Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2014 | Oct. 23, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 27-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FARO | ' |
Entity Registrant Name | 'FARO TECHNOLOGIES INC | ' |
Entity Central Index Key | '0000917491 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 17,274,698 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $116,910 | $124,630 |
Short-term investments | 64,996 | 64,994 |
Accounts receivable, net | 68,939 | 66,309 |
Inventories, net | 56,482 | 48,940 |
Deferred income taxes, net | 5,883 | 4,601 |
Prepaid expenses and other current assets | 15,901 | 14,645 |
Total current assets | 329,111 | 324,119 |
Property and equipment: | ' | ' |
Machinery and equipment | 41,115 | 36,924 |
Furniture and fixtures | 6,928 | 6,888 |
Leasehold improvements | 15,482 | 11,765 |
Property and equipment at cost | 63,525 | 55,577 |
Less: accumulated depreciation and amortization | -41,756 | -39,126 |
Property and equipment, net | 21,769 | 16,451 |
Goodwill | 19,579 | 19,358 |
Intangible assets, net | 8,834 | 8,112 |
Service inventory | 21,589 | 19,033 |
Deferred income taxes, net | 8,845 | 4,423 |
Total assets | 409,727 | 391,496 |
Current liabilities: | ' | ' |
Accounts payable | 9,853 | 14,881 |
Accrued liabilities | 23,434 | 20,133 |
Income taxes payable | 418 | 1,690 |
Current portion of unearned service revenues | 22,464 | 21,331 |
Customer deposits | 1,223 | 2,910 |
Current portion of obligations under capital leases | 8 | 8 |
Total current liabilities | 57,400 | 60,953 |
Unearned service revenues - less current portion | 13,635 | 13,414 |
Deferred income tax liability | 1,203 | 1,171 |
Obligations under capital leases - less current portion | 2 | 8 |
Other long-term liabilities | 481 | ' |
Total liabilities | 72,721 | 75,546 |
Commitments and contingencies - See Note P | ' | ' |
Shareholders' equity: | ' | ' |
Common stock - par value $.001, 50,000,000 shares authorized; 17,954,933 and 17,868,372 issued; 17,274,698 and 17,188,137 outstanding, respectively | 18 | 18 |
Additional paid-in capital | 198,202 | 191,874 |
Retained earnings | 148,394 | 125,867 |
Accumulated other comprehensive income | -533 | 7,266 |
Common stock in treasury, at cost - 680,235 shares | -9,075 | -9,075 |
Total shareholders' equity | 337,006 | 315,950 |
Total liabilities and shareholders' equity | $409,727 | $391,496 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 17,954,933 | 17,868,372 |
Common stock, shares outstanding | 17,274,698 | 17,188,137 |
Treasury stock, shares | 680,235 | 680,235 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
SALES | ' | ' | ' | ' |
Product | $67,581 | $55,014 | $194,785 | $162,670 |
Service | 14,658 | 13,176 | 42,888 | 39,219 |
Total sales | 82,239 | 68,190 | 237,673 | 201,889 |
COST OF SALES | ' | ' | ' | ' |
Product | 26,640 | 21,372 | 78,185 | 65,632 |
Service | 9,558 | 7,997 | 27,847 | 23,685 |
Total cost of sales (exclusive of depreciation and amortization, shown separately below) | 36,198 | 29,369 | 106,032 | 89,317 |
GROSS PROFIT | 46,041 | 38,821 | 131,641 | 112,572 |
OPERATING EXPENSES | ' | ' | ' | ' |
Selling and marketing | 19,059 | 16,366 | 56,207 | 49,732 |
General and administrative | 8,832 | 7,275 | 26,112 | 22,616 |
Depreciation and amortization | 1,805 | 1,699 | 5,520 | 5,268 |
Research and development | 7,352 | 5,884 | 19,440 | 16,171 |
Total operating expenses | 37,048 | 31,224 | 107,279 | 93,787 |
INCOME FROM OPERATIONS | 8,993 | 7,597 | 24,362 | 18,785 |
OTHER (INCOME) EXPENSE, net | ' | ' | ' | ' |
Interest income | -28 | -19 | -67 | -54 |
Other (income) expense, net | -89 | 809 | -78 | 1,428 |
Interest expense | 5 | 2 | 6 | 3 |
INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE | 9,105 | 6,805 | 24,501 | 17,408 |
INCOME TAX (BENEFIT) EXPENSE | -2,118 | 1,763 | 1,974 | 4,161 |
NET INCOME | $11,223 | $5,042 | $22,527 | $13,247 |
NET INCOME PER SHARE - BASIC | $0.65 | $0.29 | $1.31 | $0.78 |
NET INCOME PER SHARE - DILUTED | $0.64 | $0.29 | $1.29 | $0.77 |
Weighted average shares - Basic | 17,258,029 | 17,095,066 | 17,233,879 | 17,053,223 |
Weighted average shares - Diluted | 17,410,391 | 17,185,380 | 17,396,788 | 17,191,407 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Net income | $11,223 | $5,042 | $22,527 | $13,247 |
Currency translation adjustments, net of tax | -7,817 | 3,558 | -7,799 | 597 |
Comprehensive income | $3,406 | $8,600 | $14,728 | $13,844 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net income | $22,527 | $13,247 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 5,520 | 5,268 |
Compensation for stock options and restricted stock units | 3,669 | 3,237 |
(Net recovery of) provision for bad debts | -272 | 426 |
Deferred income tax (benefit) expense | -5,804 | 996 |
Income tax benefit from exercise of stock options | -137 | -814 |
Decrease (increase) in: | ' | ' |
Accounts receivable | -5,392 | 8,951 |
Inventories, net | -12,965 | 620 |
Prepaid expenses and other current assets | -1,881 | -3,365 |
(Decrease) increase in: | ' | ' |
Accounts payable and accrued liabilities | -805 | -925 |
Income taxes payable | -1,151 | -3,700 |
Customer deposits | -1,659 | -258 |
Unearned service revenues | 2,827 | 512 |
Net cash provided by operating activities | 4,477 | 24,195 |
INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -10,306 | -1,883 |
Payments for intangible assets | -1,080 | -1,787 |
Purchase of business acquired | -1,000 | ' |
Net cash used in investing activities | -12,386 | -3,670 |
FINANCING ACTIVITIES: | ' | ' |
Payments on capital leases | -6 | -76 |
Income tax benefit from exercise of stock options | 137 | 814 |
Proceeds from issuance of stock, net | 2,522 | 3,267 |
Net cash provided by financing activities | 2,653 | 4,005 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -2,464 | -858 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -7,720 | 23,672 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 124,630 | 93,233 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $116,910 | $116,905 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 27, 2014 | |
Description of Business | ' |
NOTE A – DESCRIPTION OF BUSINESS | |
FARO Technologies, Inc. and its subsidiaries (collectively the “Company” or “FARO”) designs, develops, manufactures, markets and supports portable, software driven, three-dimensional measurement and imaging systems that are used in a broad range of manufacturing, industrial, building construction and forensic applications. The Company’s FaroArm®, FARO Laser ScanArm® and FARO Gage articulated measuring devices, the FARO Laser Tracker Vantage™, the FARO Focus 3D, the FARO 3D Imager AMP, and their companion CAM2® software, provide for Computer-Aided Design, or CAD, based inspection and/or factory-level statistical process control and high-density surveying. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. The Company uses the acronym “CAM2” for this process, which stands for computer-aided measurement. Primary markets for the Company’s products include automotive, aerospace, heavy equipment, universities and law enforcement agencies. The Company sells the majority of its products through a direct sales force located in many of the world’s largest industrialized countries. |
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 27, 2014 | |
Principles of Consolidation | ' |
NOTE B – PRINCIPLES OF CONSOLIDATION | |
The consolidated financial statements of the Company 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 the Company’s 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 income. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2014 | |
Basis of Presentation | ' |
NOTE C – BASIS OF PRESENTATION | |
The condensed, consolidated financial statements and notes thereto are unaudited. These statements include all normal recurring accruals and adjustments considered necessary by management for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“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 and nine months ended September 27, 2014 are not necessarily indicative of results that may be expected for the year ending December 31, 2014 or any future interim period. | |
The information included in this Quarterly Report on Form 10-Q, including the condensed consolidated financial statements and the accompanying condensed notes, should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The accompanying December 31, 2013 condensed consolidated balance sheet has been derived from those audited consolidated financial statements. |
Reclassifications
Reclassifications | 9 Months Ended |
Sep. 27, 2014 | |
Reclassifications | ' |
NOTE D – RECLASSIFICATIONS | |
From time to time the Company may reclassify certain amounts to conform to the current period presentation. |
Impact_of_Recently_Issued_Acco
Impact of Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 27, 2014 | |
Impact of Recently Issued Accounting Pronouncements | ' |
NOTE E – IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an amendment to its accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards. To meet those objectives, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”). ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company will adopt ASU 2014-09 in reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this pronouncement on its consolidated financial statements. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
NOTE F – SHARE-BASED COMPENSATION | |||||||||||||||||
Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, typically the vesting period. The vesting period for the share-based compensation awarded by the Company is generally three years. The Company uses the Black-Scholes option pricing model to determine the fair value of stock option grants. The Company uses the closing market price of its common stock on the date of grant to determine the fair value of restricted stock and restricted stock units. | |||||||||||||||||
The Company used the following assumptions for the Black-Scholes option-pricing model to determine the fair value of options granted during the nine months ended September 27, 2014 and September 28, 2013: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Risk-free interest rate | 0.95% - 1.32% | 0.55% - 1.03% | |||||||||||||||
Expected dividend yield | 0% | 0% | |||||||||||||||
Expected option life | 3 - 4 years | 4 years | |||||||||||||||
Expected volatility | 42.5% - 45.4% | 46.1% - 48.4% | |||||||||||||||
Weighted-average expected volatility | 42.60% | 48.20% | |||||||||||||||
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 yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the expected life of the option being valued. | |||||||||||||||||
A summary of stock option activity and weighted average exercise prices for the nine months ended September 27, 2014 follows: | |||||||||||||||||
Options | Weighted- | Weighted-Average | Aggregate Intrinsic | ||||||||||||||
Average | Remaining | Value as of | |||||||||||||||
Exercise Price | Contractual Term | September 27, | |||||||||||||||
(Years) | 2014 | ||||||||||||||||
Outstanding at January 1, 2014 | 814,291 | $ | 39.56 | ||||||||||||||
Granted | 242,386 | 57.07 | |||||||||||||||
Forfeited | (28,209 | ) | 46.05 | ||||||||||||||
Exercised | (72,092 | ) | 34.95 | ||||||||||||||
Outstanding at September 27, 2014 | 956,376 | $ | 44.01 | 4.5 | $ | 10,167 | |||||||||||
Options exercisable at September 27, 2014 | 499,833 | $ | 36.72 | 3.2 | $ | 8,560 | |||||||||||
The weighted-average grant-date fair value of the stock options granted during the nine months ended September 27, 2014 and September 28, 2013 was $19.48 and $14.41 per option, respectively. The total intrinsic value of stock options exercised during the three months ended September 27, 2014 and September 28, 2013 was $0.6 million and $0.1 million, respectively. For the year-to-date periods ended September 27, 2014 and September 28, 2013, the total intrinsic value of stock options exercised totaled $1.5 million and $2.1 million, respectively. The fair value of stock options vested was $0.0 million in both the three months ended September 27, 2014 and September 28, 2013, and was $3.6 million and $3.2 million in the respective year-to-date periods. | |||||||||||||||||
The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the nine months ended September 27, 2014: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at January 1, 2014 | 31,448 | $ | 41.39 | ||||||||||||||
Granted | 13,706 | 43.43 | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Vested | (17,271 | ) | 37.51 | ||||||||||||||
Non-vested at September 27, 2014 | 27,883 | $ | 44.8 | ||||||||||||||
The Company recorded total share-based compensation expense of $1.2 million and $1.1 million for the three months ended September 27, 2014 and September 28, 2013, respectively, and $3.7 million and $3.3 million for the nine months ended September 27, 2014 and September 28, 2013, respectively. | |||||||||||||||||
As of September 27, 2014, there was $6.5 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 2.4 years. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 27, 2014 | |
Cash and Cash Equivalents | ' |
NOTE G – CASH AND CASH EQUIVALENTS | |
The Company considers cash on hand and all short-term, highly liquid investments that have maturities of three months or less at the time of purchase to be cash and cash equivalents. |
Short_Term_Investments
Short Term Investments | 9 Months Ended |
Sep. 27, 2014 | |
Short Term Investments | ' |
NOTE H – SHORT TERM INVESTMENTS | |
Short-term investments at September 27, 2014 and December 31, 2013 included U.S. Treasury Bills totaling $65.0 million that mature through March 19, 2015. The weighted average interest rate on the U.S. Treasury Bills is less than one percent. The investments are classified as held-to-maturity and recorded at cost. The fair value of the U.S. Treasury Bills at September 27, 2014 and December 31, 2013 approximated cost. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Accounts Receivable | ' | ||||||||
NOTE I – ACCOUNTS RECEIVABLE | |||||||||
Accounts receivable consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Accounts receivable | $ | 71,710 | $ | 69,995 | |||||
Allowance for doubtful accounts | (2,771 | ) | (3,686 | ) | |||||
Total | $ | 68,939 | $ | 66,309 | |||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Inventories | ' | ||||||||
NOTE J – INVENTORIES | |||||||||
Inventories are stated at the lower of cost or net realizable value using the first-in first-out method (“FIFO”). Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring devices utilized by sales representatives to present the Company’s products to customers. These products remain in sales demonstration inventory for approximately 6 to 12 months and are subsequently sold at prices that produce slightly reduced gross margins. Service inventory is comprised of inventory that is not expected to be sold within twelve months, such as training and loaned equipment. | |||||||||
Inventories consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Raw materials | $ | 23,787 | $ | 23,692 | |||||
Finished goods | 13,543 | 7,176 | |||||||
Sales demonstration inventory | 21,845 | 19,545 | |||||||
Reserve for excess and obsolete | (2,693 | ) | (1,473 | ) | |||||
Inventories | $ | 56,482 | $ | 48,940 | |||||
Service inventory | $ | 21,589 | $ | 19,033 | |||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
NOTE K – EARNINGS PER SHARE | |||||||||||||||||
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 | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Shares | Per-Share | Shares | Per-Share | ||||||||||||||
Amount | Amount | ||||||||||||||||
Basic EPS | 17,258,029 | $ | 0.65 | 17,095,066 | $ | 0.29 | |||||||||||
Effect of dilutive securities | 152,362 | (0.01 | ) | 90,314 | — | ||||||||||||
Diluted EPS | 17,410,391 | $ | 0.64 | 17,185,380 | $ | 0.29 | |||||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive | 412,895 | 463,716 | |||||||||||||||
Nine Months Ended | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Shares | Per-Share | Shares | Per-Share | ||||||||||||||
Amount | Amount | ||||||||||||||||
Basic EPS | 17,233,879 | $ | 1.31 | 17,053,223 | $ | 0.78 | |||||||||||
Effect of dilutive securities | 162,909 | (0.02 | ) | 138,184 | (0.01 | ) | |||||||||||
Diluted EPS | 17,396,788 | $ | 1.29 | 17,191,407 | $ | 0.77 | |||||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive | 414,395 | 448,150 | |||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Accrued Liabilities | ' | ||||||||
NOTE L – ACCRUED LIABILITIES | |||||||||
Accrued liabilities consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Accrued compensation and benefits | $ | 14,630 | $ | 11,591 | |||||
Accrued warranties | 2,457 | 2,364 | |||||||
Professional and legal fees | 1,979 | 1,203 | |||||||
Other accrued liabilities | 4,368 | 4,975 | |||||||
$ | 23,434 | $ | 20,133 | ||||||
Activity related to accrued warranties was as follows: | |||||||||
Nine Months Ended | |||||||||
September 27, 2014 | September 28, 2013 | ||||||||
Beginning Balance | $ | 2,364 | $ | 2,359 | |||||
Provision for warranty expense | 2,697 | 2,639 | |||||||
Warranty expired | (2,604 | ) | (2,571 | ) | |||||
Ending Balance | $ | 2,457 | $ | 2,427 | |||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2014 | |
Income Taxes | ' |
NOTE M – INCOME TAXES | |
Income tax expense decreased by $3.9 million to an income tax benefit of $2.1 million for the three months ended September 27, 2014 compared with an income tax expense of $1.8 million for the three months ended September 28, 2013. In the three months ended September 27, 2014 the Company recorded a discrete tax benefit of $4.5 million due to the reversal of a valuation allowance originally established against net operating losses in certain foreign subsidiaries. These foreign subsidiaries established a pattern of profitability, which resulted in the Company concluding during the three months ended September 27, 2014 that the valuation allowance should be reversed. The Company’s effective tax rate for the three months ended September 27, 2014 was (23.3)% compared with 25.9% for the comparable period of 2013, primarily due to the discrete benefit recorded in the quarter. | |
Income tax expense decreased by $2.2 million to $2.0 million for the nine months ended September 27, 2014 from $4.2 million for the nine months ended September 28, 2013. The Company’s effective tax rate decreased by 15.8 percentage points to 8.1% for the nine months ended September 27, 2014 from 23.9% for the same period in the prior year. The decline was driven by the discrete tax benefit of $4.5 million recorded in the three months ended September 27, 2014. This was partially offset by higher expense on higher pretax income and a discrete tax benefit of 2.4% recognized in the prior year period related to the retroactive legislative reinstatement on January 2, 2013 of the Research and Development tax credit for the year ended December 31, 2012. The Company’s effective tax rate continues to be lower than the statutory tax rate in the United States in part as a result of favorable tax rates in foreign jurisdictions. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 27, 2014 | |
Fair Value of Financial Instruments | ' |
NOTE N – FAIR VALUE OF FINANCIAL INSTRUMENTS | |
The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, customer deposits and accounts payable and accruals. The carrying amounts of such financial instruments approximate their fair value due to the short-term nature of these instruments. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
NOTE O – SEGMENT REPORTING | |||||||||||||||||
The Company has three reportable segments based upon geographic regions: Americas, Europe/Africa and Asia Pacific. The Company does not allocate corporate expenses to the Europe/Africa or Asia Pacific regions. These corporate expenses are included in the Americas region. The Company does not incur Research and Development expenses in its Asia Pacific region. | |||||||||||||||||
The Company develops, manufactures, markets, supports and sells CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software in each of these regions. These activities represent approximately 99% of consolidated sales. The Company evaluates performance and allocates resources based upon profitable growth and assets deployed. | |||||||||||||||||
The following table presents information about the Company’s reportable segments: | |||||||||||||||||
As of and For the Three Months Ended | As of and For the Nine Months Ended | ||||||||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||||||||
Americas Region | |||||||||||||||||
Net sales to external customers | $ | 35,112 | $ | 29,817 | $ | 97,623 | $ | 84,306 | |||||||||
Depreciation and amortization | 988 | 959 | 3,003 | 3,035 | |||||||||||||
Operating income | 1,966 | 1,789 | 3,340 | 2,068 | |||||||||||||
Long-lived assets | 31,228 | 22,060 | 31,228 | 22,060 | |||||||||||||
Capital expenditures | 4,651 | 554 | 7,778 | 1,315 | |||||||||||||
Total assets | 214,101 | 193,157 | 214,101 | 193,157 | |||||||||||||
Europe/Africa Region | |||||||||||||||||
Net sales to external customers | $ | 26,046 | $ | 21,516 | $ | 78,813 | $ | 66,623 | |||||||||
Depreciation and amortization | 490 | 477 | 1,528 | 1,407 | |||||||||||||
Operating income | 864 | 1,184 | 5,029 | 2,973 | |||||||||||||
Long-lived assets | 16,482 | 16,852 | 16,482 | 16,852 | |||||||||||||
Capital expenditures | 834 | 398 | 1,947 | 930 | |||||||||||||
Total assets | 117,824 | 107,518 | 117,824 | 107,518 | |||||||||||||
Asia Pacific Region | |||||||||||||||||
Net sales to external customers | $ | 21,081 | $ | 16,857 | $ | 61,237 | $ | 50,960 | |||||||||
Depreciation and amortization | 327 | 263 | 989 | 826 | |||||||||||||
Operating income | 6,163 | 4,624 | 15,993 | 13,744 | |||||||||||||
Long-lived assets | 2,472 | 2,519 | 2,472 | 2,519 | |||||||||||||
Capital expenditures | 266 | 266 | 581 | 708 | |||||||||||||
Total assets | 77,802 | 65,979 | 77,802 | 65,979 | |||||||||||||
Totals | |||||||||||||||||
Net sales to external customers | $ | 82,239 | $ | 68,190 | $ | 237,673 | $ | 201,889 | |||||||||
Depreciation and amortization | 1,805 | 1,699 | 5,520 | 5,268 | |||||||||||||
Operating income | 8,993 | 7,597 | 24,362 | 18,785 | |||||||||||||
Long-lived assets | 50,182 | 41,431 | 50,182 | 41,431 | |||||||||||||
Capital expenditures | 5,751 | 1,218 | 10,306 | 2,953 | |||||||||||||
Total assets | 409,727 | 366,654 | 409,727 | 366,654 | |||||||||||||
The geographical sales information presented above represents sales to customers located in each respective region, whereas the long-lived assets information represents assets held in the respective regions. There were no customers that individually accounted for 10% or more of total sales in any of the periods presented above. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2014 | |
Commitments and Contingencies | ' |
NOTE P – COMMITMENTS AND CONTINGENCIES | |
Leases — The Company is a party to leases arising in the normal course of business that expire on or before 2026. Total obligations under these leases are approximately $6.0 million for 2014. | |
Purchase Commitments — The Company enters into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 90 days. As of September 27, 2014, the Company does not have any long-term commitments for purchases. | |
Legal Proceedings — The Company is not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which the Company believes will have a material adverse effect on the Company’s business, financial condition or results of operations. |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 27, 2014 | |
Line of Credit | ' |
NOTE Q – LINE OF CREDIT | |
On July 11, 2006, the Company entered into a loan agreement providing for an available line of credit of $30.0 million, which was most recently amended on March 15, 2012. Loans under the Amended and Restated Loan Agreement, as amended (“Loan Agreement”), bear interest at the rate of LIBOR plus a fixed percentage between 1.50% and 2.00% and require the Company to maintain a minimum cash balance and tangible net worth measured at the end of each of the Company’s fiscal quarters. The term of the Loan Agreement expires on March 31, 2015. The Company has not drawn on this line of credit. In March 2014, the Company entered into a letter of credit for $2.25 million which reduced the total borrowing capacity under the line of credit by that amount. The $2.25 million letter of credit expired in August 2014 and was not renewed. As of September 27, 2014, the Company was in compliance with all of the covenants under the Loan Agreement. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Fair Value of Options Granted | ' | ||||||||||||||||
The Company used the following assumptions for the Black-Scholes option-pricing model to determine the fair value of options granted during the nine months ended September 27, 2014 and September 28, 2013: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Risk-free interest rate | 0.95% - 1.32% | 0.55% - 1.03% | |||||||||||||||
Expected dividend yield | 0% | 0% | |||||||||||||||
Expected option life | 3 - 4 years | 4 years | |||||||||||||||
Expected volatility | 42.5% - 45.4% | 46.1% - 48.4% | |||||||||||||||
Weighted-average expected volatility | 42.60% | 48.20% | |||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of stock option activity and weighted average exercise prices for the nine months ended September 27, 2014 follows: | |||||||||||||||||
Options | Weighted- | Weighted-Average | Aggregate Intrinsic | ||||||||||||||
Average | Remaining | Value as of | |||||||||||||||
Exercise Price | Contractual Term | September 27, | |||||||||||||||
(Years) | 2014 | ||||||||||||||||
Outstanding at January 1, 2014 | 814,291 | $ | 39.56 | ||||||||||||||
Granted | 242,386 | 57.07 | |||||||||||||||
Forfeited | (28,209 | ) | 46.05 | ||||||||||||||
Exercised | (72,092 | ) | 34.95 | ||||||||||||||
Outstanding at September 27, 2014 | 956,376 | $ | 44.01 | 4.5 | $ | 10,167 | |||||||||||
Options exercisable at September 27, 2014 | 499,833 | $ | 36.72 | 3.2 | $ | 8,560 | |||||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||||||
The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the nine months ended September 27, 2014: | |||||||||||||||||
Shares | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested at January 1, 2014 | 31,448 | $ | 41.39 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Accounts Receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Accounts receivable | $ | 71,710 | $ | 69,995 | |||||
Allowance for doubtful accounts | (2,771 | ) | (3,686 | ) | |||||
Total | $ | 68,939 | $ | 66,309 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Raw materials | $ | 23,787 | $ | 23,692 | |||||
Finished goods | 13,543 | 7,176 | |||||||
Sales demonstration inventory | 21,845 | 19,545 | |||||||
Reserve for excess and obsolete | (2,693 | ) | (1,473 | ) | |||||
Inventories | $ | 56,482 | $ | 48,940 | |||||
Service inventory | $ | 21,589 | $ | 19,033 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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 | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Shares | Per-Share | Shares | Per-Share | ||||||||||||||
Amount | Amount | ||||||||||||||||
Basic EPS | 17,258,029 | $ | 0.65 | 17,095,066 | $ | 0.29 | |||||||||||
Effect of dilutive securities | 152,362 | (0.01 | ) | 90,314 | — | ||||||||||||
Diluted EPS | 17,410,391 | $ | 0.64 | 17,185,380 | $ | 0.29 | |||||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive | 412,895 | 463,716 | |||||||||||||||
Nine Months Ended | |||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||
Shares | Per-Share | Shares | Per-Share | ||||||||||||||
Amount | Amount | ||||||||||||||||
Basic EPS | 17,233,879 | $ | 1.31 | 17,053,223 | $ | 0.78 | |||||||||||
Effect of dilutive securities | 162,909 | (0.02 | ) | 138,184 | (0.01 | ) | |||||||||||
Diluted EPS | 17,396,788 | $ | 1.29 | 17,191,407 | $ | 0.77 | |||||||||||
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive | 414,395 | 448,150 | |||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following: | |||||||||
As of | As of | ||||||||
September 27, 2014 | December 31, 2013 | ||||||||
Accrued compensation and benefits | $ | 14,630 | $ | 11,591 | |||||
Accrued warranties | 2,457 | 2,364 | |||||||
Professional and legal fees | 1,979 | 1,203 | |||||||
Other accrued liabilities | 4,368 | 4,975 | |||||||
$ | 23,434 | $ | 20,133 | ||||||
Activity Related to Accrued Warranties | ' | ||||||||
Activity related to accrued warranties was as follows: | |||||||||
Nine Months Ended | |||||||||
September 27, 2014 | September 28, 2013 | ||||||||
Beginning Balance | $ | 2,364 | $ | 2,359 | |||||
Provision for warranty expense | 2,697 | 2,639 | |||||||
Warranty expired | (2,604 | ) | (2,571 | ) | |||||
Ending Balance | $ | 2,457 | $ | 2,427 | |||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Segment Reporting Information | ' | ||||||||||||||||
The following table presents information about the Company’s reportable segments: | |||||||||||||||||
As of and For the Three Months Ended | As of and For the Nine Months Ended | ||||||||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||||||||
Americas Region | |||||||||||||||||
Net sales to external customers | $ | 35,112 | $ | 29,817 | $ | 97,623 | $ | 84,306 | |||||||||
Depreciation and amortization | 988 | 959 | 3,003 | 3,035 | |||||||||||||
Operating income | 1,966 | 1,789 | 3,340 | 2,068 | |||||||||||||
Long-lived assets | 31,228 | 22,060 | 31,228 | 22,060 | |||||||||||||
Capital expenditures | 4,651 | 554 | 7,778 | 1,315 | |||||||||||||
Total assets | 214,101 | 193,157 | 214,101 | 193,157 | |||||||||||||
Europe/Africa Region | |||||||||||||||||
Net sales to external customers | $ | 26,046 | $ | 21,516 | $ | 78,813 | $ | 66,623 | |||||||||
Depreciation and amortization | 490 | 477 | 1,528 | 1,407 | |||||||||||||
Operating income | 864 | 1,184 | 5,029 | 2,973 | |||||||||||||
Long-lived assets | 16,482 | 16,852 | 16,482 | 16,852 | |||||||||||||
Capital expenditures | 834 | 398 | 1,947 | 930 | |||||||||||||
Total assets | 117,824 | 107,518 | 117,824 | 107,518 | |||||||||||||
Asia Pacific Region | |||||||||||||||||
Net sales to external customers | $ | 21,081 | $ | 16,857 | $ | 61,237 | $ | 50,960 | |||||||||
Depreciation and amortization | 327 | 263 | 989 | 826 | |||||||||||||
Operating income | 6,163 | 4,624 | 15,993 | 13,744 | |||||||||||||
Long-lived assets | 2,472 | 2,519 | 2,472 | 2,519 | |||||||||||||
Capital expenditures | 266 | 266 | 581 | 708 | |||||||||||||
Total assets | 77,802 | 65,979 | 77,802 | 65,979 | |||||||||||||
Totals | |||||||||||||||||
Net sales to external customers | $ | 82,239 | $ | 68,190 | $ | 237,673 | $ | 201,889 | |||||||||
Depreciation and amortization | 1,805 | 1,699 | 5,520 | 5,268 | |||||||||||||
Operating income | 8,993 | 7,597 | 24,362 | 18,785 | |||||||||||||
Long-lived assets | 50,182 | 41,431 | 50,182 | 41,431 | |||||||||||||
Capital expenditures | 5,751 | 1,218 | 10,306 | 2,953 | |||||||||||||
Total assets | 409,727 | 366,654 | 409,727 | 366,654 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period, years | ' | ' | '3 years | ' |
Weighted-average grant-date fair value | ' | ' | $19.48 | $14.41 |
Total intrinsic value of stock options exercised | $0.60 | $0.10 | $1.50 | $2.10 |
Fair value of stock options vested | 0 | 0 | 3.6 | 3.2 |
Allocated share-based compensation expense | 1.2 | 1.1 | 3.7 | 3.3 |
Unrecognized stock-based compensation expense | $6.50 | ' | $6.50 | ' |
Weighted average, expected recognition period | ' | ' | '2 years 4 months 24 days | ' |
Fair_Value_of_Option_Granted_D
Fair Value of Option Granted (Detail) | 9 Months Ended | |
Sep. 27, 2014 | Sep. 28, 2013 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Risk-free interest rate, minimum | 0.95% | 0.55% |
Risk-free interest rate, maximum | 1.32% | 1.03% |
Expected dividend yield | 0.00% | 0.00% |
Expected option life | ' | '4 years |
Expected volatility, minimum | 42.50% | 46.10% |
Expected volatility, maximum | 45.40% | 48.40% |
Weighted-average expected volatility | 42.60% | 48.20% |
Minimum | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Expected option life | '3 years | ' |
Maximum | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Expected option life | '4 years | ' |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 |
Options Outstanding | ' |
Outstanding, beginning balance | 814,291 |
Granted | 242,386 |
Forfeited | -28,209 |
Exercised | -72,092 |
Outstanding, ending balance | 956,376 |
Options exercisable at end of period | 499,833 |
Weighted-Average Exercise Price | ' |
Outstanding, beginning balance | $39.56 |
Granted | $57.07 |
Forfeited | $46.05 |
Exercised | $34.95 |
Outstanding, ending balance | $44.01 |
Options exercisable at end of period | $36.72 |
Weighted-Average Remaining Contractual Term | ' |
Outstanding at end of period | '4 years 6 months |
Options exercisable at end of period | '3 years 2 months 12 days |
Aggregate Intrinsic Value | ' |
Outstanding at end of period | $10,167 |
Options exercisable at end of period | $8,560 |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (USD $) | 9 Months Ended |
Sep. 27, 2014 | |
Shares | ' |
Non-vested at beginning of period | 31,448 |
Granted | 13,706 |
Forfeited | ' |
Vested | -17,271 |
Non-vested at end of period | 27,883 |
Weighted-Average Grant Date Fair Value | ' |
Non-vested at beginning of period | $41.39 |
Granted | $43.43 |
Forfeited | ' |
Vested | $37.51 |
Non-vested at end of period | $44.80 |
Cash_and_Cash_Equivalents_Addi
Cash and Cash Equivalents - Additional Information (Detail) (Maximum) | 9 Months Ended |
Sep. 27, 2014 | |
Maximum | ' |
Cash and Cash Equivalents [Line Items] | ' |
Cash and cash equivalents maturity period | '3 months |
Short_Term_Investments_Additio
Short Term Investments - Additional Information (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | ' | ' |
Short-term investments | $64,996 | $64,994 |
Weighted average interest rate on U.S. Treasury bills, maximum | 1.00% | 1.00% |
US Treasury Bill Securities | ' | ' |
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items] | ' | ' |
Short-term investments | $65,000 | $65,000 |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $71,710 | $69,995 |
Allowance for doubtful accounts | -2,771 | -3,686 |
Total | $68,939 | $66,309 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2014 | |
Inventory [Line Items] | ' |
Shelf life demonstration inventory, months | '12 months |
Minimum | ' |
Inventory [Line Items] | ' |
Shelf life demonstration inventory, months | '6 months |
Maximum | ' |
Inventory [Line Items] | ' |
Shelf life demonstration inventory, months | '12 months |
Inventories_Detail
Inventories (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $23,787 | $23,692 |
Finished goods | 13,543 | 7,176 |
Sales demonstration inventory | 21,845 | 19,545 |
Reserve for excess and obsolete | -2,693 | -1,473 |
Inventories | 56,482 | 48,940 |
Service inventory | $21,589 | $19,033 |
Reconciliation_of_Number_of_Co
Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Basic EPS, shares | 17,258,029 | 17,095,066 | 17,233,879 | 17,053,223 |
Effect of dilutive securities, shares | 152,362 | 90,314 | 162,909 | 138,184 |
Diluted EPS, shares | 17,410,391 | 17,185,380 | 17,396,788 | 17,191,407 |
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive | 412,895 | 463,716 | 414,395 | 448,150 |
Basic EPS | $0.65 | $0.29 | $1.31 | $0.78 |
Effect of dilutive securities | ($0.01) | ' | ($0.02) | ($0.01) |
Diluted EPS | $0.64 | $0.29 | $1.29 | $0.77 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' | ' |
Accrued compensation and benefits | $14,630 | $11,591 | ' | ' |
Accrued warranties | 2,457 | 2,364 | 2,427 | 2,359 |
Professional and legal fees | 1,979 | 1,203 | ' | ' |
Other accrued liabilities | 4,368 | 4,975 | ' | ' |
Accrued liabilities | $23,434 | $20,133 | ' | ' |
Activity_Related_to_Accrued_Wa
Activity Related to Accrued Warranties (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Product Warranty Liability [Line Items] | ' | ' |
Beginning Balance | $2,364 | $2,359 |
Provision for warranty expense | 2,697 | 2,639 |
Warranty expired | -2,604 | -2,571 |
Ending Balance | $2,457 | $2,427 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
INCOME TAX (BENEFIT) EXPENSE | ($2,118,000) | $1,763,000 | $1,974,000 | $4,161,000 |
Income tax expense increase (decrease) | -3,900,000 | ' | -2,200,000 | ' |
Discrete tax benefit due to the reversal of a valuation allowance | ($4,500,000) | ' | ' | ' |
Effective tax rate | -23.30% | 25.90% | 8.10% | 23.90% |
Increase (decrease) in income tax rate related to tax benefit of exercise of employee stock option | ' | ' | 15.80% | ' |
Percentage of discrete tax benefit recognized in the prior year related to the retroactive legislative reinstatement | ' | ' | ' | 2.40% |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2014 | |
Customer | |
Segment | |
Segment Reporting Disclosure [Line Items] | ' |
Number of reportable segments | 3 |
Percentage of product sales to consolidated sales | 99.00% |
Customers that individually accounted for 10% or more of total sales | 0 |
Segment_Reporting_Information_
Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales to external customers | $82,239 | $68,190 | $237,673 | $201,889 | ' |
Depreciation and amortization | 1,805 | 1,699 | 5,520 | 5,268 | ' |
Operating income | 8,993 | 7,597 | 24,362 | 18,785 | ' |
Long-lived assets | 50,182 | 41,431 | 50,182 | 41,431 | ' |
Capital expenditures | 5,751 | 1,218 | 10,306 | 2,953 | ' |
Total assets | 409,727 | 366,654 | 409,727 | 366,654 | 391,496 |
Americas Region | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales to external customers | 35,112 | 29,817 | 97,623 | 84,306 | ' |
Depreciation and amortization | 988 | 959 | 3,003 | 3,035 | ' |
Operating income | 1,966 | 1,789 | 3,340 | 2,068 | ' |
Long-lived assets | 31,228 | 22,060 | 31,228 | 22,060 | ' |
Capital expenditures | 4,651 | 554 | 7,778 | 1,315 | ' |
Total assets | 214,101 | 193,157 | 214,101 | 193,157 | ' |
Europe/Africa Region | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales to external customers | 26,046 | 21,516 | 78,813 | 66,623 | ' |
Depreciation and amortization | 490 | 477 | 1,528 | 1,407 | ' |
Operating income | 864 | 1,184 | 5,029 | 2,973 | ' |
Long-lived assets | 16,482 | 16,852 | 16,482 | 16,852 | ' |
Capital expenditures | 834 | 398 | 1,947 | 930 | ' |
Total assets | 117,824 | 107,518 | 117,824 | 107,518 | ' |
Asia Pacific Region | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales to external customers | 21,081 | 16,857 | 61,237 | 50,960 | ' |
Depreciation and amortization | 327 | 263 | 989 | 826 | ' |
Operating income | 6,163 | 4,624 | 15,993 | 13,744 | ' |
Long-lived assets | 2,472 | 2,519 | 2,472 | 2,519 | ' |
Capital expenditures | 266 | 266 | 581 | 708 | ' |
Total assets | $77,802 | $65,979 | $77,802 | $65,979 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Commitments and Contingencies [Line Items] | ' |
Lease future expiration date, year | '2026 |
Total operating lease obligations | $6 |
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 | '90 days |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Line of Credit Facility [Line Items] | ' |
Available line of credit | $30 |
Line of credit, variable rate basis | 'LIBOR plus |
Line of credit, expiration date | 31-Mar-15 |
Letter of credit | 2.25 |
Total borrowing capacity amount reduced | $2.25 |
LIBOR | Minimum | ' |
Line of Credit Facility [Line Items] | ' |
Line of credit basis spread on variable rate | 1.50% |
LIBOR | Maximum | ' |
Line of Credit Facility [Line Items] | ' |
Line of credit basis spread on variable rate | 2.00% |