Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 23, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ADTN | |
Entity Registrant Name | ADTRAN INC | |
Entity Central Index Key | 926,282 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,149,591 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 128,253 | $ 79,895 |
Short-term investments | 31,385 | 43,188 |
Accounts receivable, less allowance for doubtful accounts of $— at September 30, 2017 and December 31, 2016 | 101,613 | 92,346 |
Other receivables | 18,541 | 15,137 |
Income tax receivable, net | 760 | |
Inventory, net | 116,230 | 105,117 |
Prepaid expenses and other current assets | 23,127 | 16,459 |
Total Current Assets | 419,149 | 352,902 |
Property, plant and equipment, net | 85,665 | 84,469 |
Deferred tax assets, net | 37,130 | 38,036 |
Goodwill | 3,492 | 3,492 |
Other assets | 13,135 | 12,234 |
Long-term investments | 136,987 | 176,102 |
Total Assets | 695,558 | 667,235 |
Current Liabilities | ||
Accounts payable | 73,127 | 77,342 |
Unearned revenue | 13,651 | 16,326 |
Accrued expenses | 15,099 | 12,434 |
Accrued wages and benefits | 15,345 | 20,433 |
Income tax payable, net | 7,696 | |
Total Current Liabilities | 124,918 | 126,535 |
Non-current unearned revenue | 4,918 | 6,333 |
Other non-current liabilities | 34,756 | 28,050 |
Bonds payable | 26,800 | 26,800 |
Total Liabilities | 191,392 | 187,718 |
Commitments and contingencies (see Note 14) | ||
Stockholders’ Equity | ||
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 48,003 shares outstanding at September 30, 2017 and 79,652 shares issued and 48,472 shares outstanding at December 31, 2016 | 797 | 797 |
Additional paid-in capital | 258,655 | 252,957 |
Accumulated other comprehensive loss | (4,256) | (12,188) |
Retained earnings | 941,845 | 921,942 |
Less treasury stock at cost: 31,649 and 31,180 shares at September 30, 2017 and December 31, 2016, respectively | (692,875) | (683,991) |
Total Stockholders’ Equity | 504,166 | 479,517 |
Total Liabilities and Stockholders’ Equity | $ 695,558 | $ 667,235 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
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 | 48,003,000 | 48,472,000 |
Treasury stock, shares | 31,649,000 | 31,180,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | ||||
Products | $ 145,467 | $ 136,277 | $ 444,607 | $ 398,709 |
Services | 39,645 | 32,613 | 95,457 | 75,086 |
Total Sales | 185,112 | 168,890 | 540,064 | 473,795 |
Cost of sales | ||||
Products | 73,528 | 70,988 | 229,845 | 202,905 |
Services | 25,086 | 22,094 | 65,374 | 50,333 |
Total Cost of Sales | 98,614 | 93,082 | 295,219 | 253,238 |
Gross Profit | 86,498 | 75,808 | 244,845 | 220,557 |
Selling, general and administrative expenses | 34,652 | 33,716 | 104,102 | 97,367 |
Research and development expenses | 33,528 | 31,962 | 98,945 | 92,727 |
Operating Income | 18,318 | 10,130 | 41,798 | 30,463 |
Interest and dividend income | 952 | 910 | 2,857 | 2,692 |
Interest expense | (139) | (143) | (417) | (430) |
Net realized investment gain | 1,009 | 1,316 | 2,869 | 4,154 |
Other expense, net | (933) | (246) | (1,686) | (378) |
Gain on bargain purchase of a business | 3,550 | 3,550 | ||
Income before provision for income taxes | 19,207 | 15,517 | 45,421 | 40,051 |
Provision for income taxes | (3,309) | (3,102) | (10,471) | (12,394) |
Net Income | $ 15,898 | $ 12,415 | $ 34,950 | $ 27,657 |
Weighted average shares outstanding – basic | 47,870 | 48,470 | 48,110 | 48,839 |
Weighted average shares outstanding – diluted | 48,531 | 48,678 | 48,618 | 49,036 |
Earnings per common share – basic | $ 0.33 | $ 0.26 | $ 0.73 | $ 0.57 |
Earnings per common share – diluted | 0.33 | 0.26 | 0.72 | 0.56 |
Dividend per share | $ 0.09 | $ 0.09 | $ 0.27 | $ 0.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 15,898 | $ 12,415 | $ 34,950 | $ 27,657 |
Other Comprehensive Income, net of tax | ||||
Net unrealized gains (losses) on available-for-sale securities | 804 | 258 | 2,512 | (162) |
Net unrealized gains (losses) on cash flow hedges | 142 | (196) | ||
Defined benefit plan adjustments | 73 | 36 | 214 | 103 |
Foreign currency translation | 1,541 | 575 | 5,402 | 1,202 |
Other Comprehensive Income, net of tax | 2,560 | 869 | 7,932 | 1,143 |
Comprehensive Income, net of tax | $ 18,458 | $ 13,284 | $ 42,882 | $ 28,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net Income | $ 34,950 | $ 27,657 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,034 | 10,260 |
Amortization of net premium on available-for-sale investments | 352 | 489 |
Net realized gain on long-term investments | (2,869) | (4,154) |
Net (gain) loss on disposal of property, plant and equipment | (10) | 21 |
Gain on bargain purchase of a business | (3,550) | |
Stock-based compensation expense | 5,573 | 4,601 |
Deferred income taxes | (463) | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (6,975) | (29,370) |
Other receivables | (2,924) | 7,475 |
Inventory | (9,483) | (683) |
Prepaid expenses and other assets | (9,647) | (5,180) |
Accounts payable | (4,727) | 16,363 |
Accrued expenses and other liabilities | (2,820) | 7,307 |
Income tax payable/receivable, net | 8,571 | (2,941) |
Net cash provided by operating activities | 22,025 | 27,832 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (12,304) | (12,684) |
Proceeds from disposals of property, plant and equipment | 16 | |
Proceeds from sales and maturities of available-for-sale investments | 137,272 | 141,103 |
Purchases of available-for-sale investments | (79,713) | (139,181) |
Acquisition of business | (943) | |
Net cash provided by (used in) investing activities | 45,271 | (11,705) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 6,606 | 1,076 |
Purchases of treasury stock | (17,348) | (22,917) |
Dividend payments | (13,031) | (13,230) |
Net cash used in financing activities | (23,773) | (35,071) |
Net increase (decrease) in cash and cash equivalents | 43,523 | (18,944) |
Effect of exchange rate changes | 4,835 | 686 |
Cash and cash equivalents, beginning of period | 79,895 | 84,550 |
Cash and cash equivalents, end of period | 128,253 | 66,292 |
Supplemental disclosure of non-cash investing activities: | ||
Purchases of property, plant and equipment included in accounts payable | $ 272 | $ 1,174 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of ADTRAN ® In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 24, 2017 with the SEC. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, We are finalizing our assessment of the proper method of measuring progress toward satisfaction of each respective contract performance obligation for our network installation services revenues. At this time, we believe the output method will be used to measure network installation services progress. We believe the primary impact will be accelerated revenue recognition for certain performance obligations related to revenue arrangements that are currently deferred until customer acceptance. In connection with the adoption of the new revenue standard, effective January 1, 2018, we will also adopt ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers We do not believe there will be a significant impact to product or maintenance revenues. However, we are still assessing the impact of the allocation of revenue between deliverables with multiple performance obligations and timing of revenue recognition. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Compensation — Retirement Benefits In August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities During 2017, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory Inventory In January 2017, we adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | 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 during the third quarter of 2016, net of income taxes, which was subject to customary working capital adjustments between the parties. The bargain purchase gain of $3.5 million 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 forecasted data for future periods and have concluded that our valuation procedures and resulting measures were appropriate. Working capital adjustments were recorded in the fourth quarter of 2016 and resulted in an immaterial reduction in the inventory acquired, accounts payable assumed, deferred income taxes and bargain purchase gain. If these adjustments had been recorded on the date of acquisition, the bargain purchase gain would have been reduced by $8 thousand for the three months ended September 30, 2016. The final allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date 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 following unaudited supplemental pro forma information presents the financial results as if the acquisition had occurred on January 1, 2015. This unaudited supplemental 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. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Pro forma revenue $ 170,498 $ 159,375 $ 478,184 $ 463,916 Pro forma net income $ 9,495 $ 6,691 $ 24,761 $ 15,071 Pro forma earnings per share - basic $ 0.20 $ 0.13 $ 0.51 $ 0.29 Pro forma earnings per share - diluted $ 0.20 $ 0.13 $ 0.50 $ 0.29 For the three and nine months ended September 30, 2017, we incurred acquisition and integration related expenses and amortization of acquired intangibles of $0.2 million and $1.6 million, respectively, related to this acquisition. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3. INCOME TAXES Our effective tax rate decreased from 34.0%, excluding the tax impact of the bargain purchase gain, in the nine months ended September 30, 2016, to 23.1% in the nine months ended September 30, 2017. The decrease in the effective tax rate between the periods is primarily attributable to additional research and development tax credits being recognized in the current quarter, an increase in stock option exercises and a greater mix of international income. |
Pension Benefit Plan
Pension Benefit Plan | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Benefit Plan | 4. PENSION BENEFIT PLAN We maintain a defined benefit pension plan covering employees in certain foreign countries. The following table summarizes the components of net periodic pension cost for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Service cost $ 327 $ 305 $ 930 $ 912 Interest cost 158 182 448 542 Expected return on plan assets (329 ) (266 ) (935 ) (796 ) Amortization of actuarial losses 80 44 228 132 Net periodic pension cost $ 236 $ 265 $ 671 $ 790 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 5. STOCK-BASED COMPENSATION The following table summarizes the stock-based compensation expense related to stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock for the three and nine months ended September 30, 2017 and 2016, which was recognized as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Stock-based compensation expense included in cost of sales $ 97 $ 88 $ 281 $ 282 Selling, general and administrative expense 994 765 3,018 2,322 Research and development expense 743 639 2,274 1,997 Stock-based compensation expense included in operating expenses 1,737 1,404 5,292 4,319 Total stock-based compensation expense 1,834 1,492 5,573 4,601 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (402 ) (218 ) (1,215 ) (643 ) Total stock-based compensation expense, net of tax $ 1,432 $ 1,274 $ 4,358 $ 3,958 Stock Options The following table is a summary of our stock options outstanding as of December 31, 2016 and September 30, 2017 and the changes that occurred during the nine months ended September 30, 2017: (In thousands, except per share amounts) Number of Stock Options Weighted Avg. Exercise Price Weighted Avg. Remaining Contractual Life In Years Aggregate Intrinsic Value Stock options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Stock options granted — $ — Stock options exercised (358 ) $ 18.44 Stock options forfeited (54 ) $ 17.49 Stock options expired (90 ) $ 27.31 Stock options outstanding, September 30, 2017 5,836 $ 22.33 4.92 $ 20,669 Stock options vested and expected to vest, September 30, 2017 5,836 $ 22.33 4.92 $ 20,669 Stock options exercisable, September 30, 2017 4,311 $ 24.02 3.99 $ 10,845 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the closing price of our stock on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all option holders exercised their options on September 30, 2017. The aggregate intrinsic value will change based on the fair market value of our stock. The total pre-tax intrinsic value of options exercised during the three and nine months ended September 30, 2017 was $1.1 million and $1.6 million, respectively. As of September 30, 2017, there was $4.0 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over an average remaining recognition period of 1.7 years. The fair value of our stock options is estimated using the Black-Scholes model. The determination of the fair value of stock options on the date of grant using the Black-Scholes model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables that may have a significant impact on the fair value estimate. There were no stock options granted during the three or nine months ended September 30, 2017. The weighted-average assumptions and value of options granted during the three and nine months ended September 30, 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2016 Expected volatility 34.55 % 34.66 % Risk-free interest rate 1.20 % 1.28 % Expected dividend yield 1.83 % 1.88 % Expected life (in years) 6.21 6.24 Weighted-average estimated value $ 5.64 $ 5.50 PSUs, RSUs and restricted stock The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2016 and the changes that occurred during the nine months ended September 30, 2017: (In thousands, except per share amounts) Number of Shares Weighted Avg. Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2016 519 $ 20.51 PSUs, RSUs and restricted stock granted 526 $ 22.23 PSUs, RSUs and restricted stock vested (4 ) $ 18.00 PSUs, RSUs and restricted stock forfeited (21 ) $ 20.88 Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2017 1,020 $ 21.40 The fair value of our PSUs with market conditions is calculated using a Monte Carlo Simulation valuation method. The fair value of RSUs and restricted stock is equal to the closing price of our stock on the date of grant. During the first quarter of 2017, the Compensation Committee of the Board of Directors approved a PSU grant of 0.5 million shares that contain performance conditions. The fair value of these performance-based PSU awards was equal to the closing price of our stock on the date of grant. As of September 30, 2017, there was $7.1 million of unrecognized compensation expense related to unvested market-based PSUs, RSUs and restricted stock, which is expected to be recognized over an average remaining recognition period of 2.8 years. In addition, there was $11.5 million of unrecognized compensation expense related to unvested performance-based PSUs, which will be recognized over the requisite service period of three years as achievement of the performance objective becomes probable. For the three and nine months ended September 30, 2017, no compensation expense was recognized related to these performance-based PSU awards. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 6. INVESTMENTS At September 30, 2017, we held the following securities and investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 15,898 $ 3,230 $ (15 ) $ 19,113 Corporate bonds 45,223 75 (79 ) 45,219 Municipal fixed-rate bonds 4,887 4 (17 ) 4,874 Asset-backed bonds 7,791 5 (11 ) 7,785 Mortgage/Agency-backed bonds 7,364 7 (41 ) 7,330 U.S. government bonds 21,000 3 (109 ) 20,894 Foreign government bonds 725 3 — 728 Marketable equity securities 32,394 2,649 (961 ) 34,082 Available-for-sale securities held at fair value $ 135,282 $ 5,976 $ (1,233 ) $ 140,025 Restricted investment held at cost 27,800 Other investments held at cost 547 Total carrying value of available-for-sale investments $ 168,372 At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: 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 held at cost 767 Total carrying value of available-for-sale investments $ 219,290 As of September 30, 2017, our 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 $ 20,232 $ 2,250 $ — $ — $ 8,903 $ — One to two years 11,678 724 $ 2,638 — — — Two to three years 10,029 730 2,235 — 10,413 728 Three to five years 3,280 1,170 1,550 917 1,578 — Five to ten years — — 450 1,348 — — More than ten years — — 912 5,065 — — Total $ 45,219 $ 4,874 $ 7,785 $ 7,330 $ 20,894 $ 728 Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Our investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. At September 30, 2017, we held a $27.8 million restricted certificate of deposit, which is carried at cost. This investment serves as a collateral deposit against the principal amount outstanding under loans made to ADTRAN pursuant to an Alabama State Industrial Development Authority revenue bond (the Bond), which totaled $27.8 million at September 30, 2017 and December 31, 2016. At September 30, 2017 and December 31, 2016, the estimated fair value of the Bond using a level 2 valuation technique was approximately $28.0 million and $28.1 million, respectively, based on a debt security with a comparable interest rate and maturity and a Standard and Poor’s credit rating of AAA. 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. The Bond matures on January 1, 2020, and bears interest at the rate of 2% per annum. 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 we are required to remit to the state for those employment positions that qualify under this program. We are required to make payments in the amounts necessary to pay the interest on the amounts currently outstanding. It is our intent to make annual principal payments in addition to the interest amounts that are due. We review our investment portfolio for potential “other-than-temporary” declines in value on an individual investment basis. We assess, on a quarterly basis, significant declines in value which may be considered other-than-temporary and, if necessary, recognize and record the appropriate charge to write-down the carrying value of such investments. In making this assessment, we take into consideration qualitative and quantitative information, including but not limited to the following: the magnitude and duration of historical declines in market prices, credit rating activity, assessments of liquidity, public filings, and statements made by the issuer. We generally begin our identification of potential other-than-temporary impairments by reviewing any security with a fair value that has declined from its original or adjusted cost basis by 25% or more for six or more consecutive months. We then evaluate the individual security based on the previously identified factors to determine the amount of the write-down, if any. For the three and nine months ended September 30, 2017 and 2016, other-than-temporary impairment charges were not significant. Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our investments: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Gross realized gains $ 1,094 $ 1,346 $ 3,324 $ 5,226 Gross realized losses $ (85 ) $ (30 ) $ (455 ) $ (1,072 ) As of September 30, 2017 and 2016, gross unrealized losses related to individual securities in a continuous loss position for 12 months or longer were not significant. We have categorized our cash equivalents held in money market funds and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. Fair Value Measurements at September 30, 2017 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 8,115 $ 8,115 $ — $ — Commercial Paper 35,436 — 35,436 — Cash equivalents 43,551 8,115 35,436 — Available-for-sale securities Deferred compensation plan assets 19,113 19,113 — — Available-for-sale debt securities Corporate bonds 45,219 — 45,219 — Municipal fixed-rate bonds 4,874 — 4,874 — Asset-backed bonds 7,785 — 7,785 — Mortgage/Agency-backed bonds 7,330 — 7,330 — U.S. government bonds 20,894 20,894 — — Foreign government bonds 728 — 728 — Available-for-sale marketable equity securities Marketable equity securities – various industries 34,082 34,082 — — Available-for-sale securities 140,025 74,089 65,936 — Total $ 183,576 $ 82,204 $ 101,372 $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Market 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 – various industries 29,379 29,379 — — Available-for-sale securities 190,723 73,742 116,981 — Total $ 214,823 $ 80,620 $ 134,203 $ — Our 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 | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We participate in foreign exchange forward contracts in connection with the management of exposure to fluctuations in foreign exchange rates. Cash Flow Hedges Our cash flow hedging activities utilize foreign exchange forward contracts to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the planned purchase of products from foreign suppliers. Purchases of U.S. denominated inventory by our European subsidiary represent our primary exposure. Changes in the fair value of derivatives designated as cash flow hedges are not recognized in current operating results, but are recorded in accumulated other comprehensive income. Amounts related to cash flow hedges are reclassified from accumulated other comprehensive income when the underlying hedged item impacts earnings. This reclassification is recorded in the same line item of the consolidated statements of income as where the effects of the hedged item are recorded, which is cost of sales. Undesignated Hedges 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 outstanding non-functional balances are revalued to the functional currency through profit and loss. When appropriate, we utilize foreign exchange forward contracts to help manage the volatility relating to these valuation exposures. All changes in the fair value of our derivative instruments that do not qualify for or are not designated for hedged accounting transactions are recognized as other income (expense) in the Consolidated Statements of Income. As of September 30, 2017, we had foreign exchange forward contracts outstanding with notional amounts totaling $7.0 million (€5.9 million), which hedge a portion of projected inventory purchases expected to be settled in the fourth quarter of 2017. We have determined that there was no hedge ineffectiveness for the quarter ended September 30, 2017 related to these contracts. 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 are not subject to master netting arrangements and are not offset in the Consolidated Balance Sheets. The fair values of our derivative instruments recorded in the Consolidated Balance Sheet as of September 30, 2017 and December 31, 2016 were as follows: (In thousands) Balance Sheet Location September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ — $ 159 Foreign exchange contracts – derivative liabilities Accounts payable (402 ) — Total derivatives $ (402 ) $ 159 The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Income Statement September 30, September 30, (In thousands) Location 2017 2016 2017 2016 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ (334 ) $ (37 ) $ (819 ) $ 153 The change in our derivatives designated as hedging instruments recorded in other comprehensive income (OCI) and reclassified to income, net of tax, during the three and nine months ended September 30, 2017 and 2016 were as follows: Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Three Months Ended Location of Gains Three Months Ended September 30, (Losses) Reclassified September 30, (In thousands) 2017 2016 from AOCI into Income 2017 2016 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ (127 ) $ — Cost of Sales $ (269 ) $ — Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Nine Months Ended Location of Gains Nine Months Ended September 30, (Losses) Reclassified September 30, (In thousands) 2017 2016 from AOCI into Income 2017 2016 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ (619 ) $ — Cost of Sales $ (423 ) $ — |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | 8. INVENTORY At September 30, 2017 and December 31, 2016, inventory consisted of the following: September 30, December 31, (In thousands) 2017 2016 Raw materials $ 44,002 $ 40,461 Work in process 4,859 4,003 Finished goods 67,369 60,653 Total $ 116,230 $ 105,117 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 September 30, 2017 and December 31, 2016, raw materials reserves totaled $16.8 million and $14.6 million, respectively, and finished goods inventory reserves totaled $12.9 million and $10.6 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. GOODWILL AND INTANGIBLE ASSETS Goodwill, all of which relates to our acquisition of Bluesocket, Inc., was $3.5 million at September 30, 2017 and December 31, 2016, of which $3.1 million and $0.4 million is allocated 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 and include intangibles acquired in conjunction with our acquisitions of Bluesocket, Inc. on August 4, 2011, the NSN BBA business on May 4, 2012, and CommScope’s active fiber access business on September 13, 2016. The following table presents our intangible assets as of September 30, 2017 and December 31, 2016: (In thousands) September 30, 2017 December 31, 2016 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 7,400 $ (4,042 ) $ 3,358 $ 6,899 $ (3,208 ) $ 3,691 Developed technology 6,740 (5,789 ) 951 6,444 (5,061 ) 1,383 Intellectual property 2,340 (2,229 ) 111 2,340 (2,129 ) 211 Supply agreement 1,400 (1,400 ) — 1,400 (544 ) 856 License 500 (403 ) 97 500 (113 ) 387 Patent 500 (71 ) 429 500 (20 ) 480 Trade names 370 (322 ) 48 370 (285 ) 85 Non-compete 200 (93 ) 107 200 (26 ) 174 Total $ 19,450 $ (14,349 ) $ 5,101 $ 18,653 $ (11,386 ) $ 7,267 Amortization expense, all of which relates to business acquisitions, was $0.5 million for the three months ended September 30, 2017 and 2016, and $2.4 million and $1.4 million for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the estimated future amortization expense of our intangible assets is as follows: (In thousands) Amount Remainder of 2017 $ 473 2018 1,207 2019 691 2020 654 2021 599 Thereafter 1,477 Total $ 5,101 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. STOCKHOLDERS’ EQUITY A summary of the changes in stockholders’ equity for the nine months ended September 30, 2017 is as follows: (In thousands) Stockholders’ Equity Balance, December 31, 2016 $ 479,517 Net income 34,950 Dividend payments (13,031 ) Dividends accrued for unvested restricted stock units (43 ) Net unrealized gains on available-for-sale securities (net of tax) 2,512 Net unrealized losses on cash flow hedges (net of tax) (196 ) Defined benefit plan adjustments (net of tax) 214 Foreign currency translation adjustment 5,402 Proceeds from stock option exercises 6,606 Purchase of treasury stock (17,348 ) ASU 2016-09 adoption 10 Stock-based compensation expense 5,573 Balance, September 30, 2017 $ 504,166 Stock Repurchase Program Since 1997, our Board of Directors has approved multiple share repurchase programs that have authorized open market repurchase transactions of up to 50.0 million shares of our common stock, which will be implemented through open market or private purchases from time to time as conditions warrant. During the nine months ended September 30, 2017, we repurchased 0.9 million shares of our common stock at an average price of $20.27 per share. As of September 30, 2017, we have the authority to purchase an additional 3.6 million shares of our common stock under the current plans approved by the Board of Directors. Stock Option Exercises We issued 0.4 million shares of treasury stock during the nine months ended September 30, 2017 to accommodate employee stock option exercises. The stock options had exercise prices ranging from $15.29 to $23.64. We received proceeds totaling $6.6 million from the exercise of these stock options during the nine months ended September 30, 2017. Dividend Payments During the nine months ended September 30, 2017, we paid cash dividends as follows (in thousands except per share amounts): Record Date Payment Date Per Share Amount Total Dividend Paid February 2, 2017 February 16, 2017 $ 0.09 $ 4,369 May 4, 2017 May 18, 2017 $ 0.09 $ 4,350 August 3, 2017 August 17, 2017 $ 0.09 $ 4,312 Other Comprehensive Income Other comprehensive income consists of unrealized gains (losses) on available-for-sale securities; unrealized gains (losses) on cash flow hedges; reclassification adjustments for amounts included in net income related to impairments of available-for-sale securities, realized gains (losses) on available-for-sale securities, realized gains (losses) on cash flow hedges, and amortization of actuarial gains (losses) related to our defined benefit plan; defined benefit plan adjustments; and foreign currency translation adjustments. The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 2,112 $ (338 ) $ (4,876 ) $ (3,714 ) $ (6,816 ) Other comprehensive income (loss) before reclassifications 1,420 (127 ) — 1,541 2,834 Amounts reclassified from accumulated other comprehensive income (616 ) 269 73 — (274 ) Net current period other comprehensive income (loss) 804 142 73 1,541 2,560 Ending balance $ 2,916 $ (196 ) $ (4,803 ) $ (2,173 ) $ (4,256 ) Three Months Ended September 30, 2016 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 1,512 $ (3,828 ) $ (6,379 ) $ (8,695 ) Other comprehensive income (loss) before reclassifications 1,028 — 575 1,603 Amounts reclassified from accumulated other comprehensive income (770 ) 36 — (734 ) Net current period other comprehensive income (loss) 258 36 575 869 Ending balance $ 1,770 $ (3,792 ) $ (5,804 ) $ (7,826 ) Nine Months Ended September 30, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 404 $ — $ (5,017 ) $ (7,575 ) $ (12,188 ) Other comprehensive income (loss) before reclassifications 4,262 (619 ) — 5,402 9,045 Amounts reclassified from accumulated other comprehensive income (1,750 ) 423 214 — (1,113 ) Net current period other comprehensive income (loss) 2,512 (196 ) 214 5,402 7,932 Ending balance $ 2,916 $ (196 ) $ (4,803 ) $ (2,173 ) $ (4,256 ) Nine Months Ended September 30, 2016 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 1,932 $ (3,895 ) $ (7,006 ) $ (8,969 ) Other comprehensive income (loss) before reclassifications 2,267 — 1,202 3,469 Amounts reclassified from accumulated other comprehensive income (2,429 ) 103 — (2,326 ) Net current period other comprehensive income (loss) (162 ) 103 1,202 1,143 Ending balance $ 1,770 $ (3,792 ) $ (5,804 ) $ (7,826 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2017 and 2016: (In thousands) Three Months Ended September 30, 2017 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 $ 1,066 Net realized investment gain Impairment expense (57 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (385 ) Cost of sales Defined benefit plan adjustments – actuarial losses (106 ) (1) Total reclassifications for the period, before tax 518 Tax (expense) benefit (244 ) Total reclassifications for the period, net of tax $ 274 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Three Months Ended September 30, 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 $ 1,268 Net realized investment gain Impairment expense (6 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (51 ) (1) Total reclassifications for the period, before tax 1,211 Tax (expense) benefit (477 ) Total reclassifications for the period, net of tax $ 734 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Nine Months Ended September 30, 2017 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 $ 3,031 Net realized investment gain Impairment expense (162 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (539 ) Cost of sales Defined benefit plan adjustments – actuarial losses (310 ) (1) Total reclassifications for the period, before tax 2,020 Tax (expense) benefit (907 ) Total reclassifications for the period, net of tax $ 1,113 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Nine Months Ended September 30, 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 $ 4,383 Net realized investment gain Impairment expense (401 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (149 ) (1) Total reclassifications for the period, before tax 3,833 Tax (expense) benefit (1,507 ) Total reclassifications for the period, net of tax $ 2,326 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended September 30, 2017 and 2016: Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,328 $ (908 ) $ 1,420 $ 1,685 $ (657 ) $ 1,028 Unrealized gains (losses) on cash flow hedges (184 ) 57 (127 ) — — — Reclassification adjustment for amounts related to available-for-sale investments included in net income (1,009 ) 393 (616 ) (1,262 ) 492 (770 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 385 (116 ) 269 — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 106 (33 ) 73 51 (15 ) 36 Foreign currency translation adjustment 1,541 — 1,541 575 — 575 Total Other Comprehensive Income (Loss) $ 3,167 $ (607 ) $ 2,560 $ 1,049 $ (180 ) $ 869 The following table presents the tax effects related to the change in each component of other comprehensive income for the nine months ended September 30, 2017 and 2016: Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 6,987 $ (2,725 ) $ 4,262 $ 3,716 $ (1,449 ) $ 2,267 Unrealized gains (losses) on cash flow hedges (897 ) 278 (619 ) — — — Reclassification adjustment for amounts related to available-for-sale investments included in net income (2,869 ) 1,119 (1,750 ) (3,982 ) 1,553 (2,429 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 539 (116 ) 423 — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 310 (96 ) 214 149 (46 ) 103 Foreign currency translation adjustment 5,402 — 5,402 1,202 — 1,202 Total Other Comprehensive Income (Loss) $ 9,472 $ (1,540 ) $ 7,932 $ 1,085 $ 58 $ 1,143 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. EARNINGS PER SHARE A summary of the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2017 2016 2017 2016 Numerator Net income $ 15,898 $ 12,415 $ 34,950 $ 27,657 Denominator Weighted average number of shares – basic 47,870 48,470 48,110 48,839 Effect of dilutive securities Stock options 487 137 385 137 PSUs, RSUs and restricted stock 174 71 123 60 Weighted average number of shares – diluted 48,531 48,678 48,618 49,036 Net income per share – basic $ 0.33 $ 0.26 $ 0.73 $ 0.57 Net income per share – diluted $ 0.33 $ 0.26 $ 0.72 $ 0.56 Anti-dilutive options to purchase common stock outstanding were excluded from the above calculations. Anti-dilutive options totaled 3.2 million and 5.6 million for the three months ended September 30, 2017 and 2016, respectively, and 3.9 million and 5.7 million for the nine months ended September 30, 2017 and 2016, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 12. SEGMENT INFORMATION We operate in two reportable segments: (1) Network Solutions and (2) 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 ® We evaluate the performance of our segments based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net realized investment gain/loss, other income/expense and provision for taxes are reported on a company-wide, functional basis only. There are no inter-segment revenues. The following table presents information about the reported sales and gross profit of our reportable segments for the three and nine months ended September 30, 2017 and 2016. We do not produce asset information by reportable segment; therefore, it is not reported. Three Months Ended September 30, 2017 September 30, 2016 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 145,467 $ 71,939 $ 136,277 $ 65,289 Services & Support 39,645 14,559 32,613 10,519 Total $ 185,112 $ 86,498 $ 168,890 $ 75,808 Nine Months Ended September 30, 2017 September 30, 2016 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 444,607 $ 214,762 $ 398,709 $ 195,804 Services & Support 95,457 30,083 75,086 24,753 Total $ 540,064 $ 244,845 $ 473,795 $ 220,557 Sales by Category In addition to our reporting segments, we also report revenue for the following three categories – Access & Aggregation, Customer Devices, Traditional & Other Products. The table below presents sales information by category for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Access & Aggregation $ 135,959 $ 120,618 $ 394,741 $ 316,705 Customer Devices 35,582 32,984 105,683 106,213 Traditional & Other Products 13,571 15,288 39,640 50,877 Total $ 185,112 $ 168,890 $ 540,064 $ 473,795 |
Liability for Warranty Returns
Liability for Warranty Returns | 9 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Liability for Warranty Returns | 13. LIABILITY FOR WARRANTY RETURNS 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. The liability for warranty obligations totaled $10.9 million and $8.5 million at September 30, 2017 and December 31, 2016 respectively. During the three months ended March 31, 2017, we recorded a receivable and a reduction in warranty expense related to a settlement with a third party supplier for a defective component, the impact of which is reflected in the table below. These liabilities are included in accrued expenses in the accompanying Consolidated Balance Sheets. A summary of warranty expense and write-off activity for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Balance at beginning of period $ 9,180 $ 8,935 $ 8,548 $ 8,739 Plus: Amounts charged to cost and expenses 4,087 4,012 6,401 6,341 Less: Deductions (2,328 ) (4,195 ) (4,010 ) (6,328 ) Balance at end of period $ 10,939 $ 8,752 $ 10,939 $ 8,752 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, we may be subject to various legal proceedings and claims, including employment disputes, patent claims, disputes over contract agreements and other commercial disputes. In some cases, claimants seek damages or other relief, such as royalty payments related to patents, which, if granted, could require significant expenditures. Although the outcome of any claim or litigation can never be certain, it is our opinion that the outcome of all contingencies of which we are currently aware will not materially affect our business, operations, financial condition or cash flows. We have committed to invest up to an aggregate of $7.9 million in two private equity funds, and we have contributed $8.4 million as of September 30, 2017, of which $7.7 million has been applied to these commitments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. SUBSEQUENT EVENTS On October 17, 2017, we announced that our Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to stockholders of record at the close of business on November 1, 2017. The payment date will be November 15, 2017. The quarterly dividend payment will be approximately $4.3 million. In July 2003, our Board of Directors elected to begin declaring quarterly dividends on our common stock considering the tax treatment of dividends and adequate levels of Company liquidity. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of ADTRAN ® In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 24, 2017 with the SEC. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, We are finalizing our assessment of the proper method of measuring progress toward satisfaction of each respective contract performance obligation for our network installation services revenues. At this time, we believe the output method will be used to measure network installation services progress. We believe the primary impact will be accelerated revenue recognition for certain performance obligations related to revenue arrangements that are currently deferred until customer acceptance. In connection with the adoption of the new revenue standard, effective January 1, 2018, we will also adopt ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers We do not believe there will be a significant impact to product or maintenance revenues. However, we are still assessing the impact of the allocation of revenue between deliverables with multiple performance obligations and timing of revenue recognition. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued Accounting Standards Update No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Compensation — Retirement Benefits In August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities During 2017, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory Inventory In January 2017, we adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Final Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities Assumed | The final allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date 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 Unaudited Supplemental Pro Forma Information | The following unaudited supplemental pro forma information presents the financial results as if the acquisition had occurred on January 1, 2015. This unaudited supplemental 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. Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2016 2015 2016 2015 Pro forma revenue $ 170,498 $ 159,375 $ 478,184 $ 463,916 Pro forma net income $ 9,495 $ 6,691 $ 24,761 $ 15,071 Pro forma earnings per share - basic $ 0.20 $ 0.13 $ 0.51 $ 0.29 Pro forma earnings per share - diluted $ 0.20 $ 0.13 $ 0.50 $ 0.29 |
Pension Benefit Plan (Tables)
Pension Benefit Plan (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Summarization of Components of Net Periodic Pension Cost | The following table summarizes the components of net periodic pension cost for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Service cost $ 327 $ 305 $ 930 $ 912 Interest cost 158 182 448 542 Expected return on plan assets (329 ) (266 ) (935 ) (796 ) Amortization of actuarial losses 80 44 228 132 Net periodic pension cost $ 236 $ 265 $ 671 $ 790 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense Related to Stock Options, Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Restricted Stock | The following table summarizes the stock-based compensation expense related to stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock for the three and nine months ended September 30, 2017 and 2016, which was recognized as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Stock-based compensation expense included in cost of sales $ 97 $ 88 $ 281 $ 282 Selling, general and administrative expense 994 765 3,018 2,322 Research and development expense 743 639 2,274 1,997 Stock-based compensation expense included in operating expenses 1,737 1,404 5,292 4,319 Total stock-based compensation expense 1,834 1,492 5,573 4,601 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (402 ) (218 ) (1,215 ) (643 ) Total stock-based compensation expense, net of tax $ 1,432 $ 1,274 $ 4,358 $ 3,958 |
Summary of Stock Options Outstanding | The following table is a summary of our stock options outstanding as of December 31, 2016 and September 30, 2017 and the changes that occurred during the nine months ended September 30, 2017: (In thousands, except per share amounts) Number of Stock Options Weighted Avg. Exercise Price Weighted Avg. Remaining Contractual Life In Years Aggregate Intrinsic Value Stock options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Stock options granted — $ — Stock options exercised (358 ) $ 18.44 Stock options forfeited (54 ) $ 17.49 Stock options expired (90 ) $ 27.31 Stock options outstanding, September 30, 2017 5,836 $ 22.33 4.92 $ 20,669 Stock options vested and expected to vest, September 30, 2017 5,836 $ 22.33 4.92 $ 20,669 Stock options exercisable, September 30, 2017 4,311 $ 24.02 3.99 $ 10,845 |
Summary of Weighted-Average Assumptions and Value of Options Granted | The weighted-average assumptions and value of options granted during the three and nine months ended September 30, 2016 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2016 Expected volatility 34.55 % 34.66 % Risk-free interest rate 1.20 % 1.28 % Expected dividend yield 1.83 % 1.88 % Expected life (in years) 6.21 6.24 Weighted-average estimated value $ 5.64 $ 5.50 |
Summary of PSUs, RSUs and Restricted Stock Outstanding | The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2016 and the changes that occurred during the nine months ended September 30, 2017: (In thousands, except per share amounts) Number of Shares Weighted Avg. Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2016 519 $ 20.51 PSUs, RSUs and restricted stock granted 526 $ 22.23 PSUs, RSUs and restricted stock vested (4 ) $ 18.00 PSUs, RSUs and restricted stock forfeited (21 ) $ 20.88 Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2017 1,020 $ 21.40 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Securities and Investments, Recorded at Either Fair Value or Cost | At September 30, 2017, we held the following securities and investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 15,898 $ 3,230 $ (15 ) $ 19,113 Corporate bonds 45,223 75 (79 ) 45,219 Municipal fixed-rate bonds 4,887 4 (17 ) 4,874 Asset-backed bonds 7,791 5 (11 ) 7,785 Mortgage/Agency-backed bonds 7,364 7 (41 ) 7,330 U.S. government bonds 21,000 3 (109 ) 20,894 Foreign government bonds 725 3 — 728 Marketable equity securities 32,394 2,649 (961 ) 34,082 Available-for-sale securities held at fair value $ 135,282 $ 5,976 $ (1,233 ) $ 140,025 Restricted investment held at cost 27,800 Other investments held at cost 547 Total carrying value of available-for-sale investments $ 168,372 At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: 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 held at cost 767 Total carrying value of available-for-sale investments $ 219,290 |
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 September 30, 2017, our 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 $ 20,232 $ 2,250 $ — $ — $ 8,903 $ — One to two years 11,678 724 $ 2,638 — — — Two to three years 10,029 730 2,235 — 10,413 728 Three to five years 3,280 1,170 1,550 917 1,578 — Five to ten years — — 450 1,348 — — More than ten years — — 912 5,065 — — Total $ 45,219 $ 4,874 $ 7,785 $ 7,330 $ 20,894 $ 728 |
Gross Realized Gains and Losses on Sale of Securities | The following table presents gross realized gains and losses related to our investments: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Gross realized gains $ 1,094 $ 1,346 $ 3,324 $ 5,226 Gross realized losses $ (85 ) $ (30 ) $ (455 ) $ (1,072 ) |
Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments | We have categorized our cash equivalents held in money market funds and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. Fair Value Measurements at September 30, 2017 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 8,115 $ 8,115 $ — $ — Commercial Paper 35,436 — 35,436 — Cash equivalents 43,551 8,115 35,436 — Available-for-sale securities Deferred compensation plan assets 19,113 19,113 — — Available-for-sale debt securities Corporate bonds 45,219 — 45,219 — Municipal fixed-rate bonds 4,874 — 4,874 — Asset-backed bonds 7,785 — 7,785 — Mortgage/Agency-backed bonds 7,330 — 7,330 — U.S. government bonds 20,894 20,894 — — Foreign government bonds 728 — 728 — Available-for-sale marketable equity securities Marketable equity securities – various industries 34,082 34,082 — — Available-for-sale securities 140,025 74,089 65,936 — Total $ 183,576 $ 82,204 $ 101,372 $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Market 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 – various industries 29,379 29,379 — — Available-for-sale securities 190,723 73,742 116,981 — Total $ 214,823 $ 80,620 $ 134,203 $ — |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 were as follows: (In thousands) Balance Sheet Location September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ — $ 159 Foreign exchange contracts – derivative liabilities Accounts payable (402 ) — Total derivatives $ (402 ) $ 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 three and nine months ended September 30, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended Income Statement September 30, September 30, (In thousands) Location 2017 2016 2017 2016 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ (334 ) $ (37 ) $ (819 ) $ 153 |
Schedule of Change in Derivatives Designated Hedging Instruments Recorded in Other Comprehensive Income (OCI) and Reclassified to Income, Net of Tax | The change in our derivatives designated as hedging instruments recorded in other comprehensive income (OCI) and reclassified to income, net of tax, during the three and nine months ended September 30, 2017 and 2016 were as follows: Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Three Months Ended Location of Gains Three Months Ended September 30, (Losses) Reclassified September 30, (In thousands) 2017 2016 from AOCI into Income 2017 2016 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ (127 ) $ — Cost of Sales $ (269 ) $ — Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Nine Months Ended Location of Gains Nine Months Ended September 30, (Losses) Reclassified September 30, (In thousands) 2017 2016 from AOCI into Income 2017 2016 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ (619 ) $ — Cost of Sales $ (423 ) $ — |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | At September 30, 2017 and December 31, 2016, inventory consisted of the following: September 30, December 31, (In thousands) 2017 2016 Raw materials $ 44,002 $ 40,461 Work in process 4,859 4,003 Finished goods 67,369 60,653 Total $ 116,230 $ 105,117 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents our intangible assets as of September 30, 2017 and December 31, 2016: (In thousands) September 30, 2017 December 31, 2016 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 7,400 $ (4,042 ) $ 3,358 $ 6,899 $ (3,208 ) $ 3,691 Developed technology 6,740 (5,789 ) 951 6,444 (5,061 ) 1,383 Intellectual property 2,340 (2,229 ) 111 2,340 (2,129 ) 211 Supply agreement 1,400 (1,400 ) — 1,400 (544 ) 856 License 500 (403 ) 97 500 (113 ) 387 Patent 500 (71 ) 429 500 (20 ) 480 Trade names 370 (322 ) 48 370 (285 ) 85 Non-compete 200 (93 ) 107 200 (26 ) 174 Total $ 19,450 $ (14,349 ) $ 5,101 $ 18,653 $ (11,386 ) $ 7,267 |
Estimated Future Amortization Expense Related to Intangible Assets | As of September 30, 2017, the estimated future amortization expense of our intangible assets is as follows: (In thousands) Amount Remainder of 2017 $ 473 2018 1,207 2019 691 2020 654 2021 599 Thereafter 1,477 Total $ 5,101 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Summary of Changes in Stockholders' Equity | A summary of the changes in stockholders’ equity for the nine months ended September 30, 2017 is as follows: (In thousands) Stockholders’ Equity Balance, December 31, 2016 $ 479,517 Net income 34,950 Dividend payments (13,031 ) Dividends accrued for unvested restricted stock units (43 ) Net unrealized gains on available-for-sale securities (net of tax) 2,512 Net unrealized losses on cash flow hedges (net of tax) (196 ) Defined benefit plan adjustments (net of tax) 214 Foreign currency translation adjustment 5,402 Proceeds from stock option exercises 6,606 Purchase of treasury stock (17,348 ) ASU 2016-09 adoption 10 Stock-based compensation expense 5,573 Balance, September 30, 2017 $ 504,166 |
Cash Dividends | During the nine months ended September 30, 2017, we paid cash dividends as follows (in thousands except per share amounts): Record Date Payment Date Per Share Amount Total Dividend Paid February 2, 2017 February 16, 2017 $ 0.09 $ 4,369 May 4, 2017 May 18, 2017 $ 0.09 $ 4,350 August 3, 2017 August 17, 2017 $ 0.09 $ 4,312 |
Changes in Accumulated Other Comprehensive Income, Net of Tax by Component | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 2,112 $ (338 ) $ (4,876 ) $ (3,714 ) $ (6,816 ) Other comprehensive income (loss) before reclassifications 1,420 (127 ) — 1,541 2,834 Amounts reclassified from accumulated other comprehensive income (616 ) 269 73 — (274 ) Net current period other comprehensive income (loss) 804 142 73 1,541 2,560 Ending balance $ 2,916 $ (196 ) $ (4,803 ) $ (2,173 ) $ (4,256 ) Three Months Ended September 30, 2016 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 1,512 $ (3,828 ) $ (6,379 ) $ (8,695 ) Other comprehensive income (loss) before reclassifications 1,028 — 575 1,603 Amounts reclassified from accumulated other comprehensive income (770 ) 36 — (734 ) Net current period other comprehensive income (loss) 258 36 575 869 Ending balance $ 1,770 $ (3,792 ) $ (5,804 ) $ (7,826 ) Nine Months Ended September 30, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 404 $ — $ (5,017 ) $ (7,575 ) $ (12,188 ) Other comprehensive income (loss) before reclassifications 4,262 (619 ) — 5,402 9,045 Amounts reclassified from accumulated other comprehensive income (1,750 ) 423 214 — (1,113 ) Net current period other comprehensive income (loss) 2,512 (196 ) 214 5,402 7,932 Ending balance $ 2,916 $ (196 ) $ (4,803 ) $ (2,173 ) $ (4,256 ) Nine Months Ended September 30, 2016 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 1,932 $ (3,895 ) $ (7,006 ) $ (8,969 ) Other comprehensive income (loss) before reclassifications 2,267 — 1,202 3,469 Amounts reclassified from accumulated other comprehensive income (2,429 ) 103 — (2,326 ) Net current period other comprehensive income (loss) (162 ) 103 1,202 1,143 Ending balance $ 1,770 $ (3,792 ) $ (5,804 ) $ (7,826 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2017 and 2016: (In thousands) Three Months Ended September 30, 2017 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 $ 1,066 Net realized investment gain Impairment expense (57 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (385 ) Cost of sales Defined benefit plan adjustments – actuarial losses (106 ) (1) Total reclassifications for the period, before tax 518 Tax (expense) benefit (244 ) Total reclassifications for the period, net of tax $ 274 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Three Months Ended September 30, 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 $ 1,268 Net realized investment gain Impairment expense (6 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (51 ) (1) Total reclassifications for the period, before tax 1,211 Tax (expense) benefit (477 ) Total reclassifications for the period, net of tax $ 734 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Nine Months Ended September 30, 2017 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 $ 3,031 Net realized investment gain Impairment expense (162 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (539 ) Cost of sales Defined benefit plan adjustments – actuarial losses (310 ) (1) Total reclassifications for the period, before tax 2,020 Tax (expense) benefit (907 ) Total reclassifications for the period, net of tax $ 1,113 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. (In thousands) Nine Months Ended September 30, 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 $ 4,383 Net realized investment gain Impairment expense (401 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (149 ) (1) Total reclassifications for the period, before tax 3,833 Tax (expense) benefit (1,507 ) Total reclassifications for the period, net of tax $ 2,326 (1) Included in the computation of net periodic pension cost. See Note 4 of Notes to Consolidated Financial Statements. |
Other Comprehensive Income | The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended September 30, 2017 and 2016: Three Months Ended Three Months Ended September 30, 2017 September 30, 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,328 $ (908 ) $ 1,420 $ 1,685 $ (657 ) $ 1,028 Unrealized gains (losses) on cash flow hedges (184 ) 57 (127 ) — — — Reclassification adjustment for amounts related to available-for-sale investments included in net income (1,009 ) 393 (616 ) (1,262 ) 492 (770 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 385 (116 ) 269 — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 106 (33 ) 73 51 (15 ) 36 Foreign currency translation adjustment 1,541 — 1,541 575 — 575 Total Other Comprehensive Income (Loss) $ 3,167 $ (607 ) $ 2,560 $ 1,049 $ (180 ) $ 869 The following table presents the tax effects related to the change in each component of other comprehensive income for the nine months ended September 30, 2017 and 2016: Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 6,987 $ (2,725 ) $ 4,262 $ 3,716 $ (1,449 ) $ 2,267 Unrealized gains (losses) on cash flow hedges (897 ) 278 (619 ) — — — Reclassification adjustment for amounts related to available-for-sale investments included in net income (2,869 ) 1,119 (1,750 ) (3,982 ) 1,553 (2,429 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 539 (116 ) 423 — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 310 (96 ) 214 149 (46 ) 103 Foreign currency translation adjustment 5,402 — 5,402 1,202 — 1,202 Total Other Comprehensive Income (Loss) $ 9,472 $ (1,540 ) $ 7,932 $ 1,085 $ 58 $ 1,143 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Earnings Per Share | A summary of the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2017 2016 2017 2016 Numerator Net income $ 15,898 $ 12,415 $ 34,950 $ 27,657 Denominator Weighted average number of shares – basic 47,870 48,470 48,110 48,839 Effect of dilutive securities Stock options 487 137 385 137 PSUs, RSUs and restricted stock 174 71 123 60 Weighted average number of shares – diluted 48,531 48,678 48,618 49,036 Net income per share – basic $ 0.33 $ 0.26 $ 0.73 $ 0.57 Net income per share – diluted $ 0.33 $ 0.26 $ 0.72 $ 0.56 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Sales and Gross Profit of Reportable Segments | The following table presents information about the reported sales and gross profit of our reportable segments for the three and nine months ended September 30, 2017 and 2016. We do not produce asset information by reportable segment; therefore, it is not reported. Three Months Ended September 30, 2017 September 30, 2016 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 145,467 $ 71,939 $ 136,277 $ 65,289 Services & Support 39,645 14,559 32,613 10,519 Total $ 185,112 $ 86,498 $ 168,890 $ 75,808 Nine Months Ended September 30, 2017 September 30, 2016 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 444,607 $ 214,762 $ 398,709 $ 195,804 Services & Support 95,457 30,083 75,086 24,753 Total $ 540,064 $ 244,845 $ 473,795 $ 220,557 |
Sales Information by Category | The table below presents sales information by category for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Access & Aggregation $ 135,959 $ 120,618 $ 394,741 $ 316,705 Customer Devices 35,582 32,984 105,683 106,213 Traditional & Other Products 13,571 15,288 39,640 50,877 Total $ 185,112 $ 168,890 $ 540,064 $ 473,795 |
Liability for Warranty Returns
Liability for Warranty Returns (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2017 2016 2017 2016 Balance at beginning of period $ 9,180 $ 8,935 $ 8,548 $ 8,739 Plus: Amounts charged to cost and expenses 4,087 4,012 6,401 6,341 Less: Deductions (2,328 ) (4,195 ) (4,010 ) (6,328 ) Balance at end of period $ 10,939 $ 8,752 $ 10,939 $ 8,752 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jan. 31, 2017 | Dec. 31, 2016 |
Summary of Significant Accounting Policy [Line Items] | |||
Retained earnings | $ 941,845 | $ 921,942 | |
ASU 2016-09 [Member] | |||
Summary of Significant Accounting Policy [Line Items] | |||
Increase in additional paid in capital | $ 100 | ||
Retained earnings | 100 | ||
ASU 2016-09 [Member] | Non-qualified Stock Options and RSUs [Member] | |||
Summary of Significant Accounting Policy [Line Items] | |||
Increase in deferred tax assets | $ 10 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 13, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 943 | ||||
Bargain purchase gain net of income taxes | $ 3,550 | $ 3,550 | |||
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 | 3,500 | |||
Business acquisition estimated reduce in bargain purchase gain recognized amount | $ 8 | ||||
Acquisition and integration related expenses and amortization of acquired intangibles | $ 200 | $ 1,600 |
Business Combinations -Final Al
Business Combinations -Final Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 13, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Liabilities | |||
Gain on bargain purchase of a business, net of tax | $ (3,550) | $ (3,550) | |
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) | $ (3,500) | |
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 Unaudited Supplemental Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Combinations [Abstract] | ||||
Pro forma revenue | $ 170,498 | $ 159,375 | $ 478,184 | $ 463,916 |
Pro forma net income | $ 9,495 | $ 6,691 | $ 24,761 | $ 15,071 |
Pro forma earnings per share - basic | $ 0.20 | $ 0.13 | $ 0.51 | $ 0.29 |
Pro forma earnings per share - diluted | $ 0.20 | $ 0.13 | $ 0.50 | $ 0.29 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.10% | 34.00% |
Pension Benefit Plan - Summariz
Pension Benefit Plan - Summarization of Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service cost | $ 327 | $ 305 | $ 930 | $ 912 |
Interest cost | 158 | 182 | 448 | 542 |
Expected return on plan assets | (329) | (266) | (935) | (796) |
Amortization of actuarial losses | 80 | 44 | 228 | 132 |
Net periodic pension cost | $ 236 | $ 265 | $ 671 | $ 790 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Restricted Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,834 | $ 1,492 | $ 5,573 | $ 4,601 |
Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock | (402) | (218) | (1,215) | (643) |
Total stock-based compensation expense, net of tax | 1,432 | 1,274 | 4,358 | 3,958 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 97 | 88 | 281 | 282 |
Selling, General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 994 | 765 | 3,018 | 2,322 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 743 | 639 | 2,274 | 1,997 |
Operating Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,737 | $ 1,404 | $ 5,292 | $ 4,319 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Stock Options, Stock options outstanding, Beginning Balance | 6,338,000 | ||
Number of Stock Options, Stock options granted | 0 | 0 | |
Number of Stock Options, Stock options exercised | (358,000) | ||
Number of Stock Options, Stock options forfeited | (54,000) | ||
Number of Stock Options, Stock options expired | (90,000) | ||
Number of Stock Options, Stock options outstanding, Ending Balance | 5,836,000 | 5,836,000 | 6,338,000 |
Number of Stock Options, Stock options vested and expected to vest | 5,836,000 | 5,836,000 | |
Number of Stock Options, Stock options exercisable | 4,311,000 | 4,311,000 | |
Weighted Avg. Exercise Price, Stock options outstanding, Beginning Balance | $ 22.14 | ||
Weighted Avg. Exercise Price, Stock options exercised | 18.44 | ||
Weighted Avg. Exercise Price, Stock options forfeited | 17.49 | ||
Weighted Avg. Exercise Price, Stock options expired | 27.31 | ||
Weighted Avg. Exercise Price, Stock options outstanding, Ending Balance | $ 22.33 | 22.33 | $ 22.14 |
Weighted Avg. Exercise Price, Stock options vested and expected to vest | 22.33 | 22.33 | |
Weighted Avg. Exercise Price, Stock options exercisable | $ 24.02 | $ 24.02 | |
Weighted Avg. Remaining Contractual Life In Years, Stock options outstanding | 4 years 11 months 1 day | 5 years 7 months 17 days | |
Weighted Avg. Remaining Contractual Life In Years, Stock options vested and expected to vest | 4 years 11 months 1 day | ||
Weighted Avg. Remaining Contractual Life In Years, Stock options exercisable | 3 years 11 months 26 days | ||
Aggregate Intrinsic Value, Stock options outstanding | $ 20,669 | $ 20,669 | $ 16,972 |
Aggregate Intrinsic Value, Stock options vested and expected to vest | 20,669 | 20,669 | |
Aggregate Intrinsic Value, Stock options exercisable | $ 10,845 | $ 10,845 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($)shares | Sep. 30, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax intrinsic value of options exercised | $ 1.1 | $ 1.6 |
Number of Stock options, granted | shares | 0 | 0 |
Unvested Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to stock options | $ 4 | $ 4 |
Recognition period of unvested compensation expense | 1 year 8 months 13 days |
Stock-Based Compensation - Su44
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 34.55% | 34.66% |
Risk-free interest rate | 1.20% | 1.28% |
Expected dividend yield | 1.83% | 1.88% |
Expected life (in years) | 6 years 2 months 16 days | 6 years 2 months 27 days |
Weighted-average estimated value | $ 5.64 | $ 5.50 |
Stock-Based Compensation - Su45
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares | 519 |
Number of Shares, PSUs, RSUs and restricted stock granted | shares | 526 |
Number of Shares, PSUs, RSUs and restricted stock vested | shares | (4) |
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares | (21) |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares | 1,020 |
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares | $ 20.51 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares | 22.23 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares | 18 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares | 20.88 |
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares | $ 21.40 |
Stock-Based Compensation (PSUs,
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
PSU shares grant approved by board of directors | 526 | ||||
Compensation expense recognized | $ 1,834,000 | $ 1,492,000 | $ 5,573,000 | $ 4,601,000 | |
Performance Stock Units (PSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
PSU shares grant approved by board of directors | 500 | ||||
Market-Based PSUs, RSUs and Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to other than options | 7,100,000 | $ 7,100,000 | |||
Recognition period of unvested compensation expense | 2 years 9 months 19 days | ||||
Performance-Based PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to other than options | 11,500,000 | $ 11,500,000 | |||
Recognition period of unvested compensation expense | 3 years | ||||
Performance-Based PSU Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense recognized | $ 0 | $ 0 |
Investments - Securities and In
Investments - Securities and Investments, Recorded at Either Fair Value or Cost (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 135,282 | $ 190,146 |
Gross Unrealized Gains | 5,976 | 2,709 |
Gross Unrealized Losses | (1,233) | (2,132) |
Available-for-sale-securities, Carrying Value | 140,025 | 190,723 |
Restricted investment held at cost | 27,800 | 27,800 |
Other investments held at cost | 547 | 767 |
Total carrying value of available-for-sale investments | 168,372 | 219,290 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,898 | 12,367 |
Gross Unrealized Gains | 3,230 | 2,271 |
Gross Unrealized Losses | (15) | (42) |
Available-for-sale-securities, Carrying Value | 19,113 | 14,596 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 45,223 | 66,522 |
Gross Unrealized Gains | 75 | 64 |
Gross Unrealized Losses | (79) | (174) |
Available-for-sale-securities, Carrying Value | 45,219 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,887 | 11,799 |
Gross Unrealized Gains | 4 | 12 |
Gross Unrealized Losses | (17) | (37) |
Available-for-sale-securities, Carrying Value | 4,874 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,791 | 10,201 |
Gross Unrealized Gains | 5 | 19 |
Gross Unrealized Losses | (11) | (14) |
Available-for-sale-securities, Carrying Value | 7,785 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,364 | 13,080 |
Gross Unrealized Gains | 7 | 15 |
Gross Unrealized Losses | (41) | (91) |
Available-for-sale-securities, Carrying Value | 7,330 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,000 | 30,022 |
Gross Unrealized Gains | 3 | 15 |
Gross Unrealized Losses | (109) | (270) |
Available-for-sale-securities, Carrying Value | 20,894 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 725 | 3,729 |
Gross Unrealized Gains | 3 | 2 |
Gross Unrealized Losses | (1) | |
Available-for-sale-securities, Carrying Value | 728 | 3,730 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,855 | |
Available-for-sale-securities, Carrying Value | 11,855 | |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 32,394 | 30,571 |
Gross Unrealized Gains | 2,649 | 311 |
Gross Unrealized Losses | (961) | (1,503) |
Available-for-sale-securities, Carrying Value | $ 34,082 | $ 29,379 |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-securities, Fair Value/Carrying Value | $ 140,025 | $ 190,723 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 20,232 | |
One to two years | 11,678 | |
Two to three years | 10,029 | |
Three to five years | 3,280 | |
Available-for-sale-securities, Fair Value/Carrying Value | 45,219 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 2,250 | |
One to two years | 724 | |
Two to three years | 730 | |
Three to five years | 1,170 | |
Available-for-sale-securities, Fair Value/Carrying Value | 4,874 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 2,638 | |
Two to three years | 2,235 | |
Three to five years | 1,550 | |
Five to ten years | 450 | |
More than ten years | 912 | |
Available-for-sale-securities, Fair Value/Carrying Value | 7,785 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Three to five years | 917 | |
Five to ten years | 1,348 | |
More than ten years | 5,065 | |
Available-for-sale-securities, Fair Value/Carrying Value | 7,330 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 8,903 | |
Two to three years | 10,413 | |
Three to five years | 1,578 | |
Available-for-sale-securities, Fair Value/Carrying Value | 20,894 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Two to three years | 728 | |
Available-for-sale-securities, Fair Value/Carrying Value | $ 728 | $ 3,730 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | ||
Restricted certificate of deposit held | $ 27,800 | $ 27,800 |
Identification of potential other-than-temporary impairments | 25.00% | |
Alabama State Industrial Development Authority [Member] | ||
Schedule of Investments [Line Items] | ||
Maturity date of bond | Jan. 1, 2020 | |
Percentage of interest on bond | 2.00% | |
Alabama State Industrial Development Authority [Member] | Taxable Revenue Bond [Member] | ||
Schedule of Investments [Line Items] | ||
Collateral deposit against outstanding principal amount | $ 27,800 | 27,800 |
Alabama State Industrial Development Authority [Member] | Taxable Revenue Bond [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Investments [Line Items] | ||
Estimated fair value of bond | $ 28,000 | $ 28,100 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||||
Gross realized gains | $ 1,094 | $ 1,346 | $ 3,324 | $ 5,226 |
Gross realized losses | $ (85) | $ (30) | $ (455) | $ (1,072) |
Investments - Fair Value Measur
Investments - Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 140,025 | $ 190,723 |
Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 43,551 | 24,100 |
Available-for-sale securities | 140,025 | 190,723 |
Total | 183,576 | 214,823 |
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 | 8,115 | 6,878 |
Available-for-sale securities | 74,089 | 73,742 |
Total | 82,204 | 80,620 |
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 35,436 | 17,222 |
Available-for-sale securities | 65,936 | 116,981 |
Total | 101,372 | 134,203 |
Money Market Funds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 8,115 | 6,878 |
Money Market Funds [Member] | 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 | 8,115 | 6,878 |
Commercial Paper [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 35,436 | 17,222 |
Commercial Paper [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 35,436 | 17,222 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,113 | 14,596 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,113 | 14,596 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,113 | 14,596 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 45,219 | 66,412 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 45,219 | 66,412 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 45,219 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,874 | 11,774 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,874 | 11,774 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 4,874 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,785 | 10,206 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,785 | 10,206 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,785 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,330 | 13,004 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,330 | 13,004 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 7,330 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 20,894 | 29,767 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 20,894 | 29,767 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 20,894 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 728 | 3,730 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 728 | 3,730 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 728 | 3,730 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Variable Rate Demand Notes [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Variable Rate Demand Notes [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 34,082 | 29,379 |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 34,082 | $ 29,379 |
Derivative Instruments and He52
Derivative Instruments and Hedging Activities - Additional Information (Detail) - Sep. 30, 2017 | USD ($) | EUR (€) |
Foreign Exchange Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 7,000,000 | € 5,900,000 |
Derivative Instruments and He53
Derivative Instruments and Hedging Activities - Schedule of Fair Values of Hedging Instruments Recorded in Consolidated Balance Sheet (Detail) - Significant Other Observable Inputs (Level 2) [Member] - Foreign Exchange Contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives Not Designated as Hedging Instruments (Level 2): | ||
Total derivatives, liabilities fair value | $ (402) | |
Total derivatives, assets fair value | $ 159 | |
Other Receivables [Member] | ||
Derivatives Not Designated as Hedging Instruments (Level 2): | ||
Derivatives asset, fair value | $ 159 | |
Accounts Payable [Member] | ||
Derivatives Not Designated as Hedging Instruments (Level 2): | ||
Derivatives liabilities, fair value | $ (402) |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities - Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member] | ||||
Derivatives Not Designated as Hedging Instruments: | ||||
Derivative instrument, gain or loss | $ (334) | $ (37) | $ (819) | $ 153 |
Derivative Instruments and He55
Derivative Instruments and Hedging Activities - Schedule of Change in Derivatives Designated Hedging Instruments Recorded in Other Comprehensive Income (OCI) and Reclassified to Income, Net of Tax (Detail) - Foreign Exchange Contracts [Member] - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
Amount of Gains (Losses) Recognized in OCI on Derivatives | $ (127) | $ (619) |
Cost of Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gains (Losses) Reclassified from AOCI into Income | $ (269) | $ (423) |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,002 | $ 40,461 |
Work in process | 4,859 | 4,003 |
Finished goods | 67,369 | 60,653 |
Total | $ 116,230 | $ 105,117 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 16.8 | $ 14.6 |
Finished Goods [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 12.9 | $ 10.6 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Goodwill, relates to acquisition | $ 3,500,000 | $ 3,500,000 | |||
Impairment losses | 0 | ||||
Amortization expense | $ 500,000 | $ 500,000 | 2,400,000 | $ 1,400,000 | |
Network Solutions [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, relates to acquisition | 3,100,000 | ||||
Services & Support [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill, relates to acquisition | $ 400,000 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Gross Value | $ 19,450 | $ 18,653 |
Accumulated Amortization | (14,349) | (11,386) |
Net Value | 5,101 | 7,267 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 7,400 | 6,899 |
Accumulated Amortization | (4,042) | (3,208) |
Net Value | 3,358 | 3,691 |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 6,740 | 6,444 |
Accumulated Amortization | (5,789) | (5,061) |
Net Value | 951 | 1,383 |
Intellectual Property [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 2,340 | 2,340 |
Accumulated Amortization | (2,229) | (2,129) |
Net Value | 111 | 211 |
Supply Agreement [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 1,400 | 1,400 |
Accumulated Amortization | (1,400) | (544) |
Net Value | 856 | |
License [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | 500 |
Accumulated Amortization | (403) | (113) |
Net Value | 97 | 387 |
Trade Names [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 370 | 370 |
Accumulated Amortization | (322) | (285) |
Net Value | 48 | 85 |
Patent [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | 500 |
Accumulated Amortization | (71) | (20) |
Net Value | 429 | 480 |
Non-compete [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 200 | 200 |
Accumulated Amortization | (93) | (26) |
Net Value | $ 107 | $ 174 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 473 | |
2,018 | 1,207 | |
2,019 | 691 | |
2,020 | 654 | |
2,021 | 599 | |
Thereafter | 1,477 | |
Net Value | $ 5,101 | $ 7,267 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Beginning Balance | $ 479,517 | |||
Net Income | $ 15,898 | $ 12,415 | 34,950 | $ 27,657 |
Dividend payments | (13,031) | |||
Dividends accrued for unvested restricted stock units | (43) | |||
Net unrealized gains on available-for-sale securities (net of tax) | 804 | 258 | 2,512 | (162) |
Net unrealized losses on cash flow hedges (net of tax) | 142 | (196) | ||
Defined benefit plan adjustments (net of tax) | 73 | 36 | 214 | 103 |
Foreign currency translation adjustment | 1,541 | $ 575 | 5,402 | 1,202 |
Proceeds from stock option exercises | 6,606 | $ 1,076 | ||
Purchase of treasury stock | (17,348) | |||
ASU 2016-09 adoption | 10 | |||
Stock-based compensation expense | 5,573 | |||
Ending Balance | $ 504,166 | $ 504,166 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||
Maximum shares authorized for repurchase, prior and new announcements and total after new announcement | 50,000,000 | |
Stock repurchased, shares | 900,000 | |
Shares repurchased, average price per share | $ 20.27 | |
Additional shares authorized for purchase | 3,600,000 | |
Number of Options, exercised | 358,000 | |
Exercise price of stock options, lower range limit | $ 15.29 | |
Exercise price of stock options, upper range limit | $ 23.64 | |
Proceeds from stock option exercises | $ 6,606 | $ 1,076 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Dividends Payable [Line Items] | ||||
Per Share Amount | $ 0.09 | $ 0.09 | $ 0.27 | $ 0.27 |
Total Dividend Paid | $ 13,031 | $ 13,230 | ||
Cash Dividends Paid in February [Member] | ||||
Dividends Payable [Line Items] | ||||
Record Date | Feb. 2, 2017 | |||
Payment Date | Feb. 16, 2017 | |||
Per Share Amount | $ 0.09 | |||
Total Dividend Paid | $ 4,369 | |||
Cash Dividends Paid in May [Member] | ||||
Dividends Payable [Line Items] | ||||
Record Date | May 4, 2017 | |||
Payment Date | May 18, 2017 | |||
Per Share Amount | $ 0.09 | |||
Total Dividend Paid | $ 4,350 | |||
Cash Dividends Paid in August [Member] | ||||
Dividends Payable [Line Items] | ||||
Record Date | Aug. 3, 2017 | |||
Payment Date | Aug. 17, 2017 | |||
Per Share Amount | $ 0.09 | |||
Total Dividend Paid | $ 4,312 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income, Net of Tax by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 479,517 | |||
Other comprehensive income (loss) before reclassifications | $ 2,834 | $ 1,603 | 9,045 | $ 3,469 |
Amounts reclassified from accumulated other comprehensive income | (274) | (734) | (1,113) | (2,326) |
Other Comprehensive Income, net of tax | 2,560 | 869 | 7,932 | 1,143 |
Ending Balance | 504,166 | 504,166 | ||
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 2,112 | 1,512 | 404 | 1,932 |
Other comprehensive income (loss) before reclassifications | 1,420 | 1,028 | 4,262 | 2,267 |
Amounts reclassified from accumulated other comprehensive income | (616) | (770) | (1,750) | (2,429) |
Other Comprehensive Income, net of tax | 804 | 258 | 2,512 | (162) |
Ending Balance | 2,916 | 1,770 | 2,916 | 1,770 |
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (338) | |||
Other comprehensive income (loss) before reclassifications | (127) | (619) | ||
Amounts reclassified from accumulated other comprehensive income | 269 | 423 | ||
Other Comprehensive Income, net of tax | 142 | (196) | ||
Ending Balance | (196) | (196) | ||
Defined Benefit Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (4,876) | (3,828) | (5,017) | (3,895) |
Amounts reclassified from accumulated other comprehensive income | 73 | 36 | 214 | 103 |
Other Comprehensive Income, net of tax | 73 | 36 | 214 | 103 |
Ending Balance | (4,803) | (3,792) | (4,803) | (3,792) |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3,714) | (6,379) | (7,575) | (7,006) |
Other comprehensive income (loss) before reclassifications | 1,541 | 575 | 5,402 | 1,202 |
Other Comprehensive Income, net of tax | 1,541 | 575 | 5,402 | 1,202 |
Ending Balance | (2,173) | (5,804) | (2,173) | (5,804) |
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (6,816) | (8,695) | (12,188) | (8,969) |
Ending Balance | $ (4,256) | $ (7,826) | $ (4,256) | $ (7,826) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ (73,528) | $ (70,988) | $ (229,845) | $ (202,905) |
Income before provision for income taxes | 19,207 | 15,517 | 45,421 | 40,051 |
Tax (expense) benefit | (3,309) | (3,102) | (10,471) | (12,394) |
Total reclassifications for the period, net of tax | 15,898 | 12,415 | 34,950 | 27,657 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Defined benefit plan adjustments – actuarial losses | (106) | (51) | (310) | (149) |
Income before provision for income taxes | 518 | 1,211 | 2,020 | 3,833 |
Tax (expense) benefit | (244) | (477) | (907) | (1,507) |
Total reclassifications for the period, net of tax | 274 | 734 | 1,113 | 2,326 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized investment gain | 1,066 | 1,268 | 3,031 | 4,383 |
Impairment Expense [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized investment gain | (57) | $ (6) | (162) | $ (401) |
Net Losses on Derivatives Designated as Hedging Instruments [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ (385) | $ (539) |
Stockholders' Equity - Tax Effe
Stockholders' Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Unrealized gains (losses) on available-for-sale securities, Before-Tax Amount | $ 2,328 | $ 1,685 | $ 6,987 | $ 3,716 |
Unrealized gains (losses) on available-for-sale securities, Tax (Expense) Benefit | (908) | (657) | (2,725) | (1,449) |
Unrealized gains (losses) on available-for-sale securities, Net-of-Tax Amount | 1,420 | 1,028 | 4,262 | 2,267 |
Unrealized gains (losses) on cash flow hedges, Before-Tax Amount | (184) | (897) | ||
Unrealized gains (losses) on cash flow hedges, Tax (Expense) Benefit | 57 | 278 | ||
Unrealized gains (losses) on cash flow hedges, Net-of-Tax Amount | (127) | (619) | ||
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Before-Tax Amount | (1,009) | (1,262) | (2,869) | (3,982) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Tax (Expense) Benefit | 393 | 492 | 1,119 | 1,553 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Net-of-Tax Amount | (616) | (770) | (1,750) | (2,429) |
Reclassification adjustment for amounts related to cash flow hedges included in net income, Before-Tax Amount | 385 | 539 | ||
Reclassification adjustment for amounts related to cash flow hedges included in net income, Tax (Expense) Benefit | (116) | (116) | ||
Reclassification adjustment for amounts related to cash flow hedges included in net income, Net-of-Tax Amount | 269 | 423 | ||
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Before-Tax Amount | 106 | 51 | 310 | 149 |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Tax (Expense) Benefit | (33) | (15) | (96) | (46) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Net-of-Tax Amount | 73 | 36 | 214 | 103 |
Foreign currency translation adjustment, Before-Tax Amount | 1,541 | 575 | 5,402 | 1,202 |
Foreign currency translation adjustment, Net-of-Tax Amount | 1,541 | 575 | 5,402 | 1,202 |
Total Other Comprehensive Income (Loss), Before-Tax Amount | 3,167 | 1,049 | 9,472 | 1,085 |
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit | (607) | (180) | (1,540) | 58 |
Other Comprehensive Income, net of tax | $ 2,560 | $ 869 | $ 7,932 | $ 1,143 |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator | ||||
Net Income | $ 15,898 | $ 12,415 | $ 34,950 | $ 27,657 |
Denominator | ||||
Weighted average number of shares – basic | 47,870 | 48,470 | 48,110 | 48,839 |
Effect of dilutive securities | ||||
Stock options | 487 | 137 | 385 | 137 |
PSUs, RSUs and restricted stock | 174 | 71 | 123 | 60 |
Weighted average number of shares – diluted | 48,531 | 48,678 | 48,618 | 49,036 |
Net income per share – basic | $ 0.33 | $ 0.26 | $ 0.73 | $ 0.57 |
Net income per share – diluted | $ 0.33 | $ 0.26 | $ 0.72 | $ 0.56 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options, Total | 3.2 | 5.6 | 3.9 | 5.7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017SegmentCategory | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 2 |
Number of categories | Category | 3 |
Segment Information - Sales and
Segment Information - Sales and Gross Profit of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 185,112 | $ 168,890 | $ 540,064 | $ 473,795 |
Gross Profit | 86,498 | 75,808 | 244,845 | 220,557 |
Network Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 145,467 | 136,277 | 444,607 | 398,709 |
Gross Profit | 71,939 | 65,289 | 214,762 | 195,804 |
Services & Support [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 39,645 | 32,613 | 95,457 | 75,086 |
Gross Profit | $ 14,559 | $ 10,519 | $ 30,083 | $ 24,753 |
Segment Information - Sales Inf
Segment Information - Sales Information by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue from External Customer [Line Items] | ||||
Sales | $ 185,112 | $ 168,890 | $ 540,064 | $ 473,795 |
Access & Aggregation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 135,959 | 120,618 | 394,741 | 316,705 |
Customer Devices [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 35,582 | 32,984 | 105,683 | 106,213 |
Traditional & Other Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 13,571 | $ 15,288 | $ 39,640 | $ 50,877 |
Liability for Warranty Return72
Liability for Warranty Returns - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | ||||||
Period of warranty for product defects | 90 days to five years | |||||
Liability for warranty obligations | $ 10,939 | $ 9,180 | $ 8,548 | $ 8,752 | $ 8,935 | $ 8,739 |
Liability for Warranty Return73
Liability for Warranty Returns - Summary of Warranty Expense and Write-Off Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | ||||
Balance at beginning of period | $ 9,180 | $ 8,935 | $ 8,548 | $ 8,739 |
Plus: Amounts charged to cost and expenses | 4,087 | 4,012 | 6,401 | 6,341 |
Less: Deductions | (2,328) | (4,195) | (4,010) | (6,328) |
Balance at end of period | $ 10,939 | $ 8,752 | $ 10,939 | $ 8,752 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($)EquityUnit |
Contingencies And Commitments [Line Items] | |
Number of private equity funds | EquityUnit | 2 |
Commitments towards private equity funds | $ 7.7 |
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 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Oct. 17, 2017 | Nov. 15, 2017 |
Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly dividend payable subsequent to balance sheet date | $ 4.3 | |
Subsequent Events [Member] | ||
Subsequent Event [Line Items] | ||
Dividend declaration date | Oct. 17, 2017 | |
Common stock dividends per share declared | $ 0.09 | |
Dividend record date | Nov. 1, 2017 | |
Dividend payment date | Nov. 15, 2017 |