Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ADTN | |
Entity Registrant Name | ADTRAN INC | |
Entity Central Index Key | 926282 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,319,159 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $87,009 | $73,439 |
Short-term investments | 78,760 | 46,919 |
Accounts receivable, less allowance for doubtful accounts of $20 and $136 at March 31, 2015 and December 31, 2014, respectively | 90,869 | 88,502 |
Other receivables | 29,962 | 33,295 |
Inventory, net | 93,123 | 86,710 |
Prepaid expenses | 5,092 | 5,129 |
Deferred tax assets, net | 16,297 | 17,095 |
Total Current Assets | 401,112 | 351,089 |
Property, plant and equipment, net | 73,987 | 74,828 |
Deferred tax assets, net | 18,831 | 17,694 |
Goodwill | 3,492 | 3,492 |
Other assets | 10,080 | 10,942 |
Long-term investments | 236,678 | 280,649 |
Total Assets | 744,180 | 738,694 |
Current Liabilities | ||
Accounts payable | 73,696 | 56,414 |
Unearned revenue | 16,815 | 22,762 |
Accrued expenses | 12,773 | 11,077 |
Accrued wages and benefits | 15,605 | 13,855 |
Income tax payable, net | 13,088 | 14,901 |
Total Current Liabilities | 131,977 | 119,009 |
Non-current unearned revenue | 10,088 | 10,948 |
Other non-current liabilities | 30,646 | 30,924 |
Bonds payable | 28,800 | 28,800 |
Total Liabilities | 201,511 | 189,681 |
Commitments and contingencies (see Note 14) | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 53,319 shares outstanding at March 31, 2015 and 79,652 shares issued and 53,431 shares outstanding at December 31, 2014 | 797 | 797 |
Additional paid-in capital | 243,476 | 241,829 |
Accumulated other comprehensive loss | -3,828 | -75 |
Retained earnings | 905,884 | 907,751 |
Less treasury stock at cost: 26,333 and 26,221 shares at March 31, 2015 and December 31, 2014, respectively | -603,660 | -601,289 |
Total Stockholders' Equity | 542,669 | 549,013 |
Total Liabilities and Stockholders' Equity | $744,180 | $738,694 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $20 | $136 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 79,652,000 | 79,652,000 |
Common stock, shares outstanding | 53,319,000 | 53,431,000 |
Treasury stock, shares | 26,333,000 | 26,221,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Sales | $142,835 | $147,004 |
Cost of sales | 77,272 | 69,214 |
Gross Profit | 65,563 | 77,790 |
Selling, general and administrative expenses | 31,064 | 33,939 |
Research and development expenses | 32,536 | 32,553 |
Operating Income | 1,963 | 11,298 |
Interest and dividend income | 933 | 1,294 |
Interest expense | -148 | -227 |
Net realized investment gain | 3,115 | 2,192 |
Other income (expense), net | -353 | 122 |
Income before provision for income taxes | 5,510 | 14,679 |
Provision for income taxes | -2,193 | -5,072 |
Net Income | $3,317 | $9,607 |
Weighted average shares outstanding - basic | 53,399 | 56,751 |
Weighted average shares outstanding - diluted | 53,634 | 57,368 |
Earnings per common share - basic | $0.06 | $0.17 |
Earnings per common share - diluted | $0.06 | $0.17 |
Dividend per share | $0.09 | $0.09 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $3,317 | $9,607 |
Other Comprehensive Loss, net of tax: | ||
Net unrealized losses on available-for-sale securities | -503 | -921 |
Defined benefit plan adjustments | 68 | |
Foreign currency translation | -3,318 | 252 |
Other Comprehensive Loss, net of tax | -3,753 | -669 |
Comprehensive Income (Loss), net of tax | ($436) | $8,938 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net Income | $3,317 | $9,607 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,728 | 3,580 |
Amortization of net premium on available-for-sale investments | 910 | 1,135 |
Net realized gain on long-term investments | -3,115 | -2,192 |
Net (gain) loss on disposal of property, plant and equipment | 8 | -3 |
Stock-based compensation expense | 1,639 | 2,057 |
Deferred income taxes | -692 | 627 |
Tax benefit from stock option exercises | 8 | 57 |
Excess tax benefits from stock-based compensation arrangements | -9 | -55 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | -4,571 | -15,971 |
Other receivables | 511 | -9,407 |
Inventory | -7,784 | 2,739 |
Prepaid expenses and other assets | -213 | -2,024 |
Accounts payable | 20,084 | 11,043 |
Accrued expenses and other liabilities | -282 | 8,431 |
Income tax payable, net | -524 | 275 |
Net cash provided by operating activities | 13,015 | 9,899 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -2,442 | -2,042 |
Proceeds from disposals of property, plant and equipment | 1 | |
Proceeds from sales and maturities of available-for-sale investments | 58,075 | 85,072 |
Purchases of available-for-sale investments | -44,584 | -69,182 |
Net cash provided by investing activities | 11,049 | 13,849 |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 280 | 1,541 |
Purchases of treasury stock | -3,035 | -9,427 |
Dividend payments | -4,811 | -5,102 |
Payments on long-term debt | -16,500 | |
Excess tax benefits from stock-based compensation arrangements | 9 | 55 |
Net cash used in financing activities | -7,557 | -29,433 |
Net increase (decrease) in cash and cash equivalents | 16,507 | -5,685 |
Effect of exchange rate changes | -2,937 | 202 |
Cash and cash equivalents, beginning of period | 73,439 | 58,298 |
Cash and cash equivalents, end of period | 87,009 | 52,815 |
Supplemental disclosure of non-cash investing activities: | ||
Purchases of property, plant and equipment included in accounts payable | $784 | $85 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (ADTRAN) have been prepared pursuant to the rules and regulations for reporting on Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles for complete financial statements are not included herein. The December 31, 2014 Consolidated Balance Sheet is derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. | |
In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 24, 2015 with the SEC. | |
Changes in Classifications | |
We reclassified $2.3 million from other receivables to accounts receivable at December 31, 2014 to conform to the current period presentation. | |
Out of Period Adjustment | |
In connection with the preparation of our Condensed Consolidated Financial Statements, we recorded corrections of certain out of period, immaterial misstatements that occurred in prior periods, the most significant of which resulted in an increase in Other Expense of $1.3 million in the first quarter. The aggregate impact of the corrections was a $0.8 million reduction to pre-tax income for the three months ended March 31, 2015 and is not expected to be material to the current year annual results. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. We are currently evaluating the transition method that will be elected and the impact that the adoption of ASU 2014-09 will have on our financial position, results of operations and cash flows. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 2. INCOME TAXES |
Our effective tax rate increased from 34.6% in the three months ended March 31, 2014 to 39.8% in the three months ended March 31, 2015. The increase in the effective tax rate between the two periods is primarily attributable to the release of a valuation allowance attributable to a foreign subsidiary in 2014. |
Pension_Benefit_Plan
Pension Benefit Plan | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Pension Benefit Plan | 3. PENSION BENEFIT PLAN | ||||||||
We maintain a defined benefit pension plan covering employees in certain foreign countries. | |||||||||
The following table summarizes the components of net periodic pension cost for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Service cost | $ | 340 | $ | 305 | |||||
Interest cost | 159 | 215 | |||||||
Expected return on plan assets | (261 | ) | (279 | ) | |||||
Amortization of actuarial losses | 105 | — | |||||||
Net periodic pension cost | $ | 343 | $ | 241 | |||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | 4. STOCK-BASED COMPENSATION | ||||||||||||||||
The following table summarizes the stock-based compensation expense related to stock options, restricted stock units (RSUs) and restricted stock for the three months ended March 31, 2015 and 2014, which was recognized as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Stock-based compensation expense included in cost of sales | $ | 90 | $ | 116 | |||||||||||||
Selling, general and administrative expense | 691 | 1,026 | |||||||||||||||
Research and development expense | 858 | 915 | |||||||||||||||
Stock-based compensation expense included in operating expenses | 1,549 | 1,941 | |||||||||||||||
Total stock-based compensation expense | 1,639 | 2,057 | |||||||||||||||
Tax benefit for expense associated with | (180 | ) | (284 | ) | |||||||||||||
non-qualified options | |||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 1,459 | $ | 1,773 | |||||||||||||
The fair value of our stock options is estimated using the Black-Scholes model. The determination of the fair value of stock options on the date of grant using the Black-Scholes model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables that may have a significant impact on the fair value estimate. | |||||||||||||||||
The weighted-average assumptions and value of options granted for the three months ended March 31, 2015 and 2014 are summarized as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 38.75 | % | 39.57 | % | |||||||||||||
Risk-free interest rate | 1.46 | % | 1.86 | % | |||||||||||||
Expected dividend yield | 1.6 | % | 1.38 | % | |||||||||||||
Expected life (in years) | 6.47 | 6.25 | |||||||||||||||
Weighted-average estimated value | $ | 7.63 | $ | 9.28 | |||||||||||||
The fair value of our RSUs is calculated using a Monte Carlo Simulation valuation method. No RSUs were granted or vested during the three months ended March 31, 2015 or 2014. Twelve thousand RSUs were forfeited during the three months ended March 31, 2015. | |||||||||||||||||
The fair value of restricted stock is equal to the closing price of our stock on the date of grant. No restricted stock was granted, forfeited, or vested during the three months ended March 31, 2015 or 2014. | |||||||||||||||||
Stock-based compensation expense recognized in our Consolidated Statements of Income for the three months ended March 31, 2015 and 2014 is based on options, RSUs and restricted stock ultimately expected to vest, and has been reduced for estimated forfeitures. Estimated forfeitures for stock options are based upon historical experience and approximate 3.1% annually. We estimated a 0% forfeiture rate for our RSUs and restricted stock due to the limited number of recipients and historical experience for these awards. | |||||||||||||||||
As of March 31, 2015, total compensation expense related to non-vested stock options, RSUs and restricted stock not yet recognized was approximately $15.2 million, which is expected to be recognized over an average remaining recognition period of 2.7 years. | |||||||||||||||||
The following table is a summary of our stock options outstanding as of December 31, 2014 and March 31, 2015 and the changes that occurred during the three months ended March 31, 2015: | |||||||||||||||||
(In thousands, except per share amounts) | Number of | Weighted Avg. | Weighted Avg. | Aggregate | |||||||||||||
Options | Exercise Price | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | ||||||||||||||||
Life In Years | |||||||||||||||||
Options outstanding, December 31, 2014 | 6,981 | $ | 23.62 | 6.45 | $ | 10,625 | |||||||||||
Options granted | 2 | $ | 22.56 | ||||||||||||||
Options forfeited | (79 | ) | $ | 20.87 | |||||||||||||
Options expired | (19 | ) | $ | 27.19 | |||||||||||||
Options exercised | (17 | ) | $ | 16.58 | |||||||||||||
Options outstanding, March 31, 2015 | 6,868 | $ | 23.66 | 6.18 | $ | 3,037 | |||||||||||
Options vested and expected to vest, March 31, 2015 | 6,678 | $ | 23.73 | 6.11 | $ | 2,553 | |||||||||||
Options exercisable, March 31, 2015 | 4,362 | $ | 25.17 | 4.74 | $ | 2,303 | |||||||||||
The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the closing price of our stock on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2015. The aggregate intrinsic value will change based on the fair market value of our stock. | |||||||||||||||||
The total pre-tax intrinsic value of options exercised during the three months ended March 31, 2015 was $0.1 million. |
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Investments | 5. INVESTMENTS | ||||||||||||||||
At March 31, 2015, we held the following securities and investments, recorded at either fair value or cost. | |||||||||||||||||
(In thousands) | Amortized | Gross Unrealized | Carrying | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
Deferred compensation plan assets | $ | 14,071 | $ | 2,555 | $ | (54 | ) | $ | 16,572 | ||||||||
Corporate bonds | 132,343 | 250 | (205 | ) | 132,388 | ||||||||||||
Municipal fixed-rate bonds | 92,810 | 318 | (11 | ) | 93,117 | ||||||||||||
Municipal variable rate demand notes | 4,245 | — | — | 4,245 | |||||||||||||
Marketable equity securities | 26,608 | 11,496 | (481 | ) | 37,623 | ||||||||||||
Available-for-sale securities held at fair value | $ | 270,077 | $ | 14,619 | $ | (751 | ) | $ | 283,945 | ||||||||
Restricted investment held at cost | 30,000 | ||||||||||||||||
Other investments held at cost | 1,493 | ||||||||||||||||
Total carrying value of available-for-sale investments | $ | 315,438 | |||||||||||||||
At December 31, 2014, we held the following securities and investments, recorded at either fair value or cost. | |||||||||||||||||
(In thousands) | Amortized | Gross Unrealized | Carrying | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
Deferred compensation plan assets | $ | 13,897 | $ | 2,409 | $ | (12 | ) | $ | 16,294 | ||||||||
Corporate bonds | 111,261 | 186 | (186 | ) | 111,261 | ||||||||||||
Municipal fixed-rate bonds | 127,341 | 480 | (34 | ) | 127,787 | ||||||||||||
Municipal variable rate demand notes | 2,465 | — | — | 2,465 | |||||||||||||
Marketable equity securities | 26,399 | 12,395 | (539 | ) | 38,255 | ||||||||||||
Available-for-sale securities held at fair value | $ | 281,363 | $ | 15,470 | $ | (771 | ) | $ | 296,062 | ||||||||
Restricted investment held at cost | 30,000 | ||||||||||||||||
Other investments held at cost | 1,506 | ||||||||||||||||
Total carrying value of available-for-sale investments | $ | 327,568 | |||||||||||||||
As of March 31, 2015, our corporate bonds and municipal fixed-rate bonds had the following contractual maturities: | |||||||||||||||||
(In thousands) | Corporate | Municipal | |||||||||||||||
bonds | fixed-rate | ||||||||||||||||
bonds | |||||||||||||||||
Less than one year | $ | 44,108 | $ | 30,407 | |||||||||||||
One to two years | 39,163 | 39,660 | |||||||||||||||
Two to three years | 49,117 | 21,826 | |||||||||||||||
Three to five years | — | 1,224 | |||||||||||||||
Total | $ | 132,388 | $ | 93,117 | |||||||||||||
Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||
Our investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. | |||||||||||||||||
At March 31, 2015, we held a $30.0 million restricted certificate of deposit, which is carried at cost. This investment serves as a collateral deposit against the principal amount outstanding under loans made to ADTRAN pursuant to an Alabama State Industrial Development Authority revenue bond (the Bond). At March 31, 2015, the estimated fair value of the Bond using a level 2 valuation technique was approximately $29.7 million, based on a debt security with a comparable interest rate and maturity and a Standard and Poor’s credit rating of AAA. For more information on the Bond, see “Debt” under “Liquidity and Capital Resources” in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Item 2 of Part I of this report. | |||||||||||||||||
We review our investment portfolio for potential “other-than-temporary” declines in value on an individual investment basis. We assess, on a quarterly basis, significant declines in value which may be considered other-than-temporary and, if necessary, recognize and record the appropriate charge to write-down the carrying value of such investments. In making this assessment, we take into consideration qualitative and quantitative information, including but not limited to the following: the magnitude and duration of historical declines in market prices, credit rating activity, assessments of liquidity, public filings, and statements made by the issuer. We generally begin our identification of potential other-than-temporary impairments by reviewing any security with a fair value that has declined from its original or adjusted cost basis by 25% or more for six or more consecutive months. We then evaluate the individual security based on the previously identified factors to determine the amount of the write-down, if any. For the three months ended March 31, 2015 and 2014, other-than-temporary impairment charges were not significant. | |||||||||||||||||
Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our investments. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Gross realized gains | $ | 3,145 | $ | 2,228 | |||||||||||||
Gross realized losses | $ | (30 | ) | $ | (36 | ) | |||||||||||
As of March 31, 2015 and 2014, gross unrealized losses related to individual securities in a continuous loss position for 12 months or longer were not significant. | |||||||||||||||||
We have categorized our cash equivalents held in money market funds and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. | |||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||
(In thousands) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash equivalents | |||||||||||||||||
Commercial paper | $ | 11,997 | $ | — | $ | 11,997 | $ | — | |||||||||
Money market funds | 3,228 | 3,228 | — | — | |||||||||||||
Cash equivalents | 15,225 | 3,228 | 11,997 | — | |||||||||||||
Available-for-sale securities | |||||||||||||||||
Deferred compensation plan assets | 16,572 | 16,572 | — | — | |||||||||||||
Available-for-sale debt securities | |||||||||||||||||
Corporate bonds | 132,388 | — | 132,388 | — | |||||||||||||
Municipal fixed-rate bonds | 93,117 | — | 93,117 | — | |||||||||||||
Municipal variable rate demand notes | 4,245 | — | 4,245 | — | |||||||||||||
Available-for-sale marketable equity securities | |||||||||||||||||
Marketable equity securities – technology industry | 9,034 | 9,034 | — | — | |||||||||||||
Marketable equity securities – other | 28,589 | 28,589 | — | — | |||||||||||||
Available-for-sale securities | 283,945 | 54,195 | 229,750 | — | |||||||||||||
Total | $ | 299,170 | $ | 57,423 | $ | 241,747 | $ | — | |||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
(In thousands) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash equivalents | |||||||||||||||||
Money market funds | $ | 1,163 | $ | 1,163 | $ | — | $ | — | |||||||||
Available-for-sale securities | |||||||||||||||||
Deferred compensation plan assets | 16,294 | 16,294 | — | — | |||||||||||||
Available-for-sale debt securities | |||||||||||||||||
Corporate bonds | 111,261 | — | 111,261 | — | |||||||||||||
Municipal fixed-rate bonds | 127,787 | — | 127,787 | — | |||||||||||||
Municipal variable rate demand notes | 2,465 | — | 2,465 | — | |||||||||||||
Available-for-sale marketable equity securities | |||||||||||||||||
Marketable equity securities – technology industry | 9,661 | 9,661 | — | — | |||||||||||||
Marketable equity securities – other | 28,594 | 28,594 | — | — | |||||||||||||
Available-for-sale securities | 296,062 | 54,549 | 241,513 | — | |||||||||||||
Total | $ | 297,225 | $ | 55,712 | $ | 241,513 | $ | — | |||||||||
The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, security master files from large financial institutions, and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security. | |||||||||||||||||
Our municipal variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Derivative Instruments and Hedging Activities | 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
We have certain customers and suppliers who are invoiced or pay in a non-functional currency. Changes in the monetary exchange rates may adversely affect our results of operations and financial condition. When appropriate, we enter into various derivative transactions to enhance our ability to manage the volatility relating to these typical business exposures. We do not hold or issue derivative instruments for trading or other speculative purposes. Our derivative instruments are recorded in the Consolidated Balance Sheets at their fair values. Our derivative instruments do not qualify for hedge accounting, and accordingly, all changes in the fair value of the instruments are recognized as other income (expense) in the Consolidated Statements of Income. The maximum contractual period for our derivatives is currently less than twelve months. Our derivative instruments are not subject to master netting arrangements and are not offset in the Consolidated Balance Sheets. | |||||||||||
As of March 31, 2015, we had forward contracts outstanding with notional amounts totaling €63.0 million ($67.7 million), which mature at various times throughout 2015. | |||||||||||
The fair values of our derivative instruments recorded in the Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014 were as follows: | |||||||||||
(In thousands) | Balance Sheet | March 31, | December 31, | ||||||||
Location | 2015 | 2014 | |||||||||
Derivatives Not Designated as Hedging Instruments (Level 2): | |||||||||||
Foreign exchange contracts – asset derivatives | Other receivables | $ | 1,692 | $ | 249 | ||||||
Foreign exchange contracts – liability derivatives | Accounts payable | $ | (607 | ) | $ | (10 | ) | ||||
The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||
Three Months Ended | |||||||||||
Income Statement | March 31, | ||||||||||
(In thousands) | Location | 2015 | 2014 | ||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||
Foreign exchange contracts | Other income (expense) | $ | 1,476 | $ | (110 | ) |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory | 7. INVENTORY | ||||||||
At March 31, 2015 and December 31, 2014, inventory consisted of the following: | |||||||||
(In thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 35,891 | $ | 34,831 | |||||
Work in process | 2,613 | 3,750 | |||||||
Finished goods | 54,619 | 48,129 | |||||||
Total | $ | 93,123 | $ | 86,710 | |||||
We establish reserves for estimated excess, obsolete, or unmarketable inventory equal to the difference between the cost of the inventory and the estimated fair value of the inventory based upon assumptions about future demand and market conditions. At March 31, 2015 and December 31, 2014, raw materials reserves totaled $16.9 million, and finished goods inventory reserves totaled $7.6 million and $7.8 million, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets | 8. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||
Goodwill, all of which relates to our acquisition of Bluesocket, Inc. and is included in our Enterprise Networks division, was $3.5 million at March 31, 2015 and December 31, 2014. We evaluate the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step impairment test will be performed. There have been no impairment losses recorded since acquisition. | |||||||||||||||||||||||||
Intangible assets are included in other assets in the accompanying Consolidated Balance Sheets and include intangibles acquired in conjunction with our acquisitions of Objectworld Communications Corporation on September 15, 2009, Bluesocket, Inc. on August 4, 2011, and the NSN BBA business on May 4, 2012. | |||||||||||||||||||||||||
The following table presents our intangible assets as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||
(In thousands) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net Value | Gross | Accumulated | Net Value | ||||||||||||||||||||
Value | Amortization | Value | Amortization | ||||||||||||||||||||||
Customer relationships | $ | 5,787 | $ | (2,146 | ) | $ | 3,641 | $ | 6,310 | $ | (2,136 | ) | $ | 4,174 | |||||||||||
Developed technology | 5,696 | (3,660 | ) | 2,036 | 6,005 | (3,577 | ) | 2,428 | |||||||||||||||||
Intellectual property | 2,340 | (1,603 | ) | 737 | 2,340 | (1,520 | ) | 820 | |||||||||||||||||
Trade names | 270 | (220 | ) | 50 | 270 | (205 | ) | 65 | |||||||||||||||||
Other | 11 | (11 | ) | — | 12 | (11 | ) | 1 | |||||||||||||||||
Total | $ | 14,104 | $ | (7,640 | ) | $ | 6,464 | $ | 14,937 | $ | (7,449 | ) | $ | 7,488 | |||||||||||
Amortization expense, all of which relates to business acquisitions, was $0.5 million and $0.6 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
As of March 31, 2015, the estimated future amortization expense of our intangible assets is as follows: | |||||||||||||||||||||||||
(In thousands) | Amount | ||||||||||||||||||||||||
Remainder of 2015 | $ | 1,413 | |||||||||||||||||||||||
2016 | 1,648 | ||||||||||||||||||||||||
2017 | 1,145 | ||||||||||||||||||||||||
2018 | 691 | ||||||||||||||||||||||||
2019 | 298 | ||||||||||||||||||||||||
Thereafter | 1,269 | ||||||||||||||||||||||||
Total | $ | 6,464 | |||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Stockholders' Equity | 9. STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
A summary of the changes in stockholders’ equity for the three months ended March 31, 2015 is as follows: | |||||||||||||||||||||||||
(In thousands) | Stockholders’ | ||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 549,013 | |||||||||||||||||||||||
Net income | 3,317 | ||||||||||||||||||||||||
Dividend payments | (4,811 | ) | |||||||||||||||||||||||
Dividends accrued for unvested restricted stock units | 11 | ||||||||||||||||||||||||
Net unrealized losses on available-for-sale securities (net of tax) | (503 | ) | |||||||||||||||||||||||
Defined benefit plan adjustments | 68 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (3,318 | ) | |||||||||||||||||||||||
Proceeds from stock option exercises | 280 | ||||||||||||||||||||||||
Purchase of treasury stock | (3,035 | ) | |||||||||||||||||||||||
Income tax benefit from exercise of stock options | 8 | ||||||||||||||||||||||||
Stock-based compensation expense | 1,639 | ||||||||||||||||||||||||
Balance, March 31, 2015 | $ | 542,669 | |||||||||||||||||||||||
Stock Repurchase Program | |||||||||||||||||||||||||
Since 1997, our Board of Directors has approved multiple share repurchase programs that have authorized open market repurchase transactions of up to 45.0 million shares of our common stock. During the three months ended March 31, 2015, we repurchased 0.1 million shares of our common stock at an average price of $21.52 per share. We currently have the authority to purchase an additional 4.7 million shares of our common stock under the current plans approved by the Board of Directors. | |||||||||||||||||||||||||
Stock Option Exercises | |||||||||||||||||||||||||
We issued 17 thousand shares of treasury stock during the three months ended March 31, 2015 to accommodate employee stock option exercises. The stock options had exercise prices ranging from $15.29 to $22.53. We received proceeds totaling $0.3 million from the exercise of these stock options during the three months ended March 31, 2015. | |||||||||||||||||||||||||
Dividend Payments | |||||||||||||||||||||||||
During the three months ended March 31, 2015, we paid cash dividends as follows (in thousands except per share amounts): | |||||||||||||||||||||||||
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | ||||||||||||||||||||||
February 5, 2015 | February 19, 2015 | $ | 0.09 | $ | 4,811 | ||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||
Other comprehensive income consists of unrealized gains (losses) on available-for-sale securities, reclassification adjustments for amounts included in net income related to impairments of available-for-sale securities, realized gains (losses) on available-for-sale securities, and amortization of actuarial gains (losses) related to our defined benefit plan, defined benefit plan adjustments and foreign currency translation adjustments. | |||||||||||||||||||||||||
The following tables present changes in accumulated other comprehensive income, net of tax, by component for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
(In thousands) | Unrealized | Defined | Foreign | Total | |||||||||||||||||||||
Gains | Benefit Plan | Currency | |||||||||||||||||||||||
(Losses) on | Adjustments | Adjustments | |||||||||||||||||||||||
Available- | |||||||||||||||||||||||||
for-Sale | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance | $ | 8,964 | $ | (5,757 | ) | $ | (3,282 | ) | $ | (75 | ) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,360 | — | (3,318 | ) | (1,958 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,863 | ) | 68 | — | (1,795 | ) | |||||||||||||||||||
Net current period other comprehensive income(loss) | (503 | ) | 68 | (3,318 | ) | (3,753 | ) | ||||||||||||||||||
Ending balance | $ | 8,461 | $ | (5,689 | ) | $ | (6,600 | ) | $ | (3,828 | ) | ||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
(In thousands) | Unrealized | Defined | Foreign | Total | |||||||||||||||||||||
Gains | Benefit Plan | Currency | |||||||||||||||||||||||
(Losses) on | Adjustments | Adjustments | |||||||||||||||||||||||
Available- | |||||||||||||||||||||||||
for-Sale | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance | $ | 10,737 | $ | (891 | ) | $ | 907 | $ | 10,753 | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 402 | — | 252 | 654 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,323 | ) | — | — | (1,323 | ) | |||||||||||||||||||
Net current period other comprehensive income(loss) | (921 | ) | — | 252 | (669 | ) | |||||||||||||||||||
Ending balance | $ | 9,816 | $ | (891 | ) | $ | 1,159 | $ | 10,084 | ||||||||||||||||
The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
(In thousands) | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||||||||||
Components | from Accumulated | Statement Where Net | |||||||||||||||||||||||
Other Comprehensive | Income Is Presented | ||||||||||||||||||||||||
Income | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: | |||||||||||||||||||||||||
Net realized gain on sales of securities | $ | 3,076 | Net realized investment gain | ||||||||||||||||||||||
Impairment expense | (22 | ) | Net realized investment gain | ||||||||||||||||||||||
Defined benefit plan adjustments – actuarial losses | (98 | ) | 1 | ||||||||||||||||||||||
Total reclassifications for the period, before tax | 2,956 | ||||||||||||||||||||||||
Tax (expense) benefit | (1,161 | ) | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,795 | |||||||||||||||||||||||
1 | Included in the computation of net periodic pension cost. See Note 3 of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||
(In thousands) | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||||||||||
Components | from Accumulated | Statement Where Net | |||||||||||||||||||||||
Other Comprehensive | Income Is Presented | ||||||||||||||||||||||||
Income | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: | |||||||||||||||||||||||||
Net realized gain on sales of securities | $ | 2,170 | Net realized investment gain | ||||||||||||||||||||||
Impairment expense | — | Net realized investment gain | |||||||||||||||||||||||
Total reclassifications for the period, before tax | 2,170 | ||||||||||||||||||||||||
Tax (expense) benefit | (847 | ) | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,323 | |||||||||||||||||||||||
The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
(In thousands) | Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | |||||||||||||||||||
Amount | (Expense) | Amount | Amount | Benefit | Amount | ||||||||||||||||||||
Benefit | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | 2,230 | $ | (870 | ) | $ | 1,360 | $ | 659 | $ | (257 | ) | $ | 402 | |||||||||||
Reclassification adjustment for amounts included in net income | (2,956 | ) | 1,161 | (1,795 | ) | (2,170 | ) | 847 | (1,323 | ) | |||||||||||||||
Foreign currency translation adjustment | (3,318 | ) | — | (3,318 | ) | 252 | — | 252 | |||||||||||||||||
Total Other Comprehensive Income (Loss) | $ | (4,044 | ) | $ | 291 | $ | (3,753 | ) | $ | (1,259 | ) | $ | 590 | $ | (669 | ) | |||||||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Share | 10. EARNINGS PER SHARE | ||||||||
A summary of the calculation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In thousands, except per share amounts) | 2015 | 2014 | |||||||
Numerator | |||||||||
Net income | $ | 3,317 | $ | 9,607 | |||||
Denominator | |||||||||
Weighted average number of shares – basic | 53,399 | 56,751 | |||||||
Effect of dilutive securities | |||||||||
Stock options | 220 | 602 | |||||||
Restricted stock and restricted stock units | 15 | 15 | |||||||
Weighted average number of shares – diluted | 53,634 | 57,368 | |||||||
Net income per share – basic | $ | 0.06 | $ | 0.17 | |||||
Net income per share – diluted | $ | 0.06 | $ | 0.17 | |||||
Anti-dilutive options to purchase common stock outstanding were excluded from the above calculations. Anti-dilutive options totaled 5.6 million and 3.1 million for the three months ended March 31, 2015 and 2014, respectively. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | 11. SEGMENT INFORMATION | ||||||||||||||||
We operate in two reportable segments: (1) the Carrier Networks Division and (2) the Enterprise Networks Division. We evaluate the performance of our segments based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net realized investment gain/loss, other income/expense and provision for taxes are reported on an entity-wide basis only. There are no inter-segment revenues. | |||||||||||||||||
The following table presents information about the reported sales and gross profit of our reportable segments for the three months ended March 31, 2015 and 2014. Asset information by reportable segment is not reported, since we do not produce such information internally. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | |||||||||||||
Carrier Networks | $ | 116,014 | $ | 49,859 | $ | 118,162 | $ | 61,353 | |||||||||
Enterprise Networks | 26,821 | 15,704 | 28,842 | 16,437 | |||||||||||||
Total | $ | 142,835 | $ | 65,563 | $ | 147,004 | $ | 77,790 | |||||||||
Sales by Product | |||||||||||||||||
Our three major product categories are Carrier Systems, Business Networking and Loop Access. | |||||||||||||||||
Carrier Systems products are used by communications service providers to provide data, voice, and video services to consumers and enterprises. This category includes the following product areas and related services: | |||||||||||||||||
• | Broadband Access | ||||||||||||||||
• | Total Access® 5000 Series of Multi-Service Access Node (MSAN) | ||||||||||||||||
• | hiX 5600 Series of MSANs | ||||||||||||||||
• | Total Access 1100/1200 Series of Fiber to the Node (FTTN) products | ||||||||||||||||
• | hiX 1100 Series of Fiber to the Node (FTTN) products | ||||||||||||||||
• | VDSL2 Vectoring based Digital Subscriber Line Access Multiplexer (DSLAM) products | ||||||||||||||||
• | ADTRAN 500 Series of FTTdp G.fast Distribution Point Units (DPU) | ||||||||||||||||
• | Optical | ||||||||||||||||
• | Optical Networking Edge (ONE) | ||||||||||||||||
• | NetVanta 8000 Series of Fiber Ethernet Access Devices (EAD) | ||||||||||||||||
• | NetVanta 8400 Series of 10Gig Multi-service Edge Switches | ||||||||||||||||
• | OPTI-6100 and Total Access 3000 optical Multi-Service Provisioning Platforms (MSPP) | ||||||||||||||||
• | Pluggable Optical Products, including SFP, XFP, and SFP+ | ||||||||||||||||
• | Time Division Multiplexed (TDM) systems | ||||||||||||||||
Business Networking products provide access to communication services and facilitate the delivery of cloud connectivity and enterprise communications to the small and mid-sized enterprise (SME) market. This category includes the following product areas and related services: | |||||||||||||||||
• | Internetworking products | ||||||||||||||||
• | Total Access IP Business Gateways | ||||||||||||||||
• | Optical Network Terminals (ONTs) | ||||||||||||||||
• | Bluesocket® virtual Wireless LAN (vWLAN®) | ||||||||||||||||
• | NetVanta® | ||||||||||||||||
• | Access Routers | ||||||||||||||||
• | Enterprise Session Border Controllers (eSBC) | ||||||||||||||||
• | Managed Ethernet Switches | ||||||||||||||||
• | IP Business Gateways | ||||||||||||||||
• | Unified Communications (UC) solutions | ||||||||||||||||
• | Carrier Ethernet Network Terminating Equipment (NTE) | ||||||||||||||||
• | Carrier Ethernet Routers and Gateways | ||||||||||||||||
• | Network Management Solutions | ||||||||||||||||
Loop Access products are used by carrier and enterprise customers for access to copper-based communications networks. This category includes the following product areas and related services: | |||||||||||||||||
• | High bit-rate Digital Subscriber Line (HDSL) products | ||||||||||||||||
• | Digital Data Service (DDS) | ||||||||||||||||
• | Integrated Services Digital Network (ISDN) products | ||||||||||||||||
• | T1/E1/T3 Channel Service Units/Data Service Units (CSUs/DSUs) | ||||||||||||||||
• | TRACER fixed-wireless products | ||||||||||||||||
The table below presents sales information by product category for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Carrier Systems | $ | 100,439 | $ | 99,553 | |||||||||||||
Business Networking | 35,381 | 37,919 | |||||||||||||||
Loop Access | 7,015 | 9,532 | |||||||||||||||
Total | $ | 142,835 | $ | 147,004 | |||||||||||||
In addition, we identify subcategories of product revenues, which we divide into core products and legacy products. Our core products consist of Broadband Access and Optical products (included in Carrier Systems), and Internetworking products (included in Business Networking). Our legacy products include HDSL products (included in Loop Access) and other products not included in the aforementioned core products. | |||||||||||||||||
The table below presents subcategory revenues for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Core Products | |||||||||||||||||
Broadband Access (included in Carrier Systems) | $ | 84,794 | $ | 81,527 | |||||||||||||
Optical (included in Carrier Systems) | 12,504 | 12,789 | |||||||||||||||
Internetworking (included in Business Networking) | 34,159 | 36,946 | |||||||||||||||
Subtotal | 131,457 | 131,262 | |||||||||||||||
Legacy Products | |||||||||||||||||
HDSL (does not include T1) (included in Loop Access) | 6,703 | 8,877 | |||||||||||||||
Other products (excluding HDSL) | 4,675 | 6,865 | |||||||||||||||
Subtotal | 11,378 | 15,742 | |||||||||||||||
Total | $ | 142,835 | $ | 147,004 | |||||||||||||
Liability_for_Warranty_Returns
Liability for Warranty Returns | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
Liability for Warranty Returns | 12. LIABILITY FOR WARRANTY RETURNS | ||||||||
Our products generally include warranties of 90 days to ten years for product defects. We accrue for warranty returns at the time revenue is recognized based on our estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Our products continue to become more complex in both size and functionality as many of our product offerings migrate from line card applications to systems products. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage, and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Alternatively, if we provide for more reserves than we require, we will reverse a portion of such provisions in future periods. The liability for warranty obligations totaled $8.7 million at March 31, 2015 and $8.4 million at December 31, 2014. These liabilities are included in accrued expenses in the accompanying Consolidated Balance Sheets. | |||||||||
A summary of warranty expense and write-off activity for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 8,415 | $ | 8,977 | |||||
Plus: Amounts charged to cost and expenses | 461 | 434 | |||||||
Less: Deductions | (192 | ) | (2,019 | ) | |||||
Balance at end of period | $ | 8,684 | $ | 7,392 | |||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. RELATED PARTY TRANSACTIONS |
During 2014, we employed the law firm of our director emeritus for legal services. All bills for services rendered by this firm were reviewed and approved by our Chief Financial Officer. We believe that the fees for such services were comparable to those charged by other firms for services rendered to us. The services of our director emeritus ended with his death on September 7, 2014. For the three months ended March 31, 2014, we incurred fees of $10 thousand per month for these legal services. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES |
In the ordinary course of business, we may be subject to various legal proceedings and claims, including employment disputes, patent claims, disputes over contract agreements and other commercial disputes. In some cases, claimants seek damages or other relief, such as royalty payments related to patents, which, if granted, could require significant expenditures. Although the outcome of any claim or litigation can never be certain, it is our opinion that the outcome of all contingencies of which we are currently aware will not materially affect our business, operations, financial condition or cash flows. | |
We have committed to invest up to an aggregate of $7.9 million in two private equity funds, and we have contributed $8.4 million as of March 31, 2015, of which $7.7 million has been applied to these commitments. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. SUBSEQUENT EVENTS |
On April 21, 2015, we announced that our Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to stockholders of record at the close of business on May 7, 2015. The payment date will be May 21, 2015. The quarterly dividend payment will be approximately $4.7 million. In July 2003, our Board of Directors elected to begin declaring quarterly dividends on our common stock considering the tax treatment of dividends and adequate levels of Company liquidity. | |
During the second quarter and as of May 6, 2015, we have repurchased 1.2 million shares of our common stock through open market purchases at an average cost of $16.33 per share. We currently have the authority to purchase an additional 3.4 million shares of our common stock under the current plan approved by the Board of Directors. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (ADTRAN) have been prepared pursuant to the rules and regulations for reporting on Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles for complete financial statements are not included herein. The December 31, 2014 Consolidated Balance Sheet is derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. | |
In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2014, filed on February 24, 2015 with the SEC. | |
Changes in Classifications | Changes in Classifications |
We reclassified $2.3 million from other receivables to accounts receivable at December 31, 2014 to conform to the current period presentation. | |
Out of Period Adjustment | Out of Period Adjustment |
In connection with the preparation of our Condensed Consolidated Financial Statements, we recorded corrections of certain out of period, immaterial misstatements that occurred in prior periods, the most significant of which resulted in an increase in Other Expense of $1.3 million in the first quarter. The aggregate impact of the corrections was a $0.8 million reduction to pre-tax income for the three months ended March 31, 2015 and is not expected to be material to the current year annual results. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. We are currently evaluating the transition method that will be elected and the impact that the adoption of ASU 2014-09 will have on our financial position, results of operations and cash flows. |
Pension_Benefit_Plan_Tables
Pension Benefit Plan (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Summarization of Components of Net Periodic Pension Cost | The following table summarizes the components of net periodic pension cost for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Service cost | $ | 340 | $ | 305 | |||||
Interest cost | 159 | 215 | |||||||
Expected return on plan assets | (261 | ) | (279 | ) | |||||
Amortization of actuarial losses | 105 | — | |||||||
Net periodic pension cost | $ | 343 | $ | 241 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation Expense Related to Stock Options, Restricted Stock Units (RSUs) and Restricted Stock | The following table summarizes the stock-based compensation expense related to stock options, restricted stock units (RSUs) and restricted stock for the three months ended March 31, 2015 and 2014, which was recognized as follows: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Stock-based compensation expense included in cost of sales | $ | 90 | $ | 116 | |||||||||||||
Selling, general and administrative expense | 691 | 1,026 | |||||||||||||||
Research and development expense | 858 | 915 | |||||||||||||||
Stock-based compensation expense included in operating expenses | 1,549 | 1,941 | |||||||||||||||
Total stock-based compensation expense | 1,639 | 2,057 | |||||||||||||||
Tax benefit for expense associated with | (180 | ) | (284 | ) | |||||||||||||
non-qualified options | |||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 1,459 | $ | 1,773 | |||||||||||||
Summary of Weighted-Average Assumptions and Value of Options Granted | The weighted-average assumptions and value of options granted for the three months ended March 31, 2015 and 2014 are summarized as follows: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Expected volatility | 38.75 | % | 39.57 | % | |||||||||||||
Risk-free interest rate | 1.46 | % | 1.86 | % | |||||||||||||
Expected dividend yield | 1.6 | % | 1.38 | % | |||||||||||||
Expected life (in years) | 6.47 | 6.25 | |||||||||||||||
Weighted-average estimated value | $ | 7.63 | $ | 9.28 | |||||||||||||
Summary of Stock Options Outstanding | The following table is a summary of our stock options outstanding as of December 31, 2014 and March 31, 2015 and the changes that occurred during the three months ended March 31, 2015: | ||||||||||||||||
(In thousands, except per share amounts) | Number of | Weighted Avg. | Weighted Avg. | Aggregate | |||||||||||||
Options | Exercise Price | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | ||||||||||||||||
Life In Years | |||||||||||||||||
Options outstanding, December 31, 2014 | 6,981 | $ | 23.62 | 6.45 | $ | 10,625 | |||||||||||
Options granted | 2 | $ | 22.56 | ||||||||||||||
Options forfeited | (79 | ) | $ | 20.87 | |||||||||||||
Options expired | (19 | ) | $ | 27.19 | |||||||||||||
Options exercised | (17 | ) | $ | 16.58 | |||||||||||||
Options outstanding, March 31, 2015 | 6,868 | $ | 23.66 | 6.18 | $ | 3,037 | |||||||||||
Options vested and expected to vest, March 31, 2015 | 6,678 | $ | 23.73 | 6.11 | $ | 2,553 | |||||||||||
Options exercisable, March 31, 2015 | 4,362 | $ | 25.17 | 4.74 | $ | 2,303 | |||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Securities and Investments, Recorded at Either Fair Value or Cost | At March 31, 2015, we held the following securities and investments, recorded at either fair value or cost. | ||||||||||||||||
(In thousands) | Amortized | Gross Unrealized | Carrying | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
Deferred compensation plan assets | $ | 14,071 | $ | 2,555 | $ | (54 | ) | $ | 16,572 | ||||||||
Corporate bonds | 132,343 | 250 | (205 | ) | 132,388 | ||||||||||||
Municipal fixed-rate bonds | 92,810 | 318 | (11 | ) | 93,117 | ||||||||||||
Municipal variable rate demand notes | 4,245 | — | — | 4,245 | |||||||||||||
Marketable equity securities | 26,608 | 11,496 | (481 | ) | 37,623 | ||||||||||||
Available-for-sale securities held at fair value | $ | 270,077 | $ | 14,619 | $ | (751 | ) | $ | 283,945 | ||||||||
Restricted investment held at cost | 30,000 | ||||||||||||||||
Other investments held at cost | 1,493 | ||||||||||||||||
Total carrying value of available-for-sale investments | $ | 315,438 | |||||||||||||||
At December 31, 2014, we held the following securities and investments, recorded at either fair value or cost. | |||||||||||||||||
(In thousands) | Amortized | Gross Unrealized | Carrying | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
Deferred compensation plan assets | $ | 13,897 | $ | 2,409 | $ | (12 | ) | $ | 16,294 | ||||||||
Corporate bonds | 111,261 | 186 | (186 | ) | 111,261 | ||||||||||||
Municipal fixed-rate bonds | 127,341 | 480 | (34 | ) | 127,787 | ||||||||||||
Municipal variable rate demand notes | 2,465 | — | — | 2,465 | |||||||||||||
Marketable equity securities | 26,399 | 12,395 | (539 | ) | 38,255 | ||||||||||||
Available-for-sale securities held at fair value | $ | 281,363 | $ | 15,470 | $ | (771 | ) | $ | 296,062 | ||||||||
Restricted investment held at cost | 30,000 | ||||||||||||||||
Other investments held at cost | 1,506 | ||||||||||||||||
Total carrying value of available-for-sale investments | $ | 327,568 | |||||||||||||||
Contractual Maturities of Corporate Bonds and Municipal Fixed-Rate Bonds | As of March 31, 2015, our corporate bonds and municipal fixed-rate bonds had the following contractual maturities: | ||||||||||||||||
(In thousands) | Corporate | Municipal | |||||||||||||||
bonds | fixed-rate | ||||||||||||||||
bonds | |||||||||||||||||
Less than one year | $ | 44,108 | $ | 30,407 | |||||||||||||
One to two years | 39,163 | 39,660 | |||||||||||||||
Two to three years | 49,117 | 21,826 | |||||||||||||||
Three to five years | — | 1,224 | |||||||||||||||
Total | $ | 132,388 | $ | 93,117 | |||||||||||||
Gross Realized Gains and Losses on Sale of Securities | The following table presents gross realized gains and losses related to our investments. | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Gross realized gains | $ | 3,145 | $ | 2,228 | |||||||||||||
Gross realized losses | $ | (30 | ) | $ | (36 | ) | |||||||||||
Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments | We have categorized our cash equivalents held in money market funds and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. | ||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||
(In thousands) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash equivalents | |||||||||||||||||
Commercial paper | $ | 11,997 | $ | — | $ | 11,997 | $ | — | |||||||||
Money market funds | 3,228 | 3,228 | — | — | |||||||||||||
Cash equivalents | 15,225 | 3,228 | 11,997 | — | |||||||||||||
Available-for-sale securities | |||||||||||||||||
Deferred compensation plan assets | 16,572 | 16,572 | — | — | |||||||||||||
Available-for-sale debt securities | |||||||||||||||||
Corporate bonds | 132,388 | — | 132,388 | — | |||||||||||||
Municipal fixed-rate bonds | 93,117 | — | 93,117 | — | |||||||||||||
Municipal variable rate demand notes | 4,245 | — | 4,245 | — | |||||||||||||
Available-for-sale marketable equity securities | |||||||||||||||||
Marketable equity securities – technology industry | 9,034 | 9,034 | — | — | |||||||||||||
Marketable equity securities – other | 28,589 | 28,589 | — | — | |||||||||||||
Available-for-sale securities | 283,945 | 54,195 | 229,750 | — | |||||||||||||
Total | $ | 299,170 | $ | 57,423 | $ | 241,747 | $ | — | |||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
(In thousands) | Fair Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Market for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Cash equivalents | |||||||||||||||||
Money market funds | $ | 1,163 | $ | 1,163 | $ | — | $ | — | |||||||||
Available-for-sale securities | |||||||||||||||||
Deferred compensation plan assets | 16,294 | 16,294 | — | — | |||||||||||||
Available-for-sale debt securities | |||||||||||||||||
Corporate bonds | 111,261 | — | 111,261 | — | |||||||||||||
Municipal fixed-rate bonds | 127,787 | — | 127,787 | — | |||||||||||||
Municipal variable rate demand notes | 2,465 | — | 2,465 | — | |||||||||||||
Available-for-sale marketable equity securities | |||||||||||||||||
Marketable equity securities – technology industry | 9,661 | 9,661 | — | — | |||||||||||||
Marketable equity securities – other | 28,594 | 28,594 | — | — | |||||||||||||
Available-for-sale securities | 296,062 | 54,549 | 241,513 | — | |||||||||||||
Total | $ | 297,225 | $ | 55,712 | $ | 241,513 | $ | — | |||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Schedule of Fair Values of Hedging Instruments Recorded in Consolidated Balance Sheet | The fair values of our derivative instruments recorded in the Consolidated Balance Sheet as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||
(In thousands) | Balance Sheet | March 31, | December 31, | ||||||||
Location | 2015 | 2014 | |||||||||
Derivatives Not Designated as Hedging Instruments (Level 2): | |||||||||||
Foreign exchange contracts – asset derivatives | Other receivables | $ | 1,692 | $ | 249 | ||||||
Foreign exchange contracts – liability derivatives | Accounts payable | $ | (607 | ) | $ | (10 | ) | ||||
Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income | The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||
Three Months Ended | |||||||||||
Income Statement | March 31, | ||||||||||
(In thousands) | Location | 2015 | 2014 | ||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||
Foreign exchange contracts | Other income (expense) | $ | 1,476 | $ | (110 | ) |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Components of Inventory | At March 31, 2015 and December 31, 2014, inventory consisted of the following: | ||||||||
(In thousands) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials | $ | 35,891 | $ | 34,831 | |||||
Work in process | 2,613 | 3,750 | |||||||
Finished goods | 54,619 | 48,129 | |||||||
Total | $ | 93,123 | $ | 86,710 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of Intangible Assets | The following table presents our intangible assets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
(In thousands) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net Value | Gross | Accumulated | Net Value | ||||||||||||||||||||
Value | Amortization | Value | Amortization | ||||||||||||||||||||||
Customer relationships | $ | 5,787 | $ | (2,146 | ) | $ | 3,641 | $ | 6,310 | $ | (2,136 | ) | $ | 4,174 | |||||||||||
Developed technology | 5,696 | (3,660 | ) | 2,036 | 6,005 | (3,577 | ) | 2,428 | |||||||||||||||||
Intellectual property | 2,340 | (1,603 | ) | 737 | 2,340 | (1,520 | ) | 820 | |||||||||||||||||
Trade names | 270 | (220 | ) | 50 | 270 | (205 | ) | 65 | |||||||||||||||||
Other | 11 | (11 | ) | — | 12 | (11 | ) | 1 | |||||||||||||||||
Total | $ | 14,104 | $ | (7,640 | ) | $ | 6,464 | $ | 14,937 | $ | (7,449 | ) | $ | 7,488 | |||||||||||
Estimated Future Amortization Expense Related to Intangible Asset | As of March 31, 2015, the estimated future amortization expense of our intangible assets is as follows: | ||||||||||||||||||||||||
(In thousands) | Amount | ||||||||||||||||||||||||
Remainder of 2015 | $ | 1,413 | |||||||||||||||||||||||
2016 | 1,648 | ||||||||||||||||||||||||
2017 | 1,145 | ||||||||||||||||||||||||
2018 | 691 | ||||||||||||||||||||||||
2019 | 298 | ||||||||||||||||||||||||
Thereafter | 1,269 | ||||||||||||||||||||||||
Total | $ | 6,464 | |||||||||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Summary of Changes in Stockholders' Equity | A summary of the changes in stockholders’ equity for the three months ended March 31, 2015 is as follows: | ||||||||||||||||||||||||
(In thousands) | Stockholders’ | ||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 549,013 | |||||||||||||||||||||||
Net income | 3,317 | ||||||||||||||||||||||||
Dividend payments | (4,811 | ) | |||||||||||||||||||||||
Dividends accrued for unvested restricted stock units | 11 | ||||||||||||||||||||||||
Net unrealized losses on available-for-sale securities (net of tax) | (503 | ) | |||||||||||||||||||||||
Defined benefit plan adjustments | 68 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (3,318 | ) | |||||||||||||||||||||||
Proceeds from stock option exercises | 280 | ||||||||||||||||||||||||
Purchase of treasury stock | (3,035 | ) | |||||||||||||||||||||||
Income tax benefit from exercise of stock options | 8 | ||||||||||||||||||||||||
Stock-based compensation expense | 1,639 | ||||||||||||||||||||||||
Balance, March 31, 2015 | $ | 542,669 | |||||||||||||||||||||||
Cash Dividends | During the three months ended March 31, 2015, we paid cash dividends as follows (in thousands except per share amounts): | ||||||||||||||||||||||||
Record Date | Payment Date | Per Share Amount | Total Dividend Paid | ||||||||||||||||||||||
February 5, 2015 | February 19, 2015 | $ | 0.09 | $ | 4,811 | ||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income, Net of Tax by Component | The following tables present changes in accumulated other comprehensive income, net of tax, by component for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
(In thousands) | Unrealized | Defined | Foreign | Total | |||||||||||||||||||||
Gains | Benefit Plan | Currency | |||||||||||||||||||||||
(Losses) on | Adjustments | Adjustments | |||||||||||||||||||||||
Available- | |||||||||||||||||||||||||
for-Sale | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance | $ | 8,964 | $ | (5,757 | ) | $ | (3,282 | ) | $ | (75 | ) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,360 | — | (3,318 | ) | (1,958 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,863 | ) | 68 | — | (1,795 | ) | |||||||||||||||||||
Net current period other comprehensive income(loss) | (503 | ) | 68 | (3,318 | ) | (3,753 | ) | ||||||||||||||||||
Ending balance | $ | 8,461 | $ | (5,689 | ) | $ | (6,600 | ) | $ | (3,828 | ) | ||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
(In thousands) | Unrealized | Defined | Foreign | Total | |||||||||||||||||||||
Gains | Benefit Plan | Currency | |||||||||||||||||||||||
(Losses) on | Adjustments | Adjustments | |||||||||||||||||||||||
Available- | |||||||||||||||||||||||||
for-Sale | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance | $ | 10,737 | $ | (891 | ) | $ | 907 | $ | 10,753 | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 402 | — | 252 | 654 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,323 | ) | — | — | (1,323 | ) | |||||||||||||||||||
Net current period other comprehensive income(loss) | (921 | ) | — | 252 | (669 | ) | |||||||||||||||||||
Ending balance | $ | 9,816 | $ | (891 | ) | $ | 1,159 | $ | 10,084 | ||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
(In thousands) | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||||||||||
Components | from Accumulated | Statement Where Net | |||||||||||||||||||||||
Other Comprehensive | Income Is Presented | ||||||||||||||||||||||||
Income | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: | |||||||||||||||||||||||||
Net realized gain on sales of securities | $ | 3,076 | Net realized investment gain | ||||||||||||||||||||||
Impairment expense | (22 | ) | Net realized investment gain | ||||||||||||||||||||||
Defined benefit plan adjustments – actuarial losses | (98 | ) | 1 | ||||||||||||||||||||||
Total reclassifications for the period, before tax | 2,956 | ||||||||||||||||||||||||
Tax (expense) benefit | (1,161 | ) | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,795 | |||||||||||||||||||||||
1 | Included in the computation of net periodic pension cost. See Note 3 of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||
(In thousands) | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified | Affected Line Item in the | |||||||||||||||||||||||
Components | from Accumulated | Statement Where Net | |||||||||||||||||||||||
Other Comprehensive | Income Is Presented | ||||||||||||||||||||||||
Income | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: | |||||||||||||||||||||||||
Net realized gain on sales of securities | $ | 2,170 | Net realized investment gain | ||||||||||||||||||||||
Impairment expense | — | Net realized investment gain | |||||||||||||||||||||||
Total reclassifications for the period, before tax | 2,170 | ||||||||||||||||||||||||
Tax (expense) benefit | (847 | ) | |||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,323 | |||||||||||||||||||||||
Other Comprehensive Income | The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||||||
(In thousands) | Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | |||||||||||||||||||
Amount | (Expense) | Amount | Amount | Benefit | Amount | ||||||||||||||||||||
Benefit | |||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | 2,230 | $ | (870 | ) | $ | 1,360 | $ | 659 | $ | (257 | ) | $ | 402 | |||||||||||
Reclassification adjustment for amounts included in net income | (2,956 | ) | 1,161 | (1,795 | ) | (2,170 | ) | 847 | (1,323 | ) | |||||||||||||||
Foreign currency translation adjustment | (3,318 | ) | — | (3,318 | ) | 252 | — | 252 | |||||||||||||||||
Total Other Comprehensive Income (Loss) | $ | (4,044 | ) | $ | 291 | $ | (3,753 | ) | $ | (1,259 | ) | $ | 590 | $ | (669 | ) | |||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of Calculation of Basic and Diluted Earnings Per Share | A summary of the calculation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In thousands, except per share amounts) | 2015 | 2014 | |||||||
Numerator | |||||||||
Net income | $ | 3,317 | $ | 9,607 | |||||
Denominator | |||||||||
Weighted average number of shares – basic | 53,399 | 56,751 | |||||||
Effect of dilutive securities | |||||||||
Stock options | 220 | 602 | |||||||
Restricted stock and restricted stock units | 15 | 15 | |||||||
Weighted average number of shares – diluted | 53,634 | 57,368 | |||||||
Net income per share – basic | $ | 0.06 | $ | 0.17 | |||||
Net income per share – diluted | $ | 0.06 | $ | 0.17 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Sales and Gross Profit of Reportable Segments | The following table presents information about the reported sales and gross profit of our reportable segments for the three months ended March 31, 2015 and 2014. Asset information by reportable segment is not reported, since we do not produce such information internally. | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||
(In thousands) | Sales | Gross Profit | Sales | Gross Profit | |||||||||||||
Carrier Networks | $ | 116,014 | $ | 49,859 | $ | 118,162 | $ | 61,353 | |||||||||
Enterprise Networks | 26,821 | 15,704 | 28,842 | 16,437 | |||||||||||||
Total | $ | 142,835 | $ | 65,563 | $ | 147,004 | $ | 77,790 | |||||||||
Sales Information by Product Category | The table below presents sales information by product category for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Carrier Systems | $ | 100,439 | $ | 99,553 | |||||||||||||
Business Networking | 35,381 | 37,919 | |||||||||||||||
Loop Access | 7,015 | 9,532 | |||||||||||||||
Total | $ | 142,835 | $ | 147,004 | |||||||||||||
Subcategory Revenues | The table below presents subcategory revenues for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Core Products | |||||||||||||||||
Broadband Access (included in Carrier Systems) | $ | 84,794 | $ | 81,527 | |||||||||||||
Optical (included in Carrier Systems) | 12,504 | 12,789 | |||||||||||||||
Internetworking (included in Business Networking) | 34,159 | 36,946 | |||||||||||||||
Subtotal | 131,457 | 131,262 | |||||||||||||||
Legacy Products | |||||||||||||||||
HDSL (does not include T1) (included in Loop Access) | 6,703 | 8,877 | |||||||||||||||
Other products (excluding HDSL) | 4,675 | 6,865 | |||||||||||||||
Subtotal | 11,378 | 15,742 | |||||||||||||||
Total | $ | 142,835 | $ | 147,004 | |||||||||||||
Liability_for_Warranty_Returns1
Liability for Warranty Returns (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 8,415 | $ | 8,977 | |||||
Plus: Amounts charged to cost and expenses | 461 | 434 | |||||||
Less: Deductions | (192 | ) | (2,019 | ) | |||||
Balance at end of period | $ | 8,684 | $ | 7,392 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policy [Line Items] | ||
Reduction of pre-tax income | $0.80 | |
Increase in other expenses | 1.3 | |
Other Receivables [Member] | ||
Summary of Significant Accounting Policy [Line Items] | ||
Prior period reclassification adjustment | -2.3 | |
Accounts Receivable [Member] | ||
Summary of Significant Accounting Policy [Line Items] | ||
Prior period reclassification adjustment | $2.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 39.80% | 34.60% |
Pension_Benefit_Plan_Summariza
Pension Benefit Plan - Summarization of Components of Net Periodic Pension Cost (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | $340 | $305 |
Interest cost | 159 | 215 |
Expected return on plan assets | -261 | -279 |
Amortization of actuarial losses | 105 | |
Net periodic pension cost | $343 | $241 |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, Restricted Stock Units (RSUs) and Restricted Stock (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $1,639 | $2,057 |
Tax benefit for expense associated with non-qualified options | -180 | -284 |
Total stock-based compensation expense, net of tax | 1,459 | 1,773 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 90 | 116 |
Selling, General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 691 | 1,026 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 858 | 915 |
Operating Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $1,549 | $1,941 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) (Stock Options [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 38.75% | 39.57% |
Risk-free interest rate | 1.46% | 1.86% |
Expected dividend yield | 1.60% | 1.38% |
Expected life (in years) | 6 years 5 months 19 days | 6 years 3 months |
Weighted-average estimated value | $7.63 | $9.28 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated forfeitures for stock options | 3.10% | |
Compensation expense related to non-vested stock options, RSUs and restricted stock not yet recognized | 15.2 | |
Recognition period of non-vested compensation cost | 2 years 8 months 12 days | |
Total pre-tax intrinsic value of options exercised | 0.1 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs and restricted stock grants in period | 0 | 0 |
Number of RSUs and restricted stock forfeitures in period | 12,000 | |
Number of RSUs and restricted stock vesting in period | 0 | 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs and restricted stock grants in period | 0 | 0 |
Number of RSUs and restricted stock forfeitures in period | 0 | 0 |
Number of RSUs and restricted stock vesting in period | 0 | 0 |
RSUs and Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate for RSUs and restricted stock | 0.00% |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Options, outstanding, Beginning Balance | 6,981 | |
Number of Options, granted | 2 | |
Number of Options, forfeited | -79 | |
Number of Options, expired | -19 | |
Number of Options, exercised | -17 | |
Number of Options, outstanding, Ending Balance | 6,868 | 6,981 |
Number of Options, vested and expected to vest, Ending Balance | 6,678 | |
Number of Options, Options exercisable | 4,362 | |
Weighted Average Exercise Price, outstanding, Beginning Balance | $23.62 | |
Weighted Average Exercise Price, granted | $22.56 | |
Weighted Average Exercise Price, forfeited | $20.87 | |
Weighted Average Exercise Price, expired | $27.19 | |
Weighted Average Exercise Price, exercised | $16.58 | |
Weighted Average Exercise Price, outstanding, Ending Balance | $23.66 | $23.62 |
Weighted Average Exercise Price, vested and expected to vest, Ending Balance | $23.73 | |
Weighted Average Exercise Price, Options exercisable | $25.17 | |
Weighted Average Remaining Contractual Life In Years, Options outstanding | 6 years 2 months 5 days | 6 years 5 months 12 days |
Weighted Average Remaining Contractual Life In Years, Options vested and expected to vest | 6 years 1 month 10 days | |
Weighted Average Remaining Contractual Life In Years, Options exercisable | 4 years 8 months 27 days | |
Aggregate Intrinsic Value, Options outstanding, Beginning Balance | $3,037 | $10,625 |
Aggregate Intrinsic Value, Options vested and expected to vest | 2,553 | |
Aggregate Intrinsic Value, Options exercisable | $2,303 |
Investments_Securities_and_Inv
Investments - Securities and Investments, Recorded at Either Fair Value or Cost (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $270,077 | $281,363 |
Gross Unrealized Gains | 14,619 | 15,470 |
Gross Unrealized Losses | -751 | -771 |
Available-for-sale-securities, Carrying Value | 283,945 | 296,062 |
Restricted investment held at cost | 30,000 | 30,000 |
Other investments held at cost | 1,493 | 1,506 |
Total carrying value of available-for-sale investments | 315,438 | 327,568 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,071 | 13,897 |
Gross Unrealized Gains | 2,555 | 2,409 |
Gross Unrealized Losses | -54 | -12 |
Available-for-sale-securities, Carrying Value | 16,572 | 16,294 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 132,343 | 111,261 |
Gross Unrealized Gains | 250 | 186 |
Gross Unrealized Losses | -205 | -186 |
Available-for-sale-securities, Carrying Value | 132,388 | 111,261 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 92,810 | 127,341 |
Gross Unrealized Gains | 318 | 480 |
Gross Unrealized Losses | -11 | -34 |
Available-for-sale-securities, Carrying Value | 93,117 | 127,787 |
Municipal Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,245 | 2,465 |
Available-for-sale-securities, Carrying Value | 4,245 | 2,465 |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,608 | 26,399 |
Gross Unrealized Gains | 11,496 | 12,395 |
Gross Unrealized Losses | -481 | -539 |
Available-for-sale-securities, Carrying Value | $37,623 | $38,255 |
Investments_Contractual_Maturi
Investments - Contractual Maturities of Corporate Bonds and Municipal Fixed-Rate Bonds (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-securities, Fair Value/Carrying Value | $283,945 | $296,062 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 44,108 | |
One to two years | 39,163 | |
Two to three years | 49,117 | |
Available-for-sale-securities, Fair Value/Carrying Value | 132,388 | 111,261 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 30,407 | |
One to two years | 39,660 | |
Two to three years | 21,826 | |
Three to five years | 1,224 | |
Available-for-sale-securities, Fair Value/Carrying Value | $93,117 | $127,787 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | ||
Restricted certificate of deposit held | $30,000,000 | $30,000,000 |
Identification of potential other-than-temporary impairments | 25.00% | |
Alabama State Industrial Development Authority [Member] | Taxable Revenue Bond [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Investments [Line Items] | ||
Estimated fair value of bond | $29,700,000 | |
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member] | ||
Schedule of Investments [Line Items] | ||
Investment concentration risk percentage | 5.00% |
Investments_Gross_Realized_Gai
Investments - Gross Realized Gains and Losses on Sale of Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains | $3,145 | $2,228 |
Gross realized losses | ($30) | ($36) |
Investments_Fair_Value_Measure
Investments - Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $283,945 | $296,062 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 16,572 | 16,294 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 132,388 | 111,261 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 93,117 | 127,787 |
Municipal Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,245 | 2,465 |
Fair Value, Measurements, Recurring [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 15,225 | |
Available-for-sale securities | 283,945 | 296,062 |
Total | 299,170 | 297,225 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,228 | |
Available-for-sale securities | 54,195 | 54,549 |
Total | 57,423 | 55,712 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 11,997 | |
Available-for-sale securities | 229,750 | 241,513 |
Total | 241,747 | 241,513 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,228 | 1,163 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,228 | 1,163 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 11,997 | |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 11,997 | |
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 16,572 | 16,294 |
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Plan Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 16,572 | 16,294 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 132,388 | 111,261 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 132,388 | 111,261 |
Fair Value, Measurements, Recurring [Member] | Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 93,117 | 127,787 |
Fair Value, Measurements, Recurring [Member] | Municipal Fixed-Rate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 93,117 | 127,787 |
Fair Value, Measurements, Recurring [Member] | Municipal Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,245 | 2,465 |
Fair Value, Measurements, Recurring [Member] | Municipal Variable Rate Demand Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,245 | 2,465 |
Fair Value, Measurements, Recurring [Member] | Marketable Equity Securities - Technology Industry [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 9,034 | 9,661 |
Fair Value, Measurements, Recurring [Member] | Marketable Equity Securities - Technology Industry [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 9,034 | 9,661 |
Fair Value, Measurements, Recurring [Member] | Marketable Equity Securities - Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 28,589 | 28,594 |
Fair Value, Measurements, Recurring [Member] | Marketable Equity Securities - Other [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $28,589 | $28,594 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Forward Contracts [Member] | Forward Contracts [Member] | ||
USD ($) | EUR (€) | ||
Derivative [Line Items] | |||
Maximum contractual period for derivatives | 12 months | ||
Derivative, notional amount | $67,700,000 | € 63,000,000 | |
Derivative maturity year | 2015 | 2015 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Schedule of Fair Values of Hedging Instruments Recorded in Consolidated Balance Sheet (Detail) (Significant Other Observable Inputs (Level 2) [Member], Foreign Exchange Contracts [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Receivables [Member] | ||
Derivatives Not Designated as Hedging Instruments (Level 2): | ||
Derivatives asset, fair value | $1,692 | $249 |
Accounts Payable [Member] | ||
Derivatives Not Designated as Hedging Instruments (Level 2): | ||
Derivatives liability, fair value | ($607) | ($10) |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income (Detail) (Foreign Exchange Contracts [Member], Other Income (Expense) [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member] | ||
Derivatives Not Designated as Hedging Instruments: | ||
Derivative instrument, gain or loss | $1,476 | ($110) |
Inventory_Components_of_Invent
Inventory - Components of Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $35,891 | $34,831 |
Work in process | 2,613 | 3,750 |
Finished goods | 54,619 | 48,129 |
Total | $93,123 | $86,710 |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $16.90 | $16.90 |
Finished Goods [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $7.60 | $7.80 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, relates to acquisition | $3,500,000 | $3,500,000 | |
Impairment losses | 0 | ||
Amortization expense | $500,000 | $600,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ||
Gross Value | $14,104 | $14,937 |
Accumulated Amortization | -7,640 | -7,449 |
Net Value | 6,464 | 7,488 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 5,787 | 6,310 |
Accumulated Amortization | -2,146 | -2,136 |
Net Value | 3,641 | 4,174 |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 5,696 | 6,005 |
Accumulated Amortization | -3,660 | -3,577 |
Net Value | 2,036 | 2,428 |
Intellectual Property [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 2,340 | 2,340 |
Accumulated Amortization | -1,603 | -1,520 |
Net Value | 737 | 820 |
Trade Names [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 270 | 270 |
Accumulated Amortization | -220 | -205 |
Net Value | 50 | 65 |
Other [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 11 | 12 |
Accumulated Amortization | -11 | -11 |
Net Value | $1 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $1,413 | |
2016 | 1,648 | |
2017 | 1,145 | |
2018 | 691 | |
2019 | 298 | |
Thereafter | 1,269 | |
Net Value | $6,464 | $7,488 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Beginning Balance | $549,013 | |
Net Income | 3,317 | 9,607 |
Dividend payments | -4,811 | |
Dividends accrued for unvested restricted stock units | 11 | |
Net unrealized losses on available-for-sale securities (net of tax) | -503 | -921 |
Defined benefit plan adjustments | 68 | |
Foreign currency translation adjustment | -3,318 | 252 |
Proceeds from stock option exercises | 280 | 1,541 |
Purchase of treasury stock | -3,035 | |
Income tax benefit from exercise of stock options | 8 | |
Stock-based compensation expense | 1,639 | 2,057 |
Ending Balance | $542,669 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchased, shares | 100,000 | |
Shares repurchased, average price per share | $21.52 | |
Additional shares authorized for purchase | 4,700,000 | |
Number of Options, exercised | -17,000 | |
Exercise price of stock options, lower range limit | $15.29 | |
Exercise price of stock options, upper range limit | $22.53 | |
Proceeds from stock option exercises | $280 | $1,541 |
Predecessor [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Maximum shares authorized for repurchase, prior and new announcements and total after new announcement | 45,000,000 |
Stockholders_Equity_Cash_Divid
Stockholders' Equity - Cash Dividends (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Dividends Payable [Line Items] | ||
Record Date | 7-May-15 | |
Payment Date | 21-May-15 | |
Per Share Amount | $0.09 | $0.09 |
Total Dividend Paid | $4,811 | $5,102 |
Cash dividends paid in February [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | 5-Feb-15 | |
Payment Date | 19-Feb-15 | |
Per Share Amount | $0.09 | |
Total Dividend Paid | $4,811 |
Stockholders_Equity_Changes_in
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income, Net of Tax by Component (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($75) | $10,753 | |
Other comprehensive income (loss) before reclassifications | -1,958 | 654 | |
Amounts reclassified from accumulated other comprehensive income | -1,795 | -1,323 | |
Other Comprehensive Loss, net of tax | -3,753 | -669 | |
Ending balance | -3,828 | 10,084 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 8,964 | 10,737 | |
Other comprehensive income (loss) before reclassifications | 1,360 | 402 | |
Amounts reclassified from accumulated other comprehensive income | -1,863 | -1,323 | |
Other Comprehensive Loss, net of tax | -503 | -921 | |
Ending balance | 8,461 | 9,816 | |
Defined Benefit Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -5,757 | -891 | |
Amounts reclassified from accumulated other comprehensive income | 68 | ||
Other Comprehensive Loss, net of tax | 68 | ||
Ending balance | -5,689 | -891 | -891 |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -3,282 | 907 | |
Other comprehensive income (loss) before reclassifications | -3,318 | 252 | |
Other Comprehensive Loss, net of tax | -3,318 | 252 | |
Ending balance | ($6,600) | $1,159 |
Stockholders_Equity_Reclassifi
Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, before tax | $5,510 | $14,679 |
Tax (expense) benefit | -2,193 | -5,072 |
Total reclassifications for the period, net of tax | 3,317 | 9,607 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit plan adjustments - actuarial losses | -98 | |
Total reclassifications for the period, before tax | 2,956 | 2,170 |
Tax (expense) benefit | -1,161 | -847 |
Total reclassifications for the period, net of tax | 1,795 | 1,323 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gain | 3,076 | 2,170 |
Impairment Expense [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gain | ($22) |
Stockholders_Equity_Other_Comp
Stockholders' Equity - Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Unrealized gains (losses) on available-for-sale securities, Before-Tax Amount | $2,230 | $659 |
Reclassification adjustment for amounts included in net income, Before-Tax Amount | -2,956 | -2,170 |
Foreign currency translation adjustment, Before-Tax Amount | -3,318 | 252 |
Total Other Comprehensive Income (Loss), Before-Tax Amount | -4,044 | -1,259 |
Unrealized gains (losses) on available-for-sale securities, Tax (Expense) Benefit | -870 | -257 |
Reclassification adjustment for amounts included in net income, Tax Benefit | 1,161 | 847 |
Foreign currency translation adjustment, Tax Benefit | 0 | 0 |
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit | 291 | 590 |
Unrealized gains (losses) on available-for-sale securities, Net-of-Tax Amount | 1,360 | 402 |
Reclassification adjustment for amounts included in net income, Net-of-Tax Amount | -1,795 | -1,323 |
Foreign currency translation adjustment, Net-of-Tax Amount | -3,318 | 252 |
Other Comprehensive Loss, net of tax | ($3,753) | ($669) |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator | ||
Net Income | $3,317 | $9,607 |
Denominator | ||
Weighted average number of shares - basic | 53,399 | 56,751 |
Effect of dilutive securities | ||
Stock options | 220 | 602 |
Restricted stock and restricted stock units | 15 | 15 |
Weighted average number of shares - diluted | 53,634 | 57,368 |
Net income per share - basic | $0.06 | $0.17 |
Net income per share - diluted | $0.06 | $0.17 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Anti-dilutive options, Total | 5.6 | 3.1 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Product_Category | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating reportable segments | 2 |
Number of product categories | 3 |
Segment_Information_Sales_and_
Segment Information - Sales and Gross Profit of Reportable Segments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Sales | $142,835 | $147,004 |
Gross Profit | 65,563 | 77,790 |
Carrier Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 116,014 | 118,162 |
Gross Profit | 49,859 | 61,353 |
Enterprise Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 26,821 | 28,842 |
Gross Profit | $15,704 | $16,437 |
Segment_Information_Sales_Info
Segment Information - Sales Information by Product Category (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Sales | $142,835 | $147,004 |
Carrier Systems [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 100,439 | 99,553 |
Business Networking [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 35,381 | 37,919 |
Loop Access [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | $7,015 | $9,532 |
Segment_Information_Subcategor
Segment Information - Subcategory Revenues (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Sales | $142,835 | $147,004 |
Core Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 131,457 | 131,262 |
Legacy Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 11,378 | 15,742 |
Broadband Access (Included in Carrier Systems) [Member] | Core Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 84,794 | 81,527 |
Optical (Included in Carrier Systems) [Member] | Core Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 12,504 | 12,789 |
Internetworking (Included in Business Networking) [Member] | Core Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 34,159 | 36,946 |
HDSL (Does not Include T1) (Included in Loop Access) [Member] | Legacy Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 6,703 | 8,877 |
Other Products (Excluding HDSL) [Member] | Legacy Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | $4,675 | $6,865 |
Liability_for_Warranty_Returns2
Liability for Warranty Returns - Additional Information (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Product Warranties Disclosures [Abstract] | ||||
Period of warranty for product defects | 90 days to ten years | |||
Liability for warranty obligations | $8,684 | $8,415 | $7,392 | $8,977 |
Liability_for_Warranty_Returns3
Liability for Warranty Returns - Summary of Warranty Expense and Write-Off Activity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of period | $8,415 | $8,977 |
Plus: Amounts charged to cost and expenses | 461 | 434 |
Less: Deductions | -192 | -2,019 |
Balance at end of period | $8,684 | $7,392 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Director Emeritus [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Director Emeritus [Member] | |
Related Party Transaction | |
Related party legal fees | $10 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 |
EquityUnit | |
Contingencies And Commitments [Line Items] | |
Aggregate investment committed in private equity funds | $7,900,000 |
Number of private equity funds | 2 |
Commitments towards private equity funds | 7,700,000 |
Private Equity Funds [Member] | |
Contingencies And Commitments [Line Items] | |
Contribution to private equity funds | $8,400,000 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | 6-May-15 | Apr. 21, 2015 | 21-May-15 |
Subsequent Event [Line Items] | ||||
Dividend declaration date | 21-Apr-15 | |||
Dividend record date | 7-May-15 | |||
Dividend payment date | 21-May-15 | |||
Stock repurchased, shares | 100,000 | |||
Shares repurchased, average price per share | $21.52 | |||
Additional shares authorized for purchase | 4,700,000 | |||
Subsequent Events [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividend per common share | $0.09 | |||
Cash dividend | $4.70 | |||
Stock repurchased, shares | 1,200,000 | |||
Shares repurchased, average price per share | $16.33 | |||
Additional shares authorized for purchase | 3,400,000 |