Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 24, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ADTN | |
Entity Registrant Name | ADTRAN INC | |
Entity Central Index Key | 926,282 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,914,242 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 82,623 | $ 86,433 |
Short-term investments | 16,402 | 16,129 |
Accounts receivable, less allowance for doubtful accounts of $— at March 31, 2018 and December 31, 2017 | 80,883 | 144,150 |
Other receivables | 35,124 | 26,578 |
Inventory, net | 120,021 | 122,542 |
Prepaid expenses and other current assets | 9,693 | 17,282 |
Total Current Assets | 344,746 | 413,114 |
Property, plant and equipment, net | 83,875 | 85,079 |
Deferred tax assets, net | 21,427 | 23,428 |
Goodwill | 3,492 | 3,492 |
Other assets | 32,635 | 13,725 |
Long-term investments | 156,472 | 130,256 |
Total Assets | 642,647 | 669,094 |
Current Liabilities | ||
Accounts payable | 50,653 | 60,632 |
Unearned revenue | 13,948 | 13,070 |
Accrued expenses | 13,826 | 13,232 |
Accrued wages and benefits | 15,863 | 15,948 |
Income tax payable | 8,277 | 3,936 |
Total Current Liabilities | 102,567 | 106,818 |
Non-current unearned revenue | 4,154 | 4,556 |
Other non-current liabilities | 34,590 | 34,209 |
Bonds payable | 25,600 | 25,600 |
Total Liabilities | 166,911 | 171,183 |
Commitments and contingencies (see Note 15) | ||
Stockholders’ Equity | ||
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 47,914 shares outstanding at March 31, 2018 and 79,652 shares issued and 48,485 shares outstanding at December 31, 2017 | 797 | 797 |
Additional paid-in capital | 262,333 | 260,515 |
Accumulated other comprehensive loss | (5,803) | (3,295) |
Retained earnings | 909,611 | 922,178 |
Less treasury stock at cost: 31,738 and 31,167 shares at March 31, 2018 and December 31, 2017, respectively | (691,202) | (682,284) |
Total Stockholders’ Equity | 475,736 | 497,911 |
Total Liabilities and Stockholders’ Equity | $ 642,647 | $ 669,094 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 79,652,000 | 79,652,000 |
Common stock, shares outstanding | 47,914,000 | 48,485,000 |
Treasury stock, shares | 31,738,000 | 31,167,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales | ||
Products | $ 105,253 | $ 143,597 |
Services | 15,553 | 26,682 |
Total Sales | 120,806 | 170,279 |
Cost of Sales | ||
Products | 68,612 | 76,664 |
Services | 12,461 | 19,906 |
Total Cost of Sales | 81,073 | 96,570 |
Gross Profit | 39,733 | 73,709 |
Selling, general and administrative expenses | 33,531 | 34,789 |
Research and development expenses | 32,849 | 31,971 |
Operating Income (Loss) | (26,647) | 6,949 |
Interest and dividend income | 866 | 933 |
Interest expense | (132) | (141) |
Net realized investment gain | (97) | 470 |
Other income (expense), net | (57) | 134 |
Gain on bargain purchase of a business | 11,322 | |
Income (loss) before provision for income taxes | (14,745) | 8,345 |
(Provision) benefit for income taxes | 3,931 | (1,694) |
Net Income (Loss) | $ (10,814) | $ 6,651 |
Weighted average shares outstanding – basic | 48,232 | 48,430 |
Weighted average shares outstanding – diluted | 48,292 | 48,939 |
Earnings (loss) per common share – basic | $ (0.22) | $ 0.14 |
Earnings (loss) per common share – diluted | (0.22) | 0.14 |
Dividend per share | $ 0.09 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (10,814) | $ 6,651 |
Other Comprehensive Income (Loss), net of tax | ||
Net unrealized gains (losses) on available-for-sale securities | (3,412) | 1,335 |
Net unrealized gains (losses) on cash flow hedges | 79 | |
Defined benefit plan adjustments | 62 | 55 |
Foreign currency translation | 842 | 1,242 |
Other Comprehensive Income (Loss), net of tax | (2,508) | 2,711 |
Comprehensive Income (Loss), net of tax | $ (13,322) | $ 9,362 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ (10,814) | $ 6,651 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,614 | 4,323 |
Amortization of net premium on available-for-sale investments | 42 | 124 |
Net realized (gain) loss on long-term investments | 97 | (470) |
Net (gain) loss on disposal of property, plant and equipment | 67 | (16) |
Gain on bargain purchase of a business | (11,322) | |
Stock-based compensation expense | 1,819 | 1,883 |
Deferred income taxes | (1,877) | (1,947) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 63,904 | 7,247 |
Other receivables | (6,598) | 1,884 |
Inventory | 3,368 | (7,399) |
Prepaid expenses and other assets | 10,583 | (2,413) |
Accounts payable | (10,233) | (1,713) |
Accrued expenses and other liabilities | 826 | (3,166) |
Income tax payable | 2,753 | 4,049 |
Net cash provided by operating activities | 46,229 | 9,037 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (1,950) | (3,872) |
Proceeds from disposals of property, plant and equipment | 16 | |
Proceeds from sales and maturities of available-for-sale investments | 49,074 | 24,471 |
Purchases of available-for-sale investments | (75,960) | (29,517) |
Acquisition of business | (7,806) | |
Net cash used in investing activities | (36,642) | (8,902) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 369 | 1,377 |
Purchases of treasury stock | (10,171) | (5,559) |
Dividend payments | (4,367) | (4,369) |
Net cash used in financing activities | (14,169) | (8,551) |
Net decrease in cash and cash equivalents | (4,582) | (8,416) |
Effect of exchange rate changes | 772 | 1,079 |
Cash and cash equivalents, beginning of period | 86,433 | 79,895 |
Cash and cash equivalents, end of period | 82,623 | 72,558 |
Supplemental disclosure of non-cash investing activities: | ||
Purchases of property, plant and equipment included in accounts payable | $ 95 | $ 509 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of ADTRAN ® In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 23, 2018 with the SEC. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. Recent Accounting Pronouncements In 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 August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities During 2018, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: 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 primary areas of impact of these ASUs were network implementation service revenue performance obligations and contract costs. The output method will be used to measure network implementation services progress. The primary impact will be accelerated revenue recognition for certain performance obligations related to service revenue arrangements that were previously deferred until customer acceptance and capitalization and amortization of incremental costs of obtaining a contract as described below. 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 The cumulative effect of the changes made to our Consolidated Balance Sheet on January 1, 2018 for the adoption of ASU 2014-09 and the related ASUs was as follows: (In thousands) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Other receivables $ 26,578 374 $ 26,952 Deferred tax assets, net $ 23,428 (96 ) $ 23,332 Retained earnings $ 922,178 278 $ 922,456 The impact of the adoption of ASU 2014-09 and the related ASUs on our financial statements was as follows: For the three months ended March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Sales Products $ 105,253 105,439 $ (186 ) Services $ 15,553 14,700 $ 853 Cost of Sales Products $ 68,612 68,723 $ (111 ) Services $ 12,461 11,925 $ 536 Loss before benefit for income taxes $ (14,745 ) (14,987 ) $ 242 Benefit for income taxes $ 3,931 3,998 $ (67 ) Net loss $ (10,814 ) (10,989 ) $ 175 As of March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Other receivables $ 35,124 35,060 $ 64 Inventory $ 120,021 119,910 $ 111 Equity Retained earnings $ 909,611 909,436 $ 175 In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities 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 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | 2. BUSINESS COMBINATIONS On March 19, 2018, we acquired Sumitomo Electric Lightwave Corp.’s (SEL) North American EPON business and entered into a technology license and OEM supply agreement with Sumitomo Electric Industries, Ltd. (SEI). This acquisition establishes ADTRAN as the North American market leader for EPON solutions for the cable MSO industry and will accelerate the MSO market’s adoption of our open, programmable and scalable architectures. 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 Access & Aggregation and Customer Devices categories within the Network Solutions reportable segment. We recorded a bargain purchase gain of $11.3 million during the first quarter of 2018, net of income taxes, which is subject to customary working capital adjustments between the parties. The bargain purchase gain of $11.3 million represents the difference between the fair value of the net assets acquired over the cash paid. SEI, an OEM supplier based in Japan, is a market leader in EPON. SEI’s Broadband Networks Division through its SEL subsidiary operated a North American EPON business including sales, marketing, support, and region-specific engineering development. The North American EPON market is primarily driven by the Tier 1 cable MSO operators and has developed slower than anticipated. Through the transaction, SEI divested its North American EPON assets and established a relationship with ADTRAN. The transfer of these assets to ADTRAN, which included key customer relationships and required assumption by ADTRAN of relatively low incremental expenses, along with the value of the technology license and OEM supply agreement, resulted in the bargain purchase gain. We have assessed the recognition and measurement of the assets acquired and liabilities assumed based on historical and forecasted data for future periods and have concluded that our valuation procedures and resulting measures were appropriate. The preliminary allocation of the purchase price to the estimated fair value of the assets acquired at the acquisition date is as follows: (In Thousands) Assets Other receivables $ 104 Inventory 510 Property, plant and equipment 392 Intangible assets 22,100 Total assets acquired 23,106 Liabilities Deferred income taxes (3,978 ) Total liabilities assumed (3,978 ) Total net assets 19,128 Gain on bargain purchase of a business, net of tax (11,322 ) Total purchase price $ 7,806 The actual revenue and net loss included in our Consolidated Statements of Income for the period March 19, 2018 to March 31, 2018 are as follows: March 19 to (In thousands) March 31, 2018 Revenue $ — Net loss $ (77 ) The details of the acquired intangible assets are as follows: In thousands Value Life (years) Customer relationships $ 13,400 12.0 Licensed technology 5,900 9.0 Supplier relationship 2,800 2.0 Total $ 22,100 The following unaudited supplemental pro forma information presents the financial results as if the acquisition had occurred on January 1, 2017. 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, 2017, nor is it indicative of any future results. Aside from revising the 2017 and 2018 net income for the effect of the bargain purchase gain, there were no material, non-recurring adjustments to this unaudited pro forma information. Three Months Ended March 31, (In thousands) 2018 2017 Pro forma revenue $ 122,066 $ 170,692 Pro forma net income $ (22,720 ) $ 17,201 Pro forma earnings per share - basic $ (0.47 ) $ 0.36 Pro forma earnings per share - diluted $ (0.47 ) $ 0.35 For the three months ended March 31, 2018, we incurred acquisition and integration related expenses and amortization of acquired intangibles of $0.2 million related to this acquisition. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. REVENUE Revenue is measured based on the consideration we expect to receive in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product or service to the customer. For transactions where there are multiple performance obligations, we account for individual products and services separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices using the most likely amount. The stand-alone selling prices are determined based on the prices at which we sell the separate products and services. For items that are not sold separately, we estimate stand-alone selling prices primarily using reasonable internal analysis. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales, value added, and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Costs of obtaining a contract are capitalized and amortized over the period that the related revenue is recognized. We have elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial. The following is a description of the principal activities from which we generate our revenue by reportable segment. Network Solutions Segment Network Solutions includes hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. Hardware The majority of the revenue from this segment is from hardware sales and is recognized when control is transferred to our customers, which is generally when we ship the products. Shipping terms are generally FOB shipping point. Revenue is recorded net of discounts and rebates using the most likely amount. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time revenue is recognized. In certain transactions, we are also the lessor in sales-type lease arrangements for network equipment, which have terms of 18 months to five years. These arrangements typically include network equipment, network implementation services and maintenance services. Product revenue for these leases is generally recorded when we transfer control of the product to our customers. Revenue for network implementation and maintenance services is recognized as described below. Customers are typically invoiced and pay in equal installments over the lease term. Services & Support Segment To complement our Network Solutions segment, we offer a complete portfolio of maintenance, network implementation, solutions integration and managed services, which include hosted, cloud services and subscription services. Maintenance Our maintenance service periods range from one month to five years. Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period, which is recorded in current or non-current unearned revenue depending on the length of the service period. Maintenance services are provided on an as-needed basis and our customers benefit evenly throughout the contract term. Accordingly, we recognize revenue for maintenance services on a straight-line basis over the maintenance period in services revenue. Network Implementation We recognize revenue for network implementation, which primarily consists of engineering, execution and enablement services, when performance obligations are complete at a point in time. If we have recognized revenue, but not billed the customer, the right to consideration is recognized as a contract asset, which is included in other receivables in the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the right to consideration to payment becomes unconditional. As of March 31, 2018, we did not have any remaining performance obligations related to customer contracts that had an original expected duration of one year or more, other than maintenance services, which are satisfied over time. The following table provides information about receivables, contract assets, and unearned revenue from contracts with customers: (In thousands) March 31, 2018 December 31, 2017 Accounts receivable $ 80,883 $ 144,150 Contract assets 1,442 — Unearned revenue 13,948 13,070 Non-current unearned revenue 4,154 4,556 During the three months ended March 31, 2018, we recognized $3.5 million of revenue that was included in unearned revenue at the beginning of the period. The following table disaggregates our revenue by major source: (In thousands) Network Solutions Services & Support Total Access & Aggregation $ 69,385 $ 12,295 $ 81,680 Customer Devices 28,777 1,324 30,101 Traditional & Other Products 7,091 1,934 9,025 Total $ 105,253 $ 15,553 $ 120,806 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. INCOME TAXES Our effective tax rate decreased from 20.3% in the three months ended March 31, 2017, to 15.1%, excluding the tax impact of the bargain purchase gain, in the three months ended March 31, 2018. The decrease in the effective tax rate between the two periods is primarily attributable to the impact of the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017. |
Pension Benefit Plan
Pension Benefit Plan | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Benefit Plan | 5. PENSION BENEFIT PLAN We maintain a defined benefit pension plan covering employees in certain foreign countries. The following table summarizes the components of net periodic pension cost for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (In thousands) 2018 2017 Service cost $ 308 $ 297 Interest cost 187 143 Expected return on plan assets (399 ) (299 ) Amortization of actuarial losses 64 73 Net periodic pension cost $ 160 $ 214 The components of net periodic pension cost other than the service cost component are included in the line item “Other income (expense), net” in the Consolidated Statements of Income. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. STOCK-BASED COMPENSATION The following table summarizes the stock-based compensation expense related to stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock for the three months ended March 31, 2018 and 2017, which was recognized as follows: Three Months Ended March 31, (In thousands) 2018 2017 Stock-based compensation expense included in cost of sales $ 95 $ 91 Selling, general and administrative expense 1,035 1,016 Research and development expense 689 776 Stock-based compensation expense included in operating expenses 1,724 1,792 Total stock-based compensation expense 1,819 1,883 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (384 ) (380 ) Total stock-based compensation expense, net of tax $ 1,435 $ 1,503 Stock Options The following table is a summary of our stock options outstanding as of December 31, 2017 and March 31, 2018 and the changes that occurred during the three months ended March 31, 2018: (In thousands, except per share amounts) Number of Stock Options Weighted Avg. Exercise Price Weighted Avg. Remaining Contractual Life In Years Aggregate Intrinsic Value Stock options outstanding, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options granted — $ — Stock options exercised (24 ) $ 15.48 Stock options forfeited (27 ) $ 16.59 Stock options expired (58 ) $ 26.87 Stock options outstanding, March 31, 2018 5,039 $ 22.66 4.50 $ 271 Stock options vested and expected to vest, March 31, 2018 5,039 $ 22.66 4.50 $ 271 Stock options exercisable, March 31, 2018 4,286 $ 23.75 4.00 $ 157 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the closing price of our stock on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all option holders exercised their options on March 31, 2018. The aggregate intrinsic value will change based on the fair market value of our stock. The total pre-tax intrinsic value of options exercised during the three months ended March 31, 2018 was $33 thousand. As of March 31, 2018, there was $2.5 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over an average remaining recognition period of 1.3 years. The fair value of our stock options is estimated using the Black-Scholes model. The determination of the fair value of stock options on the date of grant using the Black-Scholes model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables that may have a significant impact on the fair value estimate. There were no stock options granted during the three months ended March 31, 2018 or 2017. PSUs, RSUs and restricted stock The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2017 and the changes that occurred during the three months ended March 31, 2018: (In thousands, except per share amounts) Number of Shares Weighted Avg. Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2017 1,292 $ 21.33 PSUs, RSUs and restricted stock granted 8 $ 20.71 PSUs, RSUs and restricted stock vested (5 ) $ 20.00 PSUs, RSUs and restricted stock forfeited (62 ) $ 21.50 Unvested PSUs, RSUs and restricted stock outstanding, March 31, 2018 1,233 $ 21.31 The fair value of our PSUs with market conditions is calculated using a Monte Carlo Simulation valuation method. The fair value of RSUs and restricted stock is equal to the closing price of our stock on the date of grant. During the first quarter of 2017, the Compensation Committee of the Board of Directors approved a PSU grant of 0.5 million shares that contain performance conditions. The fair value of these performance-based PSU awards was equal to the closing price of our stock on the date of grant. As of March 31, 2018, there was $12.9 million of unrecognized compensation expense related to unvested market-based PSUs, RSUs and restricted stock, which is expected to be recognized over an average remaining recognition period of 2.9 years. In addition, there was $10.7 million of unrecognized compensation expense related to unvested performance-based PSUs, which will be recognized over the requisite service period of three years as achievement of the performance objective becomes probable. For the three months ended March 31, 2018, no compensation expense was recognized related to these performance-based PSU awards. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 7. INVESTMENTS Debt Securities and Other Investments At March 31, 2018, we held the following debt securities and other investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Corporate bonds 49,109 43 (333 ) 48,819 Municipal fixed-rate bonds 2,413 — (30 ) 2,383 Asset-backed bonds 13,334 — (44 ) 13,290 Mortgage/Agency-backed bonds 8,906 2 (72 ) 8,836 U.S. government bonds 14,703 10 (204 ) 14,509 Foreign government bonds 1,228 4 (1 ) 1,231 Available-for-sale debt securities held at fair value $ 89,693 $ 59 $ (684 ) $ 89,068 Restricted investment held at cost 26,700 Other investments held at cost 520 Total carrying value of available-for-sale investments $ 116,288 At December 31, 2017, we held the following debt securities and other investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value 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 Available-for-sale debt securities held at fair value $ 62,857 $ 53 $ (417 ) $ 62,493 Restricted investment held at cost 27,800 Other investments held at cost 547 Total carrying value of available-for-sale investments $ 90,840 As of March 31, 2018, our debt securities 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 $ 11,391 $ 490 $ 4,520 $ — $ — $ — One to two years 18,406 737 $ 2,459 — 6,149 — Two to three years 10,639 210 2,669 — 2,491 1,231 Three to five years 8,383 946 1,631 2,046 5,869 — Five to ten years — — — 974 — — More than ten years — — 2,011 5,816 — — Total $ 48,819 $ 2,383 $ 13,290 $ 8,836 $ 14,509 $ 1,231 Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities: Three Months Ended March 31, (In thousands) 2018 2017 Gross realized gains $ — $ — Gross realized losses $ (73 ) $ (15 ) Our investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. At March 31, 2018, we held a $26.7 million restricted certificate of deposit, which is carried at cost. This investment serves as a collateral deposit against the principal amount outstanding under loans made to ADTRAN pursuant to an Alabama State Industrial Development Authority revenue bond (the Bond), which totaled $26.7 million at March 31, 2018 and December 31, 2017. At March 31, 2018 and December 31, 2017, the estimated fair value of the Bond using a level 2 valuation technique was approximately $26.6 million and $26.7 million, respectively, based on a debt security with a comparable interest rate and maturity and a Standard and Poor’s credit rating of AAA. We have the right to set-off the balance of the Bond with the collateral deposit in order to reduce the balance of the indebtedness. The Bond matures on January 1, 2020, and bears interest at the rate of 2% per annum. In conjunction with this program, we are eligible to receive certain economic incentives from the state of Alabama that reduce the amount of payroll withholdings we are required to remit to the state for those employment positions that qualify under this program. We are required to make payments in the amounts necessary to pay the interest on the amounts currently outstanding. It is our intent to make annual principal payments in addition to the interest amounts that are due. Marketable Equity Securities Our marketable equity securities consist of publicly traded stocks or funds measured at fair value. Prior to January 1, 2018, our marketable equity securities were classified as available-for-sale. Realized gains and losses on marketable equity securities were included in net realized investment gain (loss). Unrealized gains and losses were recognized in accumulated other comprehensive income, net of deferred taxes, on the balance sheet. On January 1, 2018, we adopted ASU 2016-01, which requires us to measure all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value, with any changes in fair value recognized in net realized investment gain (loss). Upon adoption, we reclassified $3.2 million of net unrealized gains related to marketable equity securities from accumulated other comprehensive income to opening retained earnings. Realized and unrealized gains and losses for our marketable equity securities for the three months ended March 31, 2018 were as follows: Three Months Ended March 31, (In thousands) 2018 Realized gains (losses) on equity securities sold $ (1 ) Unrealized gains (losses) on equity securities held (23 ) Total gain (loss) recognized, net $ (24 ) As of March 31, 2018 and 2017, gross unrealized losses related to individual investments in a continuous loss position for 12 months or longer were not significant. 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 March 31, 2018 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,770 $ 6,770 $ — $ — Asset-backed securities 1,000 — 1,000 — Cash equivalents 7,770 6,770 1,000 — Available-for-sale debt securities Corporate bonds 48,819 — 48,819 — Municipal fixed-rate bonds 2,383 — 2,383 — Asset-backed bonds 13,290 — 13,290 — Mortgage/Agency-backed bonds 8,836 — 8,836 — U.S. government bonds 14,509 14,509 — — Foreign government bonds 1,231 — 1,231 — Marketable equity securities Marketable equity securities – various industries 36,519 36,519 — — Deferred compensation plan assets 20,067 20,067 — — Available-for-sale securities 145,654 71,095 74,559 — Total $ 153,424 $ 77,865 $ 75,559 $ — Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 5,851 $ 5,851 $ — $ — Commercial Paper 3,999 — 3,999 — Cash equivalents 9,850 5,851 3,999 — 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 — Marketable equity securities Marketable equity securities – various industries 35,662 35,662 — — Deferred compensation plan assets 19,883 19,883 — — Available-for-sale securities 118,038 69,848 48,190 — Total $ 127,888 $ 75,699 $ 52,189 $ — 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. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 8. 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 at which 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 arrangements and are not offset in the Consolidated Balance Sheets. As of March 31, 2018, we had no foreign exchange forward contracts. The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended Income Statement March 31, (In thousands) Location 2018 2017 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ 13 $ (34 ) The change in our derivatives designated as hedging instruments recorded in other comprehensive income (OCI) and reclassified to income, net of tax, during the three months ended March 31, 2018 and 2017 were as follows: Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Three Months Ended Location of Gains Three Months Ended March 31, (Losses) Reclassified March 31, (In thousands) 2018 2017 from AOCI into Income 2018 2017 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ — $ 79 Cost of Sales $ — $ — |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | 9. INVENTORY At March 31, 2018 and December 31, 2017, inventory consisted of the following: March 31, December 31, (In thousands) 2018 2017 Raw materials $ 45,772 $ 44,185 Work in process 2,242 1,939 Finished goods 72,007 76,418 Total $ 120,021 $ 122,542 We establish reserves for estimated excess, obsolete, or unmarketable inventory equal to the difference between the cost of the inventory and the estimated fair value of the inventory based upon assumptions about future demand and market conditions. At March 31, 2018 and December 31, 2017, raw materials reserves totaled $15.2 million and $15.0 million, respectively, and finished goods inventory reserves totaled $8.9 million and $8.3 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. GOODWILL AND INTANGIBLE ASSETS Goodwill, all of which relates to our acquisition of Bluesocket, Inc., was $3.5 million at March 31, 2018 and December 31, 2017, 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 and include intangibles acquired in conjunction with our acquisitions of Bluesocket, Inc. on August 4, 2011, the NSN BBA business on May 4, 2012, CommScope’s active fiber access business on September 13, 2016 and Sumitomo Electric Lightwave Corp.’s North American EPON business and technology license and OEM supply agreement with Sumitomo Electric Industries, Ltd. on March 19, 2018. The following table presents our intangible assets as of March 31, 2018 and December 31, 2017. Fully amortized intangible assets have been removed from prior year balances for comparability. (In thousands) March 31, 2018 December 31, 2017 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 20,998 $ (4,576 ) $ 16,422 $ 7,474 $ (4,283 ) $ 3,191 Licensed technology 5,900 (27 ) 5,873 — — — Developed technology 5,597 (4,827 ) 770 5,524 (4,663 ) 861 Supplier relationship 2,800 (58 ) 2,742 — — — Intellectual property 930 (886 ) 44 930 (852 ) 78 Patent 500 (106 ) 394 500 (89 ) 411 Non-compete 200 (137 ) 63 200 (115 ) 85 Trade names 100 (77 ) 23 100 (65 ) 35 Total $ 37,025 $ (10,694 ) $ 26,331 $ 14,728 $ (10,067 ) $ 4,661 Amortization expense, all of which relates to business acquisitions, was $0.4 million and $1.1 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the estimated future amortization expense of our intangible assets is as follows: (In thousands) Amount Remainder of 2018 $ 2,833 2019 3,559 2020 2,676 2021 2,380 2022 2,366 Thereafter 12,517 Total $ 26,331 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY A summary of the changes in stockholders’ equity for the three months ended March 31, 2018 is as follows: (In thousands) Stockholders’ Equity Balance, December 31, 2017 $ 497,911 Net income (10,814 ) Dividend payments (4,367 ) Dividends accrued for unvested restricted stock units (2 ) Net unrealized gains (losses) on available-for-sale securities (net of tax) (3,412 ) Defined benefit plan adjustments (net of tax) 62 Foreign currency translation adjustment 842 Proceeds from stock option exercises 369 Purchase of treasury stock (10,171 ) Adoption of new accounting standards (see note 1) 3,499 Stock-based compensation expense 1,819 Balance, March 31, 2018 $ 475,736 Stock Repurchase Program Since 1997, our Board of Directors has approved multiple share repurchase programs that have authorized open market repurchase transactions of up to 50.0 million shares of our common stock, which will be implemented through open market or private purchases from time to time as conditions warrant. During the three months ended March 31, 2018, we repurchased 0.6 million shares of our common stock at an average price of $16.18 per share. As of March 31, 2018, we have the authority to purchase an additional 2.9 million shares of our common stock under the current plans approved by the Board of Directors. Stock Option Exercises We issued 24 thousand shares of treasury stock during the three months ended March 31, 2018 to accommodate employee stock option exercises. The stock options had exercise prices ranging from $15.29 to $18.97. We received proceeds totaling $0.4 million from the exercise of these stock options during the three months ended March 31, 2018. Dividend Payments During the three months ended March 31, 2018, we paid cash dividends as follows (in thousands except per share amounts): Record Date Payment Date Per Share Amount Total Dividend Paid January 31, 2018 February 14, 2018 $ 0.09 $ 4,367 Other Comprehensive Income Other comprehensive income consists of unrealized gains (losses) on available-for-sale securities; unrealized gains (losses) on cash flow hedges; reclassification adjustments for amounts included in net income related to impairments of available-for-sale securities, realized gains (losses) on available-for-sale securities, realized gains (losses) on cash flow hedges, and amortization of actuarial gains (losses) related to our defined benefit plan; defined benefit plan adjustments; and foreign currency translation adjustments. The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 2,567 $ (4,286 ) $ (1,576 ) $ (3,295 ) Other comprehensive income (loss) before reclassifications (257 ) — 842 585 Amounts reclassified from accumulated other comprehensive income 65 62 — 127 Amounts reclassified to retained earnings (1) (3,220 ) — — (3,220 ) Net current period other comprehensive income (loss) (3,412 ) 62 842 (2,508 ) Ending balance $ (845 ) $ (4,224 ) $ (734 ) $ (5,803 ) (1) With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings. See note 1 for more information. Three Months Ended March 31, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 404 $ — $ (5,017 ) $ (7,575 ) $ (12,188 ) Other comprehensive income (loss) before reclassifications 1,620 79 — 1,242 2,941 Amounts reclassified from accumulated other comprehensive income (285 ) — 55 — (230 ) Net current period other comprehensive income (loss) 1,335 79 55 1,242 2,711 Ending balance $ 1,739 $ 79 $ (4,962 ) $ (6,333 ) $ (9,477 ) The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2018 and 2017: (In thousands) Three Months Ended March 31, 2018 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 $ (73 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (90 ) (1) Total reclassifications for the period, before tax (163 ) Tax (expense) benefit 36 Total reclassifications for the period, net of tax $ (127 ) (1) Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. (In thousands) Three Months Ended March 31, 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 $ 572 Net realized investment gain Impairment expense (103 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (80 ) (1) Total reclassifications for the period, before tax 389 Tax (expense) benefit (159 ) Total reclassifications for the period, net of tax $ 230 (1) Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended March 31, 2018 and 2017: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (347 ) $ 90 $ (257 ) $ 2,656 $ (1,036 ) $ 1,620 Unrealized gains (losses) on cash flow hedges — — — 79 — 79 Reclassification adjustment for amounts related to available-for-sale investments included in net income 73 (8 ) 65 (469 ) 184 (285 ) Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01 (3,220 ) — (3,220 ) — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 90 (28 ) 62 80 (25 ) 55 Foreign currency translation adjustment 842 — 842 1,242 — 1,242 Total Other Comprehensive Income (Loss) $ (2,562 ) $ 54 $ (2,508 ) $ 3,588 $ (877 ) $ 2,711 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. EARNINGS PER SHARE A summary of the calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, (In thousands, except per share amounts) 2018 2017 Numerator Net income (loss) $ (10,814 ) $ 6,651 Denominator Weighted average number of shares – basic 48,232 48,430 Effect of dilutive securities Stock options 24 416 PSUs, RSUs and restricted stock 36 93 Weighted average number of shares – diluted 48,292 48,939 Net income (loss) per share – basic $ (0.22 ) $ 0.14 Net income (loss) per share – diluted $ (0.22 ) $ 0.14 Anti-dilutive options to purchase common stock outstanding were excluded from the above calculations. Anti-dilutive options totaled 4.8 million and 4.0 million for the three months ended March 31, 2018 and 2017, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 13. SEGMENT INFORMATION We operate in two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes our suite of ProCloud ® We evaluate the performance of our segments based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net realized investment gain/loss, other income/expense and provision for taxes are reported on a company-wide, functional basis only. There are no inter-segment revenues. The following table presents information about the reported sales and gross profit of our reportable segments for the three months ended March 31, 2018 and 2017. We do not produce asset information by reportable segment; therefore, it is not reported. Three Months Ended March 31, 2018 March 31, 2017 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 105,253 $ 36,641 $ 143,597 $ 66,933 Services & Support 15,553 3,092 26,682 6,776 Total $ 120,806 $ 39,733 $ 170,279 $ 73,709 Sales by Category In addition to our reporting segments, we also report revenue for the following three categories – Access & Aggregation, Customer Devices, Traditional & Other Products. The table below presents sales information by category for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (In thousands) 2018 2017 Access & Aggregation $ 81,680 $ 120,143 Customer Devices 30,101 36,268 Traditional & Other Products 9,025 13,868 Total $ 120,806 $ 170,279 |
Liability for Warranty Returns
Liability for Warranty Returns | 3 Months Ended |
Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Liability for Warranty Returns | 14. LIABILITY FOR WARRANTY RETURNS Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time revenue is recognized based on our estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Our products continue to become more complex in both size and functionality as many of our product offerings migrate from line card applications to total systems. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our estimates regarding future warranty obligations may change due to product failure rates, material usage, and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. Alternatively, if we provide for more reserves than we require, we will reverse a portion of such provisions in future periods. The liability for warranty obligations totaled $9.7 million at March 31, 2018 and December 31, 2017. During the three months ended March 31, 2017, we recorded a receivable and a reduction in warranty expense related to a settlement with a third party supplier for a defective component, the impact of which is reflected in the table below. These liabilities are included in accrued expenses in the accompanying Consolidated Balance Sheets. A summary of warranty expense and write-off activity for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, (In thousands) 2018 2017 Balance at beginning of period $ 9,724 $ 8,548 Plus: Amounts charged to cost and expenses 1,822 (741 ) Less: Deductions (1,859 ) 1,181 Balance at end of period $ 9,687 $ 8,988 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, we may be subject to various legal proceedings and claims, including employment disputes, patent claims, disputes over contract agreements and other commercial disputes. In some cases, claimants seek damages or other relief, such as royalty payments related to patents, which, if granted, could require significant expenditures. Although the outcome of any claim or litigation can never be certain, it is our opinion that the outcome of all contingencies of which we are currently aware will not materially affect our business, operations, financial condition or cash flows. We have committed to invest up to an aggregate of $7.9 million in two private equity funds, and we have contributed $8.4 million as of March 31, 2018, of which $7.7 million has been applied to these commitments. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS On April 17, 2018, we announced that our Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to stockholders of record at the close of business on May 2, 2018. The payment date will be May 16, 2018. The quarterly dividend payment will be approximately $4.3 million. In July 2003, our Board of Directors elected to begin declaring quarterly dividends on our common stock considering the tax treatment of dividends and adequate levels of Company liquidity. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of ADTRAN ® In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim statements should be read in conjunction with the financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 23, 2018 with the SEC. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Our more significant estimates include the obsolete and excess inventory reserves, warranty reserves, customer rebates, determination of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred revenues, estimated income tax provision and income tax contingencies, the fair value of stock-based compensation, impairment of goodwill, valuation and estimated lives of intangible assets, estimated pension liability, fair value of investments, and the evaluation of other-than-temporary declines in the value of investments. Actual amounts could differ significantly from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 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 August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities During 2018, we adopted the following accounting standards, which had no material effect on our financial position, results of operations or cash flows: 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 primary areas of impact of these ASUs were network implementation service revenue performance obligations and contract costs. The output method will be used to measure network implementation services progress. The primary impact will be accelerated revenue recognition for certain performance obligations related to service revenue arrangements that were previously deferred until customer acceptance and capitalization and amortization of incremental costs of obtaining a contract as described below. 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 The cumulative effect of the changes made to our Consolidated Balance Sheet on January 1, 2018 for the adoption of ASU 2014-09 and the related ASUs was as follows: (In thousands) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Other receivables $ 26,578 374 $ 26,952 Deferred tax assets, net $ 23,428 (96 ) $ 23,332 Retained earnings $ 922,178 278 $ 922,456 The impact of the adoption of ASU 2014-09 and the related ASUs on our financial statements was as follows: For the three months ended March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Sales Products $ 105,253 105,439 $ (186 ) Services $ 15,553 14,700 $ 853 Cost of Sales Products $ 68,612 68,723 $ (111 ) Services $ 12,461 11,925 $ 536 Loss before benefit for income taxes $ (14,745 ) (14,987 ) $ 242 Benefit for income taxes $ 3,931 3,998 $ (67 ) Net loss $ (10,814 ) (10,989 ) $ 175 As of March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Other receivables $ 35,124 35,060 $ 64 Inventory $ 120,021 119,910 $ 111 Equity Retained earnings $ 909,611 909,436 $ 175 In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities 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 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Changes made to Consolidated Balance Sheet | The cumulative effect of the changes made to our Consolidated Balance Sheet on January 1, 2018 for the adoption of ASU 2014-09 and the related ASUs was as follows: (In thousands) Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at January 1, 2018 Other receivables $ 26,578 374 $ 26,952 Deferred tax assets, net $ 23,428 (96 ) $ 23,332 Retained earnings $ 922,178 278 $ 922,456 |
Summary of Impact of Adoption of ASU 2014-09 and Related ASUs | The impact of the adoption of ASU 2014-09 and the related ASUs on our financial statements was as follows: For the three months ended March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Sales Products $ 105,253 105,439 $ (186 ) Services $ 15,553 14,700 $ 853 Cost of Sales Products $ 68,612 68,723 $ (111 ) Services $ 12,461 11,925 $ 536 Loss before benefit for income taxes $ (14,745 ) (14,987 ) $ 242 Benefit for income taxes $ 3,931 3,998 $ (67 ) Net loss $ (10,814 ) (10,989 ) $ 175 As of March 31, 2018 (In thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Other receivables $ 35,124 35,060 $ 64 Inventory $ 120,021 119,910 $ 111 Equity Retained earnings $ 909,611 909,436 $ 175 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Preliminary Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired | The preliminary allocation of the purchase price to the estimated fair value of the assets acquired at the acquisition date is as follows: (In Thousands) Assets Other receivables $ 104 Inventory 510 Property, plant and equipment 392 Intangible assets 22,100 Total assets acquired 23,106 Liabilities Deferred income taxes (3,978 ) Total liabilities assumed (3,978 ) Total net assets 19,128 Gain on bargain purchase of a business, net of tax (11,322 ) Total purchase price $ 7,806 |
Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income | The actual revenue and net loss included in our Consolidated Statements of Income for the period March 19, 2018 to March 31, 2018 are as follows: March 19 to (In thousands) March 31, 2018 Revenue $ — Net loss $ (77 ) |
Details of the Acquired Intangible Assets | The details of the acquired intangible assets are as follows: In thousands Value Life (years) Customer relationships $ 13,400 12.0 Licensed technology 5,900 9.0 Supplier relationship 2,800 2.0 Total $ 22,100 |
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, 2017. 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, 2017, nor is it indicative of any future results. Aside from revising the 2017 and 2018 net income for the effect of the bargain purchase gain, there were no material, non-recurring adjustments to this unaudited pro forma information. Three Months Ended March 31, (In thousands) 2018 2017 Pro forma revenue $ 122,066 $ 170,692 Pro forma net income $ (22,720 ) $ 17,201 Pro forma earnings per share - basic $ (0.47 ) $ 0.36 Pro forma earnings per share - diluted $ (0.47 ) $ 0.35 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers | The following table provides information about receivables, contract assets, and unearned revenue from contracts with customers: (In thousands) March 31, 2018 December 31, 2017 Accounts receivable $ 80,883 $ 144,150 Contract assets 1,442 — Unearned revenue 13,948 13,070 Non-current unearned revenue 4,154 4,556 |
Disaggregate of Revenue by Major Source | During the three months ended March 31, 2018, we recognized $3.5 million of revenue that was included in unearned revenue at the beginning of the period. The following table disaggregates our revenue by major source: (In thousands) Network Solutions Services & Support Total Access & Aggregation $ 69,385 $ 12,295 $ 81,680 Customer Devices 28,777 1,324 30,101 Traditional & Other Products 7,091 1,934 9,025 Total $ 105,253 $ 15,553 $ 120,806 |
Pension Benefit Plan (Tables)
Pension Benefit Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Summarization of Components of Net Periodic Pension Cost | The following table summarizes the components of net periodic pension cost for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, (In thousands) 2018 2017 Service cost $ 308 $ 297 Interest cost 187 143 Expected return on plan assets (399 ) (299 ) Amortization of actuarial losses 64 73 Net periodic pension cost $ 160 $ 214 The components of net periodic pension cost other than the service cost component are included in the line item “Other income (expense), net” in the Consolidated Statements of Income. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense Related to Stock Options, Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Restricted Stock | The following table summarizes the stock-based compensation expense related to stock options, performance stock units (PSUs), restricted stock units (RSUs) and restricted stock for the three months ended March 31, 2018 and 2017, which was recognized as follows: Three Months Ended March 31, (In thousands) 2018 2017 Stock-based compensation expense included in cost of sales $ 95 $ 91 Selling, general and administrative expense 1,035 1,016 Research and development expense 689 776 Stock-based compensation expense included in operating expenses 1,724 1,792 Total stock-based compensation expense 1,819 1,883 Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock (384 ) (380 ) Total stock-based compensation expense, net of tax $ 1,435 $ 1,503 |
Summary of Stock Options Outstanding | The following table is a summary of our stock options outstanding as of December 31, 2017 and March 31, 2018 and the changes that occurred during the three months ended March 31, 2018: (In thousands, except per share amounts) Number of Stock Options Weighted Avg. Exercise Price Weighted Avg. Remaining Contractual Life In Years Aggregate Intrinsic Value Stock options outstanding, December 31, 2017 5,148 $ 22.65 4.87 $ 6,109 Stock options granted — $ — Stock options exercised (24 ) $ 15.48 Stock options forfeited (27 ) $ 16.59 Stock options expired (58 ) $ 26.87 Stock options outstanding, March 31, 2018 5,039 $ 22.66 4.50 $ 271 Stock options vested and expected to vest, March 31, 2018 5,039 $ 22.66 4.50 $ 271 Stock options exercisable, March 31, 2018 4,286 $ 23.75 4.00 $ 157 |
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, 2017 and the changes that occurred during the three months ended March 31, 2018: (In thousands, except per share amounts) Number of Shares Weighted Avg. Grant Date Fair Value Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2017 1,292 $ 21.33 PSUs, RSUs and restricted stock granted 8 $ 20.71 PSUs, RSUs and restricted stock vested (5 ) $ 20.00 PSUs, RSUs and restricted stock forfeited (62 ) $ 21.50 Unvested PSUs, RSUs and restricted stock outstanding, March 31, 2018 1,233 $ 21.31 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Debt Securities and Other Investments, Recorded at Either Fair Value or Cost | Debt Securities and Other Investments At March 31, 2018, we held the following debt securities and other investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value Corporate bonds 49,109 43 (333 ) 48,819 Municipal fixed-rate bonds 2,413 — (30 ) 2,383 Asset-backed bonds 13,334 — (44 ) 13,290 Mortgage/Agency-backed bonds 8,906 2 (72 ) 8,836 U.S. government bonds 14,703 10 (204 ) 14,509 Foreign government bonds 1,228 4 (1 ) 1,231 Available-for-sale debt securities held at fair value $ 89,693 $ 59 $ (684 ) $ 89,068 Restricted investment held at cost 26,700 Other investments held at cost 520 Total carrying value of available-for-sale investments $ 116,288 At December 31, 2017, we held the following debt securities and other investments, recorded at either fair value or cost: Amortized Gross Unrealized Carrying (In thousands) Cost Gains Losses Value 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 Available-for-sale debt securities held at fair value $ 62,857 $ 53 $ (417 ) $ 62,493 Restricted investment held at cost 27,800 Other investments held at cost 547 Total carrying value of available-for-sale investments $ 90,840 |
Contractual Maturities of Debt Securities | As of March 31, 2018, our debt securities 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 $ 11,391 $ 490 $ 4,520 $ — $ — $ — One to two years 18,406 737 $ 2,459 — 6,149 — Two to three years 10,639 210 2,669 — 2,491 1,231 Three to five years 8,383 946 1,631 2,046 5,869 — Five to ten years — — — 974 — — More than ten years — — 2,011 5,816 — — Total $ 48,819 $ 2,383 $ 13,290 $ 8,836 $ 14,509 $ 1,231 |
Gross Realized Gains and Losses on Sale of Debt Securities | The following table presents gross realized gains and losses related to our debt securities: Three Months Ended March 31, (In thousands) 2018 2017 Gross realized gains $ — $ — Gross realized losses $ (73 ) $ (15 ) |
Realized and Unrealized Gains and Losses for Marketable Equity Securities | Realized and unrealized gains and losses for our marketable equity securities for the three months ended March 31, 2018 were as follows: Three Months Ended March 31, (In thousands) 2018 Realized gains (losses) on equity securities sold $ (1 ) Unrealized gains (losses) on equity securities held (23 ) Total gain (loss) recognized, net $ (24 ) |
Fair Value Measurements of Cash Equivalents 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 include information supplied by investees. Fair Value Measurements at March 31, 2018 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 6,770 $ 6,770 $ — $ — Asset-backed securities 1,000 — 1,000 — Cash equivalents 7,770 6,770 1,000 — Available-for-sale debt securities Corporate bonds 48,819 — 48,819 — Municipal fixed-rate bonds 2,383 — 2,383 — Asset-backed bonds 13,290 — 13,290 — Mortgage/Agency-backed bonds 8,836 — 8,836 — U.S. government bonds 14,509 14,509 — — Foreign government bonds 1,231 — 1,231 — Marketable equity securities Marketable equity securities – various industries 36,519 36,519 — — Deferred compensation plan assets 20,067 20,067 — — Available-for-sale securities 145,654 71,095 74,559 — Total $ 153,424 $ 77,865 $ 75,559 $ — Fair Value Measurements at December 31, 2017 Using (In thousands) Fair Value Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 5,851 $ 5,851 $ — $ — Commercial Paper 3,999 — 3,999 — Cash equivalents 9,850 5,851 3,999 — 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 — Marketable equity securities Marketable equity securities – various industries 35,662 35,662 — — Deferred compensation plan assets 19,883 19,883 — — Available-for-sale securities 118,038 69,848 48,190 — Total $ 127,888 $ 75,699 $ 52,189 $ — |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income | The change in the fair values of our derivative instruments recorded in the Consolidated Statements of Income during the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended Income Statement March 31, (In thousands) Location 2018 2017 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Other income (expense) $ 13 $ (34 ) |
Schedule of Change in Derivatives Designated Hedging Instruments Recorded in Other Comprehensive Income (OCI) and Reclassified to Income, Net of Tax | The change in our derivatives designated as hedging instruments recorded in other comprehensive income (OCI) and reclassified to income, net of tax, during the three months ended March 31, 2018 and 2017 were as follows: Amount of Gains (Losses) Recognized in Amount of Gains (Losses) Reclassified OCI on Derivatives from AOCI into Income Three Months Ended Location of Gains Three Months Ended March 31, (Losses) Reclassified March 31, (In thousands) 2018 2017 from AOCI into Income 2018 2017 Derivatives Designated as Hedging Instruments: Foreign exchange contracts $ — $ 79 Cost of Sales $ — $ — |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | At March 31, 2018 and December 31, 2017, inventory consisted of the following: March 31, December 31, (In thousands) 2018 2017 Raw materials $ 45,772 $ 44,185 Work in process 2,242 1,939 Finished goods 72,007 76,418 Total $ 120,021 $ 122,542 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents our intangible assets as of March 31, 2018 and December 31, 2017. Fully amortized intangible assets have been removed from prior year balances for comparability. (In thousands) March 31, 2018 December 31, 2017 Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value Customer relationships $ 20,998 $ (4,576 ) $ 16,422 $ 7,474 $ (4,283 ) $ 3,191 Licensed technology 5,900 (27 ) 5,873 — — — Developed technology 5,597 (4,827 ) 770 5,524 (4,663 ) 861 Supplier relationship 2,800 (58 ) 2,742 — — — Intellectual property 930 (886 ) 44 930 (852 ) 78 Patent 500 (106 ) 394 500 (89 ) 411 Non-compete 200 (137 ) 63 200 (115 ) 85 Trade names 100 (77 ) 23 100 (65 ) 35 Total $ 37,025 $ (10,694 ) $ 26,331 $ 14,728 $ (10,067 ) $ 4,661 |
Estimated Future Amortization Expense Related to Intangible Assets | As of March 31, 2018, the estimated future amortization expense of our intangible assets is as follows: (In thousands) Amount Remainder of 2018 $ 2,833 2019 3,559 2020 2,676 2021 2,380 2022 2,366 Thereafter 12,517 Total $ 26,331 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Changes in Stockholders' Equity | A summary of the changes in stockholders’ equity for the three months ended March 31, 2018 is as follows: (In thousands) Stockholders’ Equity Balance, December 31, 2017 $ 497,911 Net income (10,814 ) Dividend payments (4,367 ) Dividends accrued for unvested restricted stock units (2 ) Net unrealized gains (losses) on available-for-sale securities (net of tax) (3,412 ) Defined benefit plan adjustments (net of tax) 62 Foreign currency translation adjustment 842 Proceeds from stock option exercises 369 Purchase of treasury stock (10,171 ) Adoption of new accounting standards (see note 1) 3,499 Stock-based compensation expense 1,819 Balance, March 31, 2018 $ 475,736 |
Cash Dividends | During the three months ended March 31, 2018, we paid cash dividends as follows (in thousands except per share amounts): Record Date Payment Date Per Share Amount Total Dividend Paid January 31, 2018 February 14, 2018 $ 0.09 $ 4,367 |
Changes in Accumulated Other Comprehensive Income, Net of Tax by Component | The following tables present the changes in accumulated other comprehensive income, net of tax, by component for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 2,567 $ (4,286 ) $ (1,576 ) $ (3,295 ) Other comprehensive income (loss) before reclassifications (257 ) — 842 585 Amounts reclassified from accumulated other comprehensive income 65 62 — 127 Amounts reclassified to retained earnings (1) (3,220 ) — — (3,220 ) Net current period other comprehensive income (loss) (3,412 ) 62 842 (2,508 ) Ending balance $ (845 ) $ (4,224 ) $ (734 ) $ (5,803 ) (1) With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings. See note 1 for more information. Three Months Ended March 31, 2017 (In thousands) Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Plan Adjustments Foreign Currency Adjustments Total Beginning balance $ 404 $ — $ (5,017 ) $ (7,575 ) $ (12,188 ) Other comprehensive income (loss) before reclassifications 1,620 79 — 1,242 2,941 Amounts reclassified from accumulated other comprehensive income (285 ) — 55 — (230 ) Net current period other comprehensive income (loss) 1,335 79 55 1,242 2,711 Ending balance $ 1,739 $ 79 $ (4,962 ) $ (6,333 ) $ (9,477 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following tables present the details of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2018 and 2017: (In thousands) Three Months Ended March 31, 2018 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 $ (73 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (90 ) (1) Total reclassifications for the period, before tax (163 ) Tax (expense) benefit 36 Total reclassifications for the period, net of tax $ (127 ) (1) Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. (In thousands) Three Months Ended March 31, 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 $ 572 Net realized investment gain Impairment expense (103 ) Net realized investment gain Defined benefit plan adjustments – actuarial losses (80 ) (1) Total reclassifications for the period, before tax 389 Tax (expense) benefit (159 ) Total reclassifications for the period, net of tax $ 230 (1) Included in the computation of net periodic pension cost. See Note 5 of Notes to Consolidated Financial Statements. |
Other Comprehensive Income | The following table presents the tax effects related to the change in each component of other comprehensive income for the three months ended March 31, 2018 and 2017: Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $ (347 ) $ 90 $ (257 ) $ 2,656 $ (1,036 ) $ 1,620 Unrealized gains (losses) on cash flow hedges — — — 79 — 79 Reclassification adjustment for amounts related to available-for-sale investments included in net income 73 (8 ) 65 (469 ) 184 (285 ) Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01 (3,220 ) — (3,220 ) — — — Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income 90 (28 ) 62 80 (25 ) 55 Foreign currency translation adjustment 842 — 842 1,242 — 1,242 Total Other Comprehensive Income (Loss) $ (2,562 ) $ 54 $ (2,508 ) $ 3,588 $ (877 ) $ 2,711 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Earnings Per Share | A summary of the calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, (In thousands, except per share amounts) 2018 2017 Numerator Net income (loss) $ (10,814 ) $ 6,651 Denominator Weighted average number of shares – basic 48,232 48,430 Effect of dilutive securities Stock options 24 416 PSUs, RSUs and restricted stock 36 93 Weighted average number of shares – diluted 48,292 48,939 Net income (loss) per share – basic $ (0.22 ) $ 0.14 Net income (loss) per share – diluted $ (0.22 ) $ 0.14 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Sales and Gross Profit of Reportable Segments | The following table presents information about the reported sales and gross profit of our reportable segments for the three months ended March 31, 2018 and 2017. We do not produce asset information by reportable segment; therefore, it is not reported. Three Months Ended March 31, 2018 March 31, 2017 (In thousands) Sales Gross Profit Sales Gross Profit Network Solutions $ 105,253 $ 36,641 $ 143,597 $ 66,933 Services & Support 15,553 3,092 26,682 6,776 Total $ 120,806 $ 39,733 $ 170,279 $ 73,709 |
Sales Information by Category | The table below presents sales information by category for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (In thousands) 2018 2017 Access & Aggregation $ 81,680 $ 120,143 Customer Devices 30,101 36,268 Traditional & Other Products 9,025 13,868 Total $ 120,806 $ 170,279 |
Liability for Warranty Returns
Liability for Warranty Returns (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Expense and Write-Off Activity | A summary of warranty expense and write-off activity for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, (In thousands) 2018 2017 Balance at beginning of period $ 9,724 $ 8,548 Plus: Amounts charged to cost and expenses 1,822 (741 ) Less: Deductions (1,859 ) 1,181 Balance at end of period $ 9,687 $ 8,988 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Changes made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Other receivables | $ 35,124 | $ 26,578 | |
Deferred tax assets, net | 21,427 | 23,428 | |
Retained earnings | 909,611 | $ 922,178 | |
ASU 2014-09 [member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Other receivables | $ 26,952 | ||
Deferred tax assets, net | 23,332 | ||
Retained earnings | 922,456 | ||
ASU 2014-09 [member] | Adjustments Due to ASU 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Other receivables | 64 | 374 | |
Deferred tax assets, net | (96) | ||
Retained earnings | $ 175 | $ 278 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Summary of Impact of Adoption of ASU 2014-09 and Related ASUs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Sales | ||||
Products | $ 105,253 | $ 143,597 | ||
Services | 15,553 | 26,682 | ||
Cost of Sales | ||||
Products | 68,612 | 76,664 | ||
Services | 12,461 | 19,906 | ||
Loss before benefit for income taxes | (14,745) | 8,345 | ||
(Provision) benefit for income taxes | 3,931 | (1,694) | ||
Net Income (Loss) | (10,814) | $ 6,651 | ||
ASSETS | ||||
Other receivables | 35,124 | $ 26,578 | ||
Inventory | 120,021 | 122,542 | ||
Equity | ||||
Retained earnings | 909,611 | $ 922,178 | ||
ASU 2014-09 [member] | ||||
ASSETS | ||||
Other receivables | $ 26,952 | |||
Equity | ||||
Retained earnings | 922,456 | |||
ASU 2014-09 [member] | Balances Without Adoption of ASC 606 [Member] | ||||
Sales | ||||
Products | 105,439 | |||
Services | 14,700 | |||
Cost of Sales | ||||
Products | 68,723 | |||
Services | 11,925 | |||
Loss before benefit for income taxes | (14,987) | |||
(Provision) benefit for income taxes | 3,998 | |||
Net Income (Loss) | (10,989) | |||
ASSETS | ||||
Other receivables | 35,060 | |||
Inventory | 119,910 | |||
Equity | ||||
Retained earnings | 909,436 | |||
ASU 2014-09 [member] | Effect of Change Higher/(Lower) [Member] | ||||
Sales | ||||
Products | (186) | |||
Services | 853 | |||
Cost of Sales | ||||
Products | (111) | |||
Services | 536 | |||
Loss before benefit for income taxes | 242 | |||
(Provision) benefit for income taxes | (67) | |||
Net Income (Loss) | 175 | |||
ASSETS | ||||
Other receivables | 64 | 374 | ||
Inventory | 111 | |||
Equity | ||||
Retained earnings | $ 175 | $ 278 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Jan. 01, 2018 | |
ASU 2016-01 [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Reclassification of net unrealized gains from accumulated other comprehensive income to opening retained earnings | $ 3.2 | |
ASU 2017-07 [Member] | ||
Summary Of Significant Accounting Policy [Line Items] | ||
Reclassified from cost of sales, selling, general and administrative expenses, and research and development expense to other income (expense), net | $ 0.1 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 19, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||
Bargain purchase gain net of income taxes | $ 11,322 | |
Sumitomo Electric Lightwave Corp.'s North American EPON Business [Member] | ||
Business Acquisition [Line Items] | ||
Date of acquisition | Mar. 19, 2018 | |
Business acquisition, description | On March 19, 2018, we acquired Sumitomo Electric Lightwave Corp.’s (SEL) North American EPON business and entered into a technology license and OEM supply agreement with Sumitomo Electric Industries, Ltd. (SEI). This acquisition establishes ADTRAN as the North American market leader for EPON solutions for the cable MSO industry and will accelerate the MSO market’s adoption of our open, programmable and scalable architectures. | |
Bargain purchase gain net of income taxes | $ 11,322 | $ 11,300 |
Acquisition and integration related expenses and amortization of acquired intangibles | $ 200 |
Business Combinations - Prelimi
Business Combinations - Preliminary Allocation of the Purchase Price to the Estimated Fair Value of the Assets Acquired (Detail) - USD ($) $ in Thousands | Mar. 19, 2018 | Mar. 31, 2018 |
Liabilities | ||
Gain on bargain purchase of a business, net of tax | $ (11,322) | |
Total purchase price | 7,806 | |
Sumitomo Electric Lightwave Corp.'s North American EPON Business [Member] | ||
Assets | ||
Other receivables | $ 104 | |
Inventory | 510 | |
Property, plant and equipment | 392 | |
Intangible assets | 22,100 | |
Total assets acquired | 23,106 | |
Liabilities | ||
Deferred income taxes | (3,978) | |
Total liabilities assumed | (3,978) | |
Total net assets | 19,128 | |
Gain on bargain purchase of a business, net of tax | (11,322) | $ (11,300) |
Total purchase price | $ 7,806 |
Business Combinations - Summary
Business Combinations - Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Sumitomo Electric Lightwave Corp.'s North American EPON Business [Member] | |
Business Acquisition [Line Items] | |
Net loss | $ (77) |
Business Combinations - Details
Business Combinations - Details of the Acquired Intangible Assets (Detail) - Sumitomo Electric Lightwave Corp.'s North American EPON Business [Member] $ in Thousands | Mar. 19, 2018USD ($) |
Business Acquisition [Line Items] | |
Total, Value | $ 22,100 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 13,400 |
Life (years) | 12 years |
Licensed Technology [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 5,900 |
Life (years) | 9 years |
Supplier Relationship [Member] | |
Business Acquisition [Line Items] | |
Total, Value | $ 2,800 |
Life (years) | 2 years |
Business Combinations - Summa44
Business Combinations - Summary of Unaudited Supplemental Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Combinations [Abstract] | ||
Pro forma revenue | $ 122,066 | $ 170,692 |
Pro forma net income | $ (22,720) | $ 17,201 |
Pro forma earnings per share - basic | $ (0.47) | $ 0.36 |
Pro forma earnings per share - diluted | $ (0.47) | $ 0.35 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue [Line Items] | |
Period of assurance-based warranty for product defects | 90 days to five years |
Remaining performance obligations | $ 0 |
Revenue recognized that was included in unearned revenue | $ 3,500,000 |
Minimum [Member] | |
Revenue [Line Items] | |
Lessor sales type lease arrangement terms for network equipments | 18 months |
Maintenance service periods | 1 month |
Maximum [Member] | |
Revenue [Line Items] | |
Lessor sales type lease arrangement terms for network equipments | 5 years |
Maintenance service periods | 5 years |
Revenue - Information about Rec
Revenue - Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue From Contract With Customer [Abstract] | ||
Accounts receivable | $ 80,883 | $ 144,150 |
Contract assets | 1,442 | |
Unearned revenue | 13,948 | 13,070 |
Non-current unearned revenue | $ 4,154 | $ 4,556 |
Revenue - Disaggregate of Reven
Revenue - Disaggregate of Revenue by Major Source (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Revenue | $ 120,806 |
Access & Aggregation [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 81,680 |
Customer Devices [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 30,101 |
Traditional & Other Products [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 9,025 |
Network Solutions [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 105,253 |
Network Solutions [Member] | Access & Aggregation [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 69,385 |
Network Solutions [Member] | Customer Devices [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 28,777 |
Network Solutions [Member] | Traditional & Other Products [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 7,091 |
Services & Support [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 15,553 |
Services & Support [Member] | Access & Aggregation [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 12,295 |
Services & Support [Member] | Customer Devices [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | 1,324 |
Services & Support [Member] | Traditional & Other Products [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue | $ 1,934 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 15.10% | 20.30% |
Pension Benefit Plan - Summariz
Pension Benefit Plan - Summarization of Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service cost | $ 308 | $ 297 |
Interest cost | 187 | 143 |
Expected return on plan assets | (399) | (299) |
Amortization of actuarial losses | 64 | 73 |
Net periodic pension cost | $ 160 | $ 214 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Restricted Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,819 | $ 1,883 |
Tax benefit for expense associated with non-qualified options, PSUs, RSUs and restricted stock | (384) | (380) |
Total stock-based compensation expense, net of tax | 1,435 | 1,503 |
Stock-based Compensation Expense Included in Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 95 | 91 |
Selling, General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,035 | 1,016 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 689 | 776 |
Stock-based Compensation Expense Included in Operating Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,724 | $ 1,792 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Stock Options, Stock options outstanding, Beginning Balance | 5,148,000 | ||
Number of Stock Options, Stock options granted | 0 | 0 | |
Number of Stock Options, Stock options exercised | (24,000) | ||
Number of Stock Options, Stock options forfeited | (27,000) | ||
Number of Stock Options, Stock options expired | (58,000) | ||
Number of Stock Options, Stock options outstanding, Ending Balance | 5,039,000 | 5,148,000 | |
Number of Stock Options, Stock options vested and expected to vest | 5,039,000 | ||
Number of Stock Options, Stock options exercisable | 4,286,000 | ||
Weighted Avg. Exercise Price, Stock options outstanding, Beginning Balance | $ 22.65 | ||
Weighted Avg. Exercise Price, Stock options exercised | 15.48 | ||
Weighted Avg. Exercise Price, Stock options forfeited | 16.59 | ||
Weighted Avg. Exercise Price, Stock options expired | 26.87 | ||
Weighted Avg. Exercise Price, Stock options outstanding, Ending Balance | 22.66 | $ 22.65 | |
Weighted Avg. Exercise Price, Stock options vested and expected to vest | 22.66 | ||
Weighted Avg. Exercise Price, Stock options exercisable | $ 23.75 | ||
Weighted Avg. Remaining Contractual Life In Years, Stock options outstanding | 4 years 6 months | 4 years 10 months 13 days | |
Weighted Avg. Remaining Contractual Life In Years, Stock options vested and expected to vest | 4 years 6 months | ||
Weighted Avg. Remaining Contractual Life In Years, Stock options exercisable | 4 years | ||
Aggregate Intrinsic Value, Stock options outstanding | $ 271 | $ 6,109 | |
Aggregate Intrinsic Value, Stock options vested and expected to vest | 271 | ||
Aggregate Intrinsic Value, Stock options exercisable | $ 157 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax intrinsic value of options exercised | $ 33 | |
Number of Stock options, granted | 0 | 0 |
Unvested Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to stock options | $ 2,500 | |
Recognition period of unvested compensation expense | 1 year 3 months 18 days |
Stock-Based Compensation - Su53
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares | 1,292 |
Number of Shares, PSUs, RSUs and restricted stock granted | shares | 8 |
Number of Shares, PSUs, RSUs and restricted stock vested | shares | (5) |
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares | (62) |
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares | 1,233 |
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares | $ 21.33 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares | 20.71 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares | 20 |
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares | 21.50 |
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares | $ 21.31 |
Stock-Based Compensation (PSUs,
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSU shares grant approved by board of directors | 8 | |
Stock-based compensation expense | $ 1,819,000 | $ 1,883,000 |
Performance Stock Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSU shares grant approved by board of directors | 500 | |
Market-Based PSUs, RSUs and Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to other than options | $ 12,900,000 | |
Recognition period of unvested compensation expense | 2 years 10 months 24 days | |
Performance-Based PSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to other than options | $ 10,700,000 | |
Recognition period of unvested compensation expense | 3 years | |
Performance-Based PSU Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0 |
Investments - Debt Securities a
Investments - Debt Securities and Other Investments, Recorded at Either Fair Value or Cost (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 89,693 | $ 62,857 |
Gross Unrealized Gains | 59 | 53 |
Gross Unrealized Losses | (684) | (417) |
Available-for-sale debt securities, Carrying Value | 89,068 | 62,493 |
Restricted investment held at cost | 26,700 | 27,800 |
Other investments held at cost | 520 | 547 |
Total carrying value of available-for-sale investments | 116,288 | 90,840 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 49,109 | 32,654 |
Gross Unrealized Gains | 43 | 44 |
Gross Unrealized Losses | (333) | (155) |
Available-for-sale debt securities, Carrying Value | 48,819 | 32,543 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,413 | 2,902 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (30) | (22) |
Available-for-sale debt securities, Carrying Value | 2,383 | 2,882 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,334 | 6,545 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (44) | (20) |
Available-for-sale debt securities, Carrying Value | 13,290 | 6,526 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,906 | 5,554 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | (72) | (46) |
Available-for-sale debt securities, Carrying Value | 8,836 | 5,509 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 14,703 | 14,477 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (204) | (174) |
Available-for-sale debt securities, Carrying Value | 14,509 | 14,303 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,228 | 725 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | (1) | |
Available-for-sale debt securities, Carrying Value | $ 1,231 | $ 730 |
Investments - Contractual Matur
Investments - Contractual Maturities of Debt Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Fair Value/Carrying Value | $ 89,068 | $ 62,493 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 11,391 | |
One to two years | 18,406 | |
Two to three years | 10,639 | |
Three to five years | 8,383 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 48,819 | 32,543 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 490 | |
One to two years | 737 | |
Two to three years | 210 | |
Three to five years | 946 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 2,383 | 2,882 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than one year | 4,520 | |
One to two years | 2,459 | |
Two to three years | 2,669 | |
Three to five years | 1,631 | |
More than ten years | 2,011 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 13,290 | 6,526 |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Three to five years | 2,046 | |
Five to ten years | 974 | |
More than ten years | 5,816 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 8,836 | 5,509 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One to two years | 6,149 | |
Two to three years | 2,491 | |
Three to five years | 5,869 | |
Available-for-sale debt securities, Fair Value/Carrying Value | 14,509 | 14,303 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Two to three years | 1,231 | |
Available-for-sale debt securities, Fair Value/Carrying Value | $ 1,231 | $ 730 |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized losses | $ (73) | $ (15) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Restricted certificate of deposit held | $ 26,700 | $ 27,800 | |
ASU 2016-01 [Member] | |||
Schedule of Investments [Line Items] | |||
Reclassification of net unrealized gains of marketable equity securities from AOCI to retained earnings | $ 3,200 | ||
Alabama State Industrial Development Authority [Member] | |||
Schedule of Investments [Line Items] | |||
Maturity date of bond | Jan. 1, 2020 | ||
Percentage of interest on bond | 2.00% | ||
Alabama State Industrial Development Authority [Member] | Taxable Revenue Bond [Member] | |||
Schedule of Investments [Line Items] | |||
Collateral deposit against outstanding principal amount | $ 26,700 | 26,700 | |
Alabama State Industrial Development Authority [Member] | Taxable Revenue Bond [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Schedule of Investments [Line Items] | |||
Estimated fair value of bond | $ 26,600 | $ 26,700 | |
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member] | |||
Schedule of Investments [Line Items] | |||
Investment concentration risk percentage | 5.00% |
Investments - Realized and Unre
Investments - Realized and Unrealized Gains and Losses for Marketable Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Net realized investment gain | $ (97) | $ 470 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Net realized investment gain | (1) | |
Unrealized gains (losses) on equity securities held | (23) | |
Total gain (loss) recognized, net | $ (24) |
Investments - Fair Value Measur
Investments - Fair Value Measurements of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 89,068 | $ 62,493 |
Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 7,770 | 9,850 |
Available-for-sale securities | 145,654 | 118,038 |
Total | 153,424 | 127,888 |
Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,770 | 5,851 |
Available-for-sale securities | 71,095 | 69,848 |
Total | 77,865 | 75,699 |
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 1,000 | 3,999 |
Available-for-sale securities | 74,559 | 48,190 |
Total | 75,559 | 52,189 |
Money Market Funds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,770 | 5,851 |
Money Market Funds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 6,770 | 5,851 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 48,819 | 32,543 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 48,819 | 32,543 |
Corporate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 48,819 | 32,543 |
Asset-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 13,290 | 6,526 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 1,000 | |
Available-for-sale securities | 13,290 | 6,526 |
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 1,000 | |
Available-for-sale securities | 13,290 | 6,526 |
Municipal Fixed-Rate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,383 | 2,882 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,383 | 2,882 |
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 2,383 | 2,882 |
Commercial Paper [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,999 | |
Commercial Paper [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash equivalents | 3,999 | |
Mortgage/Agency-Backed Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 8,836 | 5,509 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 8,836 | 5,509 |
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 8,836 | 5,509 |
U.S. Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,509 | 14,303 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,509 | 14,303 |
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 14,509 | 14,303 |
Foreign Government Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 1,231 | 730 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 1,231 | 730 |
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 1,231 | 730 |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 36,519 | 35,662 |
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 36,519 | 35,662 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | 20,067 | 19,883 |
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 20,067 | $ 19,883 |
Derivative Instruments and He61
Derivative Instruments and Hedging Activities - Additional Information (Detail) | Mar. 31, 2018USD ($) |
Foreign Exchange Forward Contracts [Member] | |
Derivative [Line Items] | |
Derivative instruments, amount | $ 0 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Schedule of Change in Fair Values of Derivative Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member] | ||
Derivatives Not Designated as Hedging Instruments: | ||
Derivative instrument, gain or loss | $ 13 | $ (34) |
Derivative Instruments and He63
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 | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Foreign Exchange Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Amount of Gains (Losses) Recognized in OCI on Derivatives | $ 79 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45,772 | $ 44,185 |
Work in process | 2,242 | 1,939 |
Finished goods | 72,007 | 76,418 |
Total | $ 120,021 | $ 122,542 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Raw Materials [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 15.2 | $ 15 |
Finished Goods [Member] | ||
Inventory [Line Items] | ||
Inventory valuation reserves | $ 8.9 | $ 8.3 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill, relates to acquisition | $ 3,500,000 | $ 3,500,000 | |
Impairment losses | 0 | ||
Amortization expense | 400,000 | $ 1,100,000 | |
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 Asset67
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Gross Value | $ 37,025 | $ 14,728 |
Accumulated Amortization | (10,694) | (10,067) |
Net Value | 26,331 | 4,661 |
Customer Relationships [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 20,998 | 7,474 |
Accumulated Amortization | (4,576) | (4,283) |
Net Value | 16,422 | 3,191 |
Licensed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 5,900 | |
Accumulated Amortization | (27) | |
Net Value | 5,873 | |
Developed Technology [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 5,597 | 5,524 |
Accumulated Amortization | (4,827) | (4,663) |
Net Value | 770 | 861 |
Intellectual Property [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 930 | 930 |
Accumulated Amortization | (886) | (852) |
Net Value | 44 | 78 |
Supplier Relationship [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 2,800 | |
Accumulated Amortization | (58) | |
Net Value | 2,742 | |
Trade Names [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 100 | 100 |
Accumulated Amortization | (77) | (65) |
Net Value | 23 | 35 |
Patent [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 500 | 500 |
Accumulated Amortization | (106) | (89) |
Net Value | 394 | 411 |
Non-compete [Member] | ||
Goodwill [Line Items] | ||
Gross Value | 200 | 200 |
Accumulated Amortization | (137) | (115) |
Net Value | $ 63 | $ 85 |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 2,833 | |
2,019 | 3,559 | |
2,020 | 2,676 | |
2,021 | 2,380 | |
2,022 | 2,366 | |
Thereafter | 12,517 | |
Net Value | $ 26,331 | $ 4,661 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Beginning Balance | $ 497,911 | |
Net income | (10,814) | $ 6,651 |
Dividend payments | (4,367) | |
Dividends accrued for unvested restricted stock units | (2) | |
Net unrealized gains (losses) on available-for-sale securities | (3,412) | 1,335 |
Defined benefit plan adjustments (net of tax) | 62 | 55 |
Foreign currency translation adjustment | 842 | 1,242 |
Proceeds from stock option exercises | 369 | $ 1,377 |
Purchase of treasury stock | (10,171) | |
Adoption of new accounting standards (see note 1) | 3,499 | |
Stock-based compensation expense | 1,819 | |
Ending Balance | $ 475,736 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Maximum shares authorized for repurchase, prior and new announcements and total after new announcement | 50,000,000 | |
Stock repurchased, shares | 600,000 | |
Shares repurchased, average price per share | $ 16.18 | |
Additional shares authorized for purchase | 2,900,000 | |
Number of Options, exercised | 24,000 | |
Exercise price of stock options, lower range limit | $ 15.29 | |
Exercise price of stock options, upper range limit | $ 18.97 | |
Proceeds from stock option exercises | $ 369 | $ 1,377 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Dividends Payable [Line Items] | ||
Per Share Amount | $ 0.09 | $ 0.09 |
Total Dividend Paid | $ 4,367 | $ 4,369 |
Cash Dividends Paid in February [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Jan. 31, 2018 | |
Payment Date | Feb. 14, 2018 | |
Per Share Amount | $ 0.09 | |
Total Dividend Paid | $ 4,367 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income, Net of Tax by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 497,911 | |
Other comprehensive income (loss) before reclassifications | 585 | $ 2,941 |
Amounts reclassified from accumulated other comprehensive income | 127 | (230) |
Amounts reclassified to retained earnings | (3,220) | |
Other Comprehensive Income (Loss), net of tax | (2,508) | 2,711 |
Ending Balance | 475,736 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 2,567 | 404 |
Other comprehensive income (loss) before reclassifications | (257) | 1,620 |
Amounts reclassified from accumulated other comprehensive income | 65 | (285) |
Amounts reclassified to retained earnings | (3,220) | |
Other Comprehensive Income (Loss), net of tax | (3,412) | 1,335 |
Ending Balance | (845) | 1,739 |
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications | 79 | |
Other Comprehensive Income (Loss), net of tax | 79 | |
Ending Balance | 79 | |
Defined Benefit Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (4,286) | (5,017) |
Amounts reclassified from accumulated other comprehensive income | 62 | 55 |
Other Comprehensive Income (Loss), net of tax | 62 | 55 |
Ending Balance | (4,224) | (4,962) |
Foreign Currency Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,576) | (7,575) |
Other comprehensive income (loss) before reclassifications | 842 | 1,242 |
Other Comprehensive Income (Loss), net of tax | 842 | 1,242 |
Ending Balance | (734) | (6,333) |
Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3,295) | (12,188) |
Ending Balance | $ (5,803) | $ (9,477) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Income (loss) before provision for income taxes | $ (14,745) | $ 8,345 |
Tax (expense) benefit | 3,931 | (1,694) |
Total reclassifications for the period, net of tax | (10,814) | 6,651 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit plan adjustments – actuarial losses | (90) | (80) |
Income (loss) before provision for income taxes | (163) | 389 |
Tax (expense) benefit | 36 | (159) |
Total reclassifications for the period, net of tax | (127) | 230 |
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 | $ (73) | 572 |
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 | $ (103) |
Stockholders' Equity - Tax Effe
Stockholders' Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Unrealized gains (losses) on available-for-sale securities, Before-Tax Amount | $ (347) | $ 2,656 |
Unrealized gains (losses) on available-for-sale securities, Tax (Expense) Benefit | 90 | (1,036) |
Unrealized gains (losses) on available-for-sale securities, Net-of-Tax Amount | (257) | 1,620 |
Unrealized gains (losses) on cash flow hedges, Before-Tax Amount | 79 | |
Unrealized gains (losses) on cash flow hedges, Net-of-Tax Amount | 79 | |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Before-Tax Amount | 73 | (469) |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Tax (Expense) Benefit | (8) | 184 |
Reclassification adjustment for amounts related to available-for-sale investments included in net income, Net-of-Tax Amount | 65 | (285) |
Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01, Before-Tax Amount | (3,220) | |
Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01, Net-of-Tax Amount | (3,220) | |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Before-Tax Amount | 90 | 80 |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Tax (Expense) Benefit | (28) | (25) |
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income, Net-of-Tax Amount | 62 | 55 |
Foreign currency translation adjustment, Before-Tax Amount | 842 | 1,242 |
Foreign currency translation adjustment, Net-of-Tax Amount | 842 | 1,242 |
Total Other Comprehensive Income (Loss), Before-Tax Amount | (2,562) | 3,588 |
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit | 54 | (877) |
Other Comprehensive Income (Loss), net of tax | $ (2,508) | $ 2,711 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator | ||
Net Income (Loss) | $ (10,814) | $ 6,651 |
Denominator | ||
Weighted average number of shares – basic | 48,232 | 48,430 |
Effect of dilutive securities | ||
Stock options | 24 | 416 |
PSUs, RSUs and restricted stock | 36 | 93 |
Weighted average number of shares – diluted | 48,292 | 48,939 |
Net income (loss) per share – basic | $ (0.22) | $ 0.14 |
Net income (loss) per share – diluted | $ (0.22) | $ 0.14 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options, Total | 4.8 | 4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018SegmentCategory | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 2 |
Number of categories | Category | 3 |
Segment Information - Sales and
Segment Information - Sales and Gross Profit of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 120,806 | $ 170,279 |
Gross Profit | 39,733 | 73,709 |
Network Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 105,253 | 143,597 |
Gross Profit | 36,641 | 66,933 |
Services & Support [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 15,553 | 26,682 |
Gross Profit | $ 3,092 | $ 6,776 |
Segment Information - Sales Inf
Segment Information - Sales Information by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Sales | $ 120,806 | $ 170,279 |
Access & Aggregation [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 81,680 | 120,143 |
Customer Devices [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | 30,101 | 36,268 |
Traditional & Other Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales | $ 9,025 | $ 13,868 |
Liability for Warranty Return80
Liability for Warranty Returns - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | ||||
Period of assurance-based warranty for product defects | 90 days to five years | |||
Liability for warranty obligations | $ 9,687 | $ 9,724 | $ 8,988 | $ 8,548 |
Liability for Warranty Return81
Liability for Warranty Returns - Summary of Warranty Expense and Write-Off Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of period | $ 9,724 | $ 8,548 |
Plus: Amounts charged to cost and expenses | 1,822 | (741) |
Less: Deductions | (1,859) | 1,181 |
Balance at end of period | $ 9,687 | $ 8,988 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($)EquityUnit |
Contingencies And Commitments [Line Items] | |
Number of private equity funds | EquityUnit | 2 |
Commitments towards private equity funds | $ 7.7 |
Investment Commitments [Member] | |
Contingencies And Commitments [Line Items] | |
Aggregate investment committed in private equity funds | 7.9 |
Private Equity Funds [Member] | |
Contingencies And Commitments [Line Items] | |
Contribution to private equity funds | $ 8.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 17, 2018 | May 16, 2018 |
Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly dividend payable subsequent to balance sheet date | $ 4.3 | |
Subsequent Events [Member] | ||
Subsequent Event [Line Items] | ||
Dividend declaration date | Apr. 17, 2018 | |
Common stock dividends per share declared | $ 0.09 | |
Dividend record date | May 2, 2018 | |
Dividend payment date | May 16, 2018 |