Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 09, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ADTN | ||
Entity Registrant Name | ADTRAN INC | ||
Entity Central Index Key | 926,282 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,519,654 | ||
Entity Public Float | $ 903,566,094 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 79,895 | $ 84,550 |
Short-term investments | 43,188 | 34,396 |
Accounts receivable, less allowance for doubtful accounts of $— and $19 at December 31, 2016 and 2015, respectively | 92,346 | 71,917 |
Other receivables | 15,137 | 19,321 |
Income tax receivable, net | 760 | |
Inventory, net | 105,117 | 91,533 |
Prepaid expenses and other current assets | 16,459 | 10,145 |
Total Current Assets | 352,902 | 311,862 |
Property, plant and equipment, net | 84,469 | 73,233 |
Deferred tax assets, net | 38,036 | 37,015 |
Goodwill | 3,492 | 3,492 |
Other assets | 12,234 | 9,276 |
Long-term investments | 176,102 | 198,026 |
Total Assets | 667,235 | 632,904 |
Current Liabilities | ||
Accounts payable | 77,342 | 48,668 |
Unearned revenue | 16,326 | 16,615 |
Accrued expenses | 12,434 | 12,108 |
Accrued wages and benefits | 20,433 | 12,857 |
Income tax payable, net | 2,395 | |
Total Current Liabilities | 126,535 | 92,643 |
Non-current unearned revenue | 6,333 | 7,965 |
Other non-current liabilities | 28,050 | 24,236 |
Bonds payable | 26,800 | 27,900 |
Total Liabilities | 187,718 | 152,744 |
Commitments and contingencies (see Note 13) | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 48,472 shares outstanding at December 31, 2016 and 79,652 shares issued and 49,558 shares outstanding at December 31, 2015 | 797 | 797 |
Additional paid-in capital | 252,957 | 246,879 |
Accumulated other comprehensive loss | (12,188) | (8,969) |
Retained earnings | 921,942 | 906,772 |
Less treasury stock at cost: 31,180 and 30,094 shares at December 31, 2016 and 2015, respectively | (683,991) | (665,319) |
Total Stockholders' Equity | 479,517 | 480,160 |
Total Liabilities and Stockholders' Equity | $ 667,235 | $ 632,904 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 19 | |
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 | 48,472,000 | 49,558,000 |
Treasury stock, shares | 31,180,000 | 30,094,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | |||
Products | $ 525,502 | $ 527,422 | $ 559,532 |
Services | 111,279 | 72,642 | 70,475 |
Total Sales | 636,781 | 600,064 | 630,007 |
Cost of Sales | |||
Products | 270,695 | 293,843 | 288,015 |
Services | 74,742 | 39,324 | 30,665 |
Total Cost of Sales | 345,437 | 333,167 | 318,680 |
Gross Profit | 291,344 | 266,897 | 311,327 |
Selling, general and administrative expenses | 131,805 | 123,542 | 131,958 |
Research and development expenses | 124,804 | 129,876 | 132,258 |
Operating Income | 34,735 | 13,479 | 47,111 |
Interest and dividend income | 3,918 | 3,953 | 5,019 |
Interest expense | (572) | (596) | (677) |
Net realized investment gain | 5,923 | 10,337 | 7,278 |
Other income (expense), net | (651) | (1,465) | 1,175 |
Gain on bargain purchase of a business | 3,542 | ||
Income before provision for income taxes | 46,895 | 25,708 | 59,906 |
Provision for income taxes | (11,666) | (7,062) | (15,286) |
Net Income | $ 35,229 | $ 18,646 | $ 44,620 |
Weighted average shares outstanding – basic | 48,724 | 51,145 | 55,120 |
Weighted average shares outstanding – diluted | 48,949 | 51,267 | 55,482 |
Earnings per common share – basic | $ 0.72 | $ 0.36 | $ 0.81 |
Earnings per common share – diluted | $ 0.72 | $ 0.36 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 35,229 | $ 18,646 | $ 44,620 |
Other Comprehensive Loss, net of tax: | |||
Net unrealized losses on available-for-sale securities | (1,528) | (7,032) | (1,773) |
Defined benefit plan adjustments | (1,122) | 1,862 | (4,866) |
Foreign currency translation | (569) | (3,724) | (4,189) |
Other Comprehensive Loss, net of tax | (3,219) | (8,894) | (10,828) |
Comprehensive Income, net of tax | $ 32,010 | $ 9,752 | $ 33,792 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2013 | $ 604,606 | $ 797 | $ 233,511 | $ 884,451 | $ (524,906) | $ 10,753 |
Beginning Balance, Shares at Dec. 31, 2013 | 79,652 | |||||
Net Income | 44,620 | 44,620 | ||||
Other comprehensive loss, net of tax | (10,828) | (10,828) | ||||
Dividend payments | (19,947) | (19,947) | ||||
Dividends accrued for unvested restricted stock units | (19) | (19) | ||||
Stock options exercised | 2,839 | (558) | 3,397 | |||
PSUs and restricted stock vested | (326) | (326) | (796) | 796 | ||
Purchase of treasury stock | (80,576) | (80,576) | ||||
Income tax effect of stock compensation arrangements | 81 | 81 | ||||
Stock-based compensation expense | 8,563 | 8,563 | ||||
Ending Balance at Dec. 31, 2014 | 549,013 | $ 797 | 241,829 | 907,751 | (601,289) | (75) |
Ending Balance, Shares at Dec. 31, 2014 | 79,652 | |||||
Net Income | 18,646 | 18,646 | ||||
Other comprehensive loss, net of tax | (8,894) | (8,894) | ||||
Dividend payments | (18,449) | (18,449) | ||||
Dividends accrued for unvested restricted stock units | (7) | (7) | ||||
Stock options exercised | 961 | (402) | 1,363 | |||
PSUs and restricted stock vested | (69) | (69) | (767) | 767 | ||
Purchase of treasury stock | (66,160) | (66,160) | ||||
Income tax effect of stock compensation arrangements | (1,593) | (1,593) | ||||
Stock-based compensation expense | 6,712 | 6,712 | ||||
Ending Balance at Dec. 31, 2015 | $ 480,160 | $ 797 | 246,879 | 906,772 | (665,319) | (8,969) |
Ending Balance, Shares at Dec. 31, 2015 | 79,652 | 79,652 | ||||
Net Income | $ 35,229 | 35,229 | ||||
Other comprehensive loss, net of tax | (3,219) | (3,219) | ||||
Dividend payments | (17,583) | (17,583) | ||||
Dividends accrued for unvested restricted stock units | (48) | (48) | ||||
Stock options exercised | 4,717 | (1,499) | 6,216 | |||
PSUs and restricted stock vested | (142) | (142) | (929) | 929 | ||
Purchase of treasury stock | (25,817) | (25,817) | ||||
Income tax effect of stock compensation arrangements | (475) | (475) | ||||
Stock-based compensation expense | 6,695 | 6,695 | ||||
Ending Balance at Dec. 31, 2016 | $ 479,517 | $ 797 | $ 252,957 | $ 921,942 | $ (683,991) | $ (12,188) |
Ending Balance, Shares at Dec. 31, 2016 | 79,652 | 79,652 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options exercised, shares | 283 | 60 | 147 |
PSUs and restricted stock vested, shares | 42 | 34 | 35 |
Treasury Stock [Member] | |||
Purchase of treasury stock, shares | 1,411 | 3,967 | 3,669 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 35,229 | $ 18,646 | $ 44,620 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 14,407 | 14,245 | 14,845 |
Amortization of net premium on available-for-sale investments | 643 | 2,402 | 4,360 |
Net realized gain on long-term investments | (5,923) | (10,337) | (7,278) |
Net loss on disposal of property, plant and equipment | 22 | 644 | 142 |
Gain on bargain purchase of a business | (3,542) | ||
Stock-based compensation expense | 6,695 | 6,712 | 8,563 |
Deferred income taxes | (2,685) | (692) | (5,526) |
Tax impact of stock option exercises | (40) | 81 | |
Excess tax benefits from stock-based compensation arrangements | (2) | (3) | (63) |
Change in operating assets and liabilities: | |||
Accounts receivable, net | (21,302) | 14,918 | (3,910) |
Other receivables | 4,101 | 11,704 | (19,298) |
Inventory | (10,887) | (6,877) | 2,144 |
Prepaid expenses and other assets | (7,108) | (5,070) | (3,818) |
Accounts payable | 26,722 | (5,826) | 9,973 |
Accrued expenses and other liabilities | 8,792 | (10,289) | (166) |
Income taxes payable, net | (3,162) | (11,590) | 11,168 |
Net cash provided by operating activities | 42,000 | 18,547 | 55,837 |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (21,441) | (11,753) | (11,256) |
Proceeds from disposals of property, plant and equipment | 183 | 1 | |
Proceeds from sales and maturities of available-for-sale investments | 225,075 | 280,435 | 230,019 |
Purchases of available-for-sale investments | (209,172) | (188,921) | (142,695) |
Acquisition of business | (943) | ||
Net cash provided by (used in) investing activities | (6,481) | 79,944 | 76,069 |
Cash flows from financing activities | |||
Proceeds from stock option exercises | 4,717 | 961 | 2,839 |
Purchases of treasury stock | (25,817) | (66,160) | (80,576) |
Dividend payments | (17,583) | (18,449) | (19,947) |
Payments on long-term debt | (1,100) | (1,100) | (16,500) |
Excess tax benefits from stock-based compensation arrangements | 2 | 3 | 63 |
Net cash used in financing activities | (39,781) | (84,745) | (114,121) |
Net increase (decrease) in cash and cash equivalents | (4,262) | 13,746 | 17,785 |
Effect of exchange rate changes | (393) | (2,635) | (2,644) |
Cash and cash equivalents, beginning of year | 84,550 | 73,439 | 58,298 |
Cash and cash equivalents, end of year | 79,895 | 84,550 | 73,439 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 575 | 598 | 758 |
Cash paid during the year for income taxes | 18,689 | 20,139 | 9,856 |
Supplemental disclosure of non-cash investing activities | |||
Purchases of property, plant and equipment included in accounts payable | $ 2,103 | $ 598 | $ 467 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1 – Nature of Business and Summary of Significant Accounting Policies ADTRAN, Inc. is a leading global provider of networking and communications equipment. Our solutions enable voice, data, video and Internet communications across a variety of network infrastructures. These solutions are deployed by many of the United States’ and the world’s largest CSPs, distributed enterprises and small and medium-sized businesses, public and private enterprises, and millions of individual users worldwide. Principles of Consolidation Our consolidated financial statements include ADTRAN and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. 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 and network installations, 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. Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds, and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions, and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. As of December 31, 2016, $77.9 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $27.8 million, compared to an estimated fair value of $28.1 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. Investments with contractual maturities beyond one year, such as our variable rate demand notes, may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent, or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments was recorded as interest income. We have not been required to record any losses relating to variable rate demand notes. Long-term investments represent a restricted certificate of deposit held at cost, deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency backed bonds, U.S. and foreign government bonds, variable rate demand notes, marketable equity securities, and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Unrealized gains and losses, net of tax, are reported as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are computed under the specific identification method and are included in current income. We review our investment portfolio quarterly for investments considered to have sustained an other-than-temporary decline in value. Impairment charges for other-than-temporary declines in value are recorded as realized losses in the accompanying consolidated statements of income. All of our investments at December 31, 2016 and 2015 are classified as available-for-sale securities. See Note 4 of Notes to Consolidated Financial Statements for additional information. Accounts Receivable We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. At December 31, 2016, three customers accounted for 63.3% of our total accounts receivable. At December 31, 2015, three customers accounted for 37.3% of our total accounts receivable. We maintain an allowance for doubtful accounts for losses resulting from the inability of our customers to make required payments. We regularly review the allowance for doubtful accounts and consider factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events and our historical experience. If the financial condition of a customer deteriorates, resulting in an impairment of their ability to make payments, we may be required to record an allowance for doubtful accounts. If circumstances change with regard to individual receivable balances that have previously been determined to be uncollectible (and for which a specific reserve has been established), a reduction in our allowance for doubtful accounts may be required. Our allowance for doubtful accounts was nil and $19 thousand at December 31, 2016 and December 31, 2015, respectively. Other Receivables Other receivables are comprised primarily of amounts due from subcontract manufacturers for product component transfers, accrued interest on investments and on a restricted certificate of deposit, amounts due from various jurisdictions for value-added tax, and amounts due from employee stock option exercises. Inventory Inventory is carried at the lower of cost or market, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory. Standard costs are updated at least quarterly; therefore, inventory costs approximate actual costs at the end of each reporting period. 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, market conditions and age. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 6 of Notes to Consolidated Financial Statements for additional information. Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Betterments that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income. See Note 7 of Notes to Consolidated Financial Statements for additional information. Liability for Warranty Our products generally include warranties of 90 days to five 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 total systems. 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. During 2016, we incurred an increase in warranty expense related to a product recall caused by a defect in a part provided by a third party supplier. The liability for warranty obligations totaled $8.5 million and $8.7 million at December 31, 2016 and 2015, respectively. These liabilities are included in accrued expenses in the accompanying consolidated balance sheets. A summary of warranty expense and write-off activity for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ 8,739 $ 8,415 $ 8,977 Plus: Amounts charged to cost and expenses 8,561 2,998 3,103 Less: Deductions (8,752 ) (2,674 ) (3,665 ) Balance at end of period $ 8,548 $ 8,739 $ 8,415 Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Stock-Based Compensation We have two Board and stockholder approved stock incentive plans from which stock options and other awards are available for grant to employees and directors. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. There are currently no vesting provisions tied to performance or market conditions for any stock awards. Vesting for all outstanding award grants is based only on continued service as an employee or director of ADTRAN. All of our outstanding stock option awards are classified as equity awards. Under the provisions of our approved plans, we made grants of performance stock units to certain of our executive officers in 2016, 2015, and 2014. The performance stock units are subject to a market condition based on the relative total shareholder return of ADTRAN against all the companies in the NASDAQ Telecommunications Index and vest at the end of a three-year performance period. The performance stock units are converted into shares of common stock upon vesting. Depending on the relative total shareholder return over the performance period, the executive officers may earn from 0% to 150% of the number of restricted stock units granted. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. The recipients of the performance stock units also earn dividend credits during the performance period, which are paid in cash upon the issuance of common stock for the restricted stock units. Stock-based compensation expense recognized in 2016, 2015 and 2014 was approximately $6.7 million, $6.7 million and $8.6 million, respectively. As of December 31, 2016, total compensation cost related to non-vested stock options, restricted stock units, performance stock units and restricted stock not yet recognized was approximately $16.4 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. See Note 3 of Notes to Consolidated Financial Statements for additional information. Impairment of Long-Lived Assets We review long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no impairment losses recognized during 2016, 2015 or 2014. Goodwill and Purchased Intangible Assets 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. Based on the results of our qualitative assessment in 2016, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the acquisition in 2011. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is 9 months to 14 years. Research and Development Costs Research and development costs include compensation for engineers and support personnel, outside contracted services, depreciation and material costs associated with new product development, the enhancement of current products, and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $124.8 million, $129.9 million and $132.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. 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 and realized gains (losses) on available-for-sale securities, defined benefit plan adjustments and foreign currency translation adjustments. The following table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2014, 2015 and 2016: (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Balance at December 31, 2013 $ 10,737 $ (891 ) $ 907 $ 10,753 Other comprehensive income (loss) before reclassifications 2,363 (4,866 ) (4,189 ) (6,692 ) Amounts reclassified from accumulated other comprehensive income (4,136 ) — — (4,136 ) Balance at December 31, 2014 8,964 (5,757 ) (3,282 ) (75 ) Other comprehensive income (loss) before reclassifications (844 ) 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) 273 — (5,915 ) Balance at December 31, 2015 1,932 (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) 107 — (2,936 ) Balance at December 31, 2016 $ 404 $ (5,017 ) $ (7,575 ) $ (12,188 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 6,895 Net realized investment gain Impairment expense (115 ) Net realized investment gain Total reclassifications for the period, before tax 6,780 Tax (expense) benefit (2,644 ) Total reclassifications for the period, net of tax $ 4,136 The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2016, 2015 and 2014: 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available- for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) 2014 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 3,874 $ (1,511 ) $ 2,363 Reclassification adjustment for amounts related to available- for-sale investments included in net income (6,780 ) 2,644 (4,136 ) Defined benefit plan adjustments (7,052 ) 2,186 (4,866 ) Foreign currency translation adjustment (4,189 ) — (4,189 ) Total Other Comprehensive Income (Loss) $ (14,147 ) $ 3,319 $ (10,828 ) Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. F oreign Currency We record transactions denominated in foreign currencies on a monthly basis using exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are translated at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar, and our Mexican subsidiary, whose functional currency is the U.S. dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss). Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the product price is fixed or determinable, collection of the resulting receivable is reasonably assured, and product returns are reasonably estimable. For product sales, revenue is generally recognized upon shipment of the product to our customer in accordance with the title transfer terms of the sales agreement, generally Ex Works, per International Commercial Terms. In the case of consigned inventory, revenue is recognized when the end customer assumes ownership of the product. Contracts that contain multiple deliverables are evaluated to determine the units of accounting, and the consideration from the arrangement is allocated to each unit of accounting based on the relative selling price and corresponding terms of the contract. We use vendor-specific objective evidence of selling price. When this evidence is not available, we are generally not able to determine third-party evidence of selling price because of the extent of customization among competing products or services from other companies. In these instances, we use best estimates to allocate consideration to each respective unit of accounting. These estimates include analysis of respective bills of material and review and analysis of similar product and service offerings. We record revenue associated with installation services when respective contractual obligations are complete. In instances where customer acceptance is required, revenue is deferred until respective acceptance criteria have been met. Contracts that include both installation services and product sales are evaluated for revenue recognition in accordance with contract terms. As a result, installation services may be considered a separate deliverable or may be considered a combined single unit of accounting with the delivered product. Generally, either the purchaser, ADTRAN, or a third party can perform the installation of our products. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales taxes invoiced to customers are included in revenues, and represent less than one percent of total revenues. The corresponding sales taxes paid are included in cost of goods sold. Value added taxes collected from customers in international jurisdictions are recorded in accrued expenses as a liability. Revenue is recorded net of discounts. Sales returns are recorded as a reduction of revenue and accrued based on historical sales return experience, which we believe provides a reasonable estimate of future returns. A portion of our products are sold to a non-exclusive distribution network of major technology distributors in the United States. These large organizations then distribute or provide fulfillment services to an extensive network of VARs and SIs. VARs and SIs may be affiliated with us as a channel partner, or they may purchase from the distributor in an unaffiliated fashion. Additionally, with certain limitations our distributors may return unused and unopened product for stock-balancing purposes when such returns are accompanied by offsetting orders for products of equal or greater value. We participate in cooperative advertising and market development programs with certain customers. We use these programs to reimburse customers for certain forms of advertising, and in general, to allow our customers credits up to a specified percentage of their net purchases. Our costs associated with these programs are estimated and included in marketing expenses in our consolidated statements of income. We also participate in rebate programs to provide sales incentives for certain products. Our costs associated with these programs are estimated and accrued at the time of sale, and are recorded as a reduction of sales in our consolidated statements of income. Unearned Revenue Unearned revenue primarily represents customer billings on our maintenance service programs and unearned revenues relating to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple-element contracts where we still have contractual obligations, we also defer the related costs. Deferred costs are included in prepaid expenses and other assets and totaled $10.7 million and $5.2 million at December 31, 2016 and 2015, respectively. Other Income (Expense), Net Other income (expense), net, is comprised primarily of miscellaneous income and expense, gains and losses on foreign currency transactions, and investment account management fees. For the year ended December 31, 2014, other income (expense), net included a $2.4 million gain related to the settlement of working capital items from an acquisition transaction that closed in 2012. Earnings per Share Earnings per common share, and earnings per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 14 of Notes to Consolidated Financial Statements for additional information. Dividends During 2016, 2015 and 2014, we paid shareholder dividends totaling $17.6 million, $18.4 million and $19.9 million, respectively. The Board of Directors presently anticipates that it will declare a regular quarterly dividend so long as the present tax treatment of dividends exists and adequate levels of liquidity are maintained. The following table shows dividends paid to our shareholders in each quarter of 2016, 2015 and 2014. Dividends per Common Share 2016 2015 2014 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 On January 17, 2017, the Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on February 2, 2017. The ex-dividend date was January 31, 2017 and the payment date was February 16, 2017. The quarterly dividend payment was $4.4 million. Business Combinations We use the acquisition method to account for business combinations. Under the acquisition method of accounting, we recognize the assets acquired and liabilities assumed at their fair value on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the net assets acquired. Costs incurred to complete the business combination, such as legal, accounting or other professional fees, are charged to general and administrative expenses as they are incurred. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, the FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provisions and practical expedients in response to identified implementation issues; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which is intended to clarify the Codification or to correct unintended application of guidance. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory Inventory In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment During 2016, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 – Business Combinations On September 13, 2016, we acquired key fiber access products, technologies and service relationships from subsidiaries of CommScope, Inc. for $0.9 million in cash. This acquisition will enhance our solutions for the cable MSO industry and will provide cable operators with the scalable solutions, services and support they require to compete in the multi-gigabit service delivery market. This transaction was accounted for as a business combination. We have included the financial results of this acquisition in our consolidated financial statements since the date of acquisition. These revenues are included in the Network Solutions reportable segment, and in the Access & Aggregation and Customer Devices categories. We recorded a bargain purchase gain of $3.5 million, net of income taxes, subject to customary working capital adjustments between the parties. The bargain purchase gain represents the excess fair value of the net assets acquired over the consideration exchanged. We have assessed the recognition and measurement of the assets acquired and liabilities assumed based on historical and pro forma data for future periods and have concluded that our valuation procedures and resulting measures were appropriate. The gain is included in the line item “Gain on bargain purchase of a business” in the 2016 Consolidated Statements of Income. The allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date, subject to working capital adjustments, is as follows: (In Thousands) Assets Inventory $ 3,131 Property, plant and equipment 352 Intangible assets 4,700 Total assets acquired 8,183 Liabilities Accounts payable (1,250 ) Warranty payable (61 ) Accrued wages and benefits (122 ) Deferred income taxes (2,265 ) Total liabilities assumed (3,698 ) Total net assets 4,485 Gain on bargain purchase of a business, net of tax (3,542 ) Total purchase price $ 943 The details of the acquired intangible assets are as follows: In thousands Value Life (years) Supply agreement $ 1,400 0.8 Customer relationships 1,200 6.0 Developed technology 800 10.0 License 500 1.3 Patent 500 7.3 Non-compete 200 2.3 Trade name 100 2.0 Total $ 4,700 The actual revenue and net loss included in our Consolidated Statements of Income for the period September 13, 2016 to December 31, 2016 are as follows: (In thousands) September 13 to December 31, 2016 Revenue $ 2,768 Net loss $ (805 ) The following supplemental unaudited pro forma information presents the financial results as if the acquisition had occurred on January 1, 2015. This supplemental unaudited pro forma information does not purport to be indicative of what would have occurred had the acquisition been completed on January 1, 2015, nor is it indicative of any future results. Aside from revising the 2015 net income for the effect of the bargain purchase gain, there were no material, non-recurring adjustments to this unaudited pro forma information. (In thousands) 2016 2015 Pro forma revenue $ 641,170 $ 603,923 Pro forma net income $ 31,212 $ 22,945 For the year ended December 31, 2016, we incurred acquisition and integration related expenses and amortization of acquired intangibles of $1.0 million related to this acquisition. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 3 – Stock-Based Compensation Stock Incentive Program Descriptions On January 23, 2006, the Board of Directors adopted the ADTRAN, Inc. 2006 Employee Stock Incentive Plan (2006 Plan), which authorized 13.0 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units (RSUs). The 2006 Plan was adopted by stockholder approval at our annual meeting of stockholders held on May 9, 2006. Options granted under the 2006 Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date, and have a ten-year contractual term. The 2006 Plan was replaced on May 13, 2015 by the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (2015 Plan). Expiration dates of options outstanding at December 31, 2016 under the 2006 Plan range from 2017 to 2024. Our stockholders approved the 2010 Directors Stock Plan (2010 Directors Plan) on May 5, 2010, under which 0.5 million shares of common stock have been reserved. This plan replaces the 2005 Directors Stock Option Plan. Under the 2010 Directors Plan, the Company may issue stock options, restricted stock and RSUs to our non-employee directors. Stock awards issued under the 2010 Directors Plan normally become vested in full on the first anniversary of the grant date. Options issued under the 2010 Directors Plan have a ten-year contractual term. Expiration dates of options outstanding at December 31, 2016 under the 2010 Directors Plan range from 2017 to 2019. On January 20, 2015, the Board of Directors adopted the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (2015 Plan), which authorizes 7.7 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, performance stock units (PSUs), restricted stock and RSUs. The 2015 Plan was adopted by stockholder approval at our annual meeting of stockholders held on May 13, 2015. PSUs, restricted stock and RSUs granted under the 2015 Plan reduce the shares authorized for issuance under the 2015 Plan by 2.5 shares of common stock for each share underlying the award. Options granted under the 2015 Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date, and have a ten-year contractual term. Expiration dates of options outstanding at December 31, 2015 under the 2015 Plan range from 2025 to 2026. The following table summarizes stock-based compensation expense related to stock options, PSUs, restricted stock and RSUs for the years ended December 31, 2016, 2015 and 2014, which was recognized as follows: (In thousands) 2016 2015 2014 Stock-based compensation expense included in cost of sales $ 389 $ 280 $ 479 Selling, general and administrative expense 3,341 3,261 4,185 Research and development expense 2,965 3,171 3,899 Stock-based compensation expense included in operating expenses 6,306 6,432 8,084 Total stock-based compensation expense 6,695 6,712 8,563 Tax benefit for expense associated with non-qualified options (963 ) (862 ) (1,157 ) Total stock-based compensation expense, net of tax $ 5,732 $ 5,850 $ 7,406 Stock-based compensation expense recognized in our Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014 is based on stock options, PSUs, restricted stock and RSUs ultimately expected to vest, and has been reduced for estimated forfeitures. Estimates for forfeiture rates are based upon historical experience and are evaluated quarterly. We expect our forfeiture rate for stock options and RSUs to be approximately 3.7% annually. We estimated a 0% forfeiture rate for our PSUs and restricted stock due to the limited number of recipients and historical experience for these awards. Stock Options The following table is a summary of our stock options outstanding as of December 31, 2015 and 2016 and the changes that occurred during 2016: (In thousands, except per share amounts) Number of Options Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life in Years Aggregate Intrinsic Value Options outstanding, December 31, 2015 7,108 $ 21.97 6.42 $ 3,284 Options granted 19 $ 18.24 Options exercised (283 ) $ 16.66 Options forfeited (93 ) $ 17.90 Options expired (413 ) $ 23.96 Options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Options vested and expected to vest, December 31, 2016 6,276 $ 22.20 5.60 $ 16,606 Options exercisable, December 31, 2016 4,757 $ 23.67 4.73 $ 9,137 At December 31, 2016, total compensation cost related to non-vested stock options not yet recognized was approximately $7.5 million, which is expected to be recognized over an average remaining recognition period of 2.1 years. All of the options above were issued at exercise prices that approximated fair market value at the date of grant. At December 31, 2016, 5.6 million options were available for grant under the shareholder approved plans. The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of 2016 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 December 31, 2016. The amount of aggregate intrinsic value will change based on the fair market value of ADTRAN’s stock. The total pre-tax intrinsic value of options exercised during 2016, 2015 and 2014 was $1.1 million, $0.1 million and $0.7 million, respectively. The fair value of options fully vesting during 2016, 2015 and 2014 was $5.7 million, $6.6 million and $7.7 million, respectively. The following table further describes our stock options outstanding as of December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding at 12/31/16 (In thousands) Weighted Avg. Remaining Contractual Life in Years Weighted Average Exercise Price Options Exercisable at 12/31/16 (In thousands) Weighted Average Exercise Price $14.88 – 18.96 2,101 6.78 $ 15.82 1,217 $ 16.14 $18.97 – 23.45 1,380 5.79 $ 20.17 881 $ 20.84 $23.46 – 30.35 1,491 5.08 $ 23.89 1,293 $ 23.92 $30.36 – 41.92 1,366 4.29 $ 31.94 1,366 $ 31.94 6,338 4,757 PSUs, restricted stock and RSUs Under the 2015 Plan, awards other than stock options, including PSUs, restricted stock and RSUs, may be granted to certain employees and officers. Under our PSU program, the number of shares of common stock earned by a recipient pursuant to the PSUs is subject to a market condition based on ADTRAN’s relative total shareholder return against all companies in the NASDAQ Telecommunications Index at the end of a three-year performance period. Depending on the relative total shareholder return over the performance period, the recipient may earn from 0% to 150% of the shares underlying the PSUs, with the shares earned distributed upon the vesting of the PSUs at the end of the three-year performance period. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. A portion of the granted PSUs also vest and the underlying shares become deliverable upon the death or disability of the recipient or upon a change of control of ADTRAN, as defined by the 2015 Plan. The recipients of the PSUs receive dividend credits based on the shares of common stock underlying the PSUs. The dividend credits are vested and earned in the same manner as the PSUs and are paid in cash upon the issuance of common stock for the PSUs. The fair value of restricted stock and RSUs is equal to the closing price of our stock on the business day immediately preceding the grant date. Restricted stock and RSUs vest ratably over one year and four year periods, respectively. The following table is a summary of our PSUs, restricted stock and RSUs outstanding as of December 31, 2015 and 2016 and the changes that occurred during 2016: (In thousands, except per share amounts) Number of shares Weighted Average Grant Date Fair Value Unvested PSUs, restricted stock and RSUs outstanding, December 31, 2015 106 $ 21.09 PSUs, restricted stock and RSUs granted 460 $ 20.63 PSUs, restricted stock and RSUs vested (46 ) $ 22.50 PSUs, restricted stock and RSUs forfeited (1 ) $ 20.00 Unvested RSUs and restricted stock outstanding, December 31, 2016 519 $ 20.51 At December 31, 2016, total compensation cost related to the non-vested portion of PSUs, restricted stock and RSUs not yet recognized was approximately $8.9 million, which is expected to be recognized over an average remaining recognition period of 3.6 years. Valuation and Expense Information We use the Black-Scholes option pricing model (Black-Scholes Model) for the purpose of determining the estimated fair value of stock option awards on the date of grant. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Because our stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, existing models may not provide reliable measures of fair value of our stock options. We use a Monte Carlo Simulation valuation method to value our performance-based PSUs. The fair value of RSUs and restricted stock issued is equal to the closing price of our stock on the date of grant. We will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. If circumstances change, and additional data becomes available over time, we may change our assumptions and methodologies, which may materially impact our fair value determination. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors. There were no changes made during 2016 to the methodology used to determine our assumptions. The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $5.22 per share, $4.28 per share and $6.31 per share, respectively, with the following weighted-average assumptions: 2016 2015 2014 Expected volatility 34.79 % 34.57 % 39.05 % Risk-free interest rate 1.36 % 1.81 % 1.79 % Expected dividend yield 1.98 % 2.35 % 1.90 % Expected life (in years) 6.25 6.23 6.33 We based our estimate of expected volatility for the years ended December 31, 2016, 2015 and 2014 on the sequential historical daily trading data of our common stock for a period equal to the expected life of the options granted. The selection of the historical volatility method was based on available data indicating our historical volatility is as equally representative of our future stock price trends as is our implied volatility. We have no reason to believe the future volatility of our stock price is likely to differ from its past volatility. The risk-free interest rate assumption is based upon implied yields of U.S. Treasury zero-coupon bonds on the date of grant having a remaining term equal to the expected life of the options granted. The dividend yield is based on our historical and expected dividend payouts. The expected life of our stock options is based upon historical exercise and forfeiture activity of our previous stock-based grants with a ten-year contractual term. The PSU pricing model also requires the use of several significant assumptions that impact the fair value estimate. The estimated fair value of the PSUs granted to employees during the years ended December 31, 2016, 2015 and 2014 was $23.50 per share, $17.64 per share and $22.11 per share, respectively, with the following assumptions: 2016 2015 2014 Expected volatility 29.79 % 31.34 % 36.40 % Risk-free interest rate 1.17 % 1.20 % 0.96 % Expected dividend yield 1.80 % 2.35 % 1.89 % |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 4 – Investments At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 12,367 $ 2,271 $ (42 ) $ 14,596 Corporate bonds 66,522 64 (174 ) 66,412 Municipal fixed-rate bonds 11,799 12 (37 ) 11,774 Asset-backed bonds 10,201 19 (14 ) 10,206 Mortgage/Agency-backed bonds 13,080 15 (91 ) 13,004 U.S. government bonds 30,022 15 (270 ) 29,767 Foreign government bonds 3,729 2 (1 ) 3,730 Variable rate demand notes 11,855 — — 11,855 Marketable equity securities 30,571 311 (1,503 ) 29,379 Available-for-sale securities held at fair value $ 190,146 $ 2,709 $ (2,132 ) $ 190,723 Restricted investment held at cost 27,800 Other investments 767 Total carrying value of available-for-sale investments $ 219,290 At December 31, 2015, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 11,325 $ 1,575 $ (66 ) $ 12,834 Corporate bonds 58,328 20 (734 ) 57,614 Municipal fixed-rate bonds 26,414 28 (18 ) 26,424 Asset-backed bonds 19,281 2 (44 ) 19,239 Mortgage/Agency-backed bonds 15,463 1 (91 ) 15,373 Government bonds 35,646 — (248 ) 35,398 Marketable equity securities 31,643 4,301 (1,693 ) 34,251 Available-for-sale securities held at fair value $ 198,100 $ 5,927 $ (2,894 ) $ 201,133 Restricted investment held at cost 30,000 Other investments held at cost 1,289 Total carrying value of available-for-sale investments $ 232,422 As of December 31, 2016, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. government bonds, and foreign government bonds had the following contractual maturities: (In thousands) Corporate bonds Municipal fixed-rate bonds Asset-backed bonds Mortgage / Agency-backed bonds U.S. government bonds Foreign government bonds Less than one year $ 18,912 $ 8,321 $ — $ — $ 1,701 $ 2,400 One to two years 32,497 1,703 635 976 4,903 1,330 Two to three years 11,486 351 2,415 980 13,072 — Three to five years 3,517 1,399 5,402 — 10,091 — Five to ten years — — 1,600 2,060 — — More than ten years — — 154 8,988 — — Total $ 66,412 $ 11,774 $ 10,206 $ 13,004 $ 29,767 $ 3,730 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. 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 each of the years ended December 31, 2016, 2015 and 2014, we recorded a charge of $0.8 million, $0.2 million and $0.1 million, respectively, related to the other-than-temporary impairment of certain marketable equity securities and our deferred compensation plan assets. 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 for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (In thousands) 2016 2015 2014 Gross realized gains $ 7,530 $ 10,906 $ 7,586 Gross realized losses $ (1,607 ) $ (569 ) $ (308 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2016: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 294 $ (12 ) $ 245 $ (30 ) $ 539 $ (42 ) Corporate bonds 32,562 (166 ) 2,722 (8 ) 35,284 (174 ) Municipal fixed-rate bonds 8,936 (37 ) — — 8,936 (37 ) Asset-backed bonds 2,986 (14 ) — — 2,986 (14 ) Mortgage/Agency-backed bonds 7,842 (81 ) 1,239 (10 ) 9,081 (91 ) U.S. government bonds 26,449 (270 ) — — 26,449 (270 ) Foreign government bonds 924 (1 ) — — 924 (1 ) Marketable equity securities 21,607 (1,200 ) 1,495 (303 ) 23,102 (1,503 ) Total $ 101,600 $ (1,781 ) $ 5,701 $ (351 ) $ 107,301 $ (2,132 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2015: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 1,243 $ (53 ) $ 92 $ (13 ) $ 1,335 $ (66 ) Corporate bonds 35,952 (566 ) 3,042 (168 ) 38,994 (734 ) Municipal fixed-rate bonds 9,160 (18 ) — — 9,160 (18 ) Asset-backed bonds 16,857 (44 ) — — 16,857 (44 ) Mortgage/Agency-backed bonds 15,216 (91 ) — — 15,216 (91 ) Government bonds 35,397 (248 ) — — 35,397 (248 ) Marketable equity securities 14,364 (1,564 ) 374 (129 ) 14,738 (1,693 ) Total $ 128,189 $ (2,584 ) $ 3,508 $ (310 ) $ 131,697 $ (2,894 ) The decrease in unrealized losses during 2016, as reflected in the table above, results from changes in market positions associated with our fixed income and equity investment portfolio. At December 31, 2016, a total of 293 of our marketable equity securities were in an unrealized loss position. We have categorized our cash equivalents 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 could include information supplied by investees. Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,878 $ 6,878 $ — $ — Commercial paper 17,222 — 17,222 — Cash equivalents 24,100 6,878 17,222 — Available-for-sale securities Deferred compensation plan assets 14,596 14,596 — — Available-for-sale debt securities Corporate bonds 66,412 — 66,412 — Municipal fixed-rate bonds 11,774 — 11,774 — Asset-backed bonds 10,206 — 10,206 — Mortgage/Agency-backed bonds 13,004 — 13,004 — U.S. government bonds 29,767 29,767 — — Foreign government bonds 3,730 — 3,730 — Variable rate demand notes 11,855 — 11,855 — Available-for-sale marketable equity securities Marketable equity securities – technology industry 3,374 3,374 — — Marketable equity securities – other 26,005 26,005 — — Available-for-sale securities 190,723 73,742 116,981 — Total $ 214,823 $ 80,620 $ 134,203 $ — Fair Value Measurements at December 31, 2015 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 1,271 $ 1,271 $ — $ — Commercial paper 11,696 — 11,696 — Cash equivalents 12,967 1,271 11,696 — Available-for-sale securities Deferred compensation plan assets 12,834 12,834 — — Available-for-sale debt securities Corporate bonds 57,614 — 57,614 — Municipal fixed-rate bonds 26,424 — 26,424 — Asset-backed bonds 19,239 — 19,239 — Mortgage/Agency-backed bonds 15,373 — 15,373 — Government bonds 35,398 35,398 — — Available-for-sale marketable equity securities Marketable equity securities – technology industry 5,384 5,384 — — Marketable equity securities – other 28,867 28,867 — — Available-for-sale securities 201,133 82,483 118,650 — Total $ 214,100 $ 83,754 $ 130,346 $ — 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 Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 5 – 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, as these are remeasured to the functional currency through profit and loss. 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. Our derivative instruments are not subject to master netting arrangements and are not offset in the Consolidated Balance Sheets. As of December 31, 2016, we had forward contracts outstanding with notional amounts totaling €5.5 million ($5.8 million), which mature in the first quarter of in 2017. The fair values of our derivative instruments recorded in the Consolidated Balance Sheet as of December 31, 2016 and 2015 were as follows: (In thousands) Balance Sheet Location 2016 2015 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – asset derivatives Other receivables $ 159 $ — The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the years ended December 31, 2016, 2015 and 2014 were as follows: (In thousands) Income Statement Location 2016 2015 2014 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ 724 $ 511 $ 1,852 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6 – Inventory At December 31, 2016 and 2015, inventory was comprised of the following: (In thousands) 2016 2015 Raw materials $ 40,461 $ 34,223 Work in process 4,003 2,893 Finished goods 60,653 54,417 Total Inventory, net $ 105,117 $ 91,533 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 December 31, 2016 and 2015, raw materials reserves totaled $14.6 million and $17.5 million, respectively, and finished goods inventory reserves totaled $10.6 million and $9.2 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 7 – Property, Plant and Equipment At December 31, 2016 and 2015, property, plant and equipment were comprised of the following: (In thousands) 2016 2015 Land $ 4,575 $ 4,575 Building and land improvements 29,229 25,667 Building 68,301 68,301 Furniture and fixtures 18,477 17,347 Computer hardware and software 87,655 76,389 Engineering and other equipment 118,746 112,132 Total Property, Plant and Equipment 326,983 304,411 Less accumulated depreciation (242,514 ) (231,178 ) Total Property, Plant and Equipment, net $ 84,469 $ 73,233 Depreciation expense was $12.0 million, $12.3 million and $12.5 million in 2016, 2015, and 2014, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 8 – Goodwill and Intangible Assets Goodwill was $3.5 million at December 31, 2016 and 2015, and was previously recorded in our Enterprise Networks reportable segment. As a result of our new reporting structure adopted in the first quarter of 2016, which is discussed further in Note 12, we reallocated goodwill from our Enterprise Networks reportable segment to our two, new reportable segments – Network Solutions and Services & Support. As a result, goodwill of $3.1 million and $0.4 million was reallocated to our Network Solutions and Services & Support reportable segments, respectively. 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. Based on the results of our qualitative assessment in 2016, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the acquisition in 2011. Intangible assets are included in other assets in the accompanying Consolidated Balance Sheets. The following table presents our intangible assets as of December 31, 2016 and 2015: (In thousands) 2016 2015 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 6,899 $ (3,208 ) $ 3,691 $ 5,828 $ (2,627 ) $ 3,201 Developed technology 6,444 (5,061 ) 1,383 5,720 (4,329 ) 1,391 Intellectual property 2,340 (2,129 ) 211 2,340 (1,854 ) 486 Supply agreement 1,400 (544 ) 856 — — — License 500 (113 ) 387 — — — Patent 500 (20 ) 480 — — — Trade names 370 (285 ) 85 270 (265 ) 5 Non-compete 200 (26 ) 174 11 (11 ) — Total $ 18,653 $ (11,386 ) $ 7,267 $ 14,169 $ (9,086 ) $ 5,083 Amortization expense was $2.5 million, $1.9 million and $2.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, the estimated future amortization expense of intangible assets is as follows: (In thousands) Amount 2017 $ 2,867 2018 1,168 2019 655 2020 621 2021 568 Thereafter 1,388 Total $ 7,267 |
Alabama State Industrial Develo
Alabama State Industrial Development Authority Financing and Economic Incentives | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Alabama State Industrial Development Authority Financing and Economic Incentives | Note 9 – Alabama State Industrial Development Authority Financing and Economic Incentives In conjunction with an expansion of our Huntsville, Alabama, facility, we were approved for participation in an incentive program offered by the State of Alabama Industrial Development Authority (the “Authority”). Pursuant to the program, on January 13, 1995, the Authority issued $20.0 million of its taxable revenue bonds and loaned the proceeds from the sale of the bonds to ADTRAN. The bonds were originally purchased by AmSouth Bank of Alabama, Birmingham, Alabama (the “Bank”). Wachovia Bank, N.A., Nashville, Tennessee (formerly First Union National Bank of Tennessee) (the “Bondholder”), which was acquired by Wells Fargo & Company on December 31, 2008, purchased the original bonds from the Bank and made further advances to the Authority, bringing the total amount outstanding to $50.0 million. An Amended and Restated Taxable Revenue Bond (“Amended and Restated Bond”) was issued and the original financing agreement was amended. The Amended and Restated Bond bears interest, payable monthly. The interest rate is 2% per annum. The Amended and Restated Bond matures on January 1, 2020, and is currently outstanding in the aggregate principal amount of $27.8 million. The estimated fair value of the bond using a level 2 valuation technique at December 31, 2016 was approximately $28.1 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. We are required to make payments to the Authority in amounts necessary to pay the interest on the Amended and Restated Bond. Included in long-term investments at December 31, 2016 is $27.8 million which is invested in a restricted certificate of deposit. These funds serve as a collateral deposit against the principal of this bond, and we have the right to set-off the balance of the Bond with the collateral deposit in order to reduce the balance of the indebtedness. In conjunction with this program, we are eligible to receive certain economic incentives from the state of Alabama that reduce the amount of payroll withholdings that we are required to remit to the state for those employment positions that qualify under the program. We realized economic incentives related to payroll withholdings totaling $1.3 million for each of the years ended December 31, 2016, 2015 and 2014. We made principal payments of $1.1 million for the years ended December 31, 2016 and 2015, respectively, and anticipate making a principal payment in 2017. At December 31, 2016, $1.0 million of the bond debt was classified as a current liability in accounts payable in the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes A summary of the components of the provision for income taxes for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands) 2016 2015 2014 Current Federal $ 12,733 $ 7,504 $ 7,626 State 1,141 279 599 International 477 (29 ) 12,587 Total Current 14,351 7,754 20,812 Deferred Federal 647 (585 ) (1,083 ) State 73 (66 ) (123 ) International (3,405 ) (41 ) (4,320 ) Total Deferred (2,685 ) (692 ) (5,526 ) Total Provision for Income Taxes $ 11,666 $ 7,062 $ 15,286 Our effective income tax rate differs from the federal statutory rate due to the following: 2016 2015 2014 Tax provision computed at the federal statutory rate 35.00 % 35.00 % 35.00 % State income tax provision, net of federal benefit 3.93 4.86 2.69 Federal research credits (8.15 ) (12.55 ) (4.05 ) Foreign taxes (0.34 ) 2.10 (7.26 ) Tax-exempt income (0.53 ) (1.94 ) (1.25 ) State tax incentives (2.77 ) (5.04 ) (2.21 ) Stock-based compensation 2.53 6.91 3.06 Domestic production activity deduction (2.23 ) (3.17 ) (1.15 ) Bargain purchase (2.64 ) — — Other, net 0.08 1.30 0.69 Effective Tax Rate 24.88 % 27.47 % 25.52 % Income before provision for income taxes for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands) 2016 2015 2014 U.S. entities $ 54,077 $ 27,400 $ 23,812 International entities (7,182 ) (1,692 ) 36,094 Total $ 46,895 $ 25,708 $ 59,906 Income before provision for income taxes for international entities reflects income based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenues, many of which occur from our U.S. entity. Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows: (In thousands) 2016 2015 Deferred tax assets Accounts receivable $ — $ 7 Inventory 12,020 12,558 Accrued expenses 5,551 6,359 Investments 1,062 — Deferred compensation 5,751 5,072 Stock-based compensation 4,724 4,704 Uncertain tax positions related to state taxes and related interest 762 1,026 Pensions 4,273 5,729 Foreign losses 6,486 5,389 State losses and credit carry-forwards 4,021 4,187 Federal loss and research carry-forwards 5,886 5,886 Valuation allowance (6,149 ) (7,250 ) Total Deferred Tax Assets 44,387 43,667 Deferred tax liabilities Property, plant and equipment (4,433 ) (3,315 ) Accrued expenses — (2,791 ) Intellectual property (1,918 ) (476 ) Investments — (70 ) Total Deferred Tax Liabilities (6,351 ) (6,652 ) Net Deferred Tax Assets $ 38,036 $ 37,015 At December 31, 2016 and 2015, non-current deferred taxes related to our investments and our defined benefit pension plan, reflect deferred taxes on the net unrealized gains on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, a deferred tax benefit of $1.5 million and $3.7 million in 2016 and 2015, respectively, is recorded as an adjustment to other comprehensive income, presented in the Consolidated Statements of Comprehensive Income. Based upon our results of operations in 2016 and expected profitability in future years in a certain international jurisdiction, we concluded that it is more likely than not certain foreign deferred tax assets will be realized. As of December 31, 2016, the remaining valuation allowance primarily relates to deferred tax assets related to state credit carry-forwards from tax credits in excess of our annual tax liability to an individual state where we do not generate sufficient state income to offset the credit and net operating losses in foreign jurisdictions. We believe it is more likely than not that we will not realize the full benefits of the deferred tax assets arising from these losses and credits, and accordingly, we have provided a valuation allowance against these deferred tax assets. The deferred tax assets for foreign and domestic carry-forwards, unamortized research and development costs, and state credit carry-forwards of $16.4 million will expire between 2017 and 2030. The loss carry-forwards were acquired through acquisitions in 2009 and 2011. We will continue to assess the realization of our deferred tax assets and related valuations allowances. We do not provide for U.S. income tax on undistributed earnings of our foreign operations, whose earnings are intended to be permanently reinvested. These earnings are not required to service debt or fund our U.S. operations. It is impracticable to determine the amount of any unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries. The net change in our valuation allowance from December 31, 2015 to December 31, 2016 was $1.1 million. As of December 31, 2016 and 2015, respectively, our cash and cash equivalents were $79.9 million and $84.6 million and short-term investments were $43.2 million and $34.4 million, which provided an available short-term liquidity of $123.1 million and $118.9 million. Of these amounts, our foreign subsidiaries held cash of $42.1 million and $38.9 million, respectively, representing approximately 34.2% and 32.7% of available short-term liquidity, which is used to fund on-going liquidity needs of these subsidiaries. We intend to permanently reinvest these funds outside the U.S. and our current business plans do not indicate a need to repatriate to fund domestic operations. However, if these funds were repatriated to the U.S. or used for U.S. operations, certain amounts related to the earnings and profits of foreign subsidiaries could be subject to U.S. tax for the incremental amount in excess of the foreign tax paid. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practical to determine the amount of funds subject to repatriation or the associated unrecognized deferred tax liability related to the amount. During 2016, 2015 and 2014, we recorded an income tax benefit (expense) of nil, $(40) thousand and $0.1 million, respectively, as an adjustment to equity. This is calculated on the difference between the exercise price of stock option exercises and the market price of the underlying common stock upon exercise. The change in the unrecognized income tax benefits for the years ended December 31, 2016, 2015 and 2014 is reconciled below: (In thousands) 2016 2015 2014 Balance at beginning of period $ 2,537 $ 3,334 $ 3,240 Increases for tax position related to: Prior years 95 — — Current year 428 280 522 Decreases for tax positions related to: Prior years — (29 ) — Settlements with taxing authorities — (103 ) — Expiration of applicable statute of limitations (834 ) (945 ) (428 ) Balance at end of period $ 2,226 $ 2,537 $ 3,334 As of December 31, 2016, 2015, and 2014, our total liability for unrecognized tax benefits was $2.2 million, $2.5 million, and $3.3 million, respectively, of which $1.7 million, $1.8 million, and $2.6 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2016, 2015 and 2014, the balances of accrued interest and penalties were $0.8 million, $0.9 million and $1.0 million, respectively. We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2013. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 11 – Employee Benefit Plans Pension Benefit Plan We maintain a defined benefit pension plan covering employees in certain foreign countries. The pension benefit plan obligations and funded status at December 31, 2016 and 2015, are as follows: (In thousands) 2016 2015 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ (26,851 ) $ (30,507 ) Service cost (1,211 ) (1,314 ) Interest cost (720 ) (615 ) Actuarial gain (loss) - experience 431 247 Actuarial gain (loss) - assumptions (2,628 ) 2,078 Benefit payments 52 81 Effects of foreign currency exchange rate changes 916 3,179 Projected benefit obligation at end of period (30,011 ) (26,851 ) Change in plan assets: Fair value of plan assets at beginning of period 19,213 20,338 Actual return on plan assets 1,494 988 Effects of foreign currency exchange rate changes (662 ) (2,113 ) Fair value of plan assets at end of period 20,045 19,213 Funded (unfunded) status at end of period $ (9,966 ) $ (7,638 ) The accumulated benefit obligation was $28.7 million and $25.1 million at December 31, 2016 and 2015, respectively. The increase in the accumulated benefit obligation and the change in actuarial gain (loss) is primarily attributable to a decrease in the discount rate used in 2016 to determine the accumulated benefit obligation. The net amounts recognized in the balance sheet for the unfunded pension liability as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Current liability $ — $ — Non-current liability (9,966 ) (7,638 ) Total $ (9,966 ) $ (7,638 ) The components of net periodic pension cost and amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows: (In thousands) 2016 2015 2014 Net periodic benefit cost: Service cost $ 1,211 $ 1,314 $ 1,189 Interest cost 720 615 836 Expected return on plan assets (1,057 ) (1,011 ) (1,086 ) Amortization of actuarial losses 175 407 — Net periodic benefit cost 1,049 1,325 939 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss 1,782 (2,303 ) 7,052 Amortization of actuarial losses (156 ) (396 ) — Amount recognized in other comprehensive income 1,626 (2,699 ) 7,052 Total recognized in net periodic benefit cost and other comprehensive income $ 2,675 $ (1,374 ) $ 7,991 The amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Net actuarial loss $ 6,871 $ 5,245 The defined benefit pension plan is accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected rate of return on plan assets and a discount rate. The expected return on our German plan assets that is utilized in determining the benefit obligation and net periodic benefit cost is derived from periodic studies, which include a review of asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. Another key assumption in determining net pension expense is the assumed discount rate to be used to discount plan obligations. The discount rate has been derived from the returns of high-quality, corporate bonds denominated in Euro currency with durations close to the duration of our pension obligations. The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Discount rates 2.64 % 2.20 % 3.70 % Rate of compensation increase 2.00 % 2.25 % 2.25 % Expected long-term rates of return 5.40 % 5.40 % 5.40 % The weighted-average assumptions that were used to determine the benefit obligation at December 31, 2016 and 2015: 2016 2015 Discount rates 1.90 % 2.64 % Rate of compensation increase 2.00 % 2.25 % Actuarial gains and losses are recorded in accumulated other comprehensive income. To the extent unamortized gains and losses exceed 10% of the higher of the market-related value of assets or the projected benefit obligation, the excess is amortized as a component of net periodic pension cost over the remaining service period of active participants. We estimate that $0.3 million will be amortized from accumulated other comprehensive income into net periodic pension cost in 2017 for the net actuarial loss. We do not anticipate making a contribution to this pension plan in 2017. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2017 $ 348 2018 515 2019 699 2020 964 2021 1,079 2022 – 2026 5,156 Total $ 8,761 We have categorized our cash equivalents 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 December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 6 $ 6 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 12,546 12,546 — — Government bonds 2,037 2,037 — — Equity funds: Large cap blend 4,462 4,462 — — Large cap value 249 249 — — Balanced fund 745 745 — — Available-for-sale securities 20,039 20,039 — — Total $ 20,045 $ 20,045 $ — $ — Fair Value Measurements at December 31, 2015 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3 $ 3 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 11,633 11,633 — — Government bonds 1,960 1,960 — — Equity funds: Large cap blend 4,604 4,604 — — Large cap value 258 258 — — Balanced fund 755 755 — — Available-for-sale securities 19,210 19,210 — — Total $ 19,213 $ 19,213 $ — $ — Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants, and consider a broad range of economic conditions. Central to the policy are target allocation ranges by asset class, which is currently 75% for bond funds and 25% for equity funds. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies. The investment policy is periodically reviewed by us and a designated third-party fiduciary for investment matters. The policy is established and administered in a manner that is compliant at all times with applicable government regulations. 401(k) Savings Plan We maintain the ADTRAN, Inc. 401(k) Retirement Plan (Savings Plan) for the benefit of our eligible employees. The Savings Plan is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (Code), and is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12). The Savings Plan allows employees to save for retirement by contributing part of their compensation to the plan on a tax-deferred basis. The Savings Plan also requires us to contribute a “safe harbor” amount each year. We match up to 4% of employee contributions (100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions), beginning on the employee’s one year anniversary date. In calculating our matching contribution, we only use compensation up to the statutory maximum under the Code ($265 thousand for 2016). All contributions under the Savings Plan are 100% vested. Expenses recorded for employer contributions and plan administration costs for the Savings Plan amounted to approximately $4.1 million, $4.7 million and $4.5 million in 2016, 2015 and 2014, respectively. Deferred Compensation Plans We maintain four deferred compensation programs for certain executive management employees and our Board of Directors. For our executive management employees, the ADTRAN, Inc. Deferred Compensation Program for Employees is offered as a supplement to our tax-qualified 401(k) plan and is available to certain executive management employees who have been designated by our Board of Directors. This deferred compensation plan allows participants to defer all or a portion of certain specified bonuses and up to 25% of remaining cash compensation, and permits us to make matching contributions on a discretionary basis, without the limitations that apply to the 401(k) plan. To date, we have not made any matching contributions under this plan. We also maintain the ADTRAN, Inc. Equity Deferral Program for Employees. Under this plan, participants may elect to defer all or a portion of their vested PSUs to the Plan. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the Participant. For our Board of Directors, we maintain the ADTRAN, Inc. Deferred Compensation Program for Directors. This program allows our Board of Directors to defer all or a portion of monetary remuneration paid to the Director, including, but not limited to, meeting fees and annual retainers. We also maintain the ADTRAN, Inc. Equity Deferral Program for Directors. Under this plan, participants may elect to defer all or a portion of their vested restricted stock awards. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the Director. We have set aside the plan assets for all plans in a rabbi trust (Trust) and all contributions are credited to bookkeeping accounts for the participants. The Trust assets are subject to the claims of our creditors in the event of bankruptcy or insolvency. The assets of the Trust are deemed to be invested in pre-approved mutual funds as directed by each participant, and the participant’s bookkeeping account is credited with the earnings and losses attributable to those investments. Benefits are scheduled to be distributed six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten year term. Distributions will be made on a pro rata basis from each of the hypothetical investments of the Participant’s account in cash. Any whole shares of ADTRAN, Inc. common stock that are distributed will be distributed in-kind. Assets of the Trust are deemed invested in mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds are publicly quoted and reported at fair value. The fair value of the assets held by the Trust and the amounts payable to the plan participants at December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Fair Value of Plan Assets Long-term Investments $ 14,596 $ 12,834 Total Fair Value of Plan Assets $ 14,596 $ 12,834 Amounts Payable to Plan Participants Non-current Liabilities $ 14,596 $ 12,834 Total Amounts Payable to Plan Participants $ 14,596 $ 12,834 Interest and dividend income of the Trust have been included in interest and dividend income in the accompanying 2016, 2015 and 2014 Consolidated Statements of Income. Changes in the fair value of the plan assets held by the Trust have been included in accumulated other comprehensive income in the accompanying 2016 and 2015 Consolidated Balance Sheets. Changes in the fair value of the deferred compensation liability are included as selling, general and administrative expense in the accompanying 2016, 2015 and 2014 Consolidated Statements of Income. Based on the changes in the total fair value of the Trust’s assets, we recorded deferred compensation income (expense) in 2016, 2015 and 2014 of $(1.3) million, $0.3 million and $(0.7) million, respectively. Retiree Medical Coverage We provide medical, dental and prescription drug coverage to one retired former officer and his spouse, for his life, on the same terms as provided to our active officers, and to the spouse of a former deceased officer for up to 30 years. At December 31, 2016 and 2015, this liability totaled $0.2 million. |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | Note 12 – Segment Information and Major Customers In 2015, we realigned our organizational structure to better match our market opportunities, technological development initiatives, and improve efficiencies. During the first quarter of 2016, our chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning with the quarter ended March 31, 2016, we began reporting our financial performance based on two, new reportable segments – Network Solutions and Services & Support. Network Solutions includes hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes our suite of ProCloud managed services, network installation, engineering and maintenance services, and fee-based technical support and equipment repair/replacement plans. We evaluate the performance of our new 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 a company-wide, functional basis only. Historical financial information by reportable segment and category, as discussed below, has been recast to conform to our new reporting structure. There are no inter-segment revenues. The following table presents information about the reported sales and gross profit of our reportable segments for each of the years ended December 31, 2016, 2015 and 2014. Asset information by reportable segment is not reported, since we do not produce such information internally. Sales and Gross Profit by Market Segment (In thousands) 2016 2015 2014 Sales Gross Profit Sales Gross Profit Sales Gross Profit Network Solutions $ 525,502 $ 254,807 $ 527,422 $ 233,579 $ 559,532 $ 271,517 Services & Support 111,279 36,537 72,642 33,318 70,475 39,810 Total $ 636,781 $ 291,344 $ 600,064 $ 266,897 $ 630,007 $ 311,327 Sales by Category In addition to our new reporting segments, we will also report revenue for the following three categories – Access & Aggregation, Customer Devices, and Traditional & Other Products. The table below presents sales information by product category for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Access & Aggregation $ 436,372 $ 405,698 $ 401,769 Customer Devices 137,608 125,565 138,051 Traditional & Other Products 62,801 68,801 90,187 Total $ 636,781 $ 600,064 $ 630,007 The following table presents sales information by geographic area for the years ended December 31, 2016, 2015 and 2014. International sales correlate to shipments with a non-U.S. destination. (In thousands) 2016 2015 2014 United States $ 501,337 $ 419,366 $ 381,382 Germany 85,780 111,666 150,987 Other international 49,664 69,032 97,638 Total $ 636,781 $ 600,064 $ 630,007 Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of our revenue in 2016 included three customers at 24%, 19% and 12%. Single customers comprising more than 10% of our revenue in 2015 included three customers at 20%, 17% and 14%. Single customers comprising more than 10% of our revenue in 2014 included two customers at 21% and 14%. No other customer accounted for 10% or more of our sales in 2016, 2015 or 2014. Our five largest customers, other than those with more than 10 percent of revenues disclosed above, can change from year to year. These customers represented 13%, 14%, and 22% of total revenue in 2016, 2015 and 2014, respectively. Revenues in this disclosure do not include distributor agents, who predominately provide fulfillment services to end users. In such cases where known, that revenue is associated with the end user. Additional Segment Information As of December 31, 2016, long-lived assets, net totaled $84.5 million, which includes $79.9 million held in the United States and $4.6 million held outside the United States. As of December 31, 2015, long-lived assets, net totaled $73.2 million, which includes $68.8 million held in the United States and $4.4 million held outside the United States. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 – 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 December 31, 2016, of which $7.7 million has been applied to these commitments. We lease office space and equipment under operating leases which expire at various dates through 2025. As of December 31, 2016, future minimum rental payments under non-cancelable operating leases with original maturities of greater than 12 months are as follows: (In thousands) 2017 $ 3,788 2018 2,043 2019 847 2020 741 Thereafter 3,243 Total $ 10,662 Rental expense was $4.2 million, $4.9 million and $4.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 14 – Earnings per Share A summary of the calculation of basic and diluted earnings per share (EPS) for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands, except for per share amounts) 2016 2015 2014 Numerator Net Income $ 35,229 $ 18,646 $ 44,620 Denominator Weighted average number of shares – basic 48,724 51,145 55,120 Effect of dilutive securities: Stock options 170 81 304 Restricted stock and restricted stock units 55 41 58 Weighted average number of shares – diluted $ 48,949 $ 51,267 $ 55,482 Net income per share – basic $ 0.72 $ 0.36 $ 0.81 Net income per share – diluted $ 0.72 $ 0.36 $ 0.80 For each of the years ended December 31, 2016, 2015 and 2014, 4.6 million, 6.1 million and 4.4 million stock options were outstanding but were not included in the computation of that year’s diluted EPS because the options’ exercise prices were greater than the average market price of the common shares, therefore making them anti-dilutive under the treasury stock method. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data (Unaudited) | Note 15 – Summarized Quarterly Financial Data (Unaudited) The following table presents unaudited quarterly operating results for each of our last eight fiscal quarters. This information has been prepared on a basis consistent with our audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data. Unaudited Quarterly Operating Results (In thousands, except for per share amounts) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales $ 142,204 $ 162,701 $ 168,890 $ 162,986 Gross profit $ 65,794 $ 78,955 $ 75,808 $ 70,787 Operating income $ 5,521 $ 14,812 $ 10,130 $ 4,272 Net income $ 5,014 $ 10,228 $ 12,415 $ 7,572 Earnings per common share $ 0.10 $ 0.21 $ 0.26 $ 0.16 Earnings per common share assuming dilution (1) $ 0.10 $ 0.21 $ 0.26 $ 0.16 Three Months Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net sales $ 142,835 $ 160,138 $ 158,078 $ 139,013 Gross profit $ 65,563 $ 68,246 $ 70,649 $ 62,439 Operating income $ 1,963 $ 644 $ 8,072 $ 2,800 Net income $ 3,317 $ 2,544 $ 7,067 $ 5,718 Earnings per common share $ 0.06 $ 0.05 $ 0.14 $ 0.12 Earnings per common share assuming dilution (1) $ 0.06 $ 0.05 $ 0.14 $ 0.12 (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 – Related Party Transactions 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 are 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 year ended 2014, we incurred fees of $0.1 million for these legal services. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events On January 17, 2017, the Board declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on February 2, 2017. The quarterly dividend payment was $4.4 million and was paid on February 16, 2017. 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 first quarter and as of February 24, 2017, we have repurchased 0.2 million shares of our common stock through open market purchases at an average cost of $21.46 per share. We currently have the authority to purchase an additional 4.2 million shares of our common stock under the current plan approved by the Board of Directors. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E (In thousands) Balance at Beginning of Period Charged to Costs & Expenses Deductions Balance at End of Period Year ended December 31, 2016 Allowance for Doubtful Accounts $ 19 — 19 $ — Inventory Reserve $ 26,675 3,303 4,729 $ 25,249 Warranty Liability $ 8,739 8,561 8,752 $ 8,548 Deferred Tax Asset Valuation Allowance $ 7,250 69 1,170 $ 6,149 Year ended December 31, 2015 Allowance for Doubtful Accounts $ 136 19 136 $ 19 Inventory Reserve $ 24,682 2,225 232 $ 26,675 Warranty Liability $ 8,415 2,998 2,674 $ 8,739 Deferred Tax Asset Valuation Allowance $ 7,463 81 294 $ 7,250 Year ended December 31, 2014 Allowance for Doubtful Accounts $ 130 23 17 $ 136 Inventory Reserve $ 22,993 2,549 860 $ 24,682 Warranty Liability $ 8,977 3,103 3,665 $ 8,415 Deferred Tax Asset Valuation Allowance $ 8,842 283 1,662 $ 7,463 |
Nature of Business and Summar27
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include ADTRAN and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
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 and network installations, 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds, and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions, and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. As of December 31, 2016, $77.9 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $27.8 million, compared to an estimated fair value of $28.1 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. Investments with contractual maturities beyond one year, such as our variable rate demand notes, may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent, or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments was recorded as interest income. We have not been required to record any losses relating to variable rate demand notes. Long-term investments represent a restricted certificate of deposit held at cost, deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency backed bonds, U.S. and foreign government bonds, variable rate demand notes, marketable equity securities, and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Unrealized gains and losses, net of tax, are reported as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are computed under the specific identification method and are included in current income. We review our investment portfolio quarterly for investments considered to have sustained an other-than-temporary decline in value. Impairment charges for other-than-temporary declines in value are recorded as realized losses in the accompanying consolidated statements of income. All of our investments at December 31, 2016 and 2015 are classified as available-for-sale securities. See Note 4 of Notes to Consolidated Financial Statements for additional information. |
Accounts Receivable | Accounts Receivable We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. At December 31, 2016, three customers accounted for 63.3% of our total accounts receivable. At December 31, 2015, three customers accounted for 37.3% of our total accounts receivable. We maintain an allowance for doubtful accounts for losses resulting from the inability of our customers to make required payments. We regularly review the allowance for doubtful accounts and consider factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events and our historical experience. If the financial condition of a customer deteriorates, resulting in an impairment of their ability to make payments, we may be required to record an allowance for doubtful accounts. If circumstances change with regard to individual receivable balances that have previously been determined to be uncollectible (and for which a specific reserve has been established), a reduction in our allowance for doubtful accounts may be required. Our allowance for doubtful accounts was nil and $19 thousand at December 31, 2016 and December 31, 2015, respectively. |
Other Receivables | Other Receivables Other receivables are comprised primarily of amounts due from subcontract manufacturers for product component transfers, accrued interest on investments and on a restricted certificate of deposit, amounts due from various jurisdictions for value-added tax, and amounts due from employee stock option exercises. |
Inventory | Inventory Inventory is carried at the lower of cost or market, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory. Standard costs are updated at least quarterly; therefore, inventory costs approximate actual costs at the end of each reporting period. 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, market conditions and age. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 6 of Notes to Consolidated Financial Statements for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Betterments that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income. See Note 7 of Notes to Consolidated Financial Statements for additional information. |
Liability for Warranty | Liability for Warranty Our products generally include warranties of 90 days to five 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 total systems. 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. During 2016, we incurred an increase in warranty expense related to a product recall caused by a defect in a part provided by a third party supplier. The liability for warranty obligations totaled $8.5 million and $8.7 million at December 31, 2016 and 2015, respectively. These liabilities are included in accrued expenses in the accompanying consolidated balance sheets. A summary of warranty expense and write-off activity for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ 8,739 $ 8,415 $ 8,977 Plus: Amounts charged to cost and expenses 8,561 2,998 3,103 Less: Deductions (8,752 ) (2,674 ) (3,665 ) Balance at end of period $ 8,548 $ 8,739 $ 8,415 |
Pension Benefit Plan Obligations | Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. |
Stock-Based Compensation | Stock-Based Compensation We have two Board and stockholder approved stock incentive plans from which stock options and other awards are available for grant to employees and directors. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. There are currently no vesting provisions tied to performance or market conditions for any stock awards. Vesting for all outstanding award grants is based only on continued service as an employee or director of ADTRAN. All of our outstanding stock option awards are classified as equity awards. Under the provisions of our approved plans, we made grants of performance stock units to certain of our executive officers in 2016, 2015, and 2014. The performance stock units are subject to a market condition based on the relative total shareholder return of ADTRAN against all the companies in the NASDAQ Telecommunications Index and vest at the end of a three-year performance period. The performance stock units are converted into shares of common stock upon vesting. Depending on the relative total shareholder return over the performance period, the executive officers may earn from 0% to 150% of the number of restricted stock units granted. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. The recipients of the performance stock units also earn dividend credits during the performance period, which are paid in cash upon the issuance of common stock for the restricted stock units. Stock-based compensation expense recognized in 2016, 2015 and 2014 was approximately $6.7 million, $6.7 million and $8.6 million, respectively. As of December 31, 2016, total compensation cost related to non-vested stock options, restricted stock units, performance stock units and restricted stock not yet recognized was approximately $16.4 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. See Note 3 of Notes to Consolidated Financial Statements for additional information. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no impairment losses recognized during 2016, 2015 or 2014. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets 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. Based on the results of our qualitative assessment in 2016, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the acquisition in 2011. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is 9 months to 14 years. |
Research and Development Costs | Research and Development Costs Research and development costs include compensation for engineers and support personnel, outside contracted services, depreciation and material costs associated with new product development, the enhancement of current products, and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $124.8 million, $129.9 million and $132.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Other Comprehensive Income | 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 and realized gains (losses) on available-for-sale securities, defined benefit plan adjustments and foreign currency translation adjustments. The following table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2014, 2015 and 2016: (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Balance at December 31, 2013 $ 10,737 $ (891 ) $ 907 $ 10,753 Other comprehensive income (loss) before reclassifications 2,363 (4,866 ) (4,189 ) (6,692 ) Amounts reclassified from accumulated other comprehensive income (4,136 ) — — (4,136 ) Balance at December 31, 2014 8,964 (5,757 ) (3,282 ) (75 ) Other comprehensive income (loss) before reclassifications (844 ) 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) 273 — (5,915 ) Balance at December 31, 2015 1,932 (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) 107 — (2,936 ) Balance at December 31, 2016 $ 404 $ (5,017 ) $ (7,575 ) $ (12,188 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 6,895 Net realized investment gain Impairment expense (115 ) Net realized investment gain Total reclassifications for the period, before tax 6,780 Tax (expense) benefit (2,644 ) Total reclassifications for the period, net of tax $ 4,136 The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2016, 2015 and 2014: 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available- for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) 2014 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 3,874 $ (1,511 ) $ 2,363 Reclassification adjustment for amounts related to available- for-sale investments included in net income (6,780 ) 2,644 (4,136 ) Defined benefit plan adjustments (7,052 ) 2,186 (4,866 ) Foreign currency translation adjustment (4,189 ) — (4,189 ) Total Other Comprehensive Income (Loss) $ (14,147 ) $ 3,319 $ (10,828 ) |
Income Taxes | Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. |
Foreign Currency | F oreign Currency We record transactions denominated in foreign currencies on a monthly basis using exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are translated at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar, and our Mexican subsidiary, whose functional currency is the U.S. dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss). |
Revenue Recognition | Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the product price is fixed or determinable, collection of the resulting receivable is reasonably assured, and product returns are reasonably estimable. For product sales, revenue is generally recognized upon shipment of the product to our customer in accordance with the title transfer terms of the sales agreement, generally Ex Works, per International Commercial Terms. In the case of consigned inventory, revenue is recognized when the end customer assumes ownership of the product. Contracts that contain multiple deliverables are evaluated to determine the units of accounting, and the consideration from the arrangement is allocated to each unit of accounting based on the relative selling price and corresponding terms of the contract. We use vendor-specific objective evidence of selling price. When this evidence is not available, we are generally not able to determine third-party evidence of selling price because of the extent of customization among competing products or services from other companies. In these instances, we use best estimates to allocate consideration to each respective unit of accounting. These estimates include analysis of respective bills of material and review and analysis of similar product and service offerings. We record revenue associated with installation services when respective contractual obligations are complete. In instances where customer acceptance is required, revenue is deferred until respective acceptance criteria have been met. Contracts that include both installation services and product sales are evaluated for revenue recognition in accordance with contract terms. As a result, installation services may be considered a separate deliverable or may be considered a combined single unit of accounting with the delivered product. Generally, either the purchaser, ADTRAN, or a third party can perform the installation of our products. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales taxes invoiced to customers are included in revenues, and represent less than one percent of total revenues. The corresponding sales taxes paid are included in cost of goods sold. Value added taxes collected from customers in international jurisdictions are recorded in accrued expenses as a liability. Revenue is recorded net of discounts. Sales returns are recorded as a reduction of revenue and accrued based on historical sales return experience, which we believe provides a reasonable estimate of future returns. A portion of our products are sold to a non-exclusive distribution network of major technology distributors in the United States. These large organizations then distribute or provide fulfillment services to an extensive network of VARs and SIs. VARs and SIs may be affiliated with us as a channel partner, or they may purchase from the distributor in an unaffiliated fashion. Additionally, with certain limitations our distributors may return unused and unopened product for stock-balancing purposes when such returns are accompanied by offsetting orders for products of equal or greater value. We participate in cooperative advertising and market development programs with certain customers. We use these programs to reimburse customers for certain forms of advertising, and in general, to allow our customers credits up to a specified percentage of their net purchases. Our costs associated with these programs are estimated and included in marketing expenses in our consolidated statements of income. We also participate in rebate programs to provide sales incentives for certain products. Our costs associated with these programs are estimated and accrued at the time of sale, and are recorded as a reduction of sales in our consolidated statements of income. |
Unearned Revenue | Unearned Revenue Unearned revenue primarily represents customer billings on our maintenance service programs and unearned revenues relating to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple-element contracts where we still have contractual obligations, we also defer the related costs. Deferred costs are included in prepaid expenses and other assets and totaled $10.7 million and $5.2 million at December 31, 2016 and 2015, respectively. |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net, is comprised primarily of miscellaneous income and expense, gains and losses on foreign currency transactions, and investment account management fees. For the year ended December 31, 2014, other income (expense), net included a $2.4 million gain related to the settlement of working capital items from an acquisition transaction that closed in 2012. |
Earnings Per Share | Earnings per Share Earnings per common share, and earnings per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 14 of Notes to Consolidated Financial Statements for additional information. |
Dividends | Dividends During 2016, 2015 and 2014, we paid shareholder dividends totaling $17.6 million, $18.4 million and $19.9 million, respectively. The Board of Directors presently anticipates that it will declare a regular quarterly dividend so long as the present tax treatment of dividends exists and adequate levels of liquidity are maintained. The following table shows dividends paid to our shareholders in each quarter of 2016, 2015 and 2014. Dividends per Common Share 2016 2015 2014 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 On January 17, 2017, the Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on February 2, 2017. The ex-dividend date was January 31, 2017 and the payment date was February 16, 2017. The quarterly dividend payment was $4.4 million. |
Business Combinations | Business Combinations We use the acquisition method to account for business combinations. Under the acquisition method of accounting, we recognize the assets acquired and liabilities assumed at their fair value on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the net assets acquired. Costs incurred to complete the business combination, such as legal, accounting or other professional fees, are charged to general and administrative expenses as they are incurred. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition with early adoption permitted for reporting periods beginning after December 15, 2016. Subsequently, the FASB issued ASUs in 2016 containing implementation guidance related to ASU 2014-09, including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which is intended to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance; ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which contains certain provisions and practical expedients in response to identified implementation issues; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which is intended to clarify the Codification or to correct unintended application of guidance. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory Inventory In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment During 2016, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes |
Nature of Business and Summar28
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the years ended December 31, 2016, 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ 8,739 $ 8,415 $ 8,977 Plus: Amounts charged to cost and expenses 8,561 2,998 3,103 Less: Deductions (8,752 ) (2,674 ) (3,665 ) Balance at end of period $ 8,548 $ 8,739 $ 8,415 |
Changes in Accumulated Other Comprehensive Income, Net of Tax by Component | The following table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2014, 2015 and 2016: (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Balance at December 31, 2013 $ 10,737 $ (891 ) $ 907 $ 10,753 Other comprehensive income (loss) before reclassifications 2,363 (4,866 ) (4,189 ) (6,692 ) Amounts reclassified from accumulated other comprehensive income (4,136 ) — — (4,136 ) Balance at December 31, 2014 8,964 (5,757 ) (3,282 ) (75 ) Other comprehensive income (loss) before reclassifications (844 ) 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) 273 — (5,915 ) Balance at December 31, 2015 1,932 (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) 107 — (2,936 ) Balance at December 31, 2016 $ 404 $ (5,017 ) $ (7,575 ) $ (12,188 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 11 of Notes to Consolidated Financial Statements. (In thousands) 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 6,895 Net realized investment gain Impairment expense (115 ) Net realized investment gain Total reclassifications for the period, before tax 6,780 Tax (expense) benefit (2,644 ) Total reclassifications for the period, net of tax $ 4,136 |
Other Comprehensive Income | The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2016, 2015 and 2014: 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available- for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) 2014 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 3,874 $ (1,511 ) $ 2,363 Reclassification adjustment for amounts related to available- for-sale investments included in net income (6,780 ) 2,644 (4,136 ) Defined benefit plan adjustments (7,052 ) 2,186 (4,866 ) Foreign currency translation adjustment (4,189 ) — (4,189 ) Total Other Comprehensive Income (Loss) $ (14,147 ) $ 3,319 $ (10,828 ) |
Summary of Dividends Paid Per Common Share | The following table shows dividends paid to our shareholders in each quarter of 2016, 2015 and 2014. Dividends per Common Share 2016 2015 2014 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities Assumed Subject to Working Capital Adjustments | The allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date, subject to working capital adjustments, is as follows: (In Thousands) Assets Inventory $ 3,131 Property, plant and equipment 352 Intangible assets 4,700 Total assets acquired 8,183 Liabilities Accounts payable (1,250 ) Warranty payable (61 ) Accrued wages and benefits (122 ) Deferred income taxes (2,265 ) Total liabilities assumed (3,698 ) Total net assets 4,485 Gain on bargain purchase of a business, net of tax (3,542 ) Total purchase price $ 943 |
Details of the Acquired Intangible Assets | The details of the acquired intangible assets are as follows: In thousands Value Life (years) Supply agreement $ 1,400 0.8 Customer relationships 1,200 6.0 Developed technology 800 10.0 License 500 1.3 Patent 500 7.3 Non-compete 200 2.3 Trade name 100 2.0 Total $ 4,700 |
Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income | The actual revenue and net loss included in our Consolidated Statements of Income for the period September 13, 2016 to December 31, 2016 are as follows: (In thousands) September 13 to December 31, 2016 Revenue $ 2,768 Net loss $ (805 ) |
Summary of Supplemental Unaudited Pro Forma Information | The following supplemental unaudited pro forma information presents the financial results as if the acquisition had occurred on January 1, 2015. This supplemental unaudited pro forma information does not purport to be indicative of what would have occurred had the acquisition been completed on January 1, 2015, nor is it indicative of any future results. Aside from revising the 2015 net income for the effect of the bargain purchase gain, there were no material, non-recurring adjustments to this unaudited pro forma information. (In thousands) 2016 2015 Pro forma revenue $ 641,170 $ 603,923 Pro forma net income $ 31,212 $ 22,945 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation Expense Related to Stock Options, PSUs, Restricted Stock and RSUs | The following table summarizes stock-based compensation expense related to stock options, PSUs, restricted stock and RSUs for the years ended December 31, 2016, 2015 and 2014, which was recognized as follows: (In thousands) 2016 2015 2014 Stock-based compensation expense included in cost of sales $ 389 $ 280 $ 479 Selling, general and administrative expense 3,341 3,261 4,185 Research and development expense 2,965 3,171 3,899 Stock-based compensation expense included in operating expenses 6,306 6,432 8,084 Total stock-based compensation expense 6,695 6,712 8,563 Tax benefit for expense associated with non-qualified options (963 ) (862 ) (1,157 ) Total stock-based compensation expense, net of tax $ 5,732 $ 5,850 $ 7,406 |
Summary of Stock Options Outstanding | The following table is a summary of our stock options outstanding as of December 31, 2015 and 2016 and the changes that occurred during 2016: (In thousands, except per share amounts) Number of Options Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life in Years Aggregate Intrinsic Value Options outstanding, December 31, 2015 7,108 $ 21.97 6.42 $ 3,284 Options granted 19 $ 18.24 Options exercised (283 ) $ 16.66 Options forfeited (93 ) $ 17.90 Options expired (413 ) $ 23.96 Options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Options vested and expected to vest, December 31, 2016 6,276 $ 22.20 5.60 $ 16,606 Options exercisable, December 31, 2016 4,757 $ 23.67 4.73 $ 9,137 |
Stock Options Outstanding | The following table further describes our stock options outstanding as of December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding at 12/31/16 (In thousands) Weighted Avg. Remaining Contractual Life in Years Weighted Average Exercise Price Options Exercisable at 12/31/16 (In thousands) Weighted Average Exercise Price $14.88 – 18.96 2,101 6.78 $ 15.82 1,217 $ 16.14 $18.97 – 23.45 1,380 5.79 $ 20.17 881 $ 20.84 $23.46 – 30.35 1,491 5.08 $ 23.89 1,293 $ 23.92 $30.36 – 41.92 1,366 4.29 $ 31.94 1,366 $ 31.94 6,338 4,757 |
Summary of PSUs, Restricted Stock and RSUs Outstanding | The following table is a summary of our PSUs, restricted stock and RSUs outstanding as of December 31, 2015 and 2016 and the changes that occurred during 2016: (In thousands, except per share amounts) Number of shares Weighted Average Grant Date Fair Value Unvested PSUs, restricted stock and RSUs outstanding, December 31, 2015 106 $ 21.09 PSUs, restricted stock and RSUs granted 460 $ 20.63 PSUs, restricted stock and RSUs vested (46 ) $ 22.50 PSUs, restricted stock and RSUs forfeited (1 ) $ 20.00 Unvested RSUs and restricted stock outstanding, December 31, 2016 519 $ 20.51 |
Stock Options [Member] | |
Summary of Weighted-Average Assumptions and Value of Options Granted | The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $5.22 per share, $4.28 per share and $6.31 per share, respectively, with the following weighted-average assumptions: 2016 2015 2014 Expected volatility 34.79 % 34.57 % 39.05 % Risk-free interest rate 1.36 % 1.81 % 1.79 % Expected dividend yield 1.98 % 2.35 % 1.90 % Expected life (in years) 6.25 6.23 6.33 |
Performance Stock Units (PSUs) [Member] | |
Summary of Weighted-Average Assumptions and Value of Options Granted | The PSU pricing model also requires the use of several significant assumptions that impact the fair value estimate. The estimated fair value of the PSUs granted to employees during the years ended December 31, 2016, 2015 and 2014 was $23.50 per share, $17.64 per share and $22.11 per share, respectively, with the following assumptions: 2016 2015 2014 Expected volatility 29.79 % 31.34 % 36.40 % Risk-free interest rate 1.17 % 1.20 % 0.96 % Expected dividend yield 1.80 % 2.35 % 1.89 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Securities and Investments, Recorded at Either Fair Value or Cost | At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 12,367 $ 2,271 $ (42 ) $ 14,596 Corporate bonds 66,522 64 (174 ) 66,412 Municipal fixed-rate bonds 11,799 12 (37 ) 11,774 Asset-backed bonds 10,201 19 (14 ) 10,206 Mortgage/Agency-backed bonds 13,080 15 (91 ) 13,004 U.S. government bonds 30,022 15 (270 ) 29,767 Foreign government bonds 3,729 2 (1 ) 3,730 Variable rate demand notes 11,855 — — 11,855 Marketable equity securities 30,571 311 (1,503 ) 29,379 Available-for-sale securities held at fair value $ 190,146 $ 2,709 $ (2,132 ) $ 190,723 Restricted investment held at cost 27,800 Other investments 767 Total carrying value of available-for-sale investments $ 219,290 At December 31, 2015, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 11,325 $ 1,575 $ (66 ) $ 12,834 Corporate bonds 58,328 20 (734 ) 57,614 Municipal fixed-rate bonds 26,414 28 (18 ) 26,424 Asset-backed bonds 19,281 2 (44 ) 19,239 Mortgage/Agency-backed bonds 15,463 1 (91 ) 15,373 Government bonds 35,646 — (248 ) 35,398 Marketable equity securities 31,643 4,301 (1,693 ) 34,251 Available-for-sale securities held at fair value $ 198,100 $ 5,927 $ (2,894 ) $ 201,133 Restricted investment held at cost 30,000 Other investments held at cost 1,289 Total carrying value of available-for-sale investments $ 232,422 |
Contractual Maturities of Corporate Bonds, Municipal Fixed-Rate Bonds, Asset-Backed Bonds, Mortgage/Agency-Backed Bonds, U.S. Government Bonds and Foreign Government Bonds | As of December 31, 2016, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. government bonds, and foreign government bonds had the following contractual maturities: (In thousands) Corporate bonds Municipal fixed-rate bonds Asset-backed bonds Mortgage / Agency-backed bonds U.S. government bonds Foreign government bonds Less than one year $ 18,912 $ 8,321 $ — $ — $ 1,701 $ 2,400 One to two years 32,497 1,703 635 976 4,903 1,330 Two to three years 11,486 351 2,415 980 13,072 — Three to five years 3,517 1,399 5,402 — 10,091 — Five to ten years — — 1,600 2,060 — — More than ten years — — 154 8,988 — — Total $ 66,412 $ 11,774 $ 10,206 $ 13,004 $ 29,767 $ 3,730 |
Gross Realized Gains and Losses on Sale of Securities | The following table presents gross realized gains and losses related to our investments for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, (In thousands) 2016 2015 2014 Gross realized gains $ 7,530 $ 10,906 $ 7,586 Gross realized losses $ (1,607 ) $ (569 ) $ (308 ) |
Breakdown of Investments with Unrealized Losses | The following table presents the breakdown of investments with unrealized losses at December 31, 2016: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 294 $ (12 ) $ 245 $ (30 ) $ 539 $ (42 ) Corporate bonds 32,562 (166 ) 2,722 (8 ) 35,284 (174 ) Municipal fixed-rate bonds 8,936 (37 ) — — 8,936 (37 ) Asset-backed bonds 2,986 (14 ) — — 2,986 (14 ) Mortgage/Agency-backed bonds 7,842 (81 ) 1,239 (10 ) 9,081 (91 ) U.S. government bonds 26,449 (270 ) — — 26,449 (270 ) Foreign government bonds 924 (1 ) — — 924 (1 ) Marketable equity securities 21,607 (1,200 ) 1,495 (303 ) 23,102 (1,503 ) Total $ 101,600 $ (1,781 ) $ 5,701 $ (351 ) $ 107,301 $ (2,132 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2015: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 1,243 $ (53 ) $ 92 $ (13 ) $ 1,335 $ (66 ) Corporate bonds 35,952 (566 ) 3,042 (168 ) 38,994 (734 ) Municipal fixed-rate bonds 9,160 (18 ) — — 9,160 (18 ) Asset-backed bonds 16,857 (44 ) — — 16,857 (44 ) Mortgage/Agency-backed bonds 15,216 (91 ) — — 15,216 (91 ) Government bonds 35,397 (248 ) — — 35,397 (248 ) Marketable equity securities 14,364 (1,564 ) 374 (129 ) 14,738 (1,693 ) Total $ 128,189 $ (2,584 ) $ 3,508 $ (310 ) $ 131,697 $ (2,894 ) |
Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments | We have categorized our cash equivalents 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 could include information supplied by investees. Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,878 $ 6,878 $ — $ — Commercial paper 17,222 — 17,222 — Cash equivalents 24,100 6,878 17,222 — Available-for-sale securities Deferred compensation plan assets 14,596 14,596 — — Available-for-sale debt securities Corporate bonds 66,412 — 66,412 — Municipal fixed-rate bonds 11,774 — 11,774 — Asset-backed bonds 10,206 — 10,206 — Mortgage/Agency-backed bonds 13,004 — 13,004 — U.S. government bonds 29,767 29,767 — — Foreign government bonds 3,730 — 3,730 — Variable rate demand notes 11,855 — 11,855 — Available-for-sale marketable equity securities Marketable equity securities – technology industry 3,374 3,374 — — Marketable equity securities – other 26,005 26,005 — — Available-for-sale securities 190,723 73,742 116,981 — Total $ 214,823 $ 80,620 $ 134,203 $ — Fair Value Measurements at December 31, 2015 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 1,271 $ 1,271 $ — $ — Commercial paper 11,696 — 11,696 — Cash equivalents 12,967 1,271 11,696 — Available-for-sale securities Deferred compensation plan assets 12,834 12,834 — — Available-for-sale debt securities Corporate bonds 57,614 — 57,614 — Municipal fixed-rate bonds 26,424 — 26,424 — Asset-backed bonds 19,239 — 19,239 — Mortgage/Agency-backed bonds 15,373 — 15,373 — Government bonds 35,398 35,398 — — Available-for-sale marketable equity securities Marketable equity securities – technology industry 5,384 5,384 — — Marketable equity securities – other 28,867 28,867 — — Available-for-sale securities 201,133 82,483 118,650 — Total $ 214,100 $ 83,754 $ 130,346 $ — |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 and 2015 were as follows: (In thousands) Balance Sheet Location 2016 2015 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – asset derivatives Other receivables $ 159 $ — |
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 years ended December 31, 2016, 2015 and 2014 were as follows: (In thousands) Income Statement Location 2016 2015 2014 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ 724 $ 511 $ 1,852 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | At December 31, 2016 and 2015, inventory was comprised of the following: (In thousands) 2016 2015 Raw materials $ 40,461 $ 34,223 Work in process 4,003 2,893 Finished goods 60,653 54,417 Total Inventory, net $ 105,117 $ 91,533 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | At December 31, 2016 and 2015, property, plant and equipment were comprised of the following: (In thousands) 2016 2015 Land $ 4,575 $ 4,575 Building and land improvements 29,229 25,667 Building 68,301 68,301 Furniture and fixtures 18,477 17,347 Computer hardware and software 87,655 76,389 Engineering and other equipment 118,746 112,132 Total Property, Plant and Equipment 326,983 304,411 Less accumulated depreciation (242,514 ) (231,178 ) Total Property, Plant and Equipment, net $ 84,469 $ 73,233 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents our intangible assets as of December 31, 2016 and 2015: (In thousands) 2016 2015 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 6,899 $ (3,208 ) $ 3,691 $ 5,828 $ (2,627 ) $ 3,201 Developed technology 6,444 (5,061 ) 1,383 5,720 (4,329 ) 1,391 Intellectual property 2,340 (2,129 ) 211 2,340 (1,854 ) 486 Supply agreement 1,400 (544 ) 856 — — — License 500 (113 ) 387 — — — Patent 500 (20 ) 480 — — — Trade names 370 (285 ) 85 270 (265 ) 5 Non-compete 200 (26 ) 174 11 (11 ) — Total $ 18,653 $ (11,386 ) $ 7,267 $ 14,169 $ (9,086 ) $ 5,083 |
Estimated Future Amortization Expense Related to Intangible Assets | As of December 31, 2016, the estimated future amortization expense of intangible assets is as follows: (In thousands) Amount 2017 $ 2,867 2018 1,168 2019 655 2020 621 2021 568 Thereafter 1,388 Total $ 7,267 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Provision for Income Taxes | A summary of the components of the provision for income taxes for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands) 2016 2015 2014 Current Federal $ 12,733 $ 7,504 $ 7,626 State 1,141 279 599 International 477 (29 ) 12,587 Total Current 14,351 7,754 20,812 Deferred Federal 647 (585 ) (1,083 ) State 73 (66 ) (123 ) International (3,405 ) (41 ) (4,320 ) Total Deferred (2,685 ) (692 ) (5,526 ) Total Provision for Income Taxes $ 11,666 $ 7,062 $ 15,286 |
Effective Income Tax Rate Differs from Federal Statutory Rate | Our effective income tax rate differs from the federal statutory rate due to the following: 2016 2015 2014 Tax provision computed at the federal statutory rate 35.00 % 35.00 % 35.00 % State income tax provision, net of federal benefit 3.93 4.86 2.69 Federal research credits (8.15 ) (12.55 ) (4.05 ) Foreign taxes (0.34 ) 2.10 (7.26 ) Tax-exempt income (0.53 ) (1.94 ) (1.25 ) State tax incentives (2.77 ) (5.04 ) (2.21 ) Stock-based compensation 2.53 6.91 3.06 Domestic production activity deduction (2.23 ) (3.17 ) (1.15 ) Bargain purchase (2.64 ) — — Other, net 0.08 1.30 0.69 Effective Tax Rate 24.88 % 27.47 % 25.52 % |
Income Before Provision for Income Taxes | Income before provision for income taxes for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands) 2016 2015 2014 U.S. entities $ 54,077 $ 27,400 $ 23,812 International entities (7,182 ) (1,692 ) 36,094 Total $ 46,895 $ 25,708 $ 59,906 |
Principal Components of Current and Non-current Deferred Taxes | Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows: (In thousands) 2016 2015 Deferred tax assets Accounts receivable $ — $ 7 Inventory 12,020 12,558 Accrued expenses 5,551 6,359 Investments 1,062 — Deferred compensation 5,751 5,072 Stock-based compensation 4,724 4,704 Uncertain tax positions related to state taxes and related interest 762 1,026 Pensions 4,273 5,729 Foreign losses 6,486 5,389 State losses and credit carry-forwards 4,021 4,187 Federal loss and research carry-forwards 5,886 5,886 Valuation allowance (6,149 ) (7,250 ) Total Deferred Tax Assets 44,387 43,667 Deferred tax liabilities Property, plant and equipment (4,433 ) (3,315 ) Accrued expenses — (2,791 ) Intellectual property (1,918 ) (476 ) Investments — (70 ) Total Deferred Tax Liabilities (6,351 ) (6,652 ) Net Deferred Tax Assets $ 38,036 $ 37,015 |
Change in Unrecognized Income Tax Benefits | The change in the unrecognized income tax benefits for the years ended December 31, 2016, 2015 and 2014 is reconciled below: (In thousands) 2016 2015 2014 Balance at beginning of period $ 2,537 $ 3,334 $ 3,240 Increases for tax position related to: Prior years 95 — — Current year 428 280 522 Decreases for tax positions related to: Prior years — (29 ) — Settlements with taxing authorities — (103 ) — Expiration of applicable statute of limitations (834 ) (945 ) (428 ) Balance at end of period $ 2,226 $ 2,537 $ 3,334 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension Benefit Plan Obligations and Funded Status | The pension benefit plan obligations and funded status at December 31, 2016 and 2015, are as follows: (In thousands) 2016 2015 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ (26,851 ) $ (30,507 ) Service cost (1,211 ) (1,314 ) Interest cost (720 ) (615 ) Actuarial gain (loss) - experience 431 247 Actuarial gain (loss) - assumptions (2,628 ) 2,078 Benefit payments 52 81 Effects of foreign currency exchange rate changes 916 3,179 Projected benefit obligation at end of period (30,011 ) (26,851 ) Change in plan assets: Fair value of plan assets at beginning of period 19,213 20,338 Actual return on plan assets 1,494 988 Effects of foreign currency exchange rate changes (662 ) (2,113 ) Fair value of plan assets at end of period 20,045 19,213 Funded (unfunded) status at end of period $ (9,966 ) $ (7,638 ) |
Summary of Net Amounts Recognized Balance Sheet for the Unfunded Pension Liability | The net amounts recognized in the balance sheet for the unfunded pension liability as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Current liability $ — $ — Non-current liability (9,966 ) (7,638 ) Total $ (9,966 ) $ (7,638 ) |
Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income | The components of net periodic pension cost and amounts recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014 are as follows: (In thousands) 2016 2015 2014 Net periodic benefit cost: Service cost $ 1,211 $ 1,314 $ 1,189 Interest cost 720 615 836 Expected return on plan assets (1,057 ) (1,011 ) (1,086 ) Amortization of actuarial losses 175 407 — Net periodic benefit cost 1,049 1,325 939 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss 1,782 (2,303 ) 7,052 Amortization of actuarial losses (156 ) (396 ) — Amount recognized in other comprehensive income 1,626 (2,699 ) 7,052 Total recognized in net periodic benefit cost and other comprehensive income $ 2,675 $ (1,374 ) $ 7,991 |
Accumulated Other Comprehensive Income | The amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Net actuarial loss $ 6,871 $ 5,245 |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Discount rates 2.64 % 2.20 % 3.70 % Rate of compensation increase 2.00 % 2.25 % 2.25 % Expected long-term rates of return 5.40 % 5.40 % 5.40 % |
Weighted-Average Assumptions Used to Determine Benefit Obligation | The weighted-average assumptions that were used to determine the benefit obligation at December 31, 2016 and 2015: 2016 2015 Discount rates 1.90 % 2.64 % Rate of compensation increase 2.00 % 2.25 % |
Schedule of Pension Benefit Payments Expected Future Service | The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2017 $ 348 2018 515 2019 699 2020 964 2021 1,079 2022 – 2026 5,156 Total $ 8,761 |
Schedule of Cash Equivalents and Investments Held at Fair Value | We have categorized our cash equivalents 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 December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 6 $ 6 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 12,546 12,546 — — Government bonds 2,037 2,037 — — Equity funds: Large cap blend 4,462 4,462 — — Large cap value 249 249 — — Balanced fund 745 745 — — Available-for-sale securities 20,039 20,039 — — Total $ 20,045 $ 20,045 $ — $ — Fair Value Measurements at December 31, 2015 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3 $ 3 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 11,633 11,633 — — Government bonds 1,960 1,960 — — Equity funds: Large cap blend 4,604 4,604 — — Large cap value 258 258 — — Balanced fund 755 755 — — Available-for-sale securities 19,210 19,210 — — Total $ 19,213 $ 19,213 $ — $ — |
Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants | The fair value of the assets held by the Trust and the amounts payable to the plan participants at December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Fair Value of Plan Assets Long-term Investments $ 14,596 $ 12,834 Total Fair Value of Plan Assets $ 14,596 $ 12,834 Amounts Payable to Plan Participants Non-current Liabilities $ 14,596 $ 12,834 Total Amounts Payable to Plan Participants $ 14,596 $ 12,834 |
Segment Information and Major38
Segment Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 each of the years ended December 31, 2016, 2015 and 2014. Asset information by reportable segment is not reported, since we do not produce such information internally. Sales and Gross Profit by Market Segment (In thousands) 2016 2015 2014 Sales Gross Profit Sales Gross Profit Sales Gross Profit Network Solutions $ 525,502 $ 254,807 $ 527,422 $ 233,579 $ 559,532 $ 271,517 Services & Support 111,279 36,537 72,642 33,318 70,475 39,810 Total $ 636,781 $ 291,344 $ 600,064 $ 266,897 $ 630,007 $ 311,327 |
Sales Information by Product Category | The table below presents sales information by product category for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Access & Aggregation $ 436,372 $ 405,698 $ 401,769 Customer Devices 137,608 125,565 138,051 Traditional & Other Products 62,801 68,801 90,187 Total $ 636,781 $ 600,064 $ 630,007 |
Sales Information by Geographic Area | The following table presents sales information by geographic area for the years ended December 31, 2016, 2015 and 2014. International sales correlate to shipments with a non-U.S. destination. (In thousands) 2016 2015 2014 United States $ 501,337 $ 419,366 $ 381,382 Germany 85,780 111,666 150,987 Other international 49,664 69,032 97,638 Total $ 636,781 $ 600,064 $ 630,007 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments under Non-Cancelable Operating Leases with Original Maturities of Greater than 12 Months | As of December 31, 2016, future minimum rental payments under non-cancelable operating leases with original maturities of greater than 12 months are as follows: (In thousands) 2017 $ 3,788 2018 2,043 2019 847 2020 741 Thereafter 3,243 Total $ 10,662 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (EPS) for the years ended December 31, 2016, 2015 and 2014 is as follows: (In thousands, except for per share amounts) 2016 2015 2014 Numerator Net Income $ 35,229 $ 18,646 $ 44,620 Denominator Weighted average number of shares – basic 48,724 51,145 55,120 Effect of dilutive securities: Stock options 170 81 304 Restricted stock and restricted stock units 55 41 58 Weighted average number of shares – diluted $ 48,949 $ 51,267 $ 55,482 Net income per share – basic $ 0.72 $ 0.36 $ 0.81 Net income per share – diluted $ 0.72 $ 0.36 $ 0.80 |
Summarized Quarterly Financia41
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | The following table presents unaudited quarterly operating results for each of our last eight fiscal quarters. This information has been prepared on a basis consistent with our audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data. Unaudited Quarterly Operating Results (In thousands, except for per share amounts) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales $ 142,204 $ 162,701 $ 168,890 $ 162,986 Gross profit $ 65,794 $ 78,955 $ 75,808 $ 70,787 Operating income $ 5,521 $ 14,812 $ 10,130 $ 4,272 Net income $ 5,014 $ 10,228 $ 12,415 $ 7,572 Earnings per common share $ 0.10 $ 0.21 $ 0.26 $ 0.16 Earnings per common share assuming dilution (1) $ 0.10 $ 0.21 $ 0.26 $ 0.16 Three Months Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Net sales $ 142,835 $ 160,138 $ 158,078 $ 139,013 Gross profit $ 65,563 $ 68,246 $ 70,649 $ 62,439 Operating income $ 1,963 $ 644 $ 8,072 $ 2,800 Net income $ 3,317 $ 2,544 $ 7,067 $ 5,718 Earnings per common share $ 0.06 $ 0.05 $ 0.14 $ 0.12 Earnings per common share assuming dilution (1) $ 0.06 $ 0.05 $ 0.14 $ 0.12 (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |
Nature of Business and Summar42
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 17, 2017$ / shares | Dec. 31, 2016USD ($)CustomerIncentivePlan | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)IncentivePlan | Feb. 16, 2017USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2008USD ($) | Jan. 13, 1995USD ($) |
Summary of Significant Accounting Policy [Line Items] | |||||||||
Cash, uninsured amount | $ 77,900,000 | $ 77,900,000 | |||||||
Bonds payable, carrying amount | 27,800,000 | 27,800,000 | $ 50,000,000 | $ 20,000,000 | |||||
Bonds payable, fair value | $ 28,100,000 | 28,100,000 | |||||||
Number of customers accounting for 63.3 and 37.3 percent of accounts receivable | Customer | 3 | 3 | |||||||
Allowance for doubtful accounts | $ 19,000 | ||||||||
Period of warranty for product defects | 90 days to five years | ||||||||
Liability for warranty obligations | $ 8,548,000 | 8,739,000 | $ 8,415,000 | $ 8,548,000 | $ 8,977,000 | ||||
Number of stock incentive plans | IncentivePlan | 2 | 2 | |||||||
Performance period | 3 years | ||||||||
Stock-based compensation expense | $ 6,695,000 | 6,712,000 | 8,563,000 | ||||||
Total compensation cost related to non-vested stock options, restricted stock units, performance stock units and restricted stock not yet recognized | $ 16,400,000 | $ 16,400,000 | |||||||
Recognition period of non-vested compensation cost | 2 years 10 months 24 days | ||||||||
Impairment losses recognized on long-lived assets | $ 0 | 0 | 0 | ||||||
Impairment losses recognized on goodwill and other intangible assets | 0 | ||||||||
Research and development costs | $ 124,804,000 | 129,876,000 | 132,258,000 | ||||||
Percentage of sales taxes collected from customers | 1.00% | ||||||||
Other income (expense) - Gain on previous acquisition of working capital | $ (651,000) | (1,465,000) | 1,175,000 | ||||||
Dividend payments | $ 17,600,000 | 18,400,000 | 19,900,000 | ||||||
Dividend declaration date | Jan. 17, 2017 | ||||||||
Dividend record date | Feb. 2, 2017 | ||||||||
Dividend payment date | Feb. 16, 2017 | ||||||||
Ex-dividend date | Jan. 31, 2017 | ||||||||
Accounting Standards Update No. 2015-17 [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Non-current deferred tax assets | $ 17,300,000 | 18,900,000 | 17,300,000 | ||||||
Subsequent Events [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Common stock dividends per share declared | $ / shares | $ 0.09 | ||||||||
Quarterly dividend payable subsequent to balance sheet date | $ 4,400,000 | ||||||||
Nokia Siemens Networks [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Other income (expense) - Gain on previous acquisition of working capital | $ 2,400,000 | ||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Deferred costs related to prepaid and other assets | $ 10,700,000 | $ 5,200,000 | $ 10,700,000 | ||||||
Minimum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Amortization, estimated useful lives | 9 months | ||||||||
Maintenance contract period | 1 year | ||||||||
Minimum [Member] | Performance Stock Units (PSUs) [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Percentage of performance stock units granted | 0.00% | ||||||||
Maximum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Amortization, estimated useful lives | 14 years | ||||||||
Maintenance contract period | 5 years | ||||||||
Maximum [Member] | Performance Stock Units (PSUs) [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Percentage of performance stock units granted | 150.00% | ||||||||
Building and Land Improvements [Member] | Minimum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 5 years | ||||||||
Building and Land Improvements [Member] | Maximum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 39 years | ||||||||
Office Machinery and Equipment [Member] | Minimum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||
Office Machinery and Equipment [Member] | Maximum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 7 years | ||||||||
Engineering Machinery and Equipment [Member] | Minimum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||
Engineering Machinery and Equipment [Member] | Maximum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 7 years | ||||||||
Computer Software [Member] | Minimum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||
Computer Software [Member] | Maximum [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Property, plant and equipment, estimated useful lives | 5 years | ||||||||
Credit Concentration Risk [Member] | |||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||
Percentage of accounts receivable accounted by each customers | 63.30% | 37.30% | 63.30% |
Nature of Business and Summar43
Nature of Business and Summary of Significant Accounting Policies - Summary of Warranty Expense and Write-Off Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Balance at beginning of period | $ 8,739 | $ 8,415 | $ 8,977 |
Plus: Amounts charged to cost and expenses | 8,561 | 2,998 | 3,103 |
Less: Deductions | (8,752) | (2,674) | (3,665) |
Balance at end of period | $ 8,548 | $ 8,739 | $ 8,415 |
Nature of Business and Summar44
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Changes in Accumulated Other Comprehensive Income, Net of Tax by Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (8,969) | $ (75) | $ 10,753 |
Other comprehensive income (loss) before reclassifications | (283) | (2,979) | (6,692) |
Amounts reclassified from accumulated other comprehensive income | (2,936) | (5,915) | (4,136) |
Ending balance | (12,188) | (8,969) | (75) |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,932 | 8,964 | 10,737 |
Other comprehensive income (loss) before reclassifications | 1,515 | (844) | 2,363 |
Amounts reclassified from accumulated other comprehensive income | (3,043) | (6,188) | (4,136) |
Ending balance | 404 | 1,932 | 8,964 |
Defined Benefit Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (3,895) | (5,757) | (891) |
Other comprehensive income (loss) before reclassifications | (1,229) | 1,589 | (4,866) |
Amounts reclassified from accumulated other comprehensive income | 107 | 273 | |
Ending balance | (5,017) | (3,895) | (5,757) |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (7,006) | (3,282) | 907 |
Other comprehensive income (loss) before reclassifications | (569) | (3,724) | (4,189) |
Ending balance | $ (7,575) | $ (7,006) | $ (3,282) |
Nature of Business and Summar45
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Defined benefit plan adjustments – actuarial losses | $ (2,628) | $ 2,078 | |||||||||
Income before provision for income taxes | 46,895 | 25,708 | $ 59,906 | ||||||||
Tax (expense) benefit | (11,666) | (7,062) | (15,286) | ||||||||
Total reclassifications for the period, net of tax | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 5,718 | $ 7,067 | $ 2,544 | $ 3,317 | 35,229 | 18,646 | 44,620 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Defined benefit plan adjustments – actuarial losses | (156) | (396) | |||||||||
Income before provision for income taxes | 4,833 | 9,749 | 6,780 | ||||||||
Tax (expense) benefit | (1,897) | (3,834) | (2,644) | ||||||||
Total reclassifications for the period, net of tax | 2,936 | 5,915 | 4,136 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized investment gain | 5,408 | 10,348 | 6,895 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Impairment Expense [Member] | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized investment gain | $ (419) | $ (203) | $ (115) |
Nature of Business and Summar46
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Unrealized gains (losses) on available-for-sale securities, Before-Tax Amount | $ 2,484 | $ (1,384) | $ 3,874 |
Unrealized gains (losses) on available-for-sale securities, Tax (Expense) Benefit | (969) | 540 | (1,511) |
Unrealized gains (losses) on available-for-sale securities, Net-of-Tax Amount | 1,515 | (844) | 2,363 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Before-Tax Amount | (4,989) | (10,145) | (6,780) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Tax (Expense) Benefit | 1,946 | 3,957 | 2,644 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Net-of-Tax Amount | (3,043) | (6,188) | (4,136) |
Defined benefit plan adjustments, Before-Tax Amount | (1,782) | 2,303 | (7,052) |
Defined benefit plan adjustments, Tax (Expense) Benefit | 553 | (714) | 2,186 |
Defined benefit plan adjustments, Net-of-Tax Amount | (1,229) | 1,589 | (4,866) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Before-Tax Amount | 156 | 396 | |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Tax (Expense) Benefit | (49) | (123) | |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Net-of-Tax Amount | 107 | 273 | |
Foreign currency translation adjustment, Before-Tax Amount | (569) | (3,724) | (4,189) |
Foreign currency translation adjustment, Net-of-Tax Amount | (569) | (3,724) | (4,189) |
Total Other Comprehensive Income (Loss), Before-Tax Amount | (4,700) | (12,554) | (14,147) |
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit | 1,481 | 3,660 | 3,319 |
Other Comprehensive Loss, net of tax | $ (3,219) | $ (8,894) | $ (10,828) |
Nature of Business and Summar47
Nature of Business and Summary of Significant Accounting Policies - Summary of Dividends Paid Per Common Share (Detail) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Dividends [Abstract] | ||||||||||||
Dividends per Common Share | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 13, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Cash consideration | $ 943 | |
Bargain purchase gain net of income taxes | $ 3,542 | |
CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Date of acquisition | Sep. 13, 2016 | |
Business acquisition, description | On September 13, 2016, we acquired key fiber access products, technologies and service relationships from subsidiaries of CommScope, Inc. for $0.9 million in cash. This acquisition will enhance our solutions for the cable MSO industry and will provide cable operators with the scalable solutions, services and support they require to compete in the multi-gigabit service delivery market. | |
Cash consideration | $ 943 | |
Bargain purchase gain net of income taxes | $ 3,542 | |
Acquisition and integration related expenses and amortization of acquired intangibles | $ 1,000 |
Business Combinations - Allocat
Business Combinations - Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities Assumed Subject to Working Capital Adjustments (Detail) - USD ($) $ in Thousands | Sep. 13, 2016 | Dec. 31, 2016 |
Liabilities | ||
Gain on bargain purchase of a business, net of tax | $ (3,542) | |
Total purchase price | $ 943 | |
CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] | ||
Assets | ||
Inventory | $ 3,131 | |
Property, plant and equipment | 352 | |
Intangible assets | 4,700 | |
Total assets acquired | 8,183 | |
Liabilities | ||
Accounts payable | (1,250) | |
Warranty payable | (61) | |
Accrued wages and benefits | (122) | |
Deferred income taxes | (2,265) | |
Total liabilities assumed | (3,698) | |
Total net assets | 4,485 | |
Gain on bargain purchase of a business, net of tax | (3,542) | |
Total purchase price | $ 943 |
Business Combinations - Details
Business Combinations - Details of the Acquired Intangible Assets (Detail) - CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] $ in Thousands | Sep. 13, 2016USD ($) |
Business Acquisition [Line Items] | |
Total, Value | $ 4,700 |
Supply Agreement [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 1,400 |
Life (years) | 9 months 18 days |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 1,200 |
Life (years) | 6 years |
Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 800 |
Life (years) | 10 years |
License [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 500 |
Life (years) | 1 year 3 months 18 days |
Patent [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 500 |
Life (years) | 7 years 3 months 18 days |
Non-compete [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 200 |
Life (years) | 2 years 3 months 18 days |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 100 |
Life (years) | 2 years |
Business Combinations - Summary
Business Combinations - Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||||||||||
Revenue | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 139,013 | $ 158,078 | $ 160,138 | $ 142,835 | $ 636,781 | $ 600,064 | $ 630,007 | |
Net loss | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 5,718 | $ 7,067 | $ 2,544 | $ 3,317 | $ 35,229 | $ 18,646 | $ 44,620 | |
CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenue | $ 2,768 | |||||||||||
Net loss | $ (805) |
Business Combinations - Summa52
Business Combinations - Summary of Supplemental Unaudited Pro Forma Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
Pro forma revenue | $ 641,170 | $ 603,923 |
Pro forma net income | $ 31,212 | $ 22,945 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Incentive Program Descriptions) - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2016 | Jan. 20, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 10 years | |
Estimated forfeitures for stock options and RSUs | 3.70% | |
PSUs and Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate for PSUs and restricted stock | 0.00% | |
2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 13,000,000 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 500,000 | |
Contractual term | 10 years | |
2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 7,700,000 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
Multiplier used when issuing PSUs, restricted stock and RSUs | 2.5 | |
Minimum [Member] | 2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,017 | |
Minimum [Member] | 2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,017 | |
Minimum [Member] | 2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,025 | |
Maximum [Member] | 2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,024 | |
Maximum [Member] | 2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,019 | |
Maximum [Member] | 2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,026 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, Restricted Stock and RSUs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 6,695 | $ 6,712 | $ 8,563 |
Tax benefit for expense associated with non-qualified options | (963) | (862) | (1,157) |
Total stock-based compensation expense, net of tax | 5,732 | 5,850 | 7,406 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 389 | 280 | 479 |
Selling, General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,341 | 3,261 | 4,185 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,965 | 3,171 | 3,899 |
Operating Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 6,306 | $ 6,432 | $ 8,084 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Options outstanding, Beginning Balance | 7,108 | ||
Number of Options, Options granted | 19 | ||
Number of Options, Options exercised | (283) | (60) | (147) |
Number of Options, Options forfeited | (93) | ||
Number of Options, Options expired | (413) | ||
Number of Options, Options outstanding, Ending Balance | 6,338 | 7,108 | |
Number of Options, Options vested and expected to vest | 6,276 | ||
Number of Options, Options exercisable | 4,757 | ||
Weighted Average Exercise Price, Options outstanding, Beginning Balance | $ 21.97 | ||
Weighted Average Exercise Price, Options granted | 18.24 | ||
Weighted Average Exercise Price, Options exercised | 16.66 | ||
Weighted Average Exercise Price, Options forfeited | 17.90 | ||
Weighted Average Exercise Price, Options expired | 23.96 | ||
Weighted Average Exercise Price, Options outstanding, Ending Balance | 22.14 | $ 21.97 | |
Weighted Average Exercise Price, Options vested and expected to vest | 22.20 | ||
Weighted Average Exercise Price, Options exercisable | $ 23.67 | ||
Weighted Average Remaining Contractual Life In Years, Options outstanding | 5 years 7 months 17 days | 6 years 5 months 1 day | |
Weighted Average Remaining Contractual Life In Years, Options vested and expected to vest | 5 years 7 months 6 days | ||
Weighted Average Remaining Contractual Life In Years, Options exercisable | 4 years 8 months 23 days | ||
Aggregate Intrinsic Value, Options outstanding, Beginning Balance | $ 3,284 | ||
Aggregate Intrinsic Value, Options outstanding, Ending Balance | 16,972 | $ 3,284 | |
Aggregate Intrinsic Value, Options vested and expected to vest | 16,606 | ||
Aggregate Intrinsic Value, Options exercisable | $ 9,137 |
Stock-Based Compensation (Sto56
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to non-vested stock options not yet recognized | $ 16.4 | ||
Recognition period of non-vested compensation cost | 2 years 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options Outstanding, Weighted Average Exercise Price, and Additional Disclosures [Abstract] | |||
Number of shares available for grant | 5.6 | ||
Total pre-tax intrinsic value of options exercised | $ 1.1 | $ 0.1 | $ 0.7 |
Fair value of options fully vested | 5.7 | $ 6.6 | $ 7.7 |
Non Vested Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to non-vested stock options not yet recognized | $ 7.5 | ||
Recognition period of non-vested compensation cost | 2 years 1 month 6 days |
Stock-Based Compensation - St57
Stock-Based Compensation - Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding at 12/31/16 | 6,338 | 7,108 |
Options Exercisable at 12/31/16 | 4,757 | |
Weighted Average Exercise Price, Options exercisable | $ 23.67 | |
$14.88 - 18.96 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 14.88 | |
Upper Range Limit | $ 18.96 | |
Options Outstanding at 12/31/16 | 2,101 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 6 years 9 months 11 days | |
Weighted Average Exercise Price, Options Outstanding | $ 15.82 | |
Options Exercisable at 12/31/16 | 1,217 | |
Weighted Average Exercise Price, Options exercisable | $ 16.14 | |
$18.97 - 23.45 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 18.97 | |
Upper Range Limit | $ 23.45 | |
Options Outstanding at 12/31/16 | 1,380 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 5 years 9 months 15 days | |
Weighted Average Exercise Price, Options Outstanding | $ 20.17 | |
Options Exercisable at 12/31/16 | 881 | |
Weighted Average Exercise Price, Options exercisable | $ 20.84 | |
$23.46 - 30.35 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 23.46 | |
Upper Range Limit | $ 30.35 | |
Options Outstanding at 12/31/16 | 1,491 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 5 years 29 days | |
Weighted Average Exercise Price, Options Outstanding | $ 23.89 | |
Options Exercisable at 12/31/16 | 1,293 | |
Weighted Average Exercise Price, Options exercisable | $ 23.92 | |
$30.36 - 41.92 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 30.36 | |
Upper Range Limit | $ 41.92 | |
Options Outstanding at 12/31/16 | 1,366 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 4 years 3 months 15 days | |
Weighted Average Exercise Price, Options Outstanding | $ 31.94 | |
Options Exercisable at 12/31/16 | 1,366 | |
Weighted Average Exercise Price, Options exercisable | $ 31.94 |
Stock-Based Compensation (PSUs,
Stock-Based Compensation (PSUs, Restricted Stock and RSUs) - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to non-vested stock options not yet recognized | $ 16.4 |
Recognition period of non-vested compensation cost | 2 years 10 months 24 days |
Performance Stock Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Performance Stock Units (PSUs) [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of performance stock units granted | 0.00% |
Performance Stock Units (PSUs) [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of performance stock units granted | 150.00% |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
PSUs, Restricted Stock and RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost related to non-vested stock options not yet recognized | $ 8.9 |
Recognition period of non-vested compensation cost | 3 years 7 months 6 days |
Stock-Based Compensation - Su59
Stock-Based Compensation - Summary of PSUs, Restricted Stock and RSUs Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Unvested PSUs, restricted stock and RSUs outstanding, beginning balance | shares | 106 |
Number of PSUs, restricted stock and RSUs granted | shares | 460 |
Number of PSUs, restricted stock and RSUs vested | shares | (46) |
Number of PSUs, restricted stock and RSUs forfeited | shares | (1) |
Number of Unvested RSUs and restricted stock outstanding, ending balance | shares | 519 |
Weighted Average Grant Date Fair Value, Unvested PSUs, restricted stock and RSUs outstanding, Beginning balance | $ / shares | $ 21.09 |
Weighted Average Grant Date Fair Value, PSUs, restricted stock and RSUs granted | $ / shares | 20.63 |
Weighted Average Grant Date Fair Value, PSUs, restricted stock and RSUs vested | $ / shares | 22.50 |
Weighted Average Grant Date Fair Value, PSUs, restricted stock and RSUs forfeited | $ / shares | 20 |
Weighted Average Grant Date Fair Value, Unvested RSUs and restricted stock outstanding, Ending balance | $ / shares | $ 20.51 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation and Expense Information) - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average estimated value | $ 5.22 | $ 4.28 | $ 6.31 |
Contractual term | 10 years | ||
Weighted average grant date fair value, PSUs granted | $ 20.63 | ||
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value, PSUs granted | $ 23.50 | $ 17.64 | $ 22.11 |
Stock-Based Compensation - Su61
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 34.79% | 34.57% | 39.05% |
Risk-free interest rate | 1.36% | 1.81% | 1.79% |
Expected dividend yield | 1.98% | 2.35% | 1.90% |
Expected life (in years) | 6 years 3 months | 6 years 2 months 23 days | 6 years 3 months 29 days |
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.79% | 31.34% | 36.40% |
Risk-free interest rate | 1.17% | 1.20% | 0.96% |
Expected dividend yield | 1.80% | 2.35% | 1.89% |
Investments - Securities and In
Investments - Securities and Investments, Recorded at Either Fair Value or Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 190,146 | $ 198,100 |
Gross Unrealized Gains | 2,709 | 5,927 |
Gross Unrealized Losses | (2,132) | (2,894) |
Available-for-sale-securities, Fair Value/Carrying Value | 190,723 | 201,133 |
Restricted investment held at cost | 27,800 | 30,000 |
Other investments held at cost | 767 | 1,289 |
Total carrying value of available-for-sale investments | 219,290 | 232,422 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,367 | 11,325 |
Gross Unrealized Gains | 2,271 | 1,575 |
Gross Unrealized Losses | (42) | (66) |
Available-for-sale-securities, Fair Value/Carrying Value | 14,596 | 12,834 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 66,522 | 58,328 |
Gross Unrealized Gains | 64 | 20 |
Gross Unrealized Losses | (174) | (734) |
Available-for-sale-securities, Fair Value/Carrying Value | 66,412 | 57,614 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,799 | 26,414 |
Gross Unrealized Gains | 12 | 28 |
Gross Unrealized Losses | (37) | (18) |
Available-for-sale-securities, Fair Value/Carrying Value | 11,774 | 26,424 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,201 | 19,281 |
Gross Unrealized Gains | 19 | 2 |
Gross Unrealized Losses | (14) | (44) |
Available-for-sale-securities, Fair Value/Carrying Value | 10,206 | 19,239 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,080 | 15,463 |
Gross Unrealized Gains | 15 | 1 |
Gross Unrealized Losses | (91) | (91) |
Available-for-sale-securities, Fair Value/Carrying Value | 13,004 | 15,373 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,022 | 35,646 |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (270) | (248) |
Available-for-sale-securities, Fair Value/Carrying Value | 29,767 | 35,398 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,729 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (1) | |
Available-for-sale-securities, Fair Value/Carrying Value | 3,730 | |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,855 | |
Available-for-sale-securities, Fair Value/Carrying Value | 11,855 | |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,571 | 31,643 |
Gross Unrealized Gains | 311 | 4,301 |
Gross Unrealized Losses | (1,503) | (1,693) |
Available-for-sale-securities, Fair Value/Carrying Value | $ 29,379 | $ 34,251 |
Investments - Contractual Matur
Investments - Contractual Maturities of Corporate Bonds, Municipal Fixed-Rate Bonds, Asset-Backed Bonds, Mortgage/Agency-Backed Bonds, U.S. Government Bonds and Foreign Government Bonds (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-securities, Fair Value/Carrying Value | $ 190,723 | $ 201,133 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 18,912 | |
One to two years | 32,497 | |
Two to three years | 11,486 | |
Three to five years | 3,517 | |
Available-for-sale-securities, Fair Value/Carrying Value | 66,412 | 57,614 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 8,321 | |
One to two years | 1,703 | |
Two to three years | 351 | |
Three to five years | 1,399 | |
Available-for-sale-securities, Fair Value/Carrying Value | 11,774 | 26,424 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 635 | |
Two to three years | 2,415 | |
Three to five years | 5,402 | |
Five to ten years | 1,600 | |
More than ten years | 154 | |
Available-for-sale-securities, Fair Value/Carrying Value | 10,206 | 19,239 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 976 | |
Two to three years | 980 | |
Five to ten years | 2,060 | |
More than ten years | 8,988 | |
Available-for-sale-securities, Fair Value/Carrying Value | 13,004 | 15,373 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 1,701 | |
One to two years | 4,903 | |
Two to three years | 13,072 | |
Three to five years | 10,091 | |
Available-for-sale-securities, Fair Value/Carrying Value | 29,767 | $ 35,398 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 2,400 | |
One to two years | 1,330 | |
Available-for-sale-securities, Fair Value/Carrying Value | $ 3,730 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | |||
Identification of potential other-than-temporary impairments | 25.00% | ||
Impairment of investments | $ | $ 0.8 | $ 0.2 | $ 0.1 |
Number of marketable equity securities in an unrealized loss position | Security | 293 | ||
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 Ga
Investments - Gross Realized Gains and Losses on Sale of Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||
Gross realized gains | $ 7,530 | $ 10,906 | $ 7,586 |
Gross realized losses | $ (1,607) | $ (569) | $ (308) |
Investments - Breakdown of Inve
Investments - Breakdown of Investments with Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | $ 101,600 | $ 128,189 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (1,781) | (2,584) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 5,701 | 3,508 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (351) | (310) |
Total Fair Value | 107,301 | 131,697 |
Total Unrealized Losses | (2,132) | (2,894) |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 294 | 1,243 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (12) | (53) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 245 | 92 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (30) | (13) |
Total Fair Value | 539 | 1,335 |
Total Unrealized Losses | (42) | (66) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 32,562 | 35,952 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (166) | (566) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 2,722 | 3,042 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (8) | (168) |
Total Fair Value | 35,284 | 38,994 |
Total Unrealized Losses | (174) | (734) |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 8,936 | 9,160 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (37) | (18) |
Total Fair Value | 8,936 | 9,160 |
Total Unrealized Losses | (37) | (18) |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 2,986 | 16,857 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (14) | (44) |
Total Fair Value | 2,986 | 16,857 |
Total Unrealized Losses | (14) | (44) |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 7,842 | 15,216 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (81) | (91) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 1,239 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (10) | |
Total Fair Value | 9,081 | 15,216 |
Total Unrealized Losses | (91) | (91) |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 26,449 | 35,397 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (270) | (248) |
Total Fair Value | 26,449 | 35,397 |
Total Unrealized Losses | (270) | (248) |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 924 | |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (1) | |
Total Fair Value | 924 | |
Total Unrealized Losses | (1) | |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 21,607 | 14,364 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (1,200) | (1,564) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 1,495 | 374 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (303) | (129) |
Total Fair Value | 23,102 | 14,738 |
Total Unrealized Losses | $ (1,503) | $ (1,693) |
Investments - Fair Value Measur
Investments - Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 190,723 | $ 201,133 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,596 | 12,834 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 66,412 | 57,614 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,774 | 26,424 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 10,206 | 19,239 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 13,004 | 15,373 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 29,767 | 35,398 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 3,730 | |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 24,100 | 12,967 |
Available-for-sale securities | 190,723 | 201,133 |
Total | 214,823 | 214,100 |
Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,878 | 1,271 |
Available-for-sale securities | 73,742 | 82,483 |
Total | 80,620 | 83,754 |
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 17,222 | 11,696 |
Available-for-sale securities | 116,981 | 118,650 |
Total | 134,203 | 130,346 |
Fair Value, Measurements [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,878 | 1,271 |
Fair Value, Measurements [Member] | Money Market Funds [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,878 | 1,271 |
Fair Value, Measurements [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 17,222 | 11,696 |
Fair Value, Measurements [Member] | Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 17,222 | 11,696 |
Fair Value, Measurements [Member] | Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,596 | 12,834 |
Fair Value, Measurements [Member] | Deferred Compensation Plan Assets [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,596 | 12,834 |
Fair Value, Measurements [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 66,412 | 57,614 |
Fair Value, Measurements [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 66,412 | 57,614 |
Fair Value, Measurements [Member] | Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,774 | 26,424 |
Fair Value, Measurements [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 | 11,774 | 26,424 |
Fair Value, Measurements [Member] | Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 10,206 | 19,239 |
Fair Value, Measurements [Member] | Asset-Backed Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 10,206 | 19,239 |
Fair Value, Measurements [Member] | Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 13,004 | 15,373 |
Fair Value, Measurements [Member] | Mortgage/Agency-Backed Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 13,004 | 15,373 |
Fair Value, Measurements [Member] | U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 29,767 | 35,398 |
Fair Value, Measurements [Member] | U.S. Government Bonds [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 29,767 | 35,398 |
Fair Value, Measurements [Member] | Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 3,730 | |
Fair Value, Measurements [Member] | Foreign Government Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 3,730 | |
Fair Value, Measurements [Member] | Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | Variable Rate Demand Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | Marketable Equity Securities - Technology Industry [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 3,374 | 5,384 |
Fair Value, Measurements [Member] | Marketable Equity Securities - Technology Industry [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 3,374 | 5,384 |
Fair Value, Measurements [Member] | Marketable Equity Securities - Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 26,005 | 28,867 |
Fair Value, Measurements [Member] | Marketable Equity Securities - Other [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 26,005 | $ 28,867 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities - Additional Information (Detail) - 12 months ended Dec. 31, 2016 - Forward Contracts [Member] | USD ($) | EUR (€) |
Derivative [Line Items] | ||
Derivative, notional amount | $ 5,800,000 | € 5,500,000 |
Derivative maturity year | 2,017 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities - Schedule of Fair Values of Hedging Instruments Recorded in Consolidated Balance Sheet (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contracts [Member] | Other Receivables [Member] | |
Derivatives Not Designated as Hedging Instruments (Level 2): | |
Derivatives asset, fair value | $ 159 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities - Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member] | |||
Derivatives Not Designated as Hedging Instruments: | |||
Derivative instrument, gain or loss | $ 724 | $ 511 | $ 1,852 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 40,461 | $ 34,223 |
Work in process | 4,003 | 2,893 |
Finished goods | 60,653 | 54,417 |
Total Inventory, net | $ 105,117 | $ 91,533 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 14.6 | $ 17.5 |
Finished Goods [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 10.6 | $ 9.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Land | $ 4,575 | $ 4,575 |
Building and land improvements | 29,229 | 25,667 |
Building | 68,301 | 68,301 |
Furniture and fixtures | 18,477 | 17,347 |
Computer hardware and software | 87,655 | 76,389 |
Engineering and other equipment | 118,746 | 112,132 |
Total Property, Plant and Equipment | 326,983 | 304,411 |
Less accumulated depreciation | (242,514) | (231,178) |
Total Property, Plant and Equipment, net | $ 84,469 | $ 73,233 |
Property, Plant and Equipment74
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 12 | $ 12.3 | $ 12.5 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Goodwill [Line Items] | |||
Goodwill | $ 3,492,000 | $ 3,492,000 | |
Number of reportable segments | Segment | 2 | ||
Impairment losses | $ 0 | ||
Amortization expense | 2,500,000 | $ 1,900,000 | $ 2,300,000 |
Network Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 3,100,000 | ||
Services & Support [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 400,000 |
Goodwill and Intangible Asset76
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Gross Value | $ 18,653 | $ 14,169 |
Accumulated Amortization | (11,386) | (9,086) |
Net Value | 7,267 | 5,083 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 6,899 | 5,828 |
Accumulated Amortization | (3,208) | (2,627) |
Net Value | 3,691 | 3,201 |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 6,444 | 5,720 |
Accumulated Amortization | (5,061) | (4,329) |
Net Value | 1,383 | 1,391 |
Intellectual Property [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 2,340 | 2,340 |
Accumulated Amortization | (2,129) | (1,854) |
Net Value | 211 | 486 |
Supply Agreement [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 1,400 | |
Accumulated Amortization | (544) | |
Net Value | 856 | |
License [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | |
Accumulated Amortization | (113) | |
Net Value | 387 | |
Patent [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | |
Accumulated Amortization | (20) | |
Net Value | 480 | |
Trade Names [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 370 | 270 |
Accumulated Amortization | (285) | (265) |
Net Value | 85 | 5 |
Non-compete [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 200 | 11 |
Accumulated Amortization | (26) | $ (11) |
Net Value | $ 174 |
Goodwill and Intangible Asset77
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 2,867 | |
2,018 | 1,168 | |
2,019 | 655 | |
2,020 | 621 | |
2,021 | 568 | |
Thereafter | 1,388 | |
Net Value | $ 7,267 | $ 5,083 |
Alabama State Industrial Deve78
Alabama State Industrial Development Authority Financing and Economic Incentives - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | Jan. 13, 1995 | |
Debt Instrument [Line Items] | |||||
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN | $ 27,800 | $ 50,000 | $ 20,000 | ||
Percentage of interest on amended and restated bond | 2.00% | ||||
Maturity date of amended and restated bond | Jan. 1, 2020 | ||||
Estimated fair value of bond | $ 28,100 | ||||
Restricted certificate of deposit held | 27,800 | $ 30,000 | |||
Total realized economic incentives | 1,300 | 1,300 | $ 1,300 | ||
Payments on long-term debt | 1,100 | $ 1,100 | $ 16,500 | ||
Bond debt outstanding classified as current liability | 1,000 | ||||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value of bond | $ 28,100 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 12,733 | $ 7,504 | $ 7,626 |
State | 1,141 | 279 | 599 |
International | 477 | (29) | 12,587 |
Total Current | 14,351 | 7,754 | 20,812 |
Deferred | |||
Federal | 647 | (585) | (1,083) |
State | 73 | (66) | (123) |
International | (3,405) | (41) | (4,320) |
Total Deferred | (2,685) | (692) | (5,526) |
Total Provision for Income Taxes | $ 11,666 | $ 7,062 | $ 15,286 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Differs from Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory rate | 35.00% | 35.00% | 35.00% |
State income tax provision, net of federal benefit | 3.93% | 4.86% | 2.69% |
Federal research credits | (8.15%) | (12.55%) | (4.05%) |
Foreign taxes | (0.34%) | 2.10% | (7.26%) |
Tax-exempt income | (0.53%) | (1.94%) | (1.25%) |
State tax incentives | (2.77%) | (5.04%) | (2.21%) |
Stock-based compensation | 2.53% | 6.91% | 3.06% |
Domestic production activity deduction | (2.23%) | (3.17%) | (1.15%) |
Bargain purchase | (2.64%) | ||
Other, net | 0.08% | 1.30% | 0.69% |
Effective Tax Rate | 24.88% | 27.47% | 25.52% |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. entities | $ 54,077 | $ 27,400 | $ 23,812 |
International entities | (7,182) | (1,692) | 36,094 |
Income before provision for income taxes | $ 46,895 | $ 25,708 | $ 59,906 |
Income Taxes - Principal Compon
Income Taxes - Principal Components of Current and Non-current Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Accounts receivable | $ 7 | |
Inventory | $ 12,020 | 12,558 |
Accrued expenses | 5,551 | 6,359 |
Investments | 1,062 | |
Deferred compensation | 5,751 | 5,072 |
Stock-based compensation | 4,724 | 4,704 |
Uncertain tax positions related to state taxes and related interest | 762 | 1,026 |
Pensions | 4,273 | 5,729 |
Foreign losses | 6,486 | 5,389 |
State losses and credit carry-forwards | 4,021 | 4,187 |
Federal loss and research carry-forwards | 5,886 | 5,886 |
Valuation allowance | (6,149) | (7,250) |
Total Deferred Tax Assets | 44,387 | 43,667 |
Property, plant and equipment | (4,433) | (3,315) |
Accrued expenses | (2,791) | |
Intellectual property | (1,918) | (476) |
Investments | (70) | |
Total Deferred Tax Liabilities | (6,351) | (6,652) |
Net Deferred Tax Assets | $ 38,036 | $ 37,015 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ||||
Deferred tax benefit recorded as an adjustment to other comprehensive income | $ 1,500 | $ 3,700 | ||
Foreign and domestic carry-forwards, unamortized research and development cost and state credit carry-forwards | 16,400 | |||
Net change in valuation allowance | 1,100 | |||
Cash and cash equivalents | 79,895 | 84,550 | $ 73,439 | $ 58,298 |
Short-term investments | 43,188 | 34,396 | ||
Short-term liquidity amount | 123,100 | 118,900 | ||
Income tax benefit (expense) from exercise of stock options adjustment to equity | (40) | 100 | ||
Unrecognized tax benefits | 2,226 | 2,537 | 3,334 | $ 3,240 |
Unrecognized tax benefits, effective tax rate | 1,700 | 1,800 | 2,600 | |
Accrued interest and penalties | 800 | 900 | $ 1,000 | |
Foreign Subsidiaries [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Short-term liquidity amount | $ 42,100 | $ 38,900 | ||
Short-term liquidity, in percentage | 34.20% | 32.70% | ||
Minimum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carry forwards expiration year | 2,017 | |||
Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carry forwards expiration year | 2,030 |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 2,537 | $ 3,334 | $ 3,240 |
Increases for tax position related to, Prior years | 95 | ||
Increases for tax position related to, Current year | 428 | 280 | 522 |
Decreases for tax positions related to, Prior years | (29) | ||
Settlements with taxing authorities | (103) | ||
Expiration of applicable statute of limitations | (834) | (945) | (428) |
Balance at end of period | $ 2,226 | $ 2,537 | $ 3,334 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of period | $ (26,851) | $ (30,507) | |
Service cost | (1,211) | (1,314) | $ (1,189) |
Interest cost | (720) | (615) | (836) |
Actuarial gain (loss) - experience | 431 | 247 | |
Actuarial gain (loss) - assumptions | (2,628) | 2,078 | |
Benefit payments | 52 | 81 | |
Effects of foreign currency exchange rate changes | 916 | 3,179 | |
Projected benefit obligation at end of period | (30,011) | (26,851) | (30,507) |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 19,213 | 20,338 | |
Actual return on plan assets | 1,494 | 988 | |
Effects of foreign currency exchange rate changes | (662) | (2,113) | |
Fair value of plan assets at end of period | 20,045 | 19,213 | $ 20,338 |
Funded (unfunded) status at end of period | $ (9,966) | $ (7,638) |
Employee Benefit Plans (Pensi86
Employee Benefit Plans (Pension Benefit Plan) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 28.7 | $ 25.1 |
Estimated amortization from accumulated other comprehensive income into net periodic pension cost in 2017 | $ 0.3 | |
Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of target allocation ranges by asset class | 75.00% | |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of target allocation ranges by asset class | 25.00% | |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Threshold for unamortized gain losses | 10.00% |
Employee Benefit Plans (Pensi87
Employee Benefit Plans (Pension Benefit Plan) - Summary of Net Amounts Recognized Balance Sheet for the Unfunded Pension Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Current liability | $ 0 | $ 0 |
Non-current liability | (9,966) | (7,638) |
Total | $ (9,966) | $ (7,638) |
Employee Benefit Plans (Pensi88
Employee Benefit Plans (Pension Benefit Plan) - Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net periodic benefit cost: | |||
Service cost | $ 1,211 | $ 1,314 | $ 1,189 |
Interest cost | 720 | 615 | 836 |
Expected return on plan assets | (1,057) | (1,011) | (1,086) |
Amortization of actuarial losses | 175 | 407 | |
Net periodic benefit cost | 1,049 | 1,325 | 939 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial (gain) loss | 1,782 | (2,303) | 7,052 |
Amortization of actuarial losses | (156) | (396) | |
Amount recognized in other comprehensive income | 1,626 | (2,699) | 7,052 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 2,675 | $ (1,374) | $ 7,991 |
Employee Benefit Plans (Pensi89
Employee Benefit Plans (Pension Benefit Plan) - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ 6,871 | $ 5,245 |
Employee Benefit Plans (Pensi90
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Discount rates | 2.64% | 2.20% | 3.70% |
Rate of compensation increase | 2.00% | 2.25% | 2.25% |
Expected long-term rates of return | 5.40% | 5.40% | 5.40% |
Employee Benefit Plans (Pensi91
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rates | 1.90% | 2.64% |
Rate of compensation increase | 2.00% | 2.25% |
Employee Benefit Plans (Pensi92
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Payments Expected Future Service (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,017 | $ 348 |
2,018 | 515 |
2,019 | 699 |
2,020 | 964 |
2,021 | 1,079 |
2022 – 2026 | 5,156 |
Total | $ 8,761 |
Employee Benefit Plans (Pensi93
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Cash Equivalents and Investments Held at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | $ 190,723 | $ 201,133 | |
Total | 20,045 | 19,213 | $ 20,338 |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 66,412 | 57,614 | |
Pension Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | 6 | 3 | |
Available-for-sale securities | 20,039 | 19,210 | |
Total | 20,045 | 19,213 | |
Pension Benefit Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 12,546 | 11,633 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | 6 | 3 | |
Available-for-sale securities | 20,039 | 19,210 | |
Total | 20,045 | 19,213 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 12,546 | 11,633 | |
Pension Benefit Plan [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 2,037 | 1,960 | |
Pension Benefit Plan [Member] | Government Bonds [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 2,037 | 1,960 | |
Pension Benefit Plan [Member] | Large Cap Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 4,462 | 4,604 | |
Pension Benefit Plan [Member] | Large Cap Blend [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 4,462 | 4,604 | |
Pension Benefit Plan [Member] | Large Cap Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 249 | 258 | |
Pension Benefit Plan [Member] | Large Cap Value [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 249 | 258 | |
Pension Benefit Plan [Member] | Balanced Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 745 | 755 | |
Pension Benefit Plan [Member] | Balanced Fund [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | $ 745 | $ 755 |
Employee Benefit Plans (401(k)
Employee Benefit Plans (401(k) Savings Plan) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Criteria of employer to contribute in employee saving plan | 100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions | ||
Percentage of employer match to employee's contribution | 100.00% | ||
Percentage of employer match to employee's contribution | 50.00% | ||
Upper limit of employer match | 4.00% | ||
Maximum statutory compensation under code | $ 265,000 | ||
Percentage contributions under the savings plan, vested | 100.00% | ||
Contributions and plan administration costs for savings plan | $ 4,100,000 | $ 4,700,000 | $ 4,500,000 |
Employee Benefit Plans (Deferre
Employee Benefit Plans (Deferred Compensation Plans) - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)Compensation_Program | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |||
Number of deferred compensation programs | Compensation_Program | 4 | ||
Maximum percentage of cash compensation allowed to be deferred under the deferred compensation plan | 25.00% | ||
Criteria for benefit distribution | Six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten year term. | ||
Deferred compensation income (expense) adjustments due to fair value of the trust assets | $ | $ (1.3) | $ 0.3 | $ (0.7) |
Employee Benefit Plans (Defer96
Employee Benefit Plans (Deferred Compensation Plans) - Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | $ 190,723 | $ 201,133 |
Long-term Investments | 14,596 | 12,834 |
Amounts Payable to Plan Participants Non-current Liabilities | 14,596 | 12,834 |
Deferred Compensation Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | 14,596 | 12,834 |
Non-Current Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts Payable to Plan Participants Non-current Liabilities | $ 14,596 | $ 12,834 |
Employee Benefit Plans (Retiree
Employee Benefit Plans (Retiree Medical Coverage) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Maximum number of years medical, dental and prescription drug coverage to spouse of deceased officer | 30 years | |
Total liability recorded to provide medical, dental and prescription drug coverage | $ 0.2 | $ 0.2 |
Segment Information and Major98
Segment Information and Major Customers - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)CustomerSegmentCategory | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014Customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Number of categories | Category | 3 | ||
Number of single customer comprising more than 10% of revenue | Customer | 3 | 3 | 2 |
Long-lived assets | $ 84.5 | $ 73.2 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 79.9 | 68.8 | |
Outside United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 4.6 | $ 4.4 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 24.00% | 20.00% | 21.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 19.00% | 17.00% | 14.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 3 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% | 14.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | The Five Largest Customers Other Than Those With More Than 10% Of Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% | 14.00% | 22.00% |
Segment Information and Major99
Segment Information and Major Customers - Sales and Gross Profit of Market Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 139,013 | $ 158,078 | $ 160,138 | $ 142,835 | $ 636,781 | $ 600,064 | $ 630,007 |
Gross Profit | $ 70,787 | $ 75,808 | $ 78,955 | $ 65,794 | $ 62,439 | $ 70,649 | $ 68,246 | $ 65,563 | 291,344 | 266,897 | 311,327 |
Network Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 525,502 | 527,422 | 559,532 | ||||||||
Gross Profit | 254,807 | 233,579 | 271,517 | ||||||||
Services & Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 111,279 | 72,642 | 70,475 | ||||||||
Gross Profit | $ 36,537 | $ 33,318 | $ 39,810 |
Segment Information and Majo100
Segment Information and Major Customers - Sales Information by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 139,013 | $ 158,078 | $ 160,138 | $ 142,835 | $ 636,781 | $ 600,064 | $ 630,007 |
Access & Aggregation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 436,372 | 405,698 | 401,769 | ||||||||
Customer Devices [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 137,608 | 125,565 | 138,051 | ||||||||
Traditional & Other Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 62,801 | $ 68,801 | $ 90,187 |
Segment Information and Majo101
Segment Information and Major Customers - Sales Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 139,013 | $ 158,078 | $ 160,138 | $ 142,835 | $ 636,781 | $ 600,064 | $ 630,007 |
United States [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 501,337 | 419,366 | 381,382 | ||||||||
Germany [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 85,780 | 111,666 | 150,987 | ||||||||
Other International [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 49,664 | $ 69,032 | $ 97,638 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)EquityUnit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Contingencies And Commitments [Line Items] | |||
Number of private equity funds | EquityUnit | 2 | ||
Commitments towards private equity funds | $ 7.7 | ||
Operating leases expiration year | 2,025 | ||
Rental expense | $ 4.2 | $ 4.9 | $ 4.7 |
Investment Commitments [Member] | |||
Contingencies And Commitments [Line Items] | |||
Aggregate investment committed in private equity funds | 7.9 | ||
Private Equity Funds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contribution to private equity funds | $ 8.4 |
Commitments and Contingencie103
Commitments and Contingencies - Future Minimum Rental Payments under Non-Cancelable Operating Leases with Original Maturities of Greater than 12 Months (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 3,788 |
2,018 | 2,043 |
2,019 | 847 |
2,020 | 741 |
Thereafter | 3,243 |
Total | $ 10,662 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator | |||||||||||
Net Income | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 5,718 | $ 7,067 | $ 2,544 | $ 3,317 | $ 35,229 | $ 18,646 | $ 44,620 |
Denominator | |||||||||||
Weighted average number of shares – basic | 48,724 | 51,145 | 55,120 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 170 | 81 | 304 | ||||||||
Restricted stock and restricted stock units | 55 | 41 | 58 | ||||||||
Weighted average number of shares – diluted | 48,949 | 51,267 | 55,482 | ||||||||
Net income per share – basic | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.12 | $ 0.14 | $ 0.05 | $ 0.06 | $ 0.72 | $ 0.36 | $ 0.81 |
Net income per share – diluted | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.12 | $ 0.14 | $ 0.05 | $ 0.06 | $ 0.72 | $ 0.36 | $ 0.80 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive options, Total | 4.6 | 6.1 | 4.4 |
Summarized Quarterly Financi106
Summarized Quarterly Financial Data (Unaudited) - Quarterly Operating Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 139,013 | $ 158,078 | $ 160,138 | $ 142,835 | $ 636,781 | $ 600,064 | $ 630,007 |
Gross profit | 70,787 | 75,808 | 78,955 | 65,794 | 62,439 | 70,649 | 68,246 | 65,563 | 291,344 | 266,897 | 311,327 |
Operating income | 4,272 | 10,130 | 14,812 | 5,521 | 2,800 | 8,072 | 644 | 1,963 | 34,735 | 13,479 | 47,111 |
Net Income | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 5,718 | $ 7,067 | $ 2,544 | $ 3,317 | $ 35,229 | $ 18,646 | $ 44,620 |
Earnings per common share – basic | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.12 | $ 0.14 | $ 0.05 | $ 0.06 | $ 0.72 | $ 0.36 | $ 0.81 |
Earnings per common share – diluted | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.12 | $ 0.14 | $ 0.05 | $ 0.06 | $ 0.72 | $ 0.36 | $ 0.80 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Director Emeritus [Member] | |
Related Party Transaction | |
Related party legal fees | $ 0.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 24, 2017 | Jan. 17, 2017 | Dec. 31, 2016 | Feb. 16, 2017 |
Subsequent Event [Line Items] | ||||
Dividend declaration date | Jan. 17, 2017 | |||
Dividend record date | Feb. 2, 2017 | |||
Dividend payment date | Feb. 16, 2017 | |||
Scenario Forecast [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock repurchased, shares | 200,000 | |||
Shares repurchased, average price per share | $ 21.46 | |||
Additional shares authorized for purchase | 4,200,000 | |||
Subsequent Events [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock dividends per share declared | $ 0.09 | |||
Quarterly dividend payable subsequent to balance sheet date | $ 4.4 |
Schedule II - Valuation and 109
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 19 | $ 136 | $ 130 |
Charged to costs & expenses | 19 | 23 | |
Deductions | 19 | 136 | 17 |
Balance at end of period | 19 | 136 | |
Inventory Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 26,675 | 24,682 | 22,993 |
Charged to costs & expenses | 3,303 | 2,225 | 2,549 |
Deductions | 4,729 | 232 | 860 |
Balance at end of period | 25,249 | 26,675 | 24,682 |
Warranty Liability [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 8,739 | 8,415 | 8,977 |
Charged to costs & expenses | 8,561 | 2,998 | 3,103 |
Deductions | 8,752 | 2,674 | 3,665 |
Balance at end of period | 8,548 | 8,739 | 8,415 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 7,250 | 7,463 | 8,842 |
Charged to costs & expenses | 69 | 81 | 283 |
Deductions | 1,170 | 294 | 1,662 |
Balance at end of period | $ 6,149 | $ 7,250 | $ 7,463 |