Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 08, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ADTN | ||
Entity Registrant Name | ADTRAN INC | ||
Entity Central Index Key | 926,282 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,424,089 | ||
Entity Public Float | $ 979,857,575 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 86,433 | $ 79,895 |
Short-term investments | 16,129 | 43,188 |
Accounts receivable, less allowance for doubtful accounts of $— at December 31, 2017 and 2016 | 144,150 | 92,346 |
Other receivables | 26,578 | 15,897 |
Inventory, net | 122,542 | 105,117 |
Prepaid expenses and other current assets | 17,282 | 16,459 |
Total Current Assets | 413,114 | 352,902 |
Property, plant and equipment, net | 85,079 | 84,469 |
Deferred tax assets, net | 23,428 | 38,036 |
Goodwill | 3,492 | 3,492 |
Other assets | 13,725 | 12,234 |
Long-term investments | 130,256 | 176,102 |
Total Assets | 669,094 | 667,235 |
Current Liabilities | ||
Accounts payable | 60,632 | 77,342 |
Unearned revenue | 13,070 | 16,326 |
Accrued expenses | 13,232 | 12,434 |
Accrued wages and benefits | 15,948 | 20,433 |
Income tax payable | 3,936 | |
Total Current Liabilities | 106,818 | 126,535 |
Non-current unearned revenue | 4,556 | 6,333 |
Other non-current liabilities | 34,209 | 28,050 |
Bonds payable | 25,600 | 26,800 |
Total Liabilities | 171,183 | 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 48,485 shares outstanding at December 31, 2017 and 79,652 shares issued and 48,472 shares outstanding at December 31, 2016 | 797 | 797 |
Additional paid-in capital | 260,515 | 252,957 |
Accumulated other comprehensive loss | (3,295) | (12,188) |
Retained earnings | 922,178 | 921,942 |
Less treasury stock at cost: 31,167 and 31,180 shares at December 31, 2017 and 2016, respectively | (682,284) | (683,991) |
Total Stockholders' Equity | 497,911 | 479,517 |
Total Liabilities and Stockholders' Equity | $ 669,094 | $ 667,235 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
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 | 48,485,000 | 48,472,000 |
Treasury stock, shares | 31,167,000 | 31,180,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales | |||
Products | $ 540,396 | $ 525,502 | $ 527,422 |
Services | 126,504 | 111,279 | 72,642 |
Total Sales | 666,900 | 636,781 | 600,064 |
Cost of Sales | |||
Products | 279,541 | 270,695 | 293,843 |
Services | 83,699 | 74,742 | 39,324 |
Total Cost of Sales | 363,240 | 345,437 | 333,167 |
Gross Profit | 303,660 | 291,344 | 266,897 |
Selling, general and administrative expenses | 135,489 | 131,805 | 123,542 |
Research and development expenses | 130,434 | 124,804 | 129,876 |
Operating Income | 37,737 | 34,735 | 13,479 |
Interest and dividend income | 4,380 | 3,918 | 3,953 |
Interest expense | (556) | (572) | (596) |
Net realized investment gain | 4,685 | 5,923 | 10,337 |
Other expense, net | (1,559) | (651) | (1,465) |
Gain on bargain purchase of a business | 3,542 | ||
Income before provision for income taxes | 44,687 | 46,895 | 25,708 |
Provision for income taxes | (20,847) | (11,666) | (7,062) |
Net Income | $ 23,840 | $ 35,229 | $ 18,646 |
Weighted average shares outstanding – basic | 48,153 | 48,724 | 51,145 |
Weighted average shares outstanding – diluted | 48,699 | 48,949 | 51,267 |
Earnings per common share – basic | $ 0.50 | $ 0.72 | $ 0.36 |
Earnings per common share – diluted | $ 0.49 | $ 0.72 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 23,840 | $ 35,229 | $ 18,646 |
Other Comprehensive Income (Loss), net of tax | |||
Net unrealized gains (losses) on available-for-sale securities | 2,163 | (1,528) | (7,032) |
Defined benefit plan adjustments | 731 | (1,122) | 1,862 |
Foreign currency translation | 5,999 | (569) | (3,724) |
Other Comprehensive Income (Loss), net of tax | 8,893 | (3,219) | (8,894) |
Comprehensive Income, net of tax | $ 32,733 | $ 32,010 | $ 9,752 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2014 | $ 549,013 | $ 797 | $ 241,829 | $ 907,751 | $ (601,289) | $ (75) |
Beginning Balance, Shares at Dec. 31, 2014 | 79,652 | |||||
Net Income | 18,646 | 18,646 | ||||
Other comprehensive income (loss), net of tax | (8,894) | (8,894) | ||||
Dividend payments | (18,449) | (18,449) | ||||
Dividends accrued for unvested restricted stock units | (7) | (7) | ||||
Stock options exercised | 961 | (402) | 1,363 | |||
PSUs, RSUs and restricted stock vested | (69) | (69) | (767) | 767 | ||
Purchase of treasury stock | (66,160) | (66,160) | ||||
Income tax effect of stock compensation arrangements | (1,593) | (1,593) | ||||
Stock-based compensation expense | 6,712 | 6,712 | ||||
Ending Balance at Dec. 31, 2015 | 480,160 | $ 797 | 246,879 | 906,772 | (665,319) | (8,969) |
Ending Balance, Shares at Dec. 31, 2015 | 79,652 | |||||
Net Income | 35,229 | 35,229 | ||||
Other comprehensive income (loss), net of tax | (3,219) | (3,219) | ||||
Dividend payments | (17,583) | (17,583) | ||||
Dividends accrued for unvested restricted stock units | (48) | (48) | ||||
Stock options exercised | 4,717 | (1,499) | 6,216 | |||
PSUs, RSUs and restricted stock vested | (142) | (142) | (929) | 929 | ||
Purchase of treasury stock | (25,817) | (25,817) | ||||
Income tax effect of stock compensation arrangements | (475) | (475) | ||||
Stock-based compensation expense | 6,695 | 6,695 | ||||
Ending Balance at Dec. 31, 2016 | $ 479,517 | $ 797 | 252,957 | 921,942 | (683,991) | (12,188) |
Ending Balance, Shares at Dec. 31, 2016 | 79,652 | 79,652 | ||||
Net Income | $ 23,840 | 23,840 | ||||
Other comprehensive income (loss), net of tax | 8,893 | 8,893 | ||||
Dividend payments | (17,368) | (17,368) | ||||
Dividends accrued for unvested restricted stock units | (37) | (37) | ||||
Stock options exercised | 13,412 | (2,827) | 16,239 | |||
PSUs, RSUs and restricted stock vested | (441) | (3,257) | 2,816 | |||
Purchase of treasury stock | (17,348) | (17,348) | ||||
Income tax effect of stock compensation arrangements | 10 | 125 | (115) | |||
Stock-based compensation expense | 7,433 | 7,433 | ||||
Ending Balance at Dec. 31, 2017 | $ 497,911 | $ 797 | $ 260,515 | $ 922,178 | $ (682,284) | $ (3,295) |
Ending Balance, Shares at Dec. 31, 2017 | 79,652 | 79,652 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options exercised, shares | 742 | 283 | 60 |
PSUs, RSUs and restricted stock vested, shares | 154 | 42 | 34 |
Treasury Stock [Member] | |||
Purchase of treasury stock, shares | 856 | 1,411 | 3,967 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 23,840 | $ 35,229 | $ 18,646 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,692 | 14,407 | 14,245 |
Amortization of net premium on available-for-sale investments | 425 | 643 | 2,402 |
Net realized gain on long-term investments | (4,685) | (5,923) | (10,337) |
Net (gain) loss on disposal of property, plant and equipment | (145) | 22 | 644 |
Gain on bargain purchase of a business | (3,542) | ||
Stock-based compensation expense | 7,433 | 6,695 | 6,712 |
Deferred income taxes | 14,073 | (2,685) | (692) |
Tax impact of stock option exercises | (40) | ||
Change in operating assets and liabilities: | |||
Accounts receivable, net | (49,103) | (21,302) | 14,918 |
Other receivables | (10,222) | 4,101 | 11,704 |
Inventory | (15,518) | (10,887) | (6,877) |
Prepaid expenses and other assets | (4,830) | (7,108) | (5,070) |
Accounts payable | (17,742) | 26,722 | (5,826) |
Accrued expenses and other liabilities | (5,455) | 8,792 | (10,289) |
Income taxes payable | 3,858 | (3,162) | (11,590) |
Net cash provided by (used in) operating activities | (42,379) | 42,002 | 18,550 |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (14,720) | (21,441) | (11,753) |
Proceeds from disposals of property, plant and equipment | 151 | 183 | |
Proceeds from sales and maturities of available-for-sale investments | 173,752 | 225,075 | 280,435 |
Purchases of available-for-sale investments | (93,141) | (209,172) | (188,921) |
Acquisition of business | (943) | ||
Net cash provided by (used in) investing activities | 66,042 | (6,481) | 79,944 |
Cash flows from financing activities | |||
Proceeds from stock option exercises | 13,412 | 4,717 | 961 |
Purchases of treasury stock | (17,348) | (25,817) | (66,160) |
Dividend payments | (17,368) | (17,583) | (18,449) |
Payments on long-term debt | (1,100) | (1,100) | (1,100) |
Net cash used in financing activities | (22,404) | (39,783) | (84,748) |
Net increase (decrease) in cash and cash equivalents | 1,259 | (4,262) | 13,746 |
Effect of exchange rate changes | 5,279 | (393) | (2,635) |
Cash and cash equivalents, beginning of year | 79,895 | 84,550 | 73,439 |
Cash and cash equivalents, end of year | 86,433 | 79,895 | 84,550 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 555 | 575 | 598 |
Cash paid during the year for income taxes | 2,988 | 18,689 | 20,139 |
Supplemental disclosure of non-cash investing activities | |||
Purchases of property, plant and equipment included in accounts payable | $ 408 | $ 2,103 | $ 598 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1 – Nature of Business and Summary of Significant Accounting Policies ADTRAN, Inc. (ADTRAN) is a leading global provider of networking and communications equipment. Our solutions enable voice, data, video and Internet communications across a variety of network infrastructures. These solutions are deployed by many of the United States’ and the world’s largest communications service providers (CSPs), distributed enterprises and small and medium-sized businesses, public and private enterprises, and millions of individual users worldwide. Principles of Consolidation Our consolidated financial statements include ADTRAN and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues and network installations, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds, and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions, and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. As of December 31, 2017, $83.7 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $26.7 million, compared to an estimated fair value of $26.7 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. Investments with contractual maturities beyond one year, such as our variable rate demand notes, may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent, or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments was recorded as interest income. We have not been required to record any losses relating to variable rate demand notes. Long-term investments represent a restricted certificate of deposit held at cost, deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency backed bonds, U.S. and foreign government bonds, variable rate demand notes, marketable equity securities, and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Unrealized gains and losses, net of tax, are reported as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are computed under the specific identification method and are included in current income. We review our investment portfolio quarterly for investments considered to have sustained an other-than-temporary decline in value. Impairment charges for other-than-temporary declines in value are recorded as realized losses in the accompanying consolidated statements of income. All of our investments at December 31, 2017 and 2016 are classified as available-for-sale securities. See Note 4 of Notes to Consolidated Financial Statements for additional information. Accounts Receivable We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. At December 31, 2017, single customers comprising more than 10% of our total accounts receivable balance included two customers, which accounted for 63.8% of our total accounts receivable. At December 31, 2016, single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 63.3% of our total accounts receivable. We regularly review the need to maintain an allowance for doubtful accounts and consider factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events and our historical experience. If the financial condition of a customer deteriorates, resulting in an impairment of their ability to make payments, we may be required to record an allowance for doubtful accounts. If circumstances change with regard to individual receivable balances that have previously been determined to be uncollectible (and for which a specific reserve has been established), a reduction in our allowance for doubtful accounts may be required. We did not have an allowance for doubtful accounts at December 31, 2017 or December 31, 2016. Other Receivables Other receivables are comprised primarily of lease receivables, amounts due from subcontract manufacturers for product component transfers, unbilled receivables, amounts due from various jurisdictions for value-added tax, income tax receivable, accrued interest on investments and on a restricted certificate of deposit, and amounts due from employee stock option exercises. Inventory Inventory is carried at the lower of cost and net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory. Standard costs are updated at least quarterly; therefore, inventory costs approximate actual costs at the end of each reporting period. We establish reserves for estimated excess, obsolete or unmarketable inventory equal to the difference between the cost of the inventory and the estimated fair value of the inventory based upon assumptions about future demand, market conditions and age. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 6 of Notes to Consolidated Financial Statements for additional information. Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Betterments that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income. See Note 7 of Notes to Consolidated Financial Statements for additional information. Liability for Warranty Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time revenue is recognized based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Our products continue to become more complex in both size and functionality as many of our product offerings migrate from line card applications to total systems. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage, and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Alternatively, if we provide for more reserves than we require, we will reverse a portion of such provisions in future periods. During 2017, we recorded 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 following table. The liability for warranty obligations totaled $9.7 million and $8.5 million at December 31, 2017 and 2016, respectively. These liabilities are included in accrued expenses in the accompanying consolidated balance sheets. A summary of warranty expense and write-off activity for the years ended December 31, 2017, 2016 and 2015 is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 8,548 $ 8,739 $ 8,415 Plus: Amounts charged to cost and expenses 6,951 8,561 2,998 Less: Deductions (5,775 ) (8,752 ) (2,674 ) Balance at end of period $ 9,724 $ 8,548 $ 8,739 Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Stock-Based Compensation We have two Board and stockholder approved stock incentive plans from which stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock are available for grant to employees and directors. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. All of our outstanding stock option awards are classified as equity awards. Stock-based compensation expense recognized in 2017, 2016 and 2015 was approximately $7.4 million, $6.7 million and $6.7 million, respectively. As of December 31, 2017, total compensation cost related to non-vested stock options, market-based PSUs, RSUs and restricted stock not yet recognized was approximately $17.1 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. In addition, there was $11.4 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 obligation becomes probable. Impairment of Long-Lived Assets We review long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no impairment losses recognized during 2017, 2016 or 2015. Goodwill and Purchased Intangible Assets We evaluate the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step impairment test will be performed. Based on the results of our qualitative assessment in 2017, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the goodwill was acquired in an acquisition in 2011. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is 9 months to 14 years. Research and Development Costs Research and development costs include compensation for engineers and support personnel, outside contracted services, depreciation and material costs associated with new product development, the enhancement of current products, and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $130.4 million, $124.8 million and $129.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. 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 table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2015, 2016 and 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 Balance, December 31, 2014 $ 8,964 $ — $ (5,757 ) $ (3,282 ) $ (75 ) Other comprehensive income (loss) before reclassifications (844 ) — 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) — 273 — (5,915 ) Balance, December 31, 2015 1,932 — (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 — (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) — 107 — (2,936 ) Balance, December 31, 2016 404 — (5,017 ) (7,575 ) (12,188 ) Other comprehensive income (loss) before reclassifications 5,020 (619 ) 451 5,999 10,851 Amounts reclassified from accumulated other comprehensive income (2,857 ) 619 280 — (1,958 ) Balance at December 31, 2017 $ 2,567 $ — $ (4,286 ) $ (1,576 ) $ (3,295 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017, 2016 and 2015: (In thousands) 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 $ 4,864 Net realized investment gain Impairment expense (180 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (897 ) Cost of sales Defined benefit plan adjustments – actuarial losses (406 ) (1) Total reclassifications for the period, before tax 3,381 Tax (expense) benefit (1,423 ) Total reclassifications for the period, net of tax $ 1,958 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2017, 2016 and 2015: 2017 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 8,230 $ (3,210 ) $ 5,020 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,684 ) 1,827 (2,857 ) Unrealized gains (losses) on cash flow hedges (897 ) 278 (619 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 897 (278 ) 619 Defined benefit plan adjustments 654 (203 ) 451 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 406 (126 ) 280 Foreign currency translation adjustment 5,999 — 5,999 Total Other Comprehensive Income (Loss) $ 10,605 $ (1,712 ) $ 8,893 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. As a result of the Act, we have recognized an estimated expense of $11.9 million in the fourth quarter of 2017, of which $9.2 million related to the write-down of deferred tax assets and $2.7 million related to tax on unrepatriated foreign earnings. We have calculated our best estimate of the impact of the Act in our year-end income tax provision, in accordance with Staff Accounting Bulletin No. 118, which was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed to finalize the accounting for certain income tax effects of the Act. Additional work is necessary to do a more detailed analysis of historical foreign earnings, as well as the full impact relating to the write-down of deferred tax assets. Any subsequent adjustments to these amounts will be recorded as income tax expense in the quarter the analysis is complete. F oreign Currency We record transactions denominated in foreign currencies on a monthly basis using exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar, and our Mexican subsidiary, whose functional currency is the U.S. dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss). Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the product price is fixed or determinable, collection of the resulting receivable is reasonably assured, and product returns are reasonably estimable. For product sales, revenue is generally recognized upon shipment of the product to our customer in accordance with the title transfer terms of the sales agreement, generally Ex Works, per International Commercial Terms. In the case of consigned inventory, revenue is recognized when the end customer assumes ownership of the product. Contracts that contain multiple deliverables are evaluated to determine the units of accounting, and the consideration from the arrangement is allocated to each unit of accounting based on the relative selling price and corresponding terms of the contract. When this is not available, we are generally not able to determine third-party evidence of selling price because of the extent of customization among competing products or services from other companies. In these instances, we use best estimates to allocate consideration to each respective unit of accounting. These estimates include analysis of respective bills of material and review and analysis of similar product and service offerings. We record revenue associated with installation services when respective contractual obligations are complete. In instances where customer acceptance is required, revenue is deferred until respective acceptance criteria have been met. Contracts that include both installation services and product sales are evaluated for revenue recognition in accordance with contract terms. As a result, installation services may be considered a separate deliverable or may be considered a combined single unit of accounting with the delivered product. Generally, either the purchaser, ADTRAN, or a third party can perform the installation of our products. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales taxes invoiced to customers are included in revenues, and represent less than one percent of total revenues. The corresponding sales taxes paid are included in cost of goods sold. Value added taxes collected from customers in international jurisdictions are recorded in accrued expenses as a liability. Revenue is recorded net of discounts. Sales returns are recorded as a reduction of revenue and accrued based on historical sales return experience, which we believe provides a reasonable estimate of future returns. A portion of our products are sold to a non-exclusive distribution network of major technology distributors in the United States. These large organizations then distribute or provide fulfillment services to an extensive network of VARs and SIs. VARs and SIs may be affiliated with us as a channel partner, or they may purchase from the distributor in an unaffiliated fashion. Additionally, with certain limitations our distributors may return unused and unopened product for stock-balancing purposes when such returns are accompanied by offsetting orders for products of equal or greater value. We participate in cooperative advertising and market development programs with certain customers. We use these programs to reimburse customers for certain forms of advertising, and in general, to allow our customers credits up to a specified percentage of their net purchases. Our costs associated with these programs are estimated and included in marketing expenses in our consolidated statements of income. We also participate in rebate programs to provide sales incentives for certain products. Our costs associated with these programs are estimated and accrued at the time of sale, and are recorded as a reduction of sales in our consolidated statements of income. Unearned Revenue Unearned revenue primarily represents customer billings on our maintenance service programs and leases and unearned revenues relating to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple-element contracts where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other assets and totaled $11.4 million and $10.7 million at December 31, 2017 and 2016, respectively. Non-current deferred costs are included in other assets and totaled $2.8 million and $0.9 million at December 31, 2017 and 2016, respectively. Other Income (Expense), Net Other income (expense), net, is comprised primarily of miscellaneous income and expense, gains and losses on foreign currency transactions, gains and losses on foreign exchange forward contracts, investment account management fees, and scrap raw material sales. Earnings per Share Earnings per common share, and earnings per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 15 of Notes to Consolidated Financial Statements for additional information. Dividends During 2017, 2016 and 2015, we paid shareholder dividends totaling $17.4 million, $17.6 million and $18.4 million, respectively. The Board of Directors presently anticipates that it will declare a regular quarterly dividend so long as the present tax treatment of dividends exists and adequate levels of liquidity are maintained. The following table shows dividends paid to our shareholders in each quarter of 2017, 2016 and 2015. Dividends per Common Share 2017 2016 2015 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 On January 16, 2018, the Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on January 31, 2018. The ex-dividend date was January 30, 2018 and the payment date was February 14, 2018. The quarterly dividend payment was $4.4 million. Business Combinations We use the acquisition method to account for business combinations. Under the acquisition method of accounting, we recognize the assets acquired and liabilities assumed at their fair value on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the net assets acquired. Costs incurred to complete the business combination, such as legal, accounting or other professional fees, are charged to general and administrative expenses as they are incurred. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition 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, The two areas of impact of these ASUs are network installation service revenue performance obligations and contract costs. The output method will be used to measure network installation services progress. The primary impact will be the timing of revenue recognition for certain performance obligations related to service revenue arrangements that are currently deferred until customer acceptance. In connection with the adoption of the new revenue standard, effective January 1, 2018, we adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers We will recognize the cumulative adjustment for network installation service revenue performance obligations and contract costs to retained earnings during the three months ended March 31, 2018. We do not believe the cumulative adjustment will have a significant impact on our consolidated financial statements during 2018. 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 – Goodw |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 – Business Combinations On September 13, 2016, we acquired key fiber access products, technologies and service relationships from subsidiaries of CommScope, Inc. for $0.9 million in cash. This acquisition enhanced our solutions for the cable MSO industry and provided cable operators with the scalable solutions, services and support they required 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 year ended December 31, 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 pro forma data for future periods and have concluded that our valuation procedures and resulting measures were appropriate. The gain is included in the line item “Gain on bargain purchase of a business” in the 2016 Consolidated Statements of Income. 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. (In thousands) 2016 2015 Pro forma revenue $ 641,170 $ 603,923 Pro forma net income $ 31,212 $ 22,945 Pro forma earnings per share – basic $ 0.64 $ 0.45 Pro forma earnings per share – diluted $ 0.64 $ 0.45 For the years ended December 31, 2017 and 2016, we incurred acquisition and integration related expenses and amortization of acquired intangibles of $1.8 million and $1.0 million, respectively, related to this acquisition. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 3 – Stock-Based Compensation Stock Incentive Program Descriptions On January 23, 2006, the Board of Directors adopted the ADTRAN, Inc. 2006 Employee Stock Incentive Plan (2006 Plan), which authorized 13.0 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock. The 2006 Plan was adopted by stockholder approval at our annual meeting of stockholders held on May 9, 2006. Options granted under the 2006 Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date, and have a ten-year contractual term. The 2006 Plan was replaced on May 13, 2015 by the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (2015 Plan). Expiration dates of options outstanding at December 31, 2017 under the 2006 Plan range from 2018 to 2024. Our stockholders approved the 2010 Directors Stock Plan (2010 Directors Plan) on May 5, 2010, under which 0.5 million shares of common stock have been reserved. This plan replaces the 2005 Directors Stock Option Plan. Under the 2010 Directors Plan, the Company may issue stock options, restricted stock and RSUs to our non-employee directors. Stock awards issued under the 2010 Directors Plan normally become vested in full on the first anniversary of the grant date. Options issued under the 2010 Directors Plan have a ten-year contractual term. Expiration dates of options outstanding at December 31, 2017 under the 2010 Directors Plan range from 2018 to 2019. On January 20, 2015, the Board of Directors adopted the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (2015 Plan), which authorizes 7.7 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, PSUs, RSUs and restricted stock. The 2015 Plan was adopted by stockholder approval at our annual meeting of stockholders held on May 13, 2015. PSUs, RSUs and restricted stock granted under the 2015 Plan reduce the shares authorized for issuance under the 2015 Plan by 2.5 shares of common stock for each share underlying the award. Options granted under the 2015 Plan typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date, and have a ten-year contractual term. Expiration dates of options outstanding at December 31, 2017 under the 2015 Plan range from 2025 to 2026. The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2017, 2016 and 2015, which was recognized as follows: (In thousands) 2017 2016 2015 Stock-based compensation expense included in cost of sales $ 379 $ 389 $ 280 Selling, general and administrative expense 4,063 3,341 3,261 Research and development expense 2,991 2,965 3,171 Stock-based compensation expense included in operating expenses 7,054 6,306 6,432 Total stock-based compensation expense 7,433 6,695 6,712 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (1,699 ) (963 ) (862 ) Total stock-based compensation expense, net of tax $ 5,734 $ 5,732 $ 5,850 With our adoption of ASU 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Stock Options The following table is a summary of our stock options outstanding as of December 31, 2016 and 2017 and the changes that occurred during 2017: (In thousands, except per share amounts) Number of Options Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life in Years Aggregate Intrinsic Stock options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Stock options granted — $ — Stock options exercised (742 ) $ 18.08 Stock options forfeited (70 ) $ 17.29 Stock options expired (378 ) $ 24.14 Stock options outstanding, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options vested and expected to vest, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options exercisable, December 31, 2017 4,351 $ 23.78 4.37 $ 3,810 At December 31, 2017, total compensation cost related to non-vested stock options not yet recognized was approximately $3.2 million, which is expected to be recognized over an average remaining recognition period of 1.5 years. All of the options above were issued at exercise prices that approximated fair market value at the date of grant. At December 31, 2017, 3.5 million options were available for grant under the shareholder approved plans. The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017. The amount of aggregate intrinsic value will change based on the fair market value of ADTRAN’s stock. The total pre-tax intrinsic value of options exercised during 2017, 2016 and 2015 was $3.4 million, $1.1 million and $0.1 million, respectively. The fair value of options fully vesting during 2017, 2016 and 2015 was $4.3 million, $5.7 million and $6.6 million, respectively. The following table further describes our stock options outstanding as of December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding at 12/31/17 (In thousands) Weighted Avg. Remaining Contractual Life in Years Weighted Average Exercise Price Options Exercisable at 12/31/17 (In thousands) Weighted Average Exercise Price $14.88 – 18.96 1,623 6.02 $ 15.77 1,063 $ 15.96 $18.97 – 23.45 801 6.68 $ 19.11 565 $ 19.17 $23.46 – 30.35 1,400 4.16 $ 23.85 1,399 $ 23.85 $30.36 – 41.92 1,324 3.29 $ 31.94 1,324 $ 31.94 5,148 4,351 PSUs, RSUs and restricted stock Under the 2015 Plan, awards other than stock options, including PSUs, RSUs and restricted stock, may be granted to certain employees and officers. Under our market-based PSU program, the number of shares of common stock earned by a recipient pursuant to the PSUs is subject to a market condition based on ADTRAN’s relative total shareholder return against all companies in the NASDAQ Telecommunications Index at the end of a three-year performance period. Depending on the relative total shareholder return over the performance period, the recipient may earn from 0% to 150% of the shares underlying the PSUs, with the shares earned distributed upon the vesting of the PSUs at the end of the three-year performance period. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. A portion of the granted PSUs also vest and the underlying shares become deliverable upon the death or disability of the recipient or upon a change of control of ADTRAN, as defined by the 2015 Plan. The recipients of the PSUs receive dividend credits based on the shares of common stock underlying the PSUs. The dividend credits are vested and earned in the same manner as the PSUs and are paid in cash upon the issuance of common stock for the PSUs. 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. The fair value of RSUs and restricted stock is equal to the closing price of our stock on the business day immediately preceding the grant date. RSUs and restricted stock vest ratably over four year and one year periods, respectively. The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2016 and 2017 and the changes that occurred during 2017. The unvested awards outstanding as of December 31, 2016 have been adjusted for the actual shares vested in 2017 for our market-based PSUs. (In thousands, except per share amounts) Number of shares Weighted Average Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2016 527 $ 20.53 PSUs, RSUs and restricted stock granted 950 $ 21.69 PSUs, RSUs and restricted stock vested (154 ) $ 20.84 PSUs, RSUs and restricted stock forfeited (31 ) $ 20.99 Unvested RSUs and restricted stock outstanding, December 31, 2017 1,292 $ 21.33 At December 31, 2017, total compensation cost related to the non-vested portion of market-based PSUs, RSUs and restricted stock not yet recognized was approximately $13.9 million, which is expected to be recognized over an average remaining recognition period of 3.2 years. In addition, there was $11.4 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 obligation becomes probable. For the year ended 2017, no compensation expense was recognized related to these performance-based PSUs. Valuation and Expense Information We use the Black-Scholes option pricing model (Black-Scholes Model) for the purpose of determining the estimated fair value of stock option awards on the date of grant. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Because our stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, existing models may not provide reliable measures of fair value of our stock options. We use a Monte Carlo Simulation valuation method to value our market-based PSUs. The fair value of our performance-based PSUs, RSUs and restricted stock issued is equal to the closing price of our stock on the date of grant. We will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. If circumstances change, and additional data becomes available over time, we may change our assumptions and methodologies, which may materially impact our fair value determination. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors. There were no stock option grants in 2017. The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2016 and 2015 was $5.22 per share and $4.28 per share, respectively, with the following weighted-average assumptions: 2016 2015 Expected volatility 34.79 % 34.57 % Risk-free interest rate 1.36 % 1.81 % Expected dividend yield 1.98 % 2.35 % Expected life (in years) 6.25 6.23 We based our estimate of expected volatility for the years ended December 31, 2016 and 2015 on the sequential historical daily trading data of our common stock for a period equal to the expected life of the options granted. The selection of the historical volatility method was based on available data indicating our historical volatility is as equally representative of our future stock price trends as is our implied volatility. We have no reason to believe the future volatility of our stock price is likely to differ from its past volatility. The risk-free interest rate assumption is based upon implied yields of U.S. Treasury zero-coupon bonds on the date of grant having a remaining term equal to the expected life of the options granted. The dividend yield is based on our historical and expected dividend payouts. The expected life of our stock options is based upon historical exercise and forfeiture activity of our previous stock-based grants with a ten-year contractual term. The PSU pricing model also requires the use of several significant assumptions that impact the fair value estimate. The estimated fair value of the PSUs granted to employees during the years ended December 31, 2017, 2016 and 2015 was $24.17 per share, $23.50 per share and $17.64 per share, respectively, with the following assumptions: 2017 2016 2015 Expected volatility 27.03 % 29.79 % 31.34 % Risk-free interest rate 1.78 % 1.17 % 1.20 % Expected dividend yield 1.74 % 1.80 % 2.35 % |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 4 – Investments At December 31, 2017, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 17,804 $ 2,175 $ (96 ) $ 19,883 Corporate bonds 32,654 44 (155 ) 32,543 Municipal fixed-rate bonds 2,902 2 (22 ) 2,882 Asset-backed bonds 6,545 1 (20 ) 6,526 Mortgage/Agency-backed bonds 5,554 1 (46 ) 5,509 U.S. government bonds 14,477 — (174 ) 14,303 Foreign government bonds 725 5 — 730 Marketable equity securities 33,478 3,034 (850 ) 35,662 Available-for-sale securities held at fair value $ 114,139 $ 5,262 $ (1,363 ) $ 118,038 Restricted investment held at cost 27,800 Other investments 547 Total carrying value of available-for-sale investments $ 146,385 At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 12,367 $ 2,271 $ (42 ) $ 14,596 Corporate bonds 66,522 64 (174 ) 66,412 Municipal fixed-rate bonds 11,799 12 (37 ) 11,774 Asset-backed bonds 10,201 19 (14 ) 10,206 Mortgage/Agency-backed bonds 13,080 15 (91 ) 13,004 U.S. government bonds 30,022 15 (270 ) 29,767 Foreign government bonds 3,729 2 (1 ) 3,730 Variable rate demand notes 11,855 — — 11,855 Marketable equity securities 30,571 311 (1,503 ) 29,379 Available-for-sale securities held at fair value $ 190,146 $ 2,709 $ (2,132 ) $ 190,723 Restricted investment held at cost 27,800 Other investments held at cost 767 Total carrying value of available-for-sale investments $ 219,290 As of December 31, 2017, 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 $ 12,021 $ 891 $ 143 $ — $ 3,073 $ — One to two years 9,145 826 2,367 — 5,960 — Two to three years 7,345 212 2,245 — 3,568 730 Three to five years 4,032 953 810 356 1,702 — Five to ten years — — 158 1,144 — — More than ten years — — 803 4,009 — — Total $ 32,543 $ 2,882 $ 6,526 $ 5,509 $ 14,303 $ 730 Our investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. We review our investment portfolio for potential “other-than-temporary” declines in value on an individual investment basis. We assess, on a quarterly basis, significant declines in value which may be considered other-than-temporary and, if necessary, recognize and record the appropriate charge to write-down the carrying value of such investments. In making this assessment, we take into consideration qualitative and quantitative information, including but not limited to the following: the magnitude and duration of historical declines in market prices, credit rating activity, assessments of liquidity, public filings, and statements made by the issuer. We generally begin our identification of potential other-than-temporary impairments by reviewing any security with a fair value that has declined from its original or adjusted cost basis by 25% or more for six or more consecutive months. We then evaluate the individual security based on the previously identified factors to determine the amount of the write-down, if any. For each of the years ended December 31, 2017, 2016 and 2015, we recorded a charge of $0.2 million, $0.8 million and $0.2 million, respectively, related to the other-than-temporary impairment of certain marketable equity securities and our deferred compensation plan assets. Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our investments for the years ended December 31, 2017, 2016 and 2015: Year Ended December 31, (In thousands) 2017 2016 2015 Gross realized gains $ 5,258 $ 7,530 $ 10,906 Gross realized losses $ (573 ) $ (1,607 ) $ (569 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2017: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 1,922 $ (81 ) $ 262 $ (15 ) $ 2,184 $ (96 ) Corporate bonds 16,015 (58 ) 6,112 (97 ) 22,127 (155 ) Municipal fixed-rate bonds 230 — 1,165 (22 ) 1,395 (22 ) Asset-backed bonds 4,941 (17 ) 179 (3 ) 5,120 (20 ) Mortgage/Agency-backed bonds 3,062 (8 ) 1,673 (38 ) 4,735 (46 ) U.S. government bonds 2,754 (26 ) 11,549 (148 ) 14,303 (174 ) Marketable equity securities 10,169 (712 ) 544 (138 ) 10,713 (850 ) Total $ 39,093 $ (902 ) $ 21,484 $ (461 ) $ 60,577 $ (1,363 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2016: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 294 $ (12 ) $ 245 $ (30 ) $ 539 $ (42 ) Corporate bonds 32,562 (166 ) 2,722 (8 ) 35,284 (174 ) Municipal fixed-rate bonds 8,936 (37 ) — — 8,936 (37 ) Asset-backed bonds 2,986 (14 ) — — 2,986 (14 ) Mortgage/Agency-backed bonds 7,842 (81 ) 1,239 (10 ) 9,081 (91 ) U.S. government bonds 26,449 (270 ) — — 26,449 (270 ) Foreign government bonds 924 (1 ) — — 924 (1 ) Marketable equity securities 21,607 (1,200 ) 1,495 (303 ) 23,102 (1,503 ) Total $ 101,600 $ (1,781 ) $ 5,701 $ (351 ) $ 107,301 $ (2,132 ) The decrease in unrealized losses during 2017, as reflected in the table above, results from changes in market positions associated with our fixed income and equity investment portfolio. At December 31, 2017, a total of 274 of our marketable equity securities were in an unrealized loss position. We have categorized our cash equivalents and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees. Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 5,851 $ 5,851 $ — $ — Commercial paper 3,999 — 3,999 — Cash equivalents 9,850 5,851 3,999 — Available-for-sale securities Deferred compensation plan assets 19,883 19,883 — — Available-for-sale debt securities Corporate bonds 32,543 — 32,543 — Municipal fixed-rate bonds 2,882 — 2,882 — Asset-backed bonds 6,526 — 6,526 — Mortgage/Agency-backed bonds 5,509 — 5,509 — U.S. government bonds 14,303 14,303 — — Foreign government bonds 730 — 730 — Available-for-sale marketable equity securities Marketable equity securities – various industries 35,662 35,662 — — Available-for-sale securities 118,038 69,848 48,190 — Total $ 127,888 $ 75,699 $ 52,189 $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,878 $ 6,878 $ — $ — Commercial paper 17,222 — 17,222 — Cash equivalents 24,100 6,878 17,222 — Available-for-sale securities Deferred compensation plan assets 14,596 14,596 — — Available-for-sale debt securities Corporate bonds 66,412 — 66,412 — Municipal fixed-rate bonds 11,774 — 11,774 — Asset-backed bonds 10,206 — 10,206 — Mortgage/Agency-backed bonds 13,004 — 13,004 — U.S. government bonds 29,767 29,767 — — Foreign government bonds 3,730 — 3,730 — Variable rate demand notes 11,855 — 11,855 — Available-for-sale marketable equity securities Marketable equity securities – various industries 29,379 29,379 — — Available-for-sale securities 190,723 73,742 116,981 — Total $ 214,823 $ 80,620 $ 134,203 $ — The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, security master files from large financial institutions, and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security. Our municipal variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 5 – 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. 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 agreements and are not offset in the Consolidated Balance Sheets. As of December 31, 2017, we had no forward contracts outstanding. The fair values of our derivative instruments recorded in the Consolidated Balance Sheet as of December 31, 2017 and 2016 were as follows: (In thousands) Balance Sheet Location 2017 2016 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ — $ 159 The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the years ended December 31, 2017, 2016 and 2015 were as follows: (In thousands) Income Statement Location 2017 2016 2015 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ (754 ) $ 724 $ 511 The change in our derivatives designated as hedging instruments recorded in other comprehensive income (OCI) and reclassified to income, net of tax, during the twelve months ended December 31, 2017, 2016 and 2015 were as follows: Amount of Gains (Losses) Recognized in Location of Gains Amount of Gains (Losses) Reclassified OCI on Derivatives (Losses) Reclassified from AOCI into Income (In thousands) 2017 2016 2015 from AOCI into Income 2017 2016 2015 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ — $ — $ — Cost of Sales $ (897 ) $ — $ — |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6 – Inventory At December 31, 2017 and 2016, inventory was comprised of the following: (In thousands) 2017 2016 Raw materials $ 44,185 $ 40,461 Work in process 1,939 4,003 Finished goods 76,418 60,653 Total Inventory, net $ 122,542 $ 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 December 31, 2017 and 2016, raw materials reserves totaled $15.0 million and $14.6 million, respectively, and finished goods inventory reserves totaled $8.3 million and $10.6 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 7 – Property, Plant and Equipment At December 31, 2017 and 2016, property, plant and equipment were comprised of the following: (In thousands) 2017 2016 Land $ 4,575 $ 4,575 Building and land improvements 32,470 29,229 Building 68,301 68,301 Furniture and fixtures 19,489 18,477 Computer hardware and software 90,726 87,655 Engineering and other equipment 123,363 118,746 Total Property, Plant and Equipment 338,924 326,983 Less accumulated depreciation (253,845 ) (242,514 ) Total Property, Plant and Equipment, net $ 85,079 $ 84,469 Depreciation expense was $12.8 million, $12.0 million and $12.3 million in 2017, 2016, and 2015, respectively. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Arrangements | Note 8 – Lease Arrangements We are the lessor in sales-type lease arrangements for network equipment, which have terms of 18 months to five years. The net investment in sales-type leases consists of lease receivables less unearned income. Collectability of sales-type leases is evaluated periodically on an individual customer level. At December 31, 2017, we had no allowance for credit losses for our net investment in sales-type leases. As of December 31, 2017 and 2016, the components of the net investment in sales-type leases were as follows: (In thousands) 2017 2016 Current minimum lease payments receivable (included in other receivables) $ 11,325 $ 2,141 Non-current minimum lease payments receivable (included in other assets) 2,913 2,912 Total minimum lease payments receivable 14,238 5,053 Less: Current unearned revenue 707 841 Less: Non-current unearned revenue 787 1,153 Net investment in sales-type leases $ 12,744 $ 3,059 Future minimum lease payments to be received from sales-type leases at December 31, 2017 are as follows: (In thousands) Amount 2018 $ 11,211 2019 2,172 2020 592 2021 205 2022 58 Total $ 14,238 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 9 – Goodwill and Intangible Assets Goodwill, all of which relates to our acquisition of Bluesocket, Inc., was $3.5 million at December 31, 2017 and 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 2017, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the acquisition in 2011. Intangible assets are included in other assets in the accompanying Consolidated Balance Sheets. The following table presents our intangible assets as of December 31, 2017 and 2016: (In thousands) 2017 2016 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 7,474 $ (4,283 ) $ 3,191 $ 6,899 $ (3,208 ) $ 3,691 Developed technology 5,524 (4,663 ) 861 5,184 (3,801 ) 1,383 Intellectual property 2,340 (2,262 ) 78 2,340 (2,129 ) 211 Supply agreement 1,400 (1,400 ) — 1,400 (544 ) 856 License 500 (500 ) — 500 (113 ) 387 Patent 500 (89 ) 411 500 (20 ) 480 Trade names 370 (335 ) 35 370 (285 ) 85 Non-compete 200 (115 ) 85 200 (26 ) 174 Total $ 18,308 $ (13,647 ) $ 4,661 $ 17,393 $ (10,126 ) $ 7,267 Amortization expense was $2.9 million, $2.5 million and $1.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, the estimated future amortization expense of intangible assets is as follows: (In thousands) Amount 2018 $ 1,212 2019 697 2020 659 2021 603 2022 567 Thereafter 923 Total $ 4,661 |
Alabama State Industrial Develo
Alabama State Industrial Development Authority Financing and Economic Incentives | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Alabama State Industrial Development Authority Financing and Economic Incentives | Note 10 – Alabama State Industrial Development Authority Financing and Economic Incentives In conjunction with an expansion of our Huntsville, Alabama, facility, we were approved for participation in an incentive program offered by the State of Alabama Industrial Development Authority (the “Authority”). Pursuant to the program, on January 13, 1995, the Authority issued $20.0 million of its taxable revenue bonds and loaned the proceeds from the sale of the bonds to ADTRAN. The bonds were originally purchased by AmSouth Bank of Alabama, Birmingham, Alabama (the “Bank”). Wachovia Bank, N.A., Nashville, Tennessee (formerly First Union National Bank of Tennessee) (the “Bondholder”), which was acquired by Wells Fargo & Company on December 31, 2008, purchased the original bonds from the Bank and made further advances to the Authority, bringing the total amount outstanding to $50.0 million. An Amended and Restated Taxable Revenue Bond (“Amended and Restated Bond”) was issued and the original financing agreement was amended. The Amended and Restated Bond bears interest, payable monthly. The interest rate is 2% per annum. The Amended and Restated Bond matures on January 1, 2020, and is currently outstanding in the aggregate principal amount of $26.7 million. The estimated fair value of the bond using a level 2 valuation technique at December 31, 2017 was approximately $26.7 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. We are required to make payments to the Authority in amounts necessary to pay the interest on the Amended and Restated Bond. Included in long-term investments at December 31, 2017 is $27.8 million which is invested in a restricted certificate of deposit. These funds serve as a collateral deposit against the principal of this bond, and we have the right to set-off the balance of the Bond with the collateral deposit in order to reduce the balance of the indebtedness. In conjunction with this program, we are eligible to receive certain economic incentives from the state of Alabama that reduce the amount of payroll withholdings that we are required to remit to the state for those employment positions that qualify under the program. We realized economic incentives related to payroll withholdings totaling $1.5 million for the year ended December 31, 2017 and $1.3 million for each of the years ended December 31, 2016 and 2015. We made principal payments of $1.1 million for each of the years ended December 31, 2017 and 2016, and anticipate making a principal payment in 2018. At December 31, 2017, $1.1 million of the bond debt was classified as a current liability in accounts payable in the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Income Taxes A summary of the components of the provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands) 2017 2016 2015 Current Federal $ 466 $ 12,733 $ 7,504 State (150 ) 1,141 279 International 6,458 477 (29 ) Total Current 6,774 14,351 7,754 Deferred Federal 8,024 647 (585 ) State 1,882 73 (66 ) International 4,167 (3,405 ) (41 ) Total Deferred 14,073 (2,685 ) (692 ) Total Provision for Income Taxes $ 20,847 $ 11,666 $ 7,062 Our effective income tax rate differs from the federal statutory rate due to the following: 2017 2016 2015 Tax provision computed at the federal statutory rate 35.00 % 35.00 % 35.00 % State income tax provision, net of federal benefit 2.17 3.93 4.86 Federal research credits (11.88 ) (8.15 ) (12.55 ) Foreign taxes (2.27 ) (0.34 ) 2.10 Tax-exempt income (0.75 ) (0.53 ) (1.94 ) State tax incentives (2.71 ) (2.77 ) (5.04 ) Stock-based compensation 1.43 2.53 6.91 Domestic production activity deduction (1.13 ) (2.23 ) (3.17 ) Bargain purchase — (2.64 ) — Impact of U.S. tax reform 26.70 — — Other, net 0.09 0.08 1.30 Effective Tax Rate 46.65 % 24.88 % 27.47 % Income before provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands) 2017 2016 2015 U.S. entities $ 26,552 $ 54,077 $ 27,400 International entities 18,135 (7,182 ) (1,692 ) Total $ 44,687 $ 46,895 $ 25,708 Income before provision for income taxes for international entities reflects income based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenues, many of which occur from our U.S. entity. Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows: (In thousands) 2017 2016 Deferred tax assets Inventory $ 7,545 $ 12,020 Accrued expenses 3,103 5,551 Investments — 1,062 Deferred compensation 5,204 5,751 Stock-based compensation 2,988 4,724 Uncertain tax positions related to state taxes and related interest 370 762 Pensions 4,727 4,273 Foreign losses 3,091 6,486 State losses and credit carry-forwards 3,854 4,021 Federal loss and research carry-forwards 3,058 5,886 Valuation allowance (6,006 ) (6,149 ) Total Deferred Tax Assets 27,934 44,387 Deferred tax liabilities Property, plant and equipment (3,553 ) (4,433 ) Intellectual property (663 ) (1,918 ) Investments (290 ) — Total Deferred Tax Liabilities (4,506 ) (6,351 ) Net Deferred Tax Assets $ 23,428 $ 38,036 On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. As a result of the Act, we have recognized an estimated expense of $11.9 million in the fourth quarter of 2017, of which $9.2 million related to the write-down of deferred tax assets and $2.7 million related to tax on unrepatriated foreign earnings. We have calculated our best estimate of the impact of the Act in our year-end income tax provision, in accordance with Staff Accounting Bulletin No. 118, which was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed to finalize the accounting for certain income tax effects of the Act. Additional work is necessary to do a more detailed analysis of historical foreign earnings, as well as the full impact relating to the write-down of deferred tax assets. Any subsequent adjustments to these amounts will be recorded as income tax expense in the quarter the analysis is complete. At December 31, 2017 and 2016, non-current deferred taxes related to our investments and our defined benefit pension plan reflect deferred taxes on the net unrealized gains on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, a deferred tax benefit of $1.7 million and $1.5 million in 2017 and 2016, respectively, is recorded as an adjustment to other comprehensive income, presented in the Consolidated Statements of Comprehensive Income. Based upon our results of operations in 2017 and expected profitability in future years in a certain international jurisdiction, we concluded that it is more likely than not certain foreign deferred tax assets will be realized. As of December 31, 2017, the remaining valuation allowance primarily relates to deferred tax assets related to state credit carry-forwards from tax credits in excess of our annual tax liability to an individual state where we do not generate sufficient state income to offset the credit and net operating losses in foreign jurisdictions. We believe it is more likely than not that we will not realize the full benefits of the deferred tax assets arising from these losses and credits, and accordingly, we have provided a valuation allowance against these deferred tax assets. The deferred tax assets for foreign and domestic carry-forwards, unamortized research and development costs, and state credit carry-forwards of $10.0 million will expire between 2018 and 2030. The loss carry-forwards were acquired through acquisitions in 2009 and 2011. We will continue to assess the realization of our deferred tax assets and related valuation allowances. The net change in our valuation allowance from December 31, 2016 to December 31, 2017 was $(0.1) million. As of December 31, 2017 and 2016, respectively, our cash and cash equivalents were $86.4 million and $79.9 million and short-term investments were $16.1 million and $43.2 million, which provided an available short-term liquidity of $102.6 million and $123.1 million. Of these amounts, our foreign subsidiaries held cash of $56.8 million and $42.1 million, respectively, representing approximately 55.4% and 34.2% of available short-term liquidity, which is used to fund on-going liquidity needs of these subsidiaries. We intend to permanently reinvest these funds outside the U.S. and our current business plans do not indicate a need to repatriate to fund domestic operations. However, if these funds were repatriated to the U.S. or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practical to determine the amount of funds subject to unrecognized deferred tax liability. During 2017 and 2016, we recorded no income tax benefit or expense for stock options exercised as an adjustment to equity. In 2015, we recorded an income tax expense of $(40) thousand as an adjustment to equity. This is calculated on the difference between the exercise price of stock option exercises and the market price of the underlying common stock upon exercise. The change in the unrecognized income tax benefits for the years ended December 31, 2017, 2016 and 2015 is reconciled below: (In thousands) 2017 2016 2015 Balance at beginning of period $ 2,226 $ 2,537 $ 3,334 Increases for tax position related to: Prior years 465 95 — Current year 285 428 280 Decreases for tax positions related to: Prior years (14 ) — (29 ) Settlements with taxing authorities — — (103 ) Expiration of applicable statute of limitations (596 ) (834 ) (945 ) Balance at end of period $ 2,366 $ 2,226 $ 2,537 As of December 31, 2017, 2016, and 2015, our total liability for unrecognized tax benefits was $2.4 million, $2.2 million, and $2.5 million, respectively, of which $2.2 million, $1.7 million, and $1.8 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2017, 2016 and 2015, the balances of accrued interest and penalties were $0.8 million, $0.8 million and $0.9 million, respectively. We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2013. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 12 – Employee Benefit Plans Pension Benefit Plan We maintain a defined benefit pension plan covering employees in certain foreign countries. The pension benefit plan obligations and funded status at December 31, 2017 and 2016, are as follows: (In thousands) 2017 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 30,011 $ 26,851 Service cost 1,260 1,211 Interest cost 607 720 Actuarial (gain) loss - experience 47 (431 ) Actuarial (gain) loss - assumptions (1,294 ) 2,628 Benefit payments (80 ) (52 ) Effects of foreign currency exchange rate changes 4,342 (916 ) Projected benefit obligation at end of period 34,893 30,011 Change in plan assets: Fair value of plan assets at beginning of period 20,045 19,213 Actual return on plan assets 709 1,494 Contributions 3,001 — Effects of foreign currency exchange rate changes 2,869 (662 ) Fair value of plan assets at end of period 26,624 20,045 Funded (unfunded) status at end of period $ (8,269 ) $ (9,966 ) The accumulated benefit obligation was $32.9 million and $28.7 million at December 31, 2017 and 2016, respectively. The increase in the accumulated benefit obligation is primarily attributable to the weakening U.S. dollar to Euro exchange rate during 2017. The change in actuarial gain (loss) is primarily attributable to an increase in the discount rate used in 2017. The net amounts recognized in the balance sheet for the unfunded pension liability as of December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Current liability $ — $ — Non-current liability 8,269 9,966 Total $ 8,269 $ 9,966 The components of net periodic pension cost and amounts recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 are as follows: (In thousands) 2017 2016 2015 Net periodic benefit cost: Service cost $ 1,260 $ 1,211 $ 1,314 Interest cost 607 720 615 Expected return on plan assets (1,267 ) (1,057 ) (1,011 ) Amortization of actuarial losses 309 175 407 Net periodic benefit cost 909 1,049 1,325 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss (654 ) 1,782 (2,303 ) Amortization of actuarial losses (406 ) (156 ) (396 ) Amount recognized in other comprehensive income (1,060 ) 1,626 (2,699 ) Total recognized in net periodic benefit cost and other comprehensive income $ (151 ) $ 2,675 $ (1,374 ) The amounts recognized in accumulated other comprehensive income as of December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Net actuarial loss $ (5,812 ) $ (6,871 ) The defined benefit pension plan is accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected rate of return on plan assets and a discount rate. The expected return on our German plan assets that is utilized in determining the benefit obligation and net periodic benefit cost is derived from periodic studies, which include a review of asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. Another key assumption in determining net pension expense is the assumed discount rate to be used to discount plan obligations. The discount rate has been derived from the returns of high-quality, corporate bonds denominated in Euro currency with durations close to the duration of our pension obligations. The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Discount rates 1.90 % 2.64 % 2.20 % Rate of compensation increase 2.00 % 2.00 % 2.25 % Expected long-term rates of return 5.90 % 5.40 % 5.40 % The weighted-average assumptions that were used to determine the benefit obligation at December 31, 2017 and 2016: 2017 2016 Discount rates 2.13 % 1.90 % Rate of compensation increase 2.00 % 2.00 % Actuarial gains and losses are recorded in accumulated other comprehensive income. To the extent unamortized gains and losses exceed 10% of the higher of the market-related value of assets or the projected benefit obligation, the excess is amortized as a component of net periodic pension cost over the remaining service period of active participants. We estimate that $0.2 million will be amortized from accumulated other comprehensive income into net periodic pension cost in 2018 for the net actuarial loss. We do not anticipate making a contribution to this pension plan in 2018. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2018 $ 549 2019 772 2020 1,090 2021 1,225 2022 1,315 2023 – 2027 6,301 Total $ 11,252 We have categorized our cash equivalents and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3,005 $ 3,005 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 14,349 14,349 — — Government bonds 2,305 2,305 — — Equity funds: Large cap blend 5,758 5,758 — — Large cap value 309 309 — — Balanced fund 898 898 — — Available-for-sale securities 23,619 23,619 — — Total $ 26,624 $ 26,624 $ — $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 6 $ 6 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 12,546 12,546 — — Government bonds 2,037 2,037 — — Equity funds: Large cap blend 4,462 4,462 — — Large cap value 249 249 — — Balanced fund 745 745 — — Available-for-sale securities 20,039 20,039 — — Total $ 20,045 $ 20,045 $ — $ — Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants, and consider a broad range of economic conditions. Central to the policy are target allocation ranges by asset class, which is currently 75% for bond funds and 25% for equity funds. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies. The investment policy is periodically reviewed by us and a designated third-party fiduciary for investment matters. The policy is established and administered in a manner that is compliant at all times with applicable government regulations. 401(k) Savings Plan We maintain the ADTRAN, Inc. 401(k) Retirement Plan (Savings Plan) for the benefit of our eligible employees. The Savings Plan is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (Code), and is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12). The Savings Plan allows employees to save for retirement by contributing part of their compensation to the plan on a tax-deferred basis. The Savings Plan also requires us to contribute a “safe harbor” amount each year. We match up to 4% of employee contributions (100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions), beginning on the employee’s one year anniversary date. In calculating our matching contribution, we only use compensation up to the statutory maximum under the Code ($270 thousand for 2017). All contributions under the Savings Plan are 100% vested. Expenses recorded for employer contributions and plan administration costs for the Savings Plan amounted to approximately $4.6 million, $4.1 million and $4.7 million in 2017, 2016 and 2015, respectively. Deferred Compensation Plans We maintain four deferred compensation programs for certain executive management employees and our Board of Directors. For our executive management employees, the ADTRAN, Inc. Deferred Compensation Program for Employees is offered as a supplement to our tax-qualified 401(k) plan and is available to certain executive management employees who have been designated by our Board of Directors. This deferred compensation plan allows participants to defer all or a portion of certain specified bonuses and up to 25% of remaining cash compensation, and permits us to make matching contributions on a discretionary basis, without the limitations that apply to the 401(k) plan. To date, we have not made any matching contributions under this plan. We also maintain the ADTRAN, Inc. Equity Deferral Program for Employees. Under this plan, participants may elect to defer all or a portion of their vested PSUs to the Plan. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the Participant. For our Board of Directors, we maintain the ADTRAN, Inc. Deferred Compensation Program for Directors. This program allows our Board of Directors to defer all or a portion of monetary remuneration paid to the Director, including, but not limited to, meeting fees and annual retainers. We also maintain the ADTRAN, Inc. Equity Deferral Program for Directors. Under this plan, participants may elect to defer all or a portion of their vested restricted stock awards. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the Director. We have set aside the plan assets for all plans in a rabbi trust (Trust) and all contributions are credited to bookkeeping accounts for the participants. The Trust assets are subject to the claims of our creditors in the event of bankruptcy or insolvency. The assets of the Trust are deemed to be invested in pre-approved mutual funds as directed by each participant, and the participant’s bookkeeping account is credited with the earnings and losses attributable to those investments. Benefits are scheduled to be distributed six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten year term. Distributions will be made on a pro rata basis from each of the hypothetical investments of the Participant’s account in cash. Any whole shares of ADTRAN, Inc. common stock that are distributed will be distributed in-kind. Assets of the Trust are deemed invested in mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds are publicly quoted and reported at fair value. The fair value of the assets held by the Trust and the amounts payable to the plan participants at December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Fair Value of Plan Assets Long-term Investments $ 19,883 $ 14,596 Total Fair Value of Plan Assets $ 19,883 $ 14,596 Amounts Payable to Plan Participants Non-current Liabilities $ 19,883 $ 14,596 Total Amounts Payable to Plan Participants $ 19,883 $ 14,596 Interest and dividend income of the Trust have been included in interest and dividend income in the accompanying 2017, 2016 and 2015 Consolidated Statements of Income. Changes in the fair value of the plan assets held by the Trust have been included in accumulated other comprehensive income in the accompanying 2017 and 2016 Consolidated Balance Sheets. Changes in the fair value of the deferred compensation liability are included as selling, general and administrative expense in the accompanying 2017, 2016 and 2015 Consolidated Statements of Income. Based on the changes in the total fair value of the Trust’s assets, we recorded deferred compensation income (expense) in 2017, 2016 and 2015 of $(2.6) million, $(1.3) million and $0.3 million, respectively. Retiree Medical Coverage We provide medical, dental and prescription drug coverage to one retired former officer and his spouse, for his life, on the same terms as provided to our active officers, and to the spouse of a former deceased officer for up to 30 years. At December 31, 2017 and 2016, this liability totaled $0.1 million and $0.2 million, respectively. |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | Note 13 – Segment Information and Major Customers In 2015, we realigned our organizational structure to better match our market opportunities, technological development initiatives, and improve efficiencies. During the first quarter of 2016, our chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. As a result, beginning with the quarter ended March 31, 2016, we began reporting our financial performance based on two, new reportable segments – Network Solutions and Services & Support. Network Solutions includes hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes our suite of ProCloud managed services, network installation, engineering and maintenance services, and fee-based technical support and equipment repair/replacement plans. We evaluate the performance of our new segments based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net realized investment gain/loss, other income/expense and provision for taxes are reported on a company-wide, functional basis only. Historical financial information by reportable segment and category, as discussed below, has been recast to conform to our new reporting structure. There are no inter-segment revenues. The following table presents information about the reported sales and gross profit of our reportable segments for each of the years ended December 31, 2017, 2016 and 2015. Asset information by reportable segment is not reported, since we do not produce such information internally. Sales and Gross Profit by Market Segment (In thousands) 2017 2016 2015 Sales Gross Profit Sales Gross Profit Sales Gross Profit Network Solutions $ 540,396 $ 260,855 $ 525,502 $ 254,807 $ 527,422 $ 233,579 Services & Support 126,504 42,805 111,279 36,537 72,642 33,318 Total $ 666,900 $ 303,660 $ 636,781 $ 291,344 $ 600,064 $ 266,897 Sales by Category In addition to our new reporting segments, we will also report revenue for the following three categories – Access & Aggregation, Customer Devices, and Traditional & Other Products. The following table presents sales information by product category for the years ended December 31, 2017, 2016 and 2015: (In thousands) 2017 2016 2015 Access & Aggregation $ 473,943 $ 436,372 $ 405,698 Customer Devices 138,456 137,608 125,565 Traditional & Other Products 54,501 62,801 68,801 Total $ 666,900 $ 636,781 $ 600,064 The following table presents sales information by geographic area for the years ended December 31, 2017, 2016 and 2015. International sales correlate to shipments with a non-U.S. destination. (In thousands) 2017 2016 2015 United States $ 508,178 $ 501,337 $ 419,366 Germany 119,502 85,780 111,666 Other international 39,220 49,664 69,032 Total $ 666,900 $ 636,781 $ 600,064 Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of our revenue in 2017 included two customers at 40% and 16%. Single customers comprising more than 10% of our revenue in 2016 included three customers at 24%, 19% and 12%. Single customers comprising more than 10% of our revenue in 2015 included three customers at 20%, 17% and 14%. No other customer accounted for 10% or more of our sales in 2017, 2016 or 2015. Our five largest customers, other than those with more than 10 percent of revenues disclosed above, can change from year to year. These customers represented 15%, 13%, and 14% of total revenue in 2017, 2016 and 2015, respectively. Revenues in this disclosure do not include distributor agents, who predominantly provide fulfillment services to end users. In such cases where known, that revenue is associated with the end user. Additional Segment Information As of December 31, 2017, long-lived assets, net totaled $85.1 million, which includes $80.6 million held in the U.S. and $4.5 million held outside the U.S. As of December 31, 2016, long-lived assets, net totaled $84.5 million, which includes $79.9 million held in the U.S. and $4.6 million held outside the U.S. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 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 December 31, 2017, of which $7.7 million has been applied to these commitments. We lease office space and equipment under operating leases which expire at various dates through 2025. As of December 31, 2017, future minimum rental payments under non-cancelable operating leases with original maturities of greater than 12 months are as follows: (In thousands) 2018 $ 3,073 2019 927 2020 805 2021 793 Thereafter 2,907 Total $ 8,505 Rental expense was $4.5 million, $4.2 million and $4.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15 – Earnings per Share A summary of the calculation of basic and diluted earnings per share (EPS) for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands, except for per share amounts) 2017 2016 2015 Numerator Net Income $ 23,840 $ 35,229 $ 18,646 Denominator Weighted average number of shares – basic 48,153 48,724 51,145 Effect of dilutive securities: Stock options 406 170 81 Restricted stock and restricted stock units 140 55 41 Weighted average number of shares – diluted $ 48,699 $ 48,949 $ 51,267 Net income per share – basic $ 0.50 $ 0.72 $ 0.36 Net income per share – diluted $ 0.49 $ 0.72 $ 0.36 For each of the years ended December 31, 2017, 2016 and 2015, 3.2 million, 4.6 million and 6.1 million stock options were outstanding but were not included in the computation of that year’s diluted EPS because the options’ exercise prices were greater than the average market price of the common shares, therefore making them anti-dilutive under the treasury stock method. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data (Unaudited) | Note 16 – Summarized Quarterly Financial Data (Unaudited) The following table presents unaudited quarterly operating results for each of our last eight fiscal quarters. This information has been prepared on a basis consistent with our audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data. Unaudited Quarterly Operating Results (In thousands, except for per share amounts) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net sales $ 170,279 $ 184,673 $ 185,112 $ 126,836 Gross profit $ 73,715 $ 84,632 $ 86,498 $ 58,815 Operating income $ 7,032 $ 16,448 $ 18,318 $ (4,061 ) Net income $ 6,651 $ 12,401 $ 15,898 $ (11,110 ) Earnings per common share $ 0.14 $ 0.26 $ 0.33 $ (0.23 ) Earnings per common share assuming dilution (1) $ 0.14 $ 0.26 $ 0.33 $ (0.23 ) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales $ 142,204 $ 162,701 $ 168,890 $ 162,986 Gross profit $ 65,794 $ 78,955 $ 75,808 $ 70,787 Operating income $ 5,521 $ 14,812 $ 10,130 $ 4,272 Net income $ 5,014 $ 10,228 $ 12,415 $ 7,572 Earnings per common share $ 0.10 $ 0.21 $ 0.26 $ 0.16 Earnings per common share assuming dilution (1) $ 0.10 $ 0.21 $ 0.26 $ 0.16 (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Events On January 16, 2018, the Board declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on January 31, 2018. The quarterly dividend payment was $4.4 million and was paid on February 14, 2018. In July 2003, our Board of Directors elected to begin declaring quarterly dividends on our common stock considering the tax treatment of dividends and adequate levels of Company liquidity. During the first quarter and as of February 23, 2018, we have repurchased 0.6 million shares of our common stock through open market purchases at an average cost of $16.18 per share. We currently have the authority to purchase an additional 2.9 million shares of our common stock under the current plan approved by the Board of Directors. In January 2018, we announced an early retirement incentive program for employees that met certain requirements. The estimated liability associated with this program ranges from $3.6 to $14.3 million. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E (In thousands) Balance at Beginning of Period Charged to Costs & Expenses Deductions Balance at End of Period Year ended December 31, 2017 Allowance for Doubtful Accounts $ — — — $ — Inventory Reserve $ 25,249 6,406 8,300 $ 23,355 Warranty Liability $ 8,548 6,951 5,775 $ 9,724 Deferred Tax Asset Valuation Allowance $ 6,149 18 161 $ 6,006 Year ended December 31, 2016 Allowance for Doubtful Accounts $ 19 — 19 $ — Inventory Reserve $ 26,675 3,303 4,729 $ 25,249 Warranty Liability $ 8,739 8,561 8,752 $ 8,548 Deferred Tax Asset Valuation Allowance $ 7,250 69 1,170 $ 6,149 Year ended December 31, 2015 Allowance for Doubtful Accounts $ 136 19 136 $ 19 Inventory Reserve $ 24,682 2,225 232 $ 26,675 Warranty Liability $ 8,415 2,998 2,674 $ 8,739 Deferred Tax Asset Valuation Allowance $ 7,463 81 294 $ 7,250 |
Nature of Business and Summar27
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include ADTRAN and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues and network installations, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent demand deposits, money market funds, and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions, and determined the risk of material financial loss due to the exposure of such credit risk to be minimal. As of December 31, 2017, $83.7 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $26.7 million, compared to an estimated fair value of $26.7 million, based on a debt security with a comparable interest rate and maturity and a Standard & Poor’s credit rating of AAA. Investments with contractual maturities beyond one year, such as our variable rate demand notes, may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent, or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments was recorded as interest income. We have not been required to record any losses relating to variable rate demand notes. Long-term investments represent a restricted certificate of deposit held at cost, deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency backed bonds, U.S. and foreign government bonds, variable rate demand notes, marketable equity securities, and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Unrealized gains and losses, net of tax, are reported as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are computed under the specific identification method and are included in current income. We review our investment portfolio quarterly for investments considered to have sustained an other-than-temporary decline in value. Impairment charges for other-than-temporary declines in value are recorded as realized losses in the accompanying consolidated statements of income. All of our investments at December 31, 2017 and 2016 are classified as available-for-sale securities. See Note 4 of Notes to Consolidated Financial Statements for additional information. |
Accounts Receivable | Accounts Receivable We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. At December 31, 2017, single customers comprising more than 10% of our total accounts receivable balance included two customers, which accounted for 63.8% of our total accounts receivable. At December 31, 2016, single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 63.3% of our total accounts receivable. We regularly review the need to maintain an allowance for doubtful accounts and consider factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events and our historical experience. If the financial condition of a customer deteriorates, resulting in an impairment of their ability to make payments, we may be required to record an allowance for doubtful accounts. If circumstances change with regard to individual receivable balances that have previously been determined to be uncollectible (and for which a specific reserve has been established), a reduction in our allowance for doubtful accounts may be required. We did not have an allowance for doubtful accounts at December 31, 2017 or December 31, 2016. |
Other Receivables | Other Receivables Other receivables are comprised primarily of lease receivables, amounts due from subcontract manufacturers for product component transfers, unbilled receivables, amounts due from various jurisdictions for value-added tax, income tax receivable, accrued interest on investments and on a restricted certificate of deposit, and amounts due from employee stock option exercises. |
Inventory | Inventory Inventory is carried at the lower of cost and net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory. Standard costs are updated at least quarterly; therefore, inventory costs approximate actual costs at the end of each reporting period. We establish reserves for estimated excess, obsolete or unmarketable inventory equal to the difference between the cost of the inventory and the estimated fair value of the inventory based upon assumptions about future demand, market conditions and age. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 6 of Notes to Consolidated Financial Statements for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Betterments that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income. See Note 7 of Notes to Consolidated Financial Statements for additional information. |
Liability for Warranty | Liability for Warranty Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time revenue is recognized based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Our products continue to become more complex in both size and functionality as many of our product offerings migrate from line card applications to total systems. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage, and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Alternatively, if we provide for more reserves than we require, we will reverse a portion of such provisions in future periods. During 2017, we recorded 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 following table. The liability for warranty obligations totaled $9.7 million and $8.5 million at December 31, 2017 and 2016, respectively. These liabilities are included in accrued expenses in the accompanying consolidated balance sheets. A summary of warranty expense and write-off activity for the years ended December 31, 2017, 2016 and 2015 is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 8,548 $ 8,739 $ 8,415 Plus: Amounts charged to cost and expenses 6,951 8,561 2,998 Less: Deductions (5,775 ) (8,752 ) (2,674 ) Balance at end of period $ 9,724 $ 8,548 $ 8,739 |
Pension Benefit Plan Obligations | Pension Benefit Plan Obligations We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. |
Stock-Based Compensation | Stock-Based Compensation We have two Board and stockholder approved stock incentive plans from which stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock are available for grant to employees and directors. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. All of our outstanding stock option awards are classified as equity awards. Stock-based compensation expense recognized in 2017, 2016 and 2015 was approximately $7.4 million, $6.7 million and $6.7 million, respectively. As of December 31, 2017, total compensation cost related to non-vested stock options, market-based PSUs, RSUs and restricted stock not yet recognized was approximately $17.1 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. In addition, there was $11.4 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 obligation becomes probable. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets used in operations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. There were no impairment losses recognized during 2017, 2016 or 2015. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets We evaluate the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step impairment test will be performed. Based on the results of our qualitative assessment in 2017, we concluded that it was not necessary to perform the two-step impairment test. There have been no impairment losses recognized since the goodwill was acquired in an acquisition in 2011. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is 9 months to 14 years. |
Research and Development Costs | Research and Development Costs Research and development costs include compensation for engineers and support personnel, outside contracted services, depreciation and material costs associated with new product development, the enhancement of current products, and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $130.4 million, $124.8 million and $129.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Other Comprehensive Income | 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 table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2015, 2016 and 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 Balance, December 31, 2014 $ 8,964 $ — $ (5,757 ) $ (3,282 ) $ (75 ) Other comprehensive income (loss) before reclassifications (844 ) — 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) — 273 — (5,915 ) Balance, December 31, 2015 1,932 — (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 — (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) — 107 — (2,936 ) Balance, December 31, 2016 404 — (5,017 ) (7,575 ) (12,188 ) Other comprehensive income (loss) before reclassifications 5,020 (619 ) 451 5,999 10,851 Amounts reclassified from accumulated other comprehensive income (2,857 ) 619 280 — (1,958 ) Balance at December 31, 2017 $ 2,567 $ — $ (4,286 ) $ (1,576 ) $ (3,295 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017, 2016 and 2015: (In thousands) 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 $ 4,864 Net realized investment gain Impairment expense (180 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (897 ) Cost of sales Defined benefit plan adjustments – actuarial losses (406 ) (1) Total reclassifications for the period, before tax 3,381 Tax (expense) benefit (1,423 ) Total reclassifications for the period, net of tax $ 1,958 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2017, 2016 and 2015: 2017 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 8,230 $ (3,210 ) $ 5,020 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,684 ) 1,827 (2,857 ) Unrealized gains (losses) on cash flow hedges (897 ) 278 (619 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 897 (278 ) 619 Defined benefit plan adjustments 654 (203 ) 451 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 406 (126 ) 280 Foreign currency translation adjustment 5,999 — 5,999 Total Other Comprehensive Income (Loss) $ 10,605 $ (1,712 ) $ 8,893 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) |
Income Taxes | Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change. On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. As a result of the Act, we have recognized an estimated expense of $11.9 million in the fourth quarter of 2017, of which $9.2 million related to the write-down of deferred tax assets and $2.7 million related to tax on unrepatriated foreign earnings. We have calculated our best estimate of the impact of the Act in our year-end income tax provision, in accordance with Staff Accounting Bulletin No. 118, which was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed to finalize the accounting for certain income tax effects of the Act. Additional work is necessary to do a more detailed analysis of historical foreign earnings, as well as the full impact relating to the write-down of deferred tax assets. Any subsequent adjustments to these amounts will be recorded as income tax expense in the quarter the analysis is complete. |
Foreign Currency | F oreign Currency We record transactions denominated in foreign currencies on a monthly basis using exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar, and our Mexican subsidiary, whose functional currency is the U.S. dollar. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss). |
Revenue Recognition | Revenue Recognition Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the product price is fixed or determinable, collection of the resulting receivable is reasonably assured, and product returns are reasonably estimable. For product sales, revenue is generally recognized upon shipment of the product to our customer in accordance with the title transfer terms of the sales agreement, generally Ex Works, per International Commercial Terms. In the case of consigned inventory, revenue is recognized when the end customer assumes ownership of the product. Contracts that contain multiple deliverables are evaluated to determine the units of accounting, and the consideration from the arrangement is allocated to each unit of accounting based on the relative selling price and corresponding terms of the contract. When this is not available, we are generally not able to determine third-party evidence of selling price because of the extent of customization among competing products or services from other companies. In these instances, we use best estimates to allocate consideration to each respective unit of accounting. These estimates include analysis of respective bills of material and review and analysis of similar product and service offerings. We record revenue associated with installation services when respective contractual obligations are complete. In instances where customer acceptance is required, revenue is deferred until respective acceptance criteria have been met. Contracts that include both installation services and product sales are evaluated for revenue recognition in accordance with contract terms. As a result, installation services may be considered a separate deliverable or may be considered a combined single unit of accounting with the delivered product. Generally, either the purchaser, ADTRAN, or a third party can perform the installation of our products. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales taxes invoiced to customers are included in revenues, and represent less than one percent of total revenues. The corresponding sales taxes paid are included in cost of goods sold. Value added taxes collected from customers in international jurisdictions are recorded in accrued expenses as a liability. Revenue is recorded net of discounts. Sales returns are recorded as a reduction of revenue and accrued based on historical sales return experience, which we believe provides a reasonable estimate of future returns. A portion of our products are sold to a non-exclusive distribution network of major technology distributors in the United States. These large organizations then distribute or provide fulfillment services to an extensive network of VARs and SIs. VARs and SIs may be affiliated with us as a channel partner, or they may purchase from the distributor in an unaffiliated fashion. Additionally, with certain limitations our distributors may return unused and unopened product for stock-balancing purposes when such returns are accompanied by offsetting orders for products of equal or greater value. We participate in cooperative advertising and market development programs with certain customers. We use these programs to reimburse customers for certain forms of advertising, and in general, to allow our customers credits up to a specified percentage of their net purchases. Our costs associated with these programs are estimated and included in marketing expenses in our consolidated statements of income. We also participate in rebate programs to provide sales incentives for certain products. Our costs associated with these programs are estimated and accrued at the time of sale, and are recorded as a reduction of sales in our consolidated statements of income. |
Unearned Revenue | Unearned Revenue Unearned revenue primarily represents customer billings on our maintenance service programs and leases and unearned revenues relating to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple-element contracts where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other assets and totaled $11.4 million and $10.7 million at December 31, 2017 and 2016, respectively. Non-current deferred costs are included in other assets and totaled $2.8 million and $0.9 million at December 31, 2017 and 2016, respectively. |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net, is comprised primarily of miscellaneous income and expense, gains and losses on foreign currency transactions, gains and losses on foreign exchange forward contracts, investment account management fees, and scrap raw material sales. |
Earnings Per Share | Earnings per Share Earnings per common share, and earnings per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 15 of Notes to Consolidated Financial Statements for additional information. |
Dividends | Dividends During 2017, 2016 and 2015, we paid shareholder dividends totaling $17.4 million, $17.6 million and $18.4 million, respectively. The Board of Directors presently anticipates that it will declare a regular quarterly dividend so long as the present tax treatment of dividends exists and adequate levels of liquidity are maintained. The following table shows dividends paid to our shareholders in each quarter of 2017, 2016 and 2015. Dividends per Common Share 2017 2016 2015 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 On January 16, 2018, the Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to shareholders of record at the close of business on January 31, 2018. The ex-dividend date was January 30, 2018 and the payment date was February 14, 2018. The quarterly dividend payment was $4.4 million. |
Business Combinations | Business Combinations We use the acquisition method to account for business combinations. Under the acquisition method of accounting, we recognize the assets acquired and liabilities assumed at their fair value on the acquisition date. Goodwill is measured as the excess of the consideration transferred over the net assets acquired. Costs incurred to complete the business combination, such as legal, accounting or other professional fees, are charged to general and administrative expenses as they are incurred. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition 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, The two areas of impact of these ASUs are network installation service revenue performance obligations and contract costs. The output method will be used to measure network installation services progress. The primary impact will be the timing of revenue recognition for certain performance obligations related to service revenue arrangements that are currently deferred until customer acceptance. In connection with the adoption of the new revenue standard, effective January 1, 2018, we adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers We will recognize the cumulative adjustment for network installation service revenue performance obligations and contract costs to retained earnings during the three months ended March 31, 2018. We do not believe the cumulative adjustment will have a significant impact on our consolidated financial statements during 2018. 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. |
Nature of Business and Summar28
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the years ended December 31, 2017, 2016 and 2015 is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of period $ 8,548 $ 8,739 $ 8,415 Plus: Amounts charged to cost and expenses 6,951 8,561 2,998 Less: Deductions (5,775 ) (8,752 ) (2,674 ) Balance at end of period $ 9,724 $ 8,548 $ 8,739 |
Changes in Accumulated Other Comprehensive Income, Net of Tax by Component | The following table presents changes in accumulated other comprehensive income, net of tax, by component for the years ended December 31, 2015, 2016 and 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 Balance, December 31, 2014 $ 8,964 $ — $ (5,757 ) $ (3,282 ) $ (75 ) Other comprehensive income (loss) before reclassifications (844 ) — 1,589 (3,724 ) (2,979 ) Amounts reclassified from accumulated other comprehensive income (6,188 ) — 273 — (5,915 ) Balance, December 31, 2015 1,932 — (3,895 ) (7,006 ) (8,969 ) Other comprehensive income (loss) before reclassifications 1,515 — (1,229 ) (569 ) (283 ) Amounts reclassified from accumulated other comprehensive income (3,043 ) — 107 — (2,936 ) Balance, December 31, 2016 404 — (5,017 ) (7,575 ) (12,188 ) Other comprehensive income (loss) before reclassifications 5,020 (619 ) 451 5,999 10,851 Amounts reclassified from accumulated other comprehensive income (2,857 ) 619 280 — (1,958 ) Balance at December 31, 2017 $ 2,567 $ — $ (4,286 ) $ (1,576 ) $ (3,295 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following tables present the details of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2017, 2016 and 2015: (In thousands) 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 $ 4,864 Net realized investment gain Impairment expense (180 ) Net realized investment gain Net losses on derivatives designated as hedging instruments (897 ) Cost of sales Defined benefit plan adjustments – actuarial losses (406 ) (1) Total reclassifications for the period, before tax 3,381 Tax (expense) benefit (1,423 ) Total reclassifications for the period, net of tax $ 1,958 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 5,408 Net realized investment gain Impairment expense (419 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (156 ) (1) Total reclassifications for the period, before tax 4,833 Tax (expense) benefit (1,897 ) Total reclassifications for the period, net of tax $ 2,936 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. (In thousands) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Unrealized gains (losses) on available-for-sale securities: Net realized gain on sales of securities $ 10,348 Net realized investment gain Impairment expense (203 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (396 ) (1) Total reclassifications for the period, before tax 9,749 Tax (expense) benefit (3,834 ) Total reclassifications for the period, net of tax $ 5,915 (1) Included in the computation of net periodic pension cost. See Note 12 of Notes to Consolidated Financial Statements. |
Other Comprehensive Income | The following tables present the tax effects related to the change in each component of other comprehensive income for the years ended December 31, 2017, 2016 and 2015: 2017 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 8,230 $ (3,210 ) $ 5,020 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,684 ) 1,827 (2,857 ) Unrealized gains (losses) on cash flow hedges (897 ) 278 (619 ) Reclassification adjustment for amounts related to cash flow hedges included in net income 897 (278 ) 619 Defined benefit plan adjustments 654 (203 ) 451 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 406 (126 ) 280 Foreign currency translation adjustment 5,999 — 5,999 Total Other Comprehensive Income (Loss) $ 10,605 $ (1,712 ) $ 8,893 2016 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ 2,484 $ (969 ) $ 1,515 Reclassification adjustment for amounts related to available-for-sale investments included in net income (4,989 ) 1,946 (3,043 ) Defined benefit plan adjustments (1,782 ) 553 (1,229 ) Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 156 (49 ) 107 Foreign currency translation adjustment (569 ) — (569 ) Total Other Comprehensive Income (Loss) $ (4,700 ) $ 1,481 $ (3,219 ) 2015 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (1,384 ) $ 540 $ (844 ) Reclassification adjustment for amounts related to available-for-sale investments included in net income (10,145 ) 3,957 (6,188 ) Defined benefit plan adjustments 2,303 (714 ) 1,589 Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 396 (123 ) 273 Foreign currency translation adjustment (3,724 ) — (3,724 ) Total Other Comprehensive Income (Loss) $ (12,554 ) $ 3,660 $ (8,894 ) |
Cash Dividends | The following table shows dividends paid to our shareholders in each quarter of 2017, 2016 and 2015. Dividends per Common Share 2017 2016 2015 First Quarter $ 0.09 $ 0.09 $ 0.09 Second Quarter $ 0.09 $ 0.09 $ 0.09 Third Quarter $ 0.09 $ 0.09 $ 0.09 Fourth Quarter $ 0.09 $ 0.09 $ 0.09 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 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. (In thousands) 2016 2015 Pro forma revenue $ 641,170 $ 603,923 Pro forma net income $ 31,212 $ 22,945 Pro forma earnings per share – basic $ 0.64 $ 0.45 Pro forma earnings per share – diluted $ 0.64 $ 0.45 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock | The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2017, 2016 and 2015, which was recognized as follows: (In thousands) 2017 2016 2015 Stock-based compensation expense included in cost of sales $ 379 $ 389 $ 280 Selling, general and administrative expense 4,063 3,341 3,261 Research and development expense 2,991 2,965 3,171 Stock-based compensation expense included in operating expenses 7,054 6,306 6,432 Total stock-based compensation expense 7,433 6,695 6,712 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (1,699 ) (963 ) (862 ) Total stock-based compensation expense, net of tax $ 5,734 $ 5,732 $ 5,850 |
Summary of Stock Options Outstanding | The following table is a summary of our stock options outstanding as of December 31, 2016 and 2017 and the changes that occurred during 2017: (In thousands, except per share amounts) Number of Options Weighted Average Exercise Price Weighted Avg. Remaining Contractual Life in Years Aggregate Intrinsic Stock options outstanding, December 31, 2016 6,338 $ 22.14 5.63 $ 16,972 Stock options granted — $ — Stock options exercised (742 ) $ 18.08 Stock options forfeited (70 ) $ 17.29 Stock options expired (378 ) $ 24.14 Stock options outstanding, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options vested and expected to vest, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options exercisable, December 31, 2017 4,351 $ 23.78 4.37 $ 3,810 |
Stock Options Outstanding | The following table further describes our stock options outstanding as of December 31, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding at 12/31/17 (In thousands) Weighted Avg. Remaining Contractual Life in Years Weighted Average Exercise Price Options Exercisable at 12/31/17 (In thousands) Weighted Average Exercise Price $14.88 – 18.96 1,623 6.02 $ 15.77 1,063 $ 15.96 $18.97 – 23.45 801 6.68 $ 19.11 565 $ 19.17 $23.46 – 30.35 1,400 4.16 $ 23.85 1,399 $ 23.85 $30.36 – 41.92 1,324 3.29 $ 31.94 1,324 $ 31.94 5,148 4,351 |
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 2017 and the changes that occurred during 2017. (In thousands, except per share amounts) Number of shares Weighted Average Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2016 527 $ 20.53 PSUs, RSUs and restricted stock granted 950 $ 21.69 PSUs, RSUs and restricted stock vested (154 ) $ 20.84 PSUs, RSUs and restricted stock forfeited (31 ) $ 20.99 Unvested RSUs and restricted stock outstanding, December 31, 2017 1,292 $ 21.33 |
Stock Options [Member] | |
Summary of Weighted-Average Assumptions and Value of Options Granted | There were no stock option grants in 2017. The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2016 and 2015 was $5.22 per share and $4.28 per share, respectively, with the following weighted-average assumptions: 2016 2015 Expected volatility 34.79 % 34.57 % Risk-free interest rate 1.36 % 1.81 % Expected dividend yield 1.98 % 2.35 % Expected life (in years) 6.25 6.23 |
Performance Stock Units (PSUs) [Member] | |
Summary of Weighted-Average Assumptions and Value of Options Granted | The PSU pricing model also requires the use of several significant assumptions that impact the fair value estimate. The estimated fair value of the PSUs granted to employees during the years ended December 31, 2017, 2016 and 2015 was $24.17 per share, $23.50 per share and $17.64 per share, respectively, with the following assumptions: 2017 2016 2015 Expected volatility 27.03 % 29.79 % 31.34 % Risk-free interest rate 1.78 % 1.17 % 1.20 % Expected dividend yield 1.74 % 1.80 % 2.35 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Securities and Investments, Recorded at Either Fair Value or Cost | At December 31, 2017, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 17,804 $ 2,175 $ (96 ) $ 19,883 Corporate bonds 32,654 44 (155 ) 32,543 Municipal fixed-rate bonds 2,902 2 (22 ) 2,882 Asset-backed bonds 6,545 1 (20 ) 6,526 Mortgage/Agency-backed bonds 5,554 1 (46 ) 5,509 U.S. government bonds 14,477 — (174 ) 14,303 Foreign government bonds 725 5 — 730 Marketable equity securities 33,478 3,034 (850 ) 35,662 Available-for-sale securities held at fair value $ 114,139 $ 5,262 $ (1,363 ) $ 118,038 Restricted investment held at cost 27,800 Other investments 547 Total carrying value of available-for-sale investments $ 146,385 At December 31, 2016, we held the following securities and investments, recorded at either fair value or cost: Fair Value / Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Deferred compensation plan assets $ 12,367 $ 2,271 $ (42 ) $ 14,596 Corporate bonds 66,522 64 (174 ) 66,412 Municipal fixed-rate bonds 11,799 12 (37 ) 11,774 Asset-backed bonds 10,201 19 (14 ) 10,206 Mortgage/Agency-backed bonds 13,080 15 (91 ) 13,004 U.S. government bonds 30,022 15 (270 ) 29,767 Foreign government bonds 3,729 2 (1 ) 3,730 Variable rate demand notes 11,855 — — 11,855 Marketable equity securities 30,571 311 (1,503 ) 29,379 Available-for-sale securities held at fair value $ 190,146 $ 2,709 $ (2,132 ) $ 190,723 Restricted investment held at cost 27,800 Other investments 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 December 31, 2017, 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 $ 12,021 $ 891 $ 143 $ — $ 3,073 $ — One to two years 9,145 826 2,367 — 5,960 — Two to three years 7,345 212 2,245 — 3,568 730 Three to five years 4,032 953 810 356 1,702 — Five to ten years — — 158 1,144 — — More than ten years — — 803 4,009 — — Total $ 32,543 $ 2,882 $ 6,526 $ 5,509 $ 14,303 $ 730 |
Gross Realized Gains and Losses on Sale of Securities | The following table presents gross realized gains and losses related to our investments for the years ended December 31, 2017, 2016 and 2015: Year Ended December 31, (In thousands) 2017 2016 2015 Gross realized gains $ 5,258 $ 7,530 $ 10,906 Gross realized losses $ (573 ) $ (1,607 ) $ (569 ) |
Breakdown of Investments with Unrealized Losses | The following table presents the breakdown of investments with unrealized losses at December 31, 2017: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 1,922 $ (81 ) $ 262 $ (15 ) $ 2,184 $ (96 ) Corporate bonds 16,015 (58 ) 6,112 (97 ) 22,127 (155 ) Municipal fixed-rate bonds 230 — 1,165 (22 ) 1,395 (22 ) Asset-backed bonds 4,941 (17 ) 179 (3 ) 5,120 (20 ) Mortgage/Agency-backed bonds 3,062 (8 ) 1,673 (38 ) 4,735 (46 ) U.S. government bonds 2,754 (26 ) 11,549 (148 ) 14,303 (174 ) Marketable equity securities 10,169 (712 ) 544 (138 ) 10,713 (850 ) Total $ 39,093 $ (902 ) $ 21,484 $ (461 ) $ 60,577 $ (1,363 ) The following table presents the breakdown of investments with unrealized losses at December 31, 2016: (In thousands) Continuous Unrealized Loss Position for Less than 12 Months Continuous Unrealized Loss Position for 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Deferred compensation plan assets $ 294 $ (12 ) $ 245 $ (30 ) $ 539 $ (42 ) Corporate bonds 32,562 (166 ) 2,722 (8 ) 35,284 (174 ) Municipal fixed-rate bonds 8,936 (37 ) — — 8,936 (37 ) Asset-backed bonds 2,986 (14 ) — — 2,986 (14 ) Mortgage/Agency-backed bonds 7,842 (81 ) 1,239 (10 ) 9,081 (91 ) U.S. government bonds 26,449 (270 ) — — 26,449 (270 ) Foreign government bonds 924 (1 ) — — 924 (1 ) Marketable equity securities 21,607 (1,200 ) 1,495 (303 ) 23,102 (1,503 ) Total $ 101,600 $ (1,781 ) $ 5,701 $ (351 ) $ 107,301 $ (2,132 ) |
Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments | We have categorized our cash equivalents and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees. Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 5,851 $ 5,851 $ — $ — Commercial paper 3,999 — 3,999 — Cash equivalents 9,850 5,851 3,999 — Available-for-sale securities Deferred compensation plan assets 19,883 19,883 — — Available-for-sale debt securities Corporate bonds 32,543 — 32,543 — Municipal fixed-rate bonds 2,882 — 2,882 — Asset-backed bonds 6,526 — 6,526 — Mortgage/Agency-backed bonds 5,509 — 5,509 — U.S. government bonds 14,303 14,303 — — Foreign government bonds 730 — 730 — Available-for-sale marketable equity securities Marketable equity securities – various industries 35,662 35,662 — — Available-for-sale securities 118,038 69,848 48,190 — Total $ 127,888 $ 75,699 $ 52,189 $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,878 $ 6,878 $ — $ — Commercial paper 17,222 — 17,222 — Cash equivalents 24,100 6,878 17,222 — Available-for-sale securities Deferred compensation plan assets 14,596 14,596 — — Available-for-sale debt securities Corporate bonds 66,412 — 66,412 — Municipal fixed-rate bonds 11,774 — 11,774 — Asset-backed bonds 10,206 — 10,206 — Mortgage/Agency-backed bonds 13,004 — 13,004 — U.S. government bonds 29,767 29,767 — — Foreign government bonds 3,730 — 3,730 — Variable rate demand notes 11,855 — 11,855 — Available-for-sale marketable equity securities Marketable equity securities – 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 He32
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016 were as follows: (In thousands) Balance Sheet Location 2017 2016 Derivatives Not Designated as Hedging Instruments (Level 2): Foreign exchange contracts – derivative assets Other receivables $ — $ 159 |
Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income | The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the years ended December 31, 2017, 2016 and 2015 were as follows: (In thousands) Income Statement Location 2017 2016 2015 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ (754 ) $ 724 $ 511 |
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 twelve months ended December 31, 2017, 2016 and 2015 were as follows: Amount of Gains (Losses) Recognized in Location of Gains Amount of Gains (Losses) Reclassified OCI on Derivatives (Losses) Reclassified from AOCI into Income (In thousands) 2017 2016 2015 from AOCI into Income 2017 2016 2015 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ — $ — $ — Cost of Sales $ (897 ) $ — $ — |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | At December 31, 2017 and 2016, inventory was comprised of the following: (In thousands) 2017 2016 Raw materials $ 44,185 $ 40,461 Work in process 1,939 4,003 Finished goods 76,418 60,653 Total Inventory, net $ 122,542 $ 105,117 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | At December 31, 2017 and 2016, property, plant and equipment were comprised of the following: (In thousands) 2017 2016 Land $ 4,575 $ 4,575 Building and land improvements 32,470 29,229 Building 68,301 68,301 Furniture and fixtures 19,489 18,477 Computer hardware and software 90,726 87,655 Engineering and other equipment 123,363 118,746 Total Property, Plant and Equipment 338,924 326,983 Less accumulated depreciation (253,845 ) (242,514 ) Total Property, Plant and Equipment, net $ 85,079 $ 84,469 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Components of Net Investment in Sales-Type Leases | As of December 31, 2017 and 2016, the components of the net investment in sales-type leases were as follows: (In thousands) 2017 2016 Current minimum lease payments receivable (included in other receivables) $ 11,325 $ 2,141 Non-current minimum lease payments receivable (included in other assets) 2,913 2,912 Total minimum lease payments receivable 14,238 5,053 Less: Current unearned revenue 707 841 Less: Non-current unearned revenue 787 1,153 Net investment in sales-type leases $ 12,744 $ 3,059 |
Schedule of Future Minimum Lease Payments to be Received From Sales Type Leases | Future minimum lease payments to be received from sales-type leases at December 31, 2017 are as follows: (In thousands) Amount 2018 $ 11,211 2019 2,172 2020 592 2021 205 2022 58 Total $ 14,238 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents our intangible assets as of December 31, 2017 and 2016: (In thousands) 2017 2016 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 7,474 $ (4,283 ) $ 3,191 $ 6,899 $ (3,208 ) $ 3,691 Developed technology 5,524 (4,663 ) 861 5,184 (3,801 ) 1,383 Intellectual property 2,340 (2,262 ) 78 2,340 (2,129 ) 211 Supply agreement 1,400 (1,400 ) — 1,400 (544 ) 856 License 500 (500 ) — 500 (113 ) 387 Patent 500 (89 ) 411 500 (20 ) 480 Trade names 370 (335 ) 35 370 (285 ) 85 Non-compete 200 (115 ) 85 200 (26 ) 174 Total $ 18,308 $ (13,647 ) $ 4,661 $ 17,393 $ (10,126 ) $ 7,267 |
Estimated Future Amortization Expense Related to Intangible Assets | As of December 31, 2017, the estimated future amortization expense of intangible assets is as follows: (In thousands) Amount 2018 $ 1,212 2019 697 2020 659 2021 603 2022 567 Thereafter 923 Total $ 4,661 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Provision for Income Taxes | A summary of the components of the provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands) 2017 2016 2015 Current Federal $ 466 $ 12,733 $ 7,504 State (150 ) 1,141 279 International 6,458 477 (29 ) Total Current 6,774 14,351 7,754 Deferred Federal 8,024 647 (585 ) State 1,882 73 (66 ) International 4,167 (3,405 ) (41 ) Total Deferred 14,073 (2,685 ) (692 ) Total Provision for Income Taxes $ 20,847 $ 11,666 $ 7,062 |
Effective Income Tax Rate Differs from Federal Statutory Rate | Our effective income tax rate differs from the federal statutory rate due to the following: 2017 2016 2015 Tax provision computed at the federal statutory rate 35.00 % 35.00 % 35.00 % State income tax provision, net of federal benefit 2.17 3.93 4.86 Federal research credits (11.88 ) (8.15 ) (12.55 ) Foreign taxes (2.27 ) (0.34 ) 2.10 Tax-exempt income (0.75 ) (0.53 ) (1.94 ) State tax incentives (2.71 ) (2.77 ) (5.04 ) Stock-based compensation 1.43 2.53 6.91 Domestic production activity deduction (1.13 ) (2.23 ) (3.17 ) Bargain purchase — (2.64 ) — Impact of U.S. tax reform 26.70 — — Other, net 0.09 0.08 1.30 Effective Tax Rate 46.65 % 24.88 % 27.47 % |
Income Before Provision for Income Taxes | Income before provision for income taxes for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands) 2017 2016 2015 U.S. entities $ 26,552 $ 54,077 $ 27,400 International entities 18,135 (7,182 ) (1,692 ) Total $ 44,687 $ 46,895 $ 25,708 |
Principal Components of Current and Non-current Deferred Taxes | Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes are as follows: (In thousands) 2017 2016 Deferred tax assets Inventory $ 7,545 $ 12,020 Accrued expenses 3,103 5,551 Investments — 1,062 Deferred compensation 5,204 5,751 Stock-based compensation 2,988 4,724 Uncertain tax positions related to state taxes and related interest 370 762 Pensions 4,727 4,273 Foreign losses 3,091 6,486 State losses and credit carry-forwards 3,854 4,021 Federal loss and research carry-forwards 3,058 5,886 Valuation allowance (6,006 ) (6,149 ) Total Deferred Tax Assets 27,934 44,387 Deferred tax liabilities Property, plant and equipment (3,553 ) (4,433 ) Intellectual property (663 ) (1,918 ) Investments (290 ) — Total Deferred Tax Liabilities (4,506 ) (6,351 ) Net Deferred Tax Assets $ 23,428 $ 38,036 |
Change in Unrecognized Income Tax Benefits | The change in the unrecognized income tax benefits for the years ended December 31, 2017, 2016 and 2015 is reconciled below: (In thousands) 2017 2016 2015 Balance at beginning of period $ 2,226 $ 2,537 $ 3,334 Increases for tax position related to: Prior years 465 95 — Current year 285 428 280 Decreases for tax positions related to: Prior years (14 ) — (29 ) Settlements with taxing authorities — — (103 ) Expiration of applicable statute of limitations (596 ) (834 ) (945 ) Balance at end of period $ 2,366 $ 2,226 $ 2,537 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension Benefit Plan Obligations and Funded Status | The pension benefit plan obligations and funded status at December 31, 2017 and 2016, are as follows: (In thousands) 2017 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 30,011 $ 26,851 Service cost 1,260 1,211 Interest cost 607 720 Actuarial (gain) loss - experience 47 (431 ) Actuarial (gain) loss - assumptions (1,294 ) 2,628 Benefit payments (80 ) (52 ) Effects of foreign currency exchange rate changes 4,342 (916 ) Projected benefit obligation at end of period 34,893 30,011 Change in plan assets: Fair value of plan assets at beginning of period 20,045 19,213 Actual return on plan assets 709 1,494 Contributions 3,001 — Effects of foreign currency exchange rate changes 2,869 (662 ) Fair value of plan assets at end of period 26,624 20,045 Funded (unfunded) status at end of period $ (8,269 ) $ (9,966 ) |
Summary of Net Amounts Recognized Balance Sheet for the Unfunded Pension Liability | The net amounts recognized in the balance sheet for the unfunded pension liability as of December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Current liability $ — $ — Non-current liability 8,269 9,966 Total $ 8,269 $ 9,966 |
Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income | The components of net periodic pension cost and amounts recognized in other comprehensive income for the years ended December 31, 2017, 2016 and 2015 are as follows: (In thousands) 2017 2016 2015 Net periodic benefit cost: Service cost $ 1,260 $ 1,211 $ 1,314 Interest cost 607 720 615 Expected return on plan assets (1,267 ) (1,057 ) (1,011 ) Amortization of actuarial losses 309 175 407 Net periodic benefit cost 909 1,049 1,325 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss (654 ) 1,782 (2,303 ) Amortization of actuarial losses (406 ) (156 ) (396 ) Amount recognized in other comprehensive income (1,060 ) 1,626 (2,699 ) Total recognized in net periodic benefit cost and other comprehensive income $ (151 ) $ 2,675 $ (1,374 ) |
Accumulated Other Comprehensive Income | The amounts recognized in accumulated other comprehensive income as of December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Net actuarial loss $ (5,812 ) $ (6,871 ) |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Discount rates 1.90 % 2.64 % 2.20 % Rate of compensation increase 2.00 % 2.00 % 2.25 % Expected long-term rates of return 5.90 % 5.40 % 5.40 % |
Weighted-Average Assumptions Used to Determine Benefit Obligation | The weighted-average assumptions that were used to determine the benefit obligation at December 31, 2017 and 2016: 2017 2016 Discount rates 2.13 % 1.90 % Rate of compensation increase 2.00 % 2.00 % |
Schedule of Pension Benefit Payments Expected Future Service | The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants: (In thousands) 2018 $ 549 2019 772 2020 1,090 2021 1,225 2022 1,315 2023 – 2027 6,301 Total $ 11,252 |
Schedule of Cash Equivalents and Investments Held at Fair Value | We have categorized our cash equivalents and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs include information supplied by investees. Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3,005 $ 3,005 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 14,349 14,349 — — Government bonds 2,305 2,305 — — Equity funds: Large cap blend 5,758 5,758 — — Large cap value 309 309 — — Balanced fund 898 898 — — Available-for-sale securities 23,619 23,619 — — Total $ 26,624 $ 26,624 $ — $ — Fair Value Measurements at December 31, 2016 Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 6 $ 6 $ — $ — Available-for-sale securities Bond funds: Corporate bonds 12,546 12,546 — — Government bonds 2,037 2,037 — — Equity funds: Large cap blend 4,462 4,462 — — Large cap value 249 249 — — Balanced fund 745 745 — — Available-for-sale securities 20,039 20,039 — — Total $ 20,045 $ 20,045 $ — $ — |
Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants | The fair value of the assets held by the Trust and the amounts payable to the plan participants at December 31, 2017 and 2016 are as follows: (In thousands) 2017 2016 Fair Value of Plan Assets Long-term Investments $ 19,883 $ 14,596 Total Fair Value of Plan Assets $ 19,883 $ 14,596 Amounts Payable to Plan Participants Non-current Liabilities $ 19,883 $ 14,596 Total Amounts Payable to Plan Participants $ 19,883 $ 14,596 |
Segment Information and Major39
Segment Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 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 each of the years ended December 31, 2017, 2016 and 2015. Asset information by reportable segment is not reported, since we do not produce such information internally. Sales and Gross Profit by Market Segment (In thousands) 2017 2016 2015 Sales Gross Profit Sales Gross Profit Sales Gross Profit Network Solutions $ 540,396 $ 260,855 $ 525,502 $ 254,807 $ 527,422 $ 233,579 Services & Support 126,504 42,805 111,279 36,537 72,642 33,318 Total $ 666,900 $ 303,660 $ 636,781 $ 291,344 $ 600,064 $ 266,897 |
Sales Information by Product Category | The following table presents sales information by product category for the years ended December 31, 2017, 2016 and 2015: (In thousands) 2017 2016 2015 Access & Aggregation $ 473,943 $ 436,372 $ 405,698 Customer Devices 138,456 137,608 125,565 Traditional & Other Products 54,501 62,801 68,801 Total $ 666,900 $ 636,781 $ 600,064 |
Sales Information by Geographic Area | The following table presents sales information by geographic area for the years ended December 31, 2017, 2016 and 2015. International sales correlate to shipments with a non-U.S. destination. (In thousands) 2017 2016 2015 United States $ 508,178 $ 501,337 $ 419,366 Germany 119,502 85,780 111,666 Other international 39,220 49,664 69,032 Total $ 666,900 $ 636,781 $ 600,064 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments under Non-Cancelable Operating Leases with Original Maturities of Greater than 12 Months | As of December 31, 2017, future minimum rental payments under non-cancelable operating leases with original maturities of greater than 12 months are as follows: (In thousands) 2018 $ 3,073 2019 927 2020 805 2021 793 Thereafter 2,907 Total $ 8,505 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 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 (EPS) for the years ended December 31, 2017, 2016 and 2015 is as follows: (In thousands, except for per share amounts) 2017 2016 2015 Numerator Net Income $ 23,840 $ 35,229 $ 18,646 Denominator Weighted average number of shares – basic 48,153 48,724 51,145 Effect of dilutive securities: Stock options 406 170 81 Restricted stock and restricted stock units 140 55 41 Weighted average number of shares – diluted $ 48,699 $ 48,949 $ 51,267 Net income per share – basic $ 0.50 $ 0.72 $ 0.36 Net income per share – diluted $ 0.49 $ 0.72 $ 0.36 |
Summarized Quarterly Financia42
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | The following table presents unaudited quarterly operating results for each of our last eight fiscal quarters. This information has been prepared on a basis consistent with our audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data. Unaudited Quarterly Operating Results (In thousands, except for per share amounts) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Net sales $ 170,279 $ 184,673 $ 185,112 $ 126,836 Gross profit $ 73,715 $ 84,632 $ 86,498 $ 58,815 Operating income $ 7,032 $ 16,448 $ 18,318 $ (4,061 ) Net income $ 6,651 $ 12,401 $ 15,898 $ (11,110 ) Earnings per common share $ 0.14 $ 0.26 $ 0.33 $ (0.23 ) Earnings per common share assuming dilution (1) $ 0.14 $ 0.26 $ 0.33 $ (0.23 ) Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Net sales $ 142,204 $ 162,701 $ 168,890 $ 162,986 Gross profit $ 65,794 $ 78,955 $ 75,808 $ 70,787 Operating income $ 5,521 $ 14,812 $ 10,130 $ 4,272 Net income $ 5,014 $ 10,228 $ 12,415 $ 7,572 Earnings per common share $ 0.10 $ 0.21 $ 0.26 $ 0.16 Earnings per common share assuming dilution (1) $ 0.10 $ 0.21 $ 0.26 $ 0.16 (1) Assumes exercise of dilutive stock options calculated under the treasury stock method. |
Nature of Business and Summar43
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 16, 2018$ / shares | Dec. 31, 2017USD ($)IncentivePlan | Dec. 31, 2017USD ($)CustomerIncentivePlan | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2017USD ($)IncentivePlan | Feb. 14, 2018USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2008USD ($) | Jan. 13, 1995USD ($) |
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Cash, uninsured amount | $ 83,700,000 | $ 83,700,000 | $ 83,700,000 | ||||||||
Bonds payable, carrying amount | 26,700,000 | 26,700,000 | 26,700,000 | $ 50,000,000 | $ 20,000,000 | ||||||
Bonds payable, fair value | 26,700,000 | $ 26,700,000 | 26,700,000 | ||||||||
Number of single customer comprising more than 10% of revenue | Customer | 2 | 3 | 3 | ||||||||
Allowance for doubtful accounts | 0 | $ 0 | $ 0 | 0 | |||||||
Period of warranty for product defects | 90 days to five years | ||||||||||
Liability for warranty obligations | $ 9,724,000 | $ 9,724,000 | 8,548,000 | $ 8,739,000 | $ 9,724,000 | $ 8,415,000 | |||||
Number of stock incentive plans | IncentivePlan | 2 | 2 | 2 | ||||||||
Stock-based compensation expense | $ 7,433,000 | 6,695,000 | 6,712,000 | ||||||||
Total compensation cost related to non-vested stock options, market-based PSUs, RSUs and restricted stock not yet recognized | $ 17,100,000 | $ 17,100,000 | $ 17,100,000 | ||||||||
Recognition period of unvested compensation expense | 2 years 10 months 24 days | ||||||||||
Impairment losses recognized on long-lived assets | $ 0 | 0 | 0 | ||||||||
Impairment losses recognized on goodwill and other intangible assets | 0 | ||||||||||
Research and development costs | $ 130,434,000 | 124,804,000 | 129,876,000 | ||||||||
Tax cuts and jobs act, incomplete accounting, estimated income tax expense | 11,900,000 | ||||||||||
Tax cuts and jobs act, incomplete accounting, estimated write-down of deferred tax assets | 9,200,000 | ||||||||||
Tax cuts and jobs act, incomplete accounting, change in tax rate estimate income tax expense related to unrepatriated foreign earnings | 2,700,000 | ||||||||||
Percentage of sales taxes collected from customers | 1.00% | ||||||||||
Dividend payments | $ 17,400,000 | 17,600,000 | $ 18,400,000 | ||||||||
Retained earnings | 922,178,000 | 922,178,000 | 921,942,000 | 922,178,000 | |||||||
ASU 2016-09 [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Increase in additional paid in capital | $ 100,000 | ||||||||||
Retained earnings | 100,000 | ||||||||||
Subsequent Events [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Common stock dividends per share declared | $ / shares | $ 0.09 | ||||||||||
Dividend declaration date | Jan. 16, 2018 | ||||||||||
Dividend record date | Jan. 31, 2018 | ||||||||||
Dividend payment date | Feb. 14, 2018 | ||||||||||
Ex-dividend date | Jan. 30, 2018 | ||||||||||
Quarterly dividend payable subsequent to balance sheet date | $ 4,400,000 | ||||||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Current deferred costs related to prepaid and other assets | 11,400,000 | 11,400,000 | 10,700,000 | 11,400,000 | |||||||
Other Assets [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Non-current deferred costs related to other assets | 2,800,000 | 2,800,000 | $ 900,000 | 2,800,000 | |||||||
Performance-Based PSUs [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Stock-based compensation expense | $ 0 | ||||||||||
Recognition period of unvested compensation expense | 3 years | ||||||||||
Unrecognized compensation expense related to other than options | $ 11,400,000 | $ 11,400,000 | $ 11,400,000 | ||||||||
Non-qualified Stock Options and RSUs [Member] | ASU 2016-09 [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Increase in deferred tax assets | $ 10,000 | ||||||||||
Minimum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Amortization, estimated useful lives | 9 months | ||||||||||
Maintenance contract period | 1 year | ||||||||||
Maximum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Amortization, estimated useful lives | 14 years | ||||||||||
Maintenance contract period | 5 years | ||||||||||
Building and Land Improvements [Member] | Minimum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 5 years | ||||||||||
Building and Land Improvements [Member] | Maximum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 39 years | ||||||||||
Office Machinery and Equipment [Member] | Minimum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||||
Office Machinery and Equipment [Member] | Maximum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 7 years | ||||||||||
Engineering Machinery and Equipment [Member] | Minimum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||||
Engineering Machinery and Equipment [Member] | Maximum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 7 years | ||||||||||
Computer Software [Member] | Minimum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 3 years | ||||||||||
Computer Software [Member] | Maximum [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Property, plant and equipment, estimated useful lives | 5 years | ||||||||||
Credit Concentration Risk [Member] | |||||||||||
Summary of Significant Accounting Policy [Line Items] | |||||||||||
Percentage of accounts receivable accounted by each customers | 63.80% | 63.30% |
Nature of Business and Summar44
Nature of Business and Summary of Significant Accounting Policies - Summary of Warranty Expense and Write-Off Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Balance at beginning of period | $ 8,548 | $ 8,739 | $ 8,415 |
Plus: Amounts charged to cost and expenses | 6,951 | 8,561 | 2,998 |
Less: Deductions | (5,775) | (8,752) | (2,674) |
Balance at end of period | $ 9,724 | $ 8,548 | $ 8,739 |
Nature of Business and Summar45
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Changes in Accumulated Other Comprehensive Income, Net of Tax by Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 479,517 | $ 480,160 | $ 549,013 |
Other comprehensive income (loss) before reclassifications | 10,851 | (283) | (2,979) |
Amounts reclassified from accumulated other comprehensive income | (1,958) | (2,936) | (5,915) |
Ending Balance | 497,911 | 479,517 | 480,160 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 404 | 1,932 | 8,964 |
Other comprehensive income (loss) before reclassifications | 5,020 | 1,515 | (844) |
Amounts reclassified from accumulated other comprehensive income | (2,857) | (3,043) | (6,188) |
Ending Balance | 2,567 | 404 | 1,932 |
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (619) | ||
Amounts reclassified from accumulated other comprehensive income | 619 | ||
Defined Benefit Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (5,017) | (3,895) | (5,757) |
Other comprehensive income (loss) before reclassifications | 451 | (1,229) | 1,589 |
Amounts reclassified from accumulated other comprehensive income | 280 | 107 | 273 |
Ending Balance | (4,286) | (5,017) | (3,895) |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (7,575) | (7,006) | (3,282) |
Other comprehensive income (loss) before reclassifications | 5,999 | (569) | (3,724) |
Ending Balance | (1,576) | (7,575) | (7,006) |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (12,188) | (8,969) | (75) |
Ending Balance | $ (3,295) | $ (12,188) | $ (8,969) |
Nature of Business and Summar46
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ (279,541) | $ (270,695) | $ (293,843) | ||||||||
Defined benefit plan adjustments – actuarial losses | (1,294) | 2,628 | |||||||||
Income before provision for income taxes | 44,687 | 46,895 | 25,708 | ||||||||
Tax (expense) benefit | (20,847) | (11,666) | (7,062) | ||||||||
Total reclassifications for the period, net of tax | $ (11,110) | $ 15,898 | $ 12,401 | $ 6,651 | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | 23,840 | 35,229 | 18,646 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Defined benefit plan adjustments – actuarial losses | (406) | (156) | (396) | ||||||||
Income before provision for income taxes | 3,381 | 4,833 | 9,749 | ||||||||
Tax (expense) benefit | (1,423) | (1,897) | (3,834) | ||||||||
Total reclassifications for the period, net of tax | 1,958 | 2,936 | 5,915 | ||||||||
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 | 4,864 | 5,408 | 10,348 | ||||||||
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 | (180) | $ (419) | $ (203) | ||||||||
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 | $ (897) |
Nature of Business and Summar47
Nature of Business and Summary of Significant Accounting Policies (Other Comprehensive Income) - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Unrealized gains (losses) on available-for-sale securities, Before-Tax Amount | $ 8,230 | $ 2,484 | $ (1,384) |
Unrealized gains (losses) on available-for-sale securities, Tax (Expense) Benefit | (3,210) | (969) | 540 |
Unrealized gains (losses) on available-for-sale securities, Net-of-Tax Amount | 5,020 | 1,515 | (844) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Before-Tax Amount | (4,684) | (4,989) | (10,145) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Tax (Expense) Benefit | 1,827 | 1,946 | 3,957 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Net-of-Tax Amount | (2,857) | (3,043) | (6,188) |
Unrealized gains (losses) on cash flow hedges, Before-Tax Amount | (897) | ||
Unrealized gains (losses) on cash flow hedges, Tax (Expense) Benefit | 278 | ||
Unrealized gains (losses) on cash flow hedges, Net-of-Tax Amount | (619) | ||
Reclassification adjustment for amounts related to cash flow hedges included in net income, Before-Tax Amount | 897 | ||
Reclassification adjustment for amounts related to cash flow hedges included in net income, Tax (Expense) Benefit | (278) | ||
Reclassification adjustment for amounts related to cash flow hedges included in net income, Net-of-Tax Amount | 619 | ||
Defined benefit plan adjustments, Before-Tax Amount | 654 | (1,782) | 2,303 |
Defined benefit plan adjustments, Tax (Expense) Benefit | (203) | 553 | (714) |
Defined benefit plan adjustments, Net-of-Tax Amount | 451 | (1,229) | 1,589 |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Before-Tax Amount | 406 | 156 | 396 |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Tax (Expense) Benefit | (126) | (49) | (123) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Net-of-Tax Amount | 280 | 107 | 273 |
Foreign currency translation adjustment, Before-Tax Amount | 5,999 | (569) | (3,724) |
Foreign currency translation adjustment, Net-of-Tax Amount | 5,999 | (569) | (3,724) |
Total Other Comprehensive Income (Loss), Before-Tax Amount | 10,605 | (4,700) | (12,554) |
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit | (1,712) | 1,481 | 3,660 |
Other Comprehensive Income (Loss), net of tax | $ 8,893 | $ (3,219) | $ (8,894) |
Nature of Business and Summar48
Nature of Business and Summary of Significant Accounting Policies - Cash Dividends (Detail) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Dividends [Abstract] | ||||||||||||
Dividends per Common Share | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 13, 2016 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash consideration | $ 943 | |||
Bargain purchase gain net of income taxes | 3,542 | |||
CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Sep. 13, 2016 | |||
Business acquisition, description | On September 13, 2016, we acquired key fiber access products, technologies and service relationships from subsidiaries of CommScope, Inc. for $0.9 million in cash. This acquisition enhanced our solutions for the cable MSO industry and provided cable operators with the scalable solutions, services and support they required 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 | $ 1,800 | $ 1,000 |
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 | Dec. 31, 2016 |
Liabilities | ||
Gain on bargain purchase of a business, net of tax | $ (3,542) | |
Total purchase price | 943 | |
CommScope, Inc. Subsidiaries Fiber Access Products, Technologies and Service Relationships [Member] | ||
Assets | ||
Inventory | $ 3,131 | |
Property, plant and equipment | 352 | |
Intangible assets | 4,700 | |
Total assets acquired | 8,183 | |
Liabilities | ||
Accounts payable | (1,250) | |
Warranty payable | (61) | |
Accrued wages and benefits | (122) | |
Deferred income taxes | (2,265) | |
Total liabilities assumed | (3,698) | |
Total net assets | 4,485 | |
Gain on bargain purchase of a business, net of tax | (3,542) | $ (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 | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
Pro forma revenue | $ 641,170 | $ 603,923 |
Pro forma net income | $ 31,212 | $ 22,945 |
Pro forma earnings per share – basic | $ 0.64 | $ 0.45 |
Pro forma earnings per share – diluted | $ 0.64 | $ 0.45 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Incentive Program Descriptions) - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Jan. 20, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 10 years | |
2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 13,000,000 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 500,000 | |
Contractual term | 10 years | |
2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock authorized | 7,700,000 | |
Vesting period | 4 years | |
Contractual term | 10 years | |
Multiplier used when issuing PSUs, restricted stock and RSUs | 2.5 | |
Minimum [Member] | 2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,018 | |
Minimum [Member] | 2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,018 | |
Minimum [Member] | 2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,025 | |
Maximum [Member] | 2006 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,024 | |
Maximum [Member] | 2010 Directors Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,019 | |
Maximum [Member] | 2015 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date of options | 2,026 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 7,433 | $ 6,695 | $ 6,712 |
Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock | (1,699) | (963) | (862) |
Total stock-based compensation expense, net of tax | 5,734 | 5,732 | 5,850 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 379 | 389 | 280 |
Selling, General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 4,063 | 3,341 | 3,261 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,991 | 2,965 | 3,171 |
Operating Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 7,054 | $ 6,306 | $ 6,432 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Stock options outstanding, Beginning Balance | 6,338,000 | ||
Number of Options, Stock options granted | 0 | ||
Number of Options, Stock options exercised | (742,000) | (283,000) | (60,000) |
Number of Options, Stock options forfeited | (70,000) | ||
Number of Options, Stock options expired | (378,000) | ||
Number of Options, Stock options outstanding, Ending Balance | 5,148,000 | 6,338,000 | |
Number of Options, Stock options vested and expected to vest | 5,148,000 | ||
Number of Options, Stock options exercisable | 4,351,000 | ||
Weighted Average Exercise Price, Stock options outstanding, Beginning Balance | $ 22.14 | ||
Weighted Average Exercise Price, Stock options exercised | 18.08 | ||
Weighted Average Exercise Price, Stock options forfeited | 17.29 | ||
Weighted Average Exercise Price, Stock options expired | 24.14 | ||
Weighted Average Exercise Price, Stock options outstanding, Ending Balance | 22.65 | $ 22.14 | |
Weighted Average Exercise Price, Stock options vested and expected to vest | 22.65 | ||
Weighted Average Exercise Price, Stock options exercisable | $ 23.78 | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options outstanding | 4 years 10 months 13 days | 5 years 7 months 17 days | |
Weighted Avg. Remaining Contractual Life in Years, Stock options vested and expected to vest | 4 years 10 months 13 days | ||
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable | 4 years 4 months 13 days | ||
Aggregate Intrinsic Value, Stock options outstanding | $ 6,109 | $ 16,972 | |
Aggregate Intrinsic Value, Stock options vested and expected to vest | 6,109 | ||
Aggregate Intrinsic Value, Stock options exercisable | $ 3,810 |
Stock-Based Compensation (Sto56
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognition period of unvested compensation expense | 2 years 10 months 24 days | ||
Number of shares available for grant | 3.5 | ||
Total pre-tax intrinsic value of options exercised | $ 3.4 | $ 1.1 | $ 0.1 |
Fair value of options fully vested | 4.3 | $ 5.7 | $ 6.6 |
Non Vested Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to non-vested stock options not yet recognized | $ 3.2 | ||
Recognition period of unvested compensation expense | 1 year 6 months |
Stock-Based Compensation - St57
Stock-Based Compensation - Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding at 12/31/17 | 5,148 | 6,338 |
Options Exercisable at 12/31/17 | 4,351 | |
Weighted Average Exercise Price, Options exercisable | $ 23.78 | |
$14.88 - 18.96 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 14.88 | |
Upper Range Limit | $ 18.96 | |
Options Outstanding at 12/31/17 | 1,623 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 6 years 7 days | |
Weighted Average Exercise Price, Options Outstanding | $ 15.77 | |
Options Exercisable at 12/31/17 | 1,063 | |
Weighted Average Exercise Price, Options exercisable | $ 15.96 | |
$18.97 - 23.45 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 18.97 | |
Upper Range Limit | $ 23.45 | |
Options Outstanding at 12/31/17 | 801 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 6 years 8 months 4 days | |
Weighted Average Exercise Price, Options Outstanding | $ 19.11 | |
Options Exercisable at 12/31/17 | 565 | |
Weighted Average Exercise Price, Options exercisable | $ 19.17 | |
$23.46 - 30.35 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 23.46 | |
Upper Range Limit | $ 30.35 | |
Options Outstanding at 12/31/17 | 1,400 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 4 years 1 month 28 days | |
Weighted Average Exercise Price, Options Outstanding | $ 23.85 | |
Options Exercisable at 12/31/17 | 1,399 | |
Weighted Average Exercise Price, Options exercisable | $ 23.85 | |
$30.36 - 41.92 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Lower Range Limit | 30.36 | |
Upper Range Limit | $ 41.92 | |
Options Outstanding at 12/31/17 | 1,324 | |
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding | 3 years 3 months 14 days | |
Weighted Average Exercise Price, Options Outstanding | $ 31.94 | |
Options Exercisable at 12/31/17 | 1,324 | |
Weighted Average Exercise Price, Options exercisable | $ 31.94 |
Stock-Based Compensation (PSUs,
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
PSU shares grant approved by board of directors | 950 | |||
Recognition period of unvested compensation expense | 2 years 10 months 24 days | |||
Stock-based compensation expense | $ 7,433,000 | $ 6,695,000 | $ 6,712,000 | |
Performance Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
PSU shares grant approved by board of directors | 500 | |||
Performance Stock Units (PSUs) [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance stock units granted | 0.00% | |||
Performance Stock Units (PSUs) [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance stock units granted | 150.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
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 | $ 13,900,000 | |||
Recognition period of unvested compensation expense | 3 years 2 months 12 days | |||
Performance-Based PSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to other than options | $ 11,400,000 | |||
Recognition period of unvested compensation expense | 3 years | |||
Stock-based compensation expense | $ 0 |
Stock-Based Compensation - Su59
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares | 527 |
Number of Shares, PSUs, RSUs and restricted stock granted | shares | 950 |
Number of Shares, PSUs, RSUs and restricted stock vested | shares | (154) |
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares | (31) |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares | 1,292 |
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares | $ 20.53 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares | 21.69 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares | 20.84 |
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares | 20.99 |
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares | $ 21.33 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation and Expense Information) - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Stock options, granted | 0 | ||
Weighted-average estimated value | $ 5.22 | $ 4.28 | |
Contractual term | 10 years | ||
Weighted average grant date fair value, PSUs granted | $ 21.69 | ||
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value, PSUs granted | $ 24.17 | $ 23.50 | $ 17.64 |
Stock-Based Compensation - Su61
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 34.79% | 34.57% | |
Risk-free interest rate | 1.36% | 1.81% | |
Expected dividend yield | 1.98% | 2.35% | |
Expected life (in years) | 6 years 3 months | 6 years 2 months 23 days | |
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 27.03% | 29.79% | 31.34% |
Risk-free interest rate | 1.78% | 1.17% | 1.20% |
Expected dividend yield | 1.74% | 1.80% | 2.35% |
Investments - Securities and In
Investments - Securities and Investments, Recorded at Either Fair Value or Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 114,139 | $ 190,146 |
Gross Unrealized Gains | 5,262 | 2,709 |
Gross Unrealized Losses | (1,363) | (2,132) |
Available-for-sale-securities, Fair Value/Carrying Value | 118,038 | 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 | 146,385 | 219,290 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,804 | 12,367 |
Gross Unrealized Gains | 2,175 | 2,271 |
Gross Unrealized Losses | (96) | (42) |
Available-for-sale-securities, Fair Value/Carrying Value | 19,883 | 14,596 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 32,654 | 66,522 |
Gross Unrealized Gains | 44 | 64 |
Gross Unrealized Losses | (155) | (174) |
Available-for-sale-securities, Fair Value/Carrying Value | 32,543 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,902 | 11,799 |
Gross Unrealized Gains | 2 | 12 |
Gross Unrealized Losses | (22) | (37) |
Available-for-sale-securities, Fair Value/Carrying Value | 2,882 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,545 | 10,201 |
Gross Unrealized Gains | 1 | 19 |
Gross Unrealized Losses | (20) | (14) |
Available-for-sale-securities, Fair Value/Carrying Value | 6,526 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,554 | 13,080 |
Gross Unrealized Gains | 1 | 15 |
Gross Unrealized Losses | (46) | (91) |
Available-for-sale-securities, Fair Value/Carrying Value | 5,509 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,477 | 30,022 |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (174) | (270) |
Available-for-sale-securities, Fair Value/Carrying Value | 14,303 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 725 | 3,729 |
Gross Unrealized Gains | 5 | 2 |
Gross Unrealized Losses | (1) | |
Available-for-sale-securities, Fair Value/Carrying Value | 730 | 3,730 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,855 | |
Available-for-sale-securities, Fair Value/Carrying Value | 11,855 | |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 33,478 | 30,571 |
Gross Unrealized Gains | 3,034 | 311 |
Gross Unrealized Losses | (850) | (1,503) |
Available-for-sale-securities, Fair Value/Carrying Value | $ 35,662 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale-securities, Fair Value/Carrying Value | $ 118,038 | $ 190,723 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 12,021 | |
One to two years | 9,145 | |
Two to three years | 7,345 | |
Three to five years | 4,032 | |
Available-for-sale-securities, Fair Value/Carrying Value | 32,543 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 891 | |
One to two years | 826 | |
Two to three years | 212 | |
Three to five years | 953 | |
Available-for-sale-securities, Fair Value/Carrying Value | 2,882 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 143 | |
One to two years | 2,367 | |
Two to three years | 2,245 | |
Three to five years | 810 | |
Five to ten years | 158 | |
More than ten years | 803 | |
Available-for-sale-securities, Fair Value/Carrying Value | 6,526 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Three to five years | 356 | |
Five to ten years | 1,144 | |
More than ten years | 4,009 | |
Available-for-sale-securities, Fair Value/Carrying Value | 5,509 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 3,073 | |
One to two years | 5,960 | |
Two to three years | 3,568 | |
Three to five years | 1,702 | |
Available-for-sale-securities, Fair Value/Carrying Value | 14,303 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Two to three years | 730 | |
Available-for-sale-securities, Fair Value/Carrying Value | $ 730 | $ 3,730 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Investments [Line Items] | |||
Identification of potential other-than-temporary impairments | 25.00% | ||
Impairment of investments | $ | $ 0.2 | $ 0.8 | $ 0.2 |
Number of marketable equity securities in an unrealized loss position | Security | 274 | ||
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member] | |||
Schedule of Investments [Line Items] | |||
Investment concentration risk percentage | 5.00% |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses on Sale of Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||
Gross realized gains | $ 5,258 | $ 7,530 | $ 10,906 |
Gross realized losses | $ (573) | $ (1,607) | $ (569) |
Investments - Breakdown of Inve
Investments - Breakdown of Investments with Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | $ 39,093 | $ 101,600 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (902) | (1,781) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 21,484 | 5,701 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (461) | (351) |
Total Fair Value | 60,577 | 107,301 |
Total Unrealized Losses | (1,363) | (2,132) |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 1,922 | 294 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (81) | (12) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 262 | 245 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (15) | (30) |
Total Fair Value | 2,184 | 539 |
Total Unrealized Losses | (96) | (42) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 16,015 | 32,562 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (58) | (166) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 6,112 | 2,722 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (97) | (8) |
Total Fair Value | 22,127 | 35,284 |
Total Unrealized Losses | (155) | (174) |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 230 | 8,936 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (37) | |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 1,165 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (22) | |
Total Fair Value | 1,395 | 8,936 |
Total Unrealized Losses | (22) | (37) |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 4,941 | 2,986 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (17) | (14) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 179 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (3) | |
Total Fair Value | 5,120 | 2,986 |
Total Unrealized Losses | (20) | (14) |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 3,062 | 7,842 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (8) | (81) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 1,673 | 1,239 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (38) | (10) |
Total Fair Value | 4,735 | 9,081 |
Total Unrealized Losses | (46) | (91) |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 2,754 | 26,449 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (26) | (270) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 11,549 | |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (148) | |
Total Fair Value | 14,303 | 26,449 |
Total Unrealized Losses | (174) | (270) |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 10,169 | 21,607 |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (712) | (1,200) |
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value | 544 | 1,495 |
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses | (138) | (303) |
Total Fair Value | 10,713 | 23,102 |
Total Unrealized Losses | $ (850) | (1,503) |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value | 924 | |
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses | (1) | |
Total Fair Value | 924 | |
Total Unrealized Losses | $ (1) |
Investments - Fair Value Measur
Investments - Fair Value Measurements of Cash Equivalents Held in Money Market Funds and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 118,038 | $ 190,723 |
Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,883 | 14,596 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 32,543 | 66,412 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,882 | 11,774 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 6,526 | 10,206 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 5,509 | 13,004 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,303 | 29,767 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 730 | 3,730 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 9,850 | 24,100 |
Available-for-sale securities | 118,038 | 190,723 |
Total | 127,888 | 214,823 |
Fair Value, Measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 5,851 | 6,878 |
Available-for-sale securities | 69,848 | 73,742 |
Total | 75,699 | 80,620 |
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,999 | 17,222 |
Available-for-sale securities | 48,190 | 116,981 |
Total | 52,189 | 134,203 |
Fair Value, Measurements [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 5,851 | 6,878 |
Fair Value, Measurements [Member] | Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 5,851 | 6,878 |
Fair Value, Measurements [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,999 | 17,222 |
Fair Value, Measurements [Member] | Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,999 | 17,222 |
Fair Value, Measurements [Member] | Deferred Compensation Plan Assets [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,883 | 14,596 |
Fair Value, Measurements [Member] | Deferred Compensation Plan Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 19,883 | 14,596 |
Fair Value, Measurements [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 32,543 | 66,412 |
Fair Value, Measurements [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 32,543 | 66,412 |
Fair Value, Measurements [Member] | Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,882 | 11,774 |
Fair Value, Measurements [Member] | Municipal Fixed-Rate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,882 | 11,774 |
Fair Value, Measurements [Member] | Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 6,526 | 10,206 |
Fair Value, Measurements [Member] | Asset-Backed Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 6,526 | 10,206 |
Fair Value, Measurements [Member] | Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 5,509 | 13,004 |
Fair Value, Measurements [Member] | Mortgage/Agency-Backed Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 5,509 | 13,004 |
Fair Value, Measurements [Member] | U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,303 | 29,767 |
Fair Value, Measurements [Member] | U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,303 | 29,767 |
Fair Value, Measurements [Member] | Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 730 | 3,730 |
Fair Value, Measurements [Member] | Foreign Government Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 730 | 3,730 |
Fair Value, Measurements [Member] | Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | Variable Rate Demand Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 11,855 | |
Fair Value, Measurements [Member] | Marketable Equity Securities - Various Industries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 35,662 | 29,379 |
Fair Value, Measurements [Member] | Marketable Equity Securities - Various Industries [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 35,662 | $ 29,379 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities - Additional Information (Detail) | Dec. 31, 2017USD ($) |
Forward Contracts [Member] | |
Derivative [Line Items] | |
Derivative, outstanding amount | $ 0 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities - Schedule of Fair Values of Hedging Instruments Recorded in Consolidated Balance Sheet (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contracts [Member] | Other Receivables [Member] | |
Derivatives Not Designated as Hedging Instruments (Level 2): | |
Derivatives asset, fair value | $ 159 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities - Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member] | |||
Derivatives Not Designated as Hedging Instruments: | |||
Derivative instrument, gain or loss | $ (754) | $ 724 | $ 511 |
Derivative Instruments and He71
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Foreign Exchange Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | Cost of Sales [Member] | |
Derivative [Line Items] | |
Amount of Gains (Losses) Reclassified from AOCI into Income | $ (897) |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,185 | $ 40,461 |
Work in process | 1,939 | 4,003 |
Finished goods | 76,418 | 60,653 |
Total Inventory, net | $ 122,542 | $ 105,117 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 15 | $ 14.6 |
Finished Goods [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 8.3 | $ 10.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Land | $ 4,575 | $ 4,575 |
Building and land improvements | 32,470 | 29,229 |
Building | 68,301 | 68,301 |
Furniture and fixtures | 19,489 | 18,477 |
Computer hardware and software | 90,726 | 87,655 |
Engineering and other equipment | 123,363 | 118,746 |
Total Property, Plant and Equipment | 338,924 | 326,983 |
Less accumulated depreciation | (253,845) | (242,514) |
Total Property, Plant and Equipment, net | $ 85,079 | $ 84,469 |
Property, Plant and Equipment75
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 12.8 | $ 12 | $ 12.3 |
Lease Arrangements - Additional
Lease Arrangements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Lessor Lease Description [Line Items] | |
Allowance for credit losses for our investment in sales type leases | $ 0 |
Minimum [Member] | |
Lessor Lease Description [Line Items] | |
Lessor sales type lease arrangement terms for network equipments | 18 months |
Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Lessor sales type lease arrangement terms for network equipments | 5 years |
Lease Arrangements - Components
Lease Arrangements - Components of Net Investment in Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leases Net Investment In Sales Type Leases [Abstract] | ||
Current minimum lease payments receivable (included in other receivables) | $ 11,325 | $ 2,141 |
Non-current minimum lease payments receivable (included in other assets) | 2,913 | 2,912 |
Total minimum lease payments receivable | 14,238 | 5,053 |
Less: Current unearned revenue | 707 | 841 |
Less: Non-current unearned revenue | 787 | 1,153 |
Net investment in sales-type leases | $ 12,744 | $ 3,059 |
Lease Arrangements - Schedule o
Lease Arrangements - Schedule of Future Minimum Lease Payments to be Received from Sales-Type Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital Leases Future Minimum Payments Receivable [Abstract] | ||
2,018 | $ 11,211 | |
2,019 | 2,172 | |
2,020 | 592 | |
2,021 | 205 | |
2,022 | 58 | |
Total minimum lease payments receivable | $ 14,238 | $ 5,053 |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill, relates to acquisition | $ 3,500,000 | $ 3,500,000 | |
Impairment losses | 0 | ||
Amortization expense | 2,900,000 | $ 2,500,000 | $ 1,900,000 |
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 Asset80
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Gross Value | $ 18,308 | $ 17,393 |
Accumulated Amortization | (13,647) | (10,126) |
Net Value | 4,661 | 7,267 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 7,474 | 6,899 |
Accumulated Amortization | (4,283) | (3,208) |
Net Value | 3,191 | 3,691 |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 5,524 | 5,184 |
Accumulated Amortization | (4,663) | (3,801) |
Net Value | 861 | 1,383 |
Intellectual Property [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 2,340 | 2,340 |
Accumulated Amortization | (2,262) | (2,129) |
Net Value | 78 | 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 | (500) | (113) |
Net Value | 387 | |
Patent [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | 500 |
Accumulated Amortization | (89) | (20) |
Net Value | 411 | 480 |
Trade Names [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 370 | 370 |
Accumulated Amortization | (335) | (285) |
Net Value | 35 | 85 |
Non-compete [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 200 | 200 |
Accumulated Amortization | (115) | (26) |
Net Value | $ 85 | $ 174 |
Goodwill and Intangible Asset81
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 1,212 | |
2,019 | 697 | |
2,020 | 659 | |
2,021 | 603 | |
2,022 | 567 | |
Thereafter | 923 | |
Net Value | $ 4,661 | $ 7,267 |
Alabama State Industrial Deve82
Alabama State Industrial Development Authority Financing and Economic Incentives - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2008 | Jan. 13, 1995 | |
Debt Instrument [Line Items] | |||||
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN | $ 26,700 | $ 50,000 | $ 20,000 | ||
Percentage of interest on amended and restated bond | 2.00% | ||||
Maturity date of amended and restated bond | Jan. 1, 2020 | ||||
Estimated fair value of bond | $ 26,700 | ||||
Restricted certificate of deposit held | 27,800 | $ 27,800 | |||
Total realized economic incentives | 1,500 | 1,300 | $ 1,300 | ||
Payments on long-term debt | 1,100 | $ 1,100 | $ 1,100 | ||
Bond debt outstanding classified as current liability | 1,100 | ||||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Debt Instrument [Line Items] | |||||
Estimated fair value of bond | $ 26,700 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Federal | $ 466 | $ 12,733 | $ 7,504 |
State | (150) | 1,141 | 279 |
International | 6,458 | 477 | (29) |
Total Current | 6,774 | 14,351 | 7,754 |
Deferred | |||
Federal | 8,024 | 647 | (585) |
State | 1,882 | 73 | (66) |
International | 4,167 | (3,405) | (41) |
Total Deferred | 14,073 | (2,685) | (692) |
Total Provision for Income Taxes | $ 20,847 | $ 11,666 | $ 7,062 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Differs from Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at the federal statutory rate | 35.00% | 35.00% | 35.00% |
State income tax provision, net of federal benefit | 2.17% | 3.93% | 4.86% |
Federal research credits | (11.88%) | (8.15%) | (12.55%) |
Foreign taxes | (2.27%) | (0.34%) | 2.10% |
Tax-exempt income | (0.75%) | (0.53%) | (1.94%) |
State tax incentives | (2.71%) | (2.77%) | (5.04%) |
Stock-based compensation | 1.43% | 2.53% | 6.91% |
Domestic production activity deduction | (1.13%) | (2.23%) | (3.17%) |
Bargain purchase | (2.64%) | ||
Impact of U.S. tax reform | 26.70% | ||
Other, net | 0.09% | 0.08% | 1.30% |
Effective Tax Rate | 46.65% | 24.88% | 27.47% |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. entities | $ 26,552 | $ 54,077 | $ 27,400 |
International entities | 18,135 | (7,182) | (1,692) |
Income before provision for income taxes | $ 44,687 | $ 46,895 | $ 25,708 |
Income Taxes - Principal Compon
Income Taxes - Principal Components of Current and Non-current Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Inventory | $ 7,545 | $ 12,020 |
Accrued expenses | 3,103 | 5,551 |
Investments | 1,062 | |
Deferred compensation | 5,204 | 5,751 |
Stock-based compensation | 2,988 | 4,724 |
Uncertain tax positions related to state taxes and related interest | 370 | 762 |
Pensions | 4,727 | 4,273 |
Foreign losses | 3,091 | 6,486 |
State losses and credit carry-forwards | 3,854 | 4,021 |
Federal loss and research carry-forwards | 3,058 | 5,886 |
Valuation allowance | (6,006) | (6,149) |
Total Deferred Tax Assets | 27,934 | 44,387 |
Property, plant and equipment | (3,553) | (4,433) |
Intellectual property | (663) | (1,918) |
Investments | (290) | |
Total Deferred Tax Liabilities | (4,506) | (6,351) |
Net Deferred Tax Assets | $ 23,428 | $ 38,036 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||||
Tax cuts and jobs act, incomplete accounting, estimated income tax expense | $ 11,900,000 | ||||
Tax cuts and jobs act, incomplete accounting, estimated write-down of deferred tax assets | 9,200,000 | ||||
Tax cuts and jobs act, incomplete accounting, change in tax rate estimate income tax expense related to unrepatriated foreign earnings | 2,700,000 | ||||
Deferred tax benefit recorded as an adjustment to other comprehensive income | $ 1,700,000 | $ 1,500,000 | |||
Foreign and domestic carry-forwards, unamortized research and development cost and state credit carry-forwards | 10,000,000 | 10,000,000 | |||
Net change in valuation allowance | (100,000) | ||||
Cash and cash equivalents | 86,433,000 | 86,433,000 | 79,895,000 | $ 84,550,000 | $ 73,439,000 |
Short-term investments | 16,129,000 | 16,129,000 | 43,188,000 | ||
Short-term liquidity amount | 102,600,000 | 102,600,000 | 123,100,000 | ||
Income tax benefit (expense) from stock options exercised adjustment to equity | 0 | 0 | (40,000) | ||
Unrecognized tax benefits | 2,366,000 | 2,366,000 | 2,226,000 | 2,537,000 | $ 3,334,000 |
Unrecognized tax benefits, effective tax rate | 2,200,000 | 2,200,000 | 1,700,000 | 1,800,000 | |
Accrued interest and penalties | 800,000 | 800,000 | 800,000 | $ 900,000 | |
Foreign Subsidiaries [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Short-term liquidity amount | $ 56,800,000 | $ 56,800,000 | $ 42,100,000 | ||
Short-term liquidity, in percentage | 55.40% | 55.40% | 34.20% | ||
Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating loss carry forwards expiration year | 2,018 | ||||
Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating loss carry forwards expiration year | 2,030 |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 2,226 | $ 2,537 | $ 3,334 |
Increases for tax position related to, Prior years | 465 | 95 | |
Increases for tax position related to, Current year | 285 | 428 | 280 |
Decreases for tax positions related to, Prior years | (14) | (29) | |
Settlements with taxing authorities | (103) | ||
Expiration of applicable statute of limitations | (596) | (834) | (945) |
Balance at end of period | $ 2,366 | $ 2,226 | $ 2,537 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of period | $ 30,011 | $ 26,851 | |
Service cost | 1,260 | 1,211 | $ 1,314 |
Interest cost | 607 | 720 | 615 |
Actuarial (gain) loss - experience | 47 | (431) | |
Actuarial (gain) loss - assumptions | (1,294) | 2,628 | |
Benefit payments | (80) | (52) | |
Effects of foreign currency exchange rate changes | 4,342 | (916) | |
Projected benefit obligation at end of period | 34,893 | 30,011 | 26,851 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 20,045 | 19,213 | |
Actual return on plan assets | 709 | 1,494 | |
Contributions | 3,001 | ||
Effects of foreign currency exchange rate changes | 2,869 | (662) | |
Fair value of plan assets at end of period | 26,624 | 20,045 | $ 19,213 |
Funded (unfunded) status at end of period | $ (8,269) | $ (9,966) |
Employee Benefit Plans (Pensi90
Employee Benefit Plans (Pension Benefit Plan) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 32.9 | $ 28.7 |
Estimated amortization from accumulated other comprehensive income into net periodic pension cost in 2018 | $ 0.2 | |
Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of target allocation ranges by asset class | 75.00% | |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of target allocation ranges by asset class | 25.00% | |
Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Threshold for unamortized gain losses | 10.00% |
Employee Benefit Plans (Pensi91
Employee Benefit Plans (Pension Benefit Plan) - Summary of Net Amounts Recognized Balance Sheet for the Unfunded Pension Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Current liability | $ 0 | $ 0 |
Non-current liability | 8,269 | 9,966 |
Total | $ 8,269 | $ 9,966 |
Employee Benefit Plans (Pensi92
Employee Benefit Plans (Pension Benefit Plan) - Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net periodic benefit cost: | |||
Service cost | $ 1,260 | $ 1,211 | $ 1,314 |
Interest cost | 607 | 720 | 615 |
Expected return on plan assets | (1,267) | (1,057) | (1,011) |
Amortization of actuarial losses | 309 | 175 | 407 |
Net periodic benefit cost | 909 | 1,049 | 1,325 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial (gain) loss | (654) | 1,782 | (2,303) |
Amortization of actuarial losses | (406) | (156) | (396) |
Amount recognized in other comprehensive income | (1,060) | 1,626 | (2,699) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (151) | $ 2,675 | $ (1,374) |
Employee Benefit Plans (Pensi93
Employee Benefit Plans (Pension Benefit Plan) - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ (5,812) | $ (6,871) |
Employee Benefit Plans (Pensi94
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Discount rates | 1.90% | 2.64% | 2.20% |
Rate of compensation increase | 2.00% | 2.00% | 2.25% |
Expected long-term rates of return | 5.90% | 5.40% | 5.40% |
Employee Benefit Plans (Pensi95
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rates | 2.13% | 1.90% |
Rate of compensation increase | 2.00% | 2.00% |
Employee Benefit Plans (Pensi96
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Payments Expected Future Service (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,018 | $ 549 |
2,019 | 772 |
2,020 | 1,090 |
2,021 | 1,225 |
2,022 | 1,315 |
2023 – 2027 | 6,301 |
Total | $ 11,252 |
Employee Benefit Plans (Pensi97
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Cash Equivalents and Investments Held at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | $ 118,038 | $ 190,723 | |
Total | 26,624 | 20,045 | $ 19,213 |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 32,543 | 66,412 | |
Pension Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | 3,005 | 6 | |
Available-for-sale securities | 23,619 | 20,039 | |
Total | 26,624 | 20,045 | |
Pension Benefit Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 14,349 | 12,546 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash and cash equivalents | 3,005 | 6 | |
Available-for-sale securities | 23,619 | 20,039 | |
Total | 26,624 | 20,045 | |
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 14,349 | 12,546 | |
Pension Benefit Plan [Member] | Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 2,305 | 2,037 | |
Pension Benefit Plan [Member] | Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 2,305 | 2,037 | |
Pension Benefit Plan [Member] | Large Cap Blend [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 5,758 | 4,462 | |
Pension Benefit Plan [Member] | Large Cap Blend [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 5,758 | 4,462 | |
Pension Benefit Plan [Member] | Large Cap Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 309 | 249 | |
Pension Benefit Plan [Member] | Large Cap Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 309 | 249 | |
Pension Benefit Plan [Member] | Balanced Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | 898 | 745 | |
Pension Benefit Plan [Member] | Balanced Fund [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Available-for-sale securities | $ 898 | $ 745 |
Employee Benefit Plans (401(k)
Employee Benefit Plans (401(k) Savings Plan) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Criteria of employer to contribute in employee saving plan | 100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions | ||
Percentage of employer match to employee's contribution | 100.00% | ||
Percentage of employer match to employee's contribution | 50.00% | ||
Upper limit of employer match | 4.00% | ||
Maximum statutory compensation under code | $ 270,000 | ||
Percentage contributions under the savings plan, vested | 100.00% | ||
Contributions and plan administration costs for savings plan | $ 4,600,000 | $ 4,100,000 | $ 4,700,000 |
Employee Benefit Plans (Deferre
Employee Benefit Plans (Deferred Compensation Plans) - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Compensation_Program | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |||
Number of deferred compensation programs | Compensation_Program | 4 | ||
Maximum percentage of cash compensation allowed to be deferred under the deferred compensation plan | 25.00% | ||
Criteria for benefit distribution | Six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten year term. | ||
Deferred compensation income (expense) adjustments due to fair value of the trust assets | $ | $ (2.6) | $ (1.3) | $ 0.3 |
Employee Benefit Plans (Defe100
Employee Benefit Plans (Deferred Compensation Plans) - Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | $ 118,038 | $ 190,723 |
Long-term Investments | 19,883 | 14,596 |
Amounts Payable to Plan Participants Non-current Liabilities | 19,883 | 14,596 |
Deferred Compensation Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term Investments | 19,883 | 14,596 |
Non-Current Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts Payable to Plan Participants Non-current Liabilities | $ 19,883 | $ 14,596 |
Employee Benefit Plans (Retiree
Employee Benefit Plans (Retiree Medical Coverage) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||
Maximum number of years medical, dental and prescription drug coverage to spouse of deceased officer | 30 years | |
Total liability recorded to provide medical, dental and prescription drug coverage | $ 0.1 | $ 0.2 |
Segment Information and Majo102
Segment Information and Major Customers - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)CustomerSegmentCategory | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015Customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Number of categories | Category | 3 | ||
Number of single customer comprising more than 10% of revenue | Customer | 2 | 3 | 3 |
Long-lived assets | $ 85.1 | $ 84.5 | |
U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 80.6 | 79.9 | |
Outside U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 4.5 | $ 4.6 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 40.00% | 24.00% | 20.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 16.00% | 19.00% | 17.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 3 [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% | 14.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | The Five Largest Customers Other Than Those With More Than 10% Of Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 15.00% | 13.00% | 14.00% |
Segment Information and Majo103
Segment Information and Major Customers - Sales and Gross Profit of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 126,836 | $ 185,112 | $ 184,673 | $ 170,279 | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 666,900 | $ 636,781 | $ 600,064 |
Gross Profit | $ 58,815 | $ 86,498 | $ 84,632 | $ 73,715 | $ 70,787 | $ 75,808 | $ 78,955 | $ 65,794 | 303,660 | 291,344 | 266,897 |
Network Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 540,396 | 525,502 | 527,422 | ||||||||
Gross Profit | 260,855 | 254,807 | 233,579 | ||||||||
Services & Support [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 126,504 | 111,279 | 72,642 | ||||||||
Gross Profit | $ 42,805 | $ 36,537 | $ 33,318 |
Segment Information and Majo104
Segment Information and Major Customers - Sales Information by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 126,836 | $ 185,112 | $ 184,673 | $ 170,279 | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 666,900 | $ 636,781 | $ 600,064 |
Access & Aggregation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 473,943 | 436,372 | 405,698 | ||||||||
Customer Devices [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 138,456 | 137,608 | 125,565 | ||||||||
Traditional & Other Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 54,501 | $ 62,801 | $ 68,801 |
Segment Information and Majo105
Segment Information and Major Customers - Sales Information by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 126,836 | $ 185,112 | $ 184,673 | $ 170,279 | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 666,900 | $ 636,781 | $ 600,064 |
United States [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 508,178 | 501,337 | 419,366 | ||||||||
Germany [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | 119,502 | 85,780 | 111,666 | ||||||||
Other International [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales | $ 39,220 | $ 49,664 | $ 69,032 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)EquityUnit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Contingencies And Commitments [Line Items] | |||
Number of private equity funds | EquityUnit | 2 | ||
Commitments towards private equity funds | $ 7.7 | ||
Operating leases expiration year | 2,025 | ||
Rental expense | $ 4.5 | $ 4.2 | $ 4.9 |
Investment Commitments [Member] | |||
Contingencies And Commitments [Line Items] | |||
Aggregate investment committed in private equity funds | 7.9 | ||
Private Equity Funds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contribution to private equity funds | $ 8.4 |
Commitments and Contingencie107
Commitments and Contingencies - Future Minimum Rental Payments under Non-Cancelable Operating Leases with Original Maturities of Greater than 12 Months (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 3,073 |
2,019 | 927 |
2,020 | 805 |
2,021 | 793 |
Thereafter | 2,907 |
Total | $ 8,505 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||||||||||
Net Income | $ (11,110) | $ 15,898 | $ 12,401 | $ 6,651 | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 23,840 | $ 35,229 | $ 18,646 |
Denominator | |||||||||||
Weighted average number of shares – basic | 48,153 | 48,724 | 51,145 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options | 406 | 170 | 81 | ||||||||
Restricted stock and restricted stock units | 140 | 55 | 41 | ||||||||
Weighted average number of shares – diluted | 48,699 | 48,949 | 51,267 | ||||||||
Net income per share – basic | $ (0.23) | $ 0.33 | $ 0.26 | $ 0.14 | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.50 | $ 0.72 | $ 0.36 |
Net income per share – diluted | $ (0.23) | $ 0.33 | $ 0.26 | $ 0.14 | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.49 | $ 0.72 | $ 0.36 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive options, Total | 3.2 | 4.6 | 6.1 |
Summarized Quarterly Financi110
Summarized Quarterly Financial Data (Unaudited) - Quarterly Operating Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 126,836 | $ 185,112 | $ 184,673 | $ 170,279 | $ 162,986 | $ 168,890 | $ 162,701 | $ 142,204 | $ 666,900 | $ 636,781 | $ 600,064 |
Gross profit | 58,815 | 86,498 | 84,632 | 73,715 | 70,787 | 75,808 | 78,955 | 65,794 | 303,660 | 291,344 | 266,897 |
Operating income | (4,061) | 18,318 | 16,448 | 7,032 | 4,272 | 10,130 | 14,812 | 5,521 | 37,737 | 34,735 | 13,479 |
Net Income | $ (11,110) | $ 15,898 | $ 12,401 | $ 6,651 | $ 7,572 | $ 12,415 | $ 10,228 | $ 5,014 | $ 23,840 | $ 35,229 | $ 18,646 |
Earnings per common share – basic | $ (0.23) | $ 0.33 | $ 0.26 | $ 0.14 | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.50 | $ 0.72 | $ 0.36 |
Earnings per common share – diluted | $ (0.23) | $ 0.33 | $ 0.26 | $ 0.14 | $ 0.16 | $ 0.26 | $ 0.21 | $ 0.10 | $ 0.49 | $ 0.72 | $ 0.36 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Events [Member] - USD ($) $ / shares in Units, $ in Millions | Feb. 23, 2018 | Jan. 16, 2018 | Feb. 14, 2018 | Jan. 31, 2018 |
Subsequent Event [Line Items] | ||||
Dividend declaration date | Jan. 16, 2018 | |||
Common stock dividends per share declared | $ 0.09 | |||
Dividend record date | Jan. 31, 2018 | |||
Dividend payment date | Feb. 14, 2018 | |||
Quarterly dividend payable subsequent to balance sheet date | $ 4.4 | |||
Stock repurchased, shares | 600,000 | |||
Shares repurchased, average price per share | $ 16.18 | |||
Additional shares authorized for purchase | 2,900,000 | |||
Early Retirement Incentive Program [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated liability | $ 3.6 | |||
Early Retirement Incentive Program [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated liability | $ 14.3 |
Schedule II - Valuation and 112
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 19 | $ 136 | |
Charged to costs & expenses | 19 | ||
Deductions | 19 | 136 | |
Balance at end of period | 19 | ||
Inventory Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 25,249 | 26,675 | 24,682 |
Charged to costs & expenses | 6,406 | 3,303 | 2,225 |
Deductions | 8,300 | 4,729 | 232 |
Balance at end of period | 23,355 | 25,249 | 26,675 |
Warranty Liability [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 8,548 | 8,739 | 8,415 |
Charged to costs & expenses | 6,951 | 8,561 | 2,998 |
Deductions | 5,775 | 8,752 | 2,674 |
Balance at end of period | 9,724 | 8,548 | 8,739 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 6,149 | 7,250 | 7,463 |
Charged to costs & expenses | 18 | 69 | 81 |
Deductions | 161 | 1,170 | 294 |
Balance at end of period | $ 6,006 | $ 6,149 | $ 7,250 |