (in shares)	17,868,816	17,142,770
Product
Sales	$ 68,800	$ 70,581
Cost of Sales	26,128	26,884
Service
Sales	24,817	22,253
Cost of Sales	$ 12,470	$ 12,164

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	18,731,586	18,676,059
Common stock, shares outstanding (in shares)	17,317,875	17,253,011
Treasury stock, shares (in shares)	1,413,711	1,423,048

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 152	$ 455
Currency translation adjustments	(1,564)	5,214
Comprehensive (loss) income	$ (1,412)	$ 5,669

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income	$ 152	$ 455
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	4,749	4,343
Stock-based compensation	2,564	1,553
(Recoveries) provisions for bad debts, net	(100)	24
Loss on disposal of assets	57	127
Provision for excess and obsolete inventory	896	312
Deferred income tax expense (benefit)	8	(128)
Decrease (Increase) in:
Accounts receivable	12,410	1,808
Inventories	(10,908)	(5,208)
Prepaid expenses and other current assets	4,463	(936)
(Decrease) Increase in:
Accounts payable, accrued liabilities, and lease liability	(9,172)	(4,846)
Income taxes payable	(1,323)	(2,571)
Net cash provided by (used in) operating activities	5,810	(4,049)
Investing activities:
Purchases of property and equipment	(1,543)	(2,243)
Payments for intangible assets	(529)	(650)
Acquisition of businesses	0	(3,966)
Net cash used in investing activities	(2,072)	(6,859)
Financing activities:
Payments on finance leases	(90)	(46)
Payments of contingent consideration for acquisitions	(250)	0
Payments for taxes related to net share settlement of equity awards	(1,138)	0
Proceeds from issuance of stock related to stock option exercises	292	6,785
Net cash (used in) provided by financing activities	(1,186)	6,739
Effect of exchange rate changes on cash and cash equivalents	(639)	2,035
Increase (decrease) in cash and cash equivalents	1,913	(2,134)
Cash and cash equivalents, beginning of period	108,783	140,960
Cash and cash equivalents, end of period	110,696	138,826
Customer deposits
(Decrease) Increase in:
Customer deposits	(310)	(213)
Unearned service revenues	(310)	(213)
Current portion of unearned service revenues
(Decrease) Increase in:
Customer deposits	2,324	1,231
Unearned service revenues	$ 2,324	$ 1,231

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, 2017		16,796,884
Beginning Balance at Dec. 31, 2017	$ 352,066	$ 18	$ 223,055	$ 168,624	$ (7,822)	$ (31,809)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	455			455
Currency translation adjustment, net of income tax	5,214				5,214
Stock-based compensation	1,553		1,553
Common stock issued, net of shares withheld for employee taxes (in shares)		158,795
Common stock issued, net of shares withheld for employee taxes	6,676		6,601			75
Ending Balance (in shares) at Mar. 31, 2018		16,955,679
Ending Balance at Mar. 31, 2018	$ 368,329	$ 18	231,209	171,444	(2,608)	(31,734)
Beginning Balance (in shares) at Dec. 31, 2018	17,253,011	17,253,011
Beginning Balance at Dec. 31, 2018	$ 376,609	$ 19	251,329	175,353	(18,483)	(31,609)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	152			152
Currency translation adjustment, net of income tax	(1,564)				(1,564)
Stock-based compensation	2,564		2,564
Common stock issued, net of shares withheld for employee taxes (in shares)		64,864
Common stock issued, net of shares withheld for employee taxes	$ (846)		(1,053)			207
Ending Balance (in shares) at Mar. 31, 2019	17,317,875	17,317,875
Ending Balance at Mar. 31, 2019	$ 376,588	$ 19	$ 252,840	$ 175,178	$ (20,047)	$ (31,402)

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	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 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”) 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 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. 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. Since the end of the first quarter of 2018, the following changes were made to our verticals and reporting segments: • 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, 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. • 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 has been no change in our total consolidated financial condition or results of operations previously reported as a result of these changes in our verticals and reportable segments. The amounts related to our reporting segment information for the three months ended March 31, 2018 have been restated throughout this Quarterly Report on Form 10-Q to reflect the changes in our reporting segments. Each of our reporting segments continues to employ consistent accounting policies. We now report our activities in the following three reportable segments: • The 3D Manufacturing reporting segment contains solely our 3D Manufacturing vertical and 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 the 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.

Principles of Consolidation

Principles of Consolidation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	PRINCIPLES OF CONSOLIDATIONOur condensed 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.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP. Preparing financial statements 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 materially from those estimates. The condensed consolidated results of operations for the three months ended March 31, 2019 are not necessarily indicative of results that may be expected for the year ending December 31, 2019 or any future period. The information included in this Quarterly Report on Form 10-Q, including the interim condensed consolidated financial statements and the accompanying notes, should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . The accompanying December 31, 2018

Impact of Recently Issued Accou

Impact of Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Impact of Recently Issued Accounting Pronouncements	IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Impact of Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 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 adopted ASU 2016-02 effective as of January 1, 2019 utilizing the cumulative-effect adjustment transition method of adoption, which resulted in the recognition on our condensed consolidated balance sheet as of March 31, 2019 of $18.9 million of right-of-use assets for operating leases, $19.9 million of lease liability for operating leases, $0.9 million of property and equipment, net for finance leases and $0.9 million of lease liability for finance leases under which we function as a lessee. We elected certain practical expedients available under the transition provisions to (i) allow aggregation of non-lease components with the related lease components when evaluating accounting treatment, (ii) apply the modified retrospective adoption method, utilizing the simplified transition option, which allows us to continue to apply the legacy guidance in FASB ASC Topic 840, including its disclosure requirements, in the comparative periods presented in the year of adoption, and (iii) use hindsight in determining the lease term (that is, when considering our options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of our right-of-use assets. The adoption of ASU 2016-02 also required us to include any initial direct costs, which are incremental costs that would not have been incurred had the lease not been obtained, in the right-of-use assets. The recognition of these costs in connection with our adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Impact of Recently Issued Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, Intangibles - 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 condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Revenues

Revenues	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenues	REVENUES The following tables present our revenues by Sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands, unaudited): For the Three Months Ended March 31, 2019 2018 Product sales Product transferred to customers at a point in time $ 68,800 $ 70,581 Product transferred to customers over time — — $ 68,800 $ 70,581 For the Three Months Ended March 31, 2019 2018 Service sales Service transferred to customers at a point in time $ 11,854 $ 9,452 Service transferred to customers over time 12,963 12,801 $ 24,817 $ 22,253 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands, unaudited): For the Three Months Ended March 31, 2019 2018 Total sales to external customers United States $ 35,848 $ 37,302 EMEA (1) 31,100 29,680 APAC (1) 23,337 22,589 Other Americas (1) 3,332 3,263 $ 93,617 $ 92,834 (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 a 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 March 31, 2019, the deferred cost asset related to deferred commissions was approximately $2.8 million . For classification purposes, $1.9 million and $0.9 million are comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of March 31, 2019. As of March 31, 2018, the deferred cost asset related to deferred commissions was approximately $2.5 million . For classification purposes, $1.8 million and $0.7 million were comprised within the Prepaid expenses and other current assets and Other long-term assets, respectively, on our condensed consolidated balance sheet as of March 31, 2018. The unearned service revenue liabilities reported on our condensed 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 condensed 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 condensed 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. During the three months ended March 31, 2019, we recognized $10.8 million of service revenue that was deferred on our condensed consolidated balance sheet as of December 31, 2018. During the three months ended March 31, 2018, we recognized $9.0 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 both March 31, 2019 and March 31, 2018.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date. 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 taking into account the probability that we will satisfy the performance condition. 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 “Board”). The 2009 Equity Incentive Plan (the “2009 Plan”) and the 2014 Equity Incentive Plan (the “2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors. 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 ) that were underlying awards outstanding under the 2004 Equity Incentive Plan (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. No awards were outstanding under the 2004 Plan as of March 31, 2019, and no further grants will be made 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 price of our common stock 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 with a value equal to $ 100,000 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 independent Chairman of the Board is annually granted restricted shares with a value equal to $50,000 , and the Lead Director, if one has been appointed, would be annually granted restricted shares with a value of $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, our independent Chairman of the Board and, if applicable, our Lead Director vest on the day prior to the following year’s annual meeting date, subject to the 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-based awards, which historically have been in the form of stock options and/or restricted stock units, to certain employees. We also grant stock-based awards, which historically have been in the form of stock options and/or restricted stock units, to certain new employees throughout the year. 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 without a market condition, (b) the Monte Carlo Simulation valuation model in the case of performance-based restricted stock units with a market condition, or (c) the Black-Scholes option valuation model in the case of stock options. Our annual grants in February 2019 consisted of performance-based restricted stock units and time-based restricted stock units. Our annual grants in March 2018 consisted of time-based stock options and time-based restricted stock units. The number of stock options and/or 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. For the stock-based awards granted in February 2019, the time-based restricted stock units vest in three equal annual installments beginning one year after the grant date. The performance-based restricted stock unit awards vest at the end of the three -year performance period if the applicable performance measure is achieved. The related stock-based compensation expense will be recognized over the requisite service period, taking into account the probability that we will satisfy the performance measure. The performance-based restricted stock units granted in 2019 will be earned and will vest based upon our total shareholder return (“TSR”) relative to the TSR attained by companies within our defined benchmark group, the Russell 2000 Growth Index. Due to the TSR presence in these performance-based restricted stock units, the fair value of these awards was determined using the Monte Carlo Simulation valuation model. We expense these market condition awards over the three -year vesting period regardless of the value the award recipients ultimately receive. For 2018 grants, stock options vest in three equal annual installments beginning one year after the grant date and time-based restricted stock unit awards vest in full on the three -year anniversary of the grant date. The fair value of these stock-based awards is determined by using (a) the Black-Scholes option valuation model in the case of stock options or (b) the current market price of our common stock on the grant date in the case of restricted stock units. The Black-Scholes option 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. The weighted-average grant-date fair value of the performance-based restricted stock units that were granted during the three months ended March 31, 2019 and valued using the Monte Carlo Simulation valuation model was $62.74 . No performance-based restricted stock units were granted during the three months ended March 31, 2018. For performance-based restricted stock units granted during the three months ended March 31, 2019 valued using the Monte Carlo Simulation valuation model, we used the following assumptions: Three Months Ended March 31, Risk-free interest rate 2.48 % Expected dividend yield — % Expected volatility 45.0 % Weighted-average expected volatility 45.0 % The weighted-average grant-date fair value of the stock options that were granted during the three months ended March 31, 2018 and valued using the Black-Scholes option valuation model was $ 23.43 per option. No stock options were granted during the three months ended March 31, 2019. For stock options granted during the three months ended March 31, 2018 valued using the Black-Scholes option valuation model, we used the following assumptions: Three Months Ended March 31, Risk-free interest rate 2.65 % Expected dividend yield — % Expected term of option 4 years Expected volatility 45.0 % Weighted-average expected volatility 45.0 % 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 approximating the expected life of the option being valued. A summary of stock option activity and weighted-average exercise prices during the three months ended March 31, 2019 follows: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at January 1, 2019 792,943 $ 47.59 Granted — — Forfeited or expired (65,868 ) 54.23 Exercised (8,513 ) 34.18 Outstanding at March 31, 2019 718,562 $ 47.38 4.3 $ 3,118 Options exercisable at March 31, 2019 540,597 $ 46.57 2.6 $ 2,410 The total intrinsic value of stock options exercised during the three months ended March 31, 2019 and March 31, 2018 was $0.1 million and $2.7 million , respectively. The fair value of stock options vested during the three months ended March 31, 2019 and March 31, 2018 was $2.7 million and $3.1 million , respectively. The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the three months ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2019 311,000 $ 42.66 Granted 172,324 45.32 Forfeited (8,453 ) 44.36 Vested (82,930 ) 34.47 Non-vested at March 31, 2019 391,941 $ 45.53 We recorded total stock-based compensation expense of $2.6 million and $1.6 million for the three months ended March 31, 2019 and March 31, 2018 , respectively. As of March 31, 2019 , there was $15.9 million of 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 2.1

Short-term Investments

Short-term Investments	3 Months Ended
	Mar. 31, 2019
Investments Schedule [Abstract]
Short-term Investments	SHORT-TERM INVESTMENTS Short-term investments at March 31, 2019 consisted of U.S. Treasury Bills totaling $24.8 million , consisting of $10.9 million maturing on June 6, 2019, $4.9 million maturing on June 20, 2019 and $9.0 million maturing on September 12, 2019, respectively. The interest rates on the U.S. Treasury Bills held on March 31, 2019 that are maturing on June 6, 2019, June 20, 2019, and September 12, 2019 were 2.4% , 2.3% , and 2.3% , respectively. Short-term investments at December 31, 2018 consisted of U.S. Treasury Bills totaling $24.8 million , consisting of $9.0 million that matured on March 14, 2019, $10.9 million maturing on June 6, 2019, and $4.9 million maturing on June 20, 2019. The interest rates on the U.S. Treasury Bills held on December 31, 2018 that matured on March 14, 2019 and that are maturing on June 6, 2019 and June 20, 2019 were 2.2% , 2.4% , and 2.3%

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of As of Accounts receivable $ 77,879 $ 90,675 Allowance for doubtful accounts (1,642 ) (1,748 ) Total $ 76,237 $ 88,927

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) 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 condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years , at which time it would be 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 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 its remaining life, typically three years . Inventories consist of the following: As of As of Raw materials $ 43,406 $ 39,859 Finished goods 31,180 25,585 Inventories, net $ 74,586 $ 65,444 Service and sales demonstration inventory, net $ 38,351 $ 39,563

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE Basic earnings per share is computed by dividing net income 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 units and performance-based awards. Our potential common stock is included in the diluted earnings per share calculation when adding such potential common stock 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 calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive. For the three months ended March 31, 2019, there were approximately 372,326 shares issuable upon the exercise of options and the contingent vesting of performance-based restricted stock units that were excluded from the dilutive calculations, as they were anti-dilutive. For the three months ended March 31, 2018, there were approximately 655,944 shares issuable upon the exercise of options that were excluded from the dilutive calculations, as they were anti-dilutive. A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (“EPS”) is presented below: Three Months Ended March 31, 2019 March 31, 2018 Shares Per-Share Amount Shares Per-Share Amount Basic earnings per share 17,280,365 $ 0.01 16,837,754 $ 0.03 Effect of dilutive securities 588,451 — 305,016 — Diluted earnings per share 17,868,816 $ 0.01 17,142,770 $ 0.03

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 13,902 $ 17,745 Accrued warranties 2,474 2,571 Professional and legal fees 2,304 2,154 Taxes other than income 3,344 3,550 General services administration contract contingent liability (see Note 16) 5,347 5,267 Other accrued liabilities 4,018 5,040 $ 31,389 $ 36,327 Activity related to accrued warranties was as follows: Three Months Ended March 31, 2019 March 31, 2018 Balance, beginning of period $ 2,571 $ 2,628 Provision for warranty expense 878 914 Fulfillment of warranty obligations (975 ) (1,067 ) Balance, end of period $ 2,474 $ 2,475

Fair Value of Financial Measure

Fair Value of Financial Measurements	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Measurements	FAIR VALUE MEASUREMENTS Our financial instruments include cash and cash equivalents, short-term investments, accounts receivable, customer deposits, accounts payable and accrued liabilities. The carrying amounts of such financial instruments approximate their fair value due to the short-term nature of these instruments. 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: As of March 31, 2019 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,205 Total $ — $ — $ 5,205 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,531 Total $ — $ — $ 5,531 (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. The remaining undiscounted maximum payment under these arrangements was $5.6 million as of March 31, 2019. We paid $0.3 million as part of these arrangements during the three months ended March 31, 2019 , which was the primary reason for the change in the fair value of the contingent consideration from December 31, 2018 to March 31, 2019

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES For the three months ended March 31, 2019 , we recorded an income tax expense of $0.2 million compared with income tax expense of $0.1 million for the three months ended March 31, 2018 . Our effective tax rate was 50.5% for the three months ended March 31, 2019 compared with 21.8% in the prior year period. The changes in our income tax expense and our effective tax rate were primarily due to the mix of jurisdictions where we earned pretax book income or incurred a pretax book loss during the three months ended March 31, 2019 compared to the same period in the prior year.

Variable Interest Entity

Variable Interest Entity	3 Months Ended
	Mar. 31, 2019
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 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 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 . At this time, we do not intend to provide future support to present4D, but 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 three month period ended March 31, 2019 was less than $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 March 31, 2019 and December 31, 2018 was $1.7 million

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Reporting	SEGMENT REPORTING We have three reportable 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 reportable segments are aggregated in the Emerging Verticals segment. 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 reportable 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 reportable 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 – Description of Business. The amounts for the three months ended March 31, 2018 have been restated to reflect the change in our reporting segments. Each of our reporting segments continues to employ consistent accounting policies. The following tables present information about our reportable segments, including a reconciliation of segment profit to income from operations included in the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018: 3D Manufacturing Construction BIM Emerging Verticals Total Three Months Ended March 31, 2019 Total sales $ 56,567 $ 25,440 $ 11,610 $ 93,617 Segment profit $ 19,170 $ 8,427 $ 669 $ 28,266 General and administrative 13,224 Depreciation and amortization 4,749 Research and development 9,935 Income from operations $ 358 3D Manufacturing Construction BIM Emerging Verticals Total Three Months Ended March 31, 2018 Total sales $ 60,657 $ 22,682 $ 9,495 $ 92,834 Segment profit $ 18,425 $ 6,451 $ 639 $ 25,515 General and administrative 11,073 Depreciation and amortization 4,343 Research and development 9,406 Income from operations $ 693

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES 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 March 31, 2019 , we had approximately $45.0 million in purchase commitments that are expected to be delivered within the next 12 months. Legal Proceedings — We are not involved in any legal proceedings, including routine litigation arising in the normal course of business, that 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. 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. For the three months ended March 31, 2019, we recorded $0.1 million of imputed interest related to the estimated cumulative sales adjustment for the six-year period ended December 31, 2018. Our estimated total liability for the GSA Matter is based on our preliminary review as of the date of this Quarterly Report on Form 10-Q and is subject to change based on the results of the Review being conducted by our outside legal counsel and discussions with the Government.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lessee, Operating Leases	LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately seven years , some of which include options to extend the leases for up to eight years , and some of which include options to terminate the leases within three months . We currently do not sublease any of our leased assets. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 1,969 Finance lease cost: Amortization of ROU assets 92 Interest on lease liabilities $ 12 Total finance lease cost $ 104 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for the period ended March 31, 2019 was $0.1 million . Supplemental balance sheet information related to leases was as follows: As of March 31, 2019 Operating leases: Operating lease right-of-use asset $ 18,876 Current operating lease liability $ 6,139 Operating lease liability - less current portion 13,782 Total operating lease liability $ 19,921 Finance leases: Property and equipment, at cost $ 1,692 Accumulated depreciation (839 ) Property and equipment, net $ 853 Current finance lease liability $ 307 Finance lease liability - less current portion 581 Total finance lease liability $ 888 Weighted Average Remaining Lease Term: Operating leases 4.8 years Finance leases 3 years Weighted Average Discount Rate: Operating leases 5.18 % Finance leases 5.06 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,029 Operating cash flows from finance leases 12 Financing cash flows from finance leases 90 ROU assets obtained in exchange for lease obligations: Operating leases 5,400 Finance leases — Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2019 (excluding the first 3 months) $ 5,347 $ 263 2020 5,592 319 2021 2,659 280 2022 2,314 71 2023 2,334 25 Thereafter 4,590 — Total lease payments $ 22,836 $ 958 Less imputed interest (2,915 ) (70 ) Total $ 19,921 $ 888
Lessee, Finance Leases	LEASES We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately seven years , some of which include options to extend the leases for up to eight years , and some of which include options to terminate the leases within three months . We currently do not sublease any of our leased assets. We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term. While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component. The components of lease expense were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 1,969 Finance lease cost: Amortization of ROU assets 92 Interest on lease liabilities $ 12 Total finance lease cost $ 104 We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for the period ended March 31, 2019 was $0.1 million . Supplemental balance sheet information related to leases was as follows: As of March 31, 2019 Operating leases: Operating lease right-of-use asset $ 18,876 Current operating lease liability $ 6,139 Operating lease liability - less current portion 13,782 Total operating lease liability $ 19,921 Finance leases: Property and equipment, at cost $ 1,692 Accumulated depreciation (839 ) Property and equipment, net $ 853 Current finance lease liability $ 307 Finance lease liability - less current portion 581 Total finance lease liability $ 888 Weighted Average Remaining Lease Term: Operating leases 4.8 years Finance leases 3 years Weighted Average Discount Rate: Operating leases 5.18 % Finance leases 5.06 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,029 Operating cash flows from finance leases 12 Financing cash flows from finance leases 90 ROU assets obtained in exchange for lease obligations: Operating leases 5,400 Finance leases — Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2019 (excluding the first 3 months) $ 5,347 $ 263 2020 5,592 319 2021 2,659 280 2022 2,314 71 2023 2,334 25 Thereafter 4,590 — Total lease payments $ 22,836 $ 958 Less imputed interest (2,915 ) (70 ) Total $ 19,921 $ 888

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS 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 condensed consolidated financial statements as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 and March 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 condensed consolidated financial statements as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 and March 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 condensed consolidated financial statements as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 . On July 13, 2018, we acquired all of the issued and outstanding corporate capital of Opto-Tech SRL and its subsidiary Open Technologies SRL (collectively, “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 condensed consolidated financial statements as of March 31, 2019 and December 31, 2018, and for the three months ended March 31, 2019 . The acquisitions of Laser Control Systems, Photocore AG, Lanmark and Open Technologies constitute business combinations as defined by ASC Topic 805. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. The purchase price allocations below represent our final determination of the fair value of the assets acquired and liabilities assumed for such acquisitions. In the three months ended March 31, 2019, certain refinements were booked for the Open Technologies acquisition as part of the finalization process, which included a reduction of $2.6 million to the valuation of the customer relationship intangible and the recognition of a deferred tax liability of $1.9 million . Goodwill increased $4.5 million as a result of these changes in the finalization process. 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: Laser Control Systems Photocore AG Lanmark Open Technologies (2) Accounts receivable $ — $ — $ 610 $ 2,735 Inventory — — 299 1,852 Other assets — — 76 634 Intangible assets 1,400 1,435 1,366 7,821 Goodwill 928 1,010 5,355 13,573 Accounts payable and accrued liabilities — — (159 ) (2,926 ) Other liabilities (1) (579 ) — (971 ) (5,201 ) Deferred income tax liabilities — — (325 ) (1,876 ) Total purchase price, net of cash acquired $ 1,749 $ 2,445 $ 6,251 $ 16,612 (1) For Laser Control Systems, Lanmark and Open Technologies, this total consists primarily of the fair value of the projected contingent consideration. (2) 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: Laser Control Systems Photocore AG Lanmark Open Technologies Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ — 0 $ — 0 $ — 0 $ — 0 Brand 26 1 22 1 26 1 103 1 Non-competition agreement 29 3 9 3 — 0 — 0 Technology 1,319 7 1,343 7 760 7 4,441 7 Customer relationship 26 10 61 10 580 10 3,277 10 Favorable in-place lease — 0 — 0 — 0 — 0 Fair value of intangible assets acquired $ 1,400 7 $ 1,435 7 $ 1,366 8 $ 7,821 8 The goodwill for the 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 $0.8 million

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On April 5, 2019, our Board appointed Michael D. Burger as our President and Chief Executive Officer, effective June 17, 2019, to succeed Dr. Simon Raab, who is retiring as our President and Chief Executive Officer and as a member of our Board of Directors on June 16, 2019. Also, on April 5, 2019, we entered into an Employment Agreement with Mr. Burger (the “Employment Agreement”), which is effective as of June 17, 2019. In accordance with the terms of the Employment Agreement, Mr. Burger’s initial compensation will consist of the following: • Base salary - An annual base salary of $700,000 . • Transition to short-term incentive plan - Because Mr. Burger will not be eligible to participate in our short-term incentive plan for 2019, he will be eligible to receive a target bonus of 100% of his base salary, pro-rated for the number of days he is employed by us during 2019, provided that he remains employed by us on December 31, 2019 and conditioned upon his achievement of certain performance goals established by the Compensation Committee of our Board (the “Compensation Committee”) and accepted in writing by Mr. Burger on April 5, 2019. • Short-term incentive plan - Mr. Burger will be eligible to participate in our short-term incentive plan beginning in 2020, with a target payout of at least 100% of his base salary conditioned upon our achievement of the performance goals established by the Compensation Committee. • Long-term incentive plan - Mr. Burger will be eligible to receive annual grants under our long-term incentive plan beginning in 2020, with a target value of at least $2 million . Such grants are expected to be awarded in a combination of performance-based restricted stock units and time-based restricted stock units, in a ratio of 50% and 50% , respectively. • Sign-on equity grant - Mr. Burger will be granted a one-time sign-on restricted stock unit award on June 17, 2019 with a target value of $3 million . This equity grant will be comprised of a combination of performance-based restricted stock units and time-based restricted stock units, in a ratio of 50% and 50% , respectively. One-third of the time-based restricted stock units will vest on each of the first, second and third anniversaries of the grant date. The performance-based restricted stock units will be earned based on how our total shareholder return, or TSR, compares to the TSR of the Russell 2000 Growth Index during the performance period from June 17, 2019 to June 17, 2022 (the “Relative TSR”). If our Relative TSR during the performance period is (i) at the 55% percentile, 100% of the target performance-based restricted stock units awarded will be earned and will vest; (ii) at or above the 80 th percentile, 200% of the target performance-based restricted stock units awarded will be earned and will vest, provided that if our TSR for the performance period is negative, the maximum percentage that may be earned is 100% ; (iii) at the 25 th percentile, 25% of the target performance-based restricted stock units awarded will be earned and will vest; and (iv) below the 25th percentile, no performance-based restricted stock units will be earned. The percentage of performance-based restricted stock units that is earned will be interpolated if Relative TSR is between the 25th and 80th percentiles during the performance period. • Signing bonus - Mr. Burger will receive a one-time signing bonus equal to $500,000 payable in a lump sum in cash within 30 days following June 17, 2019. Mr. Burger will be required to repay the signing bonus if, prior to June 17, 2021: (i) he voluntarily terminates his employment with us other than for “good reason” (as defined in the Employment Agreement), (ii) the Employment Agreement expires as a result of his election not to renew the annual term of the Employment Agreement, or (iii) his employment is terminated by us for “cause” (as defined in the Employment Agreement). • Relocation expenses

Principles of Consolidation (Po

Principles of Consolidation (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation Policy	Our condensed 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.
Basis of Accounting Policy	The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include all normal recurring accruals and adjustments considered necessary by management for a fair presentation in conformity with U.S. GAAP.
Use of Estimates Policy	Preparing financial statements 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 materially from those estimates.
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.
Impact of Recently Adopted and Recently Issued Accounting Standards Policy	Impact of Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 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 adopted ASU 2016-02 effective as of January 1, 2019 utilizing the cumulative-effect adjustment transition method of adoption, which resulted in the recognition on our condensed consolidated balance sheet as of March 31, 2019 of $18.9 million of right-of-use assets for operating leases, $19.9 million of lease liability for operating leases, $0.9 million of property and equipment, net for finance leases and $0.9 million of lease liability for finance leases under which we function as a lessee. We elected certain practical expedients available under the transition provisions to (i) allow aggregation of non-lease components with the related lease components when evaluating accounting treatment, (ii) apply the modified retrospective adoption method, utilizing the simplified transition option, which allows us to continue to apply the legacy guidance in FASB ASC Topic 840, including its disclosure requirements, in the comparative periods presented in the year of adoption, and (iii) use hindsight in determining the lease term (that is, when considering our options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of our right-of-use assets. The adoption of ASU 2016-02 also required us to include any initial direct costs, which are incremental costs that would not have been incurred had the lease not been obtained, in the right-of-use assets. The recognition of these costs in connection with our adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Impact of Recently Issued Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
Inventory Policy	Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) 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 condensed consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years , at which time it would be 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 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 its remaining life, typically three years

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following tables present our revenues by Sales type as presented in our condensed consolidated statements of operations disaggregated by the timing of transfer of goods or services (in thousands, unaudited): For the Three Months Ended March 31, 2019 2018 Product sales Product transferred to customers at a point in time $ 68,800 $ 70,581 Product transferred to customers over time — — $ 68,800 $ 70,581 For the Three Months Ended March 31, 2019 2018 Service sales Service transferred to customers at a point in time $ 11,854 $ 9,452 Service transferred to customers over time 12,963 12,801 $ 24,817 $ 22,253 The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in thousands, unaudited): For the Three Months Ended March 31, 2019 2018 Total sales to external customers United States $ 35,848 $ 37,302 EMEA (1) 31,100 29,680 APAC (1) 23,337 22,589 Other Americas (1) 3,332 3,263 $ 93,617 $ 92,834 (1)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Valuation Assumptions	For stock options granted during the three months ended March 31, 2018 valued using the Black-Scholes option valuation model, we used the following assumptions: Three Months Ended March 31, Risk-free interest rate 2.65 % Expected dividend yield — % Expected term of option 4 years Expected volatility 45.0 % Weighted-average expected volatility 45.0 %
Schedule of Stock Option Activity and Weighted Average Exercise Prices	A summary of stock option activity and weighted-average exercise prices during the three months ended March 31, 2019 follows: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at January 1, 2019 792,943 $ 47.59 Granted — — Forfeited or expired (65,868 ) 54.23 Exercised (8,513 ) 34.18 Outstanding at March 31, 2019 718,562 $ 47.38 4.3 $ 3,118 Options exercisable at March 31, 2019 540,597 $ 46.57 2.6 $ 2,410
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 three months ended March 31, 2019 : Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2019 311,000 $ 42.66 Granted 172,324 45.32 Forfeited (8,453 ) 44.36 Vested (82,930 ) 34.47 Non-vested at March 31, 2019 391,941 $ 45.53

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following: As of As of Accounts receivable $ 77,879 $ 90,675 Allowance for doubtful accounts (1,642 ) (1,748 ) Total $ 76,237 $ 88,927

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: As of As of Raw materials $ 43,406 $ 39,859 Finished goods 31,180 25,585 Inventories, net $ 74,586 $ 65,444 Service and sales demonstration inventory, net $ 38,351 $ 39,563

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
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 per share (“EPS”) is presented below: Three Months Ended March 31, 2019 March 31, 2018 Shares Per-Share Amount Shares Per-Share Amount Basic earnings per share 17,280,365 $ 0.01 16,837,754 $ 0.03 Effect of dilutive securities 588,451 — 305,016 — Diluted earnings per share 17,868,816 $ 0.01 17,142,770 $ 0.03

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of As of Accrued compensation and benefits $ 13,902 $ 17,745 Accrued warranties 2,474 2,571 Professional and legal fees 2,304 2,154 Taxes other than income 3,344 3,550 General services administration contract contingent liability (see Note 16) 5,347 5,267 Other accrued liabilities 4,018 5,040 $ 31,389 $ 36,327
Schedule of Activity Related to Accrued Warranties	Activity related to accrued warranties was as follows: Three Months Ended March 31, 2019 March 31, 2018 Balance, beginning of period $ 2,571 $ 2,628 Provision for warranty expense 878 914 Fulfillment of warranty obligations (975 ) (1,067 ) Balance, end of period $ 2,474 $ 2,475

Fair Value of Financial Measu_2

Fair Value of Financial Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	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: As of March 31, 2019 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,205 Total $ — $ — $ 5,205 Level 1 Level 2 Level 3 Liabilities: Contingent consideration (1) $ — $ — $ 5,531 Total $ — $ — $ 5,531 (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. The remaining undiscounted maximum payment under these arrangements was $5.6 million as of March 31, 2019. We paid $0.3 million as part of these arrangements during the three months ended March 31, 2019 , which was the primary reason for the change in the fair value of the contingent consideration from December 31, 2018 to March 31, 2019

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following tables present information about our reportable segments, including a reconciliation of segment profit to income from operations included in the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018: 3D Manufacturing Construction BIM Emerging Verticals Total Three Months Ended March 31, 2019 Total sales $ 56,567 $ 25,440 $ 11,610 $ 93,617 Segment profit $ 19,170 $ 8,427 $ 669 $ 28,266 General and administrative 13,224 Depreciation and amortization 4,749 Research and development 9,935 Income from operations $ 358 3D Manufacturing Construction BIM Emerging Verticals Total Three Months Ended March 31, 2018 Total sales $ 60,657 $ 22,682 $ 9,495 $ 92,834 Segment profit $ 18,425 $ 6,451 $ 639 $ 25,515 General and administrative 11,073 Depreciation and amortization 4,343 Research and development 9,406 Income from operations $ 693

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease, Cost	Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,029 Operating cash flows from finance leases 12 Financing cash flows from finance leases 90 ROU assets obtained in exchange for lease obligations: Operating leases 5,400 Finance leases — Three Months Ended March 31, 2019 Operating lease cost $ 1,969 Finance lease cost: Amortization of ROU assets 92 Interest on lease liabilities $ 12 Total finance lease cost $ 104
Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: As of March 31, 2019 Operating leases: Operating lease right-of-use asset $ 18,876 Current operating lease liability $ 6,139 Operating lease liability - less current portion 13,782 Total operating lease liability $ 19,921 Finance leases: Property and equipment, at cost $ 1,692 Accumulated depreciation (839 ) Property and equipment, net $ 853 Current finance lease liability $ 307 Finance lease liability - less current portion 581 Total finance lease liability $ 888 Weighted Average Remaining Lease Term: Operating leases 4.8 years Finance leases 3 years Weighted Average Discount Rate: Operating leases 5.18 % Finance leases 5.06 %
Lessee, Operating Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2019 (excluding the first 3 months) $ 5,347 $ 263 2020 5,592 319 2021 2,659 280 2022 2,314 71 2023 2,334 25 Thereafter 4,590 — Total lease payments $ 22,836 $ 958 Less imputed interest (2,915 ) (70 ) Total $ 19,921 $ 888
Finance Lease, Liability, Maturity	Maturities of lease liabilities are as follows: Year Ending December 31, Operating leases Finance leases 2019 (excluding the first 3 months) $ 5,347 $ 263 2020 5,592 319 2021 2,659 280 2022 2,314 71 2023 2,334 25 Thereafter 4,590 — Total lease payments $ 22,836 $ 958 Less imputed interest (2,915 ) (70 ) Total $ 19,921 $ 888

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Schedule of Fair Values of Assets Acquired and Liabilities Assumed for 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: Laser Control Systems Photocore AG Lanmark Open Technologies (2) Accounts receivable $ — $ — $ 610 $ 2,735 Inventory — — 299 1,852 Other assets — — 76 634 Intangible assets 1,400 1,435 1,366 7,821 Goodwill 928 1,010 5,355 13,573 Accounts payable and accrued liabilities — — (159 ) (2,926 ) Other liabilities (1) (579 ) — (971 ) (5,201 ) Deferred income tax liabilities — — (325 ) (1,876 ) Total purchase price, net of cash acquired $ 1,749 $ 2,445 $ 6,251 $ 16,612 (1) For Laser Control Systems, Lanmark and Open Technologies, this total consists primarily of the fair value of the projected contingent consideration. (2) Amounts converted from Euros to U.S. Dollars based on the foreign exchange rate on the closing date of the acquisition.
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: Laser Control Systems Photocore AG Lanmark Open Technologies Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Amount Weighted Average Life (Years) Trade name $ — 0 $ — 0 $ — 0 $ — 0 Brand 26 1 22 1 26 1 103 1 Non-competition agreement 29 3 9 3 — 0 — 0 Technology 1,319 7 1,343 7 760 7 4,441 7 Customer relationship 26 10 61 10 580 10 3,277 10 Favorable in-place lease — 0 — 0 — 0 — 0 Fair value of intangible assets acquired $ 1,400 7 $ 1,435 7 $ 1,366 8 $ 7,821 8

Description of Business (Detail

Description of Business (Details)	3 Months Ended
	Mar. 31, 2019segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Impact of Recently Issued Acc_2

Impact of Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Operating lease right-of-use asset	$ 18,876	$ 18,900	$ 0
Operating lease liability	19,921	19,900
Finance lease, Right-of-use asset	853	900
Finance lease, liability	$ 888	$ 900

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 93,617	$ 92,834
United States
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	35,848	37,302
EMEA
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	31,100	29,680
APAC
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	23,337	22,589
Other Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	3,332	3,263
Product sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	68,800	70,581
Product sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	68,800	70,581
Product sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	0	0
Service sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	24,817	22,253
Service sales | Product transferred to customers at a point in time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	11,854	9,452
Service sales | Product transferred to customers over time
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 12,963	$ 12,801

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Deferred commission	$ 2.8	$ 2.5
Recognized service revenue	10.8	9
Refund liability	0.1
Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Deferred commission	1.9	1.8
Other long-term assets
Disaggregation of Revenue [Line Items]
Deferred commission	$ 0.9	$ 0.7

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	1 Months Ended	3 Months Ended
	May 31, 2018shares	Mar. 31, 2019USD ($)plan$ / sharesshares	Mar. 31, 2018USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of compensation plans | plan		2
Fair value of stock options vested		$ 2,700,000	$ 3,100,000
Allocated share-based compensation expense		2,600,000	1,600,000
Unrecognized stock-based compensation expense		$ 15,900,000
Weighted average, expected recognition period		2 years 1 month 6 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Number of restricted stock units vested (in shares) | shares		82,930
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised		$ 100,000	$ 2,700,000
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		$ 62.74	$ 23.43
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
March 2018 | Year One | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Two | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Two | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Three | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2018 | Year Three | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year One | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Two | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Two | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Three | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
March 2017 | Year Three | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year One | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year One | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Two | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Two | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Three | Performance Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
2015 | Year Three | Performance Based Employee Stock Options | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment (as a percent)		33.33%
Two Thousand Fourteen Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized (in shares) | shares	1,000,000
Shares authorized (in shares) | shares	2,974,543
2004 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares	891,960
Directors Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term for value of shares to be granted upon election		$ 100,000
Directors Plan | Restricted Stock | Independent Chairman of the Board
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term for value of shares to be granted upon election		50,000
Directors Plan | Restricted Stock | Lead Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term for value of shares to be granted upon election		$ 40,000

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details) - Employee Stock Option	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	2.48%	2.65%
Expected dividend yield	0.00%	0.00%
Expected term of option		4 years
Expected volatility	45.00%	45.00%
Weighted-average expected volatility	45.00%	45.00%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Options
Outstanding at January 1, 2018 (in shares) | shares	792,943
Granted (in shares) | shares	0
Forfeited or expired (in shares) | shares	(65,868)
Exercised (in shares) | shares	(8,513)
Outstanding at September 30, 2018 (in shares) | shares	718,562
Options exercisable at September 30, 2018 (in shares) | shares	540,597
Weighted- Average Exercise Price
Outstanding at January 1, 2018 (in dollars per share) | $ / shares	$ 47.59
Granted (in dollars per share) | $ / shares	0
Forfeited or expired (in dollars per share) | $ / shares	54.23
Exercised (in dollars per share) | $ / shares	34.18
Outstanding at September 30, 2018 (in dollars per share) | $ / shares	47.38
Options exercisable at September 30, 2018 (in dollars per share) | $ / shares	$ 46.57
Weighted-Average Remaining Contractual Term (Years)
Weighted-average remaining contractual term, outstanding at September 30, 2018	4 years 3 months 18 days
Weighted-average remaining contractual term, options exercisable at September 30, 2018	2 years 7 months 6 days
Aggregate Intrinsic Value as of March 31, 2019
Aggregate intrinsic value outstanding at September 30, 2018 | $	$ 3,118
Aggregate intrinsic value of options exercisable at September 30, 2018 | $	$ 2,410

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Shares
Non-vested, beginning balance (in shares) | shares	311,000
Granted (in shares) | shares	172,324
Forfeited (in shares) | shares	(8,453)
Vested (in shares) | shares	(82,930)
Non-vested, ending balance (in shares) | shares	391,941
Weighted-Average Grant Date Fair Value
Non-vested, beginning balance (in dollars per share) | $ / shares	$ 42.66
Granted (in dollars per share) | $ / shares	45.32
Forfeited (in dollars per share) | $ / shares	44.36
Vested (in dollars per share) | $ / shares	34.47
Non-vested, ending balance (in dollars per share) | $ / shares	$ 45.53

Short-term Investments - Additi

Short-term Investments - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 24,831	$ 24,793
US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	24,800	24,800
U.S. Treasury Security, Maturing on March 14th 2019 [Member] | US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments		$ 9,000
Interest rate on U.S. Treasury Bills		2.20%
U.S. Treasury Security, Maturing on June 6th, 2019 [Member] | US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 10,900	$ 10,900
Interest rate on U.S. Treasury Bills	2.40%	2.40%
U.S. Treasury Security, Maturing on June 20th, 2019 [Member] | US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 4,900	$ 4,900
Interest rate on U.S. Treasury Bills	2.30%	2.30%
U.S. Treasury Security, Maturing on September 12 2019 [Member] | US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 9,000
Interest rate on U.S. Treasury Bills	2.30%

Accounts Receivable - Additiona

Accounts Receivable - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 77,879	$ 90,675
Allowance for doubtful accounts	(1,642)	(1,748)
Total	$ 76,237	$ 88,927

Inventories - Additional Inform

Inventories - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Demonstration inventory shelf life (in years)	3 years
Refurbished demonstration inventory selling period (in months)	12 months
Service Inventory
Property, Plant and Equipment [Line Items]
Inventory, remaining useful life (in years)	3 years

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 43,406	$ 39,859
Finished goods	31,180	25,585
Inventories, net	74,586	65,444
Service and sales demonstration inventory, net	$ 38,351	$ 39,563

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities (in shares)	372,326	655,944
Earnings Per Share, Basic and Diluted [Abstract]
Basic earnings per share (in shares)	17,280,365	16,837,754
Effect of dilutive securities (in shares)	588,451	305,016
Diluted earnings (in shares)	17,868,816	17,142,770
Basic earnings (in dollars per share)	$ 0.01	$ 0.03
Effect of dilutive securities (in dollars per share)	0	0
Diluted earnings (in dollars per share)	$ 0.01	$ 0.03

Accrued Liabilities - Summary (

Accrued Liabilities - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 13,902	$ 17,745
Accrued warranties	2,474	2,571	$ 2,475	$ 2,628
Professional and legal fees	2,304	2,154
Taxes other than income	3,344	3,550
General services administration contract contingent liability (see Note 16)	5,347	5,267
Other accrued liabilities	4,018	5,040
Accrued liabilities	$ 31,389	$ 36,327

Accrued Liabilities - Activity

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 2,571	$ 2,628
Provision for warranty expense	878	914
Fulfillment of warranty obligations	(975)	(1,067)
Balance, end of period	$ 2,474	$ 2,475

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 155	$ 127
Effective tax rate	50.50%	21.80%

Fair Value of Financial Measu_3

Fair Value of Financial Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Level 1
Liabilities:
Contingent consideration	$ 0	$ 0
Total	0	0
Level 2
Liabilities:
Contingent consideration	0	0
Total	0	0
Level 3
Liabilities:
Contingent consideration	5,205	5,531
Total	$ 5,205	$ 5,531

Fair Value of Financial Measu_4

Fair Value of Financial Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment of contingent consideration for acquisitions	$ 250	$ 0
Monte Carlo Simulation Valuation Model
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Undiscounted maximum payment under the contingent consideration arrangements	$ 5,600

Variable Interest Entity (Detai

Variable Interest Entity (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions	Apr. 27, 2018	Mar. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Equity investments and advances to affiliates	$ 1.8
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	16.50%
VIE loss, our portion		$ 0.1
Variable Interest Entity, Investment		$ 1.7	$ 1.7

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019segment
Segment Reporting [Abstract]
Number of reportable segments	3
Product sales to consolidated sales (more than) (as a percent)	99.00%

Segment Reporting - Summary of

Segment Reporting - Summary of Reportable Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Total sales	$ 93,617	$ 92,834
Segment profit	55,019	53,786
General and administrative	13,224	11,073
Depreciation and amortization	4,749	4,343
Research and development	9,935	9,406
Income (loss) from operations	358	693
3D Manufacturing
Segment Reporting Information [Line Items]
Total sales	56,567	60,657
Construction BIM
Segment Reporting Information [Line Items]
Total sales	25,440	22,682
Emerging Verticals
Segment Reporting Information [Line Items]
Total sales	11,610	9,495
Operating Segments
Segment Reporting Information [Line Items]
Segment profit	28,266	25,515
Operating Segments | 3D Manufacturing
Segment Reporting Information [Line Items]
Segment profit	19,170	18,425
Operating Segments | Construction BIM
Segment Reporting Information [Line Items]
Segment profit	8,427	6,451
Operating Segments | Emerging Verticals
Segment Reporting Information [Line Items]
Segment profit	$ 669	$ 639

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			72 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2018
Commitments and Contingencies [Line Items]
Purchase commitment, due in next twelve months	$ 45,000
Revenue from contract with customer	$ 93,617		$ 92,834
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]
Revenue from contract with customer	$ 100			$ 53,500
Charges to income from Price Adjustment Clauses				4,800
Imputed interest from Price Adjustment Clauses		$ 500
Total estimated liability from Price Adjustment Clauses		$ 5,300		$ 5,300

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Lessee, Lease, Description [Line Items]
Renewal term	8 years
Termination window	3 months
Short term lease cost	$ 0.1
Minimum
Lessee, Lease, Description [Line Items]
Term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of contract	7 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 1,969
Finance lease cost:
Amortization of ROU assets	92
Interest on lease liabilities	12
Total finance lease cost	$ 104

Leases Supplemental Balance She

Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating leases:
Operating lease right-of-use asset	$ 18,876	$ 18,900	$ 0
Current operating lease liability	6,139
Operating lease liability - less current portion	13,782
Total operating lease liability	19,921	19,900
Finance leases:
Property and equipment, at cost	1,692
Accumulated depreciation	(839)
Property and equipment, net	853	900
Current finance lease liability	307
Finance lease liability - less current portion	581
Total finance lease liability	$ 888	$ 900
Weighted Average Remaining Lease Term:
Operating leases	4 years 9 months 18 days
Finance leases	3 years
Weighted Average Discount Rate:
Operating leases	5.18%
Finance leases	5.06%

Leases - Maturities of lease li

Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Operating leases
2019 (excluding the first 3 months)	$ 5,347
2020	5,592
2021	2,659
2022	2,314
2023	2,334
Thereafter	4,590
Total lease payments	22,836
Less imputed interest	(2,915)
Total	19,921	$ 19,900
Financing leases
2019 (excluding the first 3 months)	263
2020	319
2021	280
2022	71
2023	25
Thereafter	0
Total lease payments	958
Less imputed interest	(70)
Total	$ 888	$ 900

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flows (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,029
Operating cash flows from finance leases	12
Financing cash flows from finance leases	90
ROU assets obtained in exchange for lease obligations:
Operating leases	5,400
Finance leases	$ 0

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands, € in Millions	Jul. 13, 2018EUR (€)	Jul. 13, 2018USD ($)	Jul. 06, 2018USD ($)	Mar. 16, 2018USD ($)	Mar. 09, 2018USD ($)	Mar. 31, 2019USD ($)	Jul. 13, 2018USD ($)
Business Acquisition [Line Items]
Integration costs for acquisitions						$ 800
Laser Control Systems Limited
Business Acquisition [Line Items]
Purchase price, including contingent consideration					$ 1,700
Potential contingent consideration					700
Deferred income tax liabilities					$ 0
Photocore AG
Business Acquisition [Line Items]
Purchase price, net of cash acquired				$ 2,400
Deferred income tax liabilities				$ 0
Lanmark Controls
Business Acquisition [Line Items]
Purchase price, including contingent consideration			$ 6,300
Potential contingent consideration			1,000
Deferred income tax liabilities			$ 325
Opto-Tech SRL
Business Acquisition [Line Items]
Purchase price, including contingent consideration	€ 18.5	$ 21,600
Potential contingent consideration	€ 4						$ 4,700
Deferred income tax liabilities						1,900	$ 1,876
Goodwill increase						4,500
Customer relationship | Opto-Tech SRL
Business Acquisition [Line Items]
Decrease in intangible assets						$ 2,600

Business Combinations - Purchas

Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Jul. 13, 2018	Jul. 06, 2018	Mar. 16, 2018	Mar. 09, 2018
Business Acquisition [Line Items]
Goodwill	$ 71,097	$ 67,274
Laser Control Systems
Business Acquisition [Line Items]
Accounts receivable						$ 0
Inventory						0
Other assets						0
Intangible assets						1,400
Goodwill						928
Accounts payable and accrued liabilities						0
Other liabilities						(579)
Deferred income tax liabilities						0
Total purchase price, net of cash acquired						$ 1,749
Photocore AG
Business Acquisition [Line Items]
Accounts receivable					$ 0
Inventory					0
Other assets					0
Intangible assets					1,435
Goodwill					1,010
Accounts payable and accrued liabilities					0
Other liabilities					0
Deferred income tax liabilities					0
Total purchase price, net of cash acquired					$ 2,445
Lanmark
Business Acquisition [Line Items]
Accounts receivable				$ 610
Inventory				299
Other assets				76
Intangible assets				1,366
Goodwill				5,355
Accounts payable and accrued liabilities				(159)
Other liabilities				(971)
Deferred income tax liabilities				(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
Intangible assets			7,821
Goodwill			13,573
Accounts payable and accrued liabilities			(2,926)
Other liabilities			(5,201)
Deferred income tax liabilities	$ (1,900)		(1,876)
Total purchase price, net of cash acquired			$ 16,612

Business Combinations - Summary

Business Combinations - Summary of the Purchase Price Allocated to the Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 13, 2018	Jul. 06, 2018	Mar. 16, 2018	Mar. 09, 2018
Laser Control Systems
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 1,400
Intangible assets acquired, weighted average life (in years)				7 years
Laser Control Systems | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 0
Intangible assets acquired, weighted average life (in years)				0 years
Laser Control Systems | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 26
Intangible assets acquired, weighted average life (in years)				1 year
Laser Control Systems | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 29
Intangible assets acquired, weighted average life (in years)				3 years
Laser Control Systems | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 1,319
Intangible assets acquired, weighted average life (in years)				7 years
Laser Control Systems | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 26
Intangible assets acquired, weighted average life (in years)				10 years
Laser Control Systems | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired				$ 0
Intangible assets acquired, weighted average life (in years)				0 years
Photocore AG
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 1,435
Intangible assets acquired, weighted average life (in years)			7 years
Photocore AG | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 0
Intangible assets acquired, weighted average life (in years)			0 years
Photocore AG | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 22
Intangible assets acquired, weighted average life (in years)			1 year
Photocore AG | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 9
Intangible assets acquired, weighted average life (in years)			3 years
Photocore AG | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 1,343
Intangible assets acquired, weighted average life (in years)			7 years
Photocore AG | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 61
Intangible assets acquired, weighted average life (in years)			10 years
Photocore AG | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired			$ 0
Intangible assets acquired, weighted average life (in years)			0 years
Lanmark
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 1,366
Intangible assets acquired, weighted average life (in years)		8 years
Lanmark | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 0
Intangible assets acquired, weighted average life (in years)		0 years
Lanmark | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 26
Intangible assets acquired, weighted average life (in years)		1 year
Lanmark | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 0
Intangible assets acquired, weighted average life (in years)		0 years
Lanmark | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 760
Intangible assets acquired, weighted average life (in years)		7 years
Lanmark | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 580
Intangible assets acquired, weighted average life (in years)		10 years
Lanmark | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired		$ 0
Intangible assets acquired, weighted average life (in years)		0 years
Open Technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 7,821
Intangible assets acquired, weighted average life (in years)	8 years
Open Technologies | Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0
Intangible assets acquired, weighted average life (in years)	0 years
Open Technologies | Brand
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 103
Intangible assets acquired, weighted average life (in years)	1 year
Open Technologies | Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0
Intangible assets acquired, weighted average life (in years)	0 years
Open Technologies | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 4,441
Intangible assets acquired, weighted average life (in years)	7 years
Open Technologies | Customer relationship
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 3,277
Intangible assets acquired, weighted average life (in years)	10 years
Open Technologies | Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0
Intangible assets acquired, weighted average life (in years)	0 years

Subsequent Events (Details)

Subsequent Events (Details) - President, Chief Executive Officer - Subsequent Event	Apr. 05, 2019USD ($)
Subsequent Event [Line Items]
Salary	$ 700,000
Sign on bonus	$ 500,000
Short-Term Incentive Plan
Subsequent Event [Line Items]
Target allocation	100.00%
Minimum | Long-Term Incentive Plan
Subsequent Event [Line Items]
Target value	$ 2,000,000
Performance Based Restricted Stock Units | Long-Term Incentive Plan
Subsequent Event [Line Items]
Investment targets	50.00%
Time Vesting Restricted Stock Units | Long-Term Incentive Plan
Subsequent Event [Line Items]
Investment targets	50.00%
Sign On Equity Grant
Subsequent Event [Line Items]
Target value	$ 3,000,000
Investment targets	50.00%
Target shares earned, if target met	100.00%
Target 1 | Sign On Equity Grant
Subsequent Event [Line Items]
Relative TSR target	55.00%
Target shares earned, if target met	100.00%
Target 1 | Sign On Equity Grant | Maximum
Subsequent Event [Line Items]
Relative TSR target	80.00%
Target shares earned, if target met	200.00%
Target 2 | Sign On Equity Grant
Subsequent Event [Line Items]
Relative TSR target	25.00%

Uncategorized Items - faro-3311

Label	Element	Value
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (327,000)
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(327,000)
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	2,365,000
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 2,365,000