Document and Enitity Informatio
Document and Enitity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 26, 2018 | |
Document Entity Information [Abstract] | ||
Entity Registrant Name | ADVANCED ENERGY INDUSTRIES INC | |
Entity Central Index Key | 927,003 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,329,426 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 413,874 | $ 407,283 |
Marketable securities | 3,197 | 3,104 |
Accounts and other receivable, net of allowances of $1,824 and $1,748 respectively | 116,900 | 87,429 |
Inventories | 96,842 | 78,450 |
Income taxes receivable | 2,226 | 1,295 |
Other current assets | 7,895 | 8,129 |
Current assets from discontinued operations | 9,638 | 9,535 |
Total current assets | 650,572 | 595,225 |
Deposits and other assets | 4,207 | 3,051 |
Property and equipment, net | 20,706 | 17,795 |
Goodwill | 54,906 | 53,812 |
Finite-Lived Intangible Assets, Net | 33,445 | 33,499 |
Deferred income tax assets | 38,741 | 18,841 |
Non-current assets from discontinued operations | 11,084 | 11,085 |
TOTAL ASSETS | 813,661 | 733,308 |
CURRENT LIABILITIES: | ||
Accounts payable | 61,328 | 48,177 |
Income taxes payable | 13,011 | 5,365 |
Accrued payroll and employee benefits | 13,890 | 18,412 |
Customer deposits | 9,738 | 6,402 |
Other accrued expenses | 21,395 | 19,913 |
Current liabilities from discontinued operations | 7,272 | 7,850 |
Total current liabilities | 126,634 | 106,119 |
LONG-TERM LIABILITIES: | ||
Deferred income tax liabilities | 6,592 | 4,556 |
Uncertain tax positions | 17,701 | 17,031 |
Long term deferred revenue | 32,443 | 33,402 |
Other long-term liabilities | 38,803 | 36,282 |
Non-current liabilities from discontinued operations | 14,279 | 15,277 |
Total liabilities | 236,452 | 212,667 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value, 1,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 70,000 shares authorized; 39,536 and 39,604 issued and outstanding, respectively | 40 | 40 |
Additional paid-in capital | 172,460 | 184,843 |
Retained earnings | 399,410 | 333,225 |
Advanced Energy stockholders’ equity | 4,837 | 2,533 |
Advanced Energy stockholders’ equity | 576,747 | 520,641 |
Noncontrolling interest | 462 | 0 |
Total stockholders’ equity | 577,209 | 520,641 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 813,661 | $ 733,308 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowances | $ 1,824 | $ 1,748 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
Preferred stock, shares issued (in shares) | 0 | |
Preferred Stock, Shares Outstanding | 0 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 39,535,000 | 39,604,000 |
Common stock, shares outstanding (in shares) | 39,535,000 | 39,604,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales: | ||
Product | $ 171,209 | $ 128,827 |
Services | 24,408 | 20,524 |
Total sales | 195,617 | 149,351 |
Cost of sales: | ||
Product | 79,806 | 60,117 |
Services | 12,166 | 10,403 |
Total cost of sales | 91,972 | 70,520 |
Gross profit | 103,645 | 78,831 |
Operating expenses: | ||
Research and development | 17,637 | 12,503 |
Selling, general and administrative | 28,648 | 22,098 |
Amortization of intangible assets | 1,257 | 962 |
Total operating expenses | 47,542 | 35,563 |
Operating income | 56,103 | 43,268 |
Other income (expense), net | 26 | (3,208) |
Income from continuing operations, before income taxes | 56,129 | 40,060 |
Provision for income taxes | 9,759 | 4,619 |
Income from continuing operations | 46,370 | 35,441 |
Income from discontinued operations, net of income taxes | 140 | 2,094 |
Net income | 46,510 | 37,535 |
Income from continuing operations attributable to noncontrolling interest | 31 | 0 |
Net income attributable to Advanced Energy Industries, Inc. | $ 46,479 | $ 37,535 |
Basic weighted-average common shares outstanding | 39,619 | 39,738 |
Diluted weighted-average common shares outstanding | 39,995 | 40,179 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.17 | $ 0.89 |
Income (Loss) from Continuing Operations, Per Diluted Share | 1.16 | 0.88 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0.05 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0.05 |
Earnings Per Share, Basic | 1.17 | 0.94 |
Earnings Per Share, Diluted | $ 1.16 | $ 0.93 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 46,510 | $ 37,535 |
Net Income (Loss) Attributable to Parent | 46,479 | 37,535 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2,472 | 3,028 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 168 | 16 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 48,814 | 40,547 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 31 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 48,783 | $ 40,547 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 46,510 | $ 37,535 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Income from discontinued operations, net of income taxes | 140 | 2,094 |
Income from continuing operations, net of income taxes | 46,370 | 35,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,861 | 1,987 |
Stock-based compensation expense | 4,494 | 3,398 |
Loss on foreign exchange hedge | 0 | 3,489 |
Net loss on disposal of assets | (138) | (65) |
Changes in operating assets and liabilities, net of assets acquired: | ||
Accounts and other receivables | (17,457) | (431) |
Inventories | (17,113) | (8,047) |
Other current assets | 364 | (1,109) |
Accounts payable | 11,932 | 5,194 |
Other liabilities and accrued expenses | (2,346) | (614) |
Income taxes | 5,642 | 3,286 |
Net cash provided by operating activities from continuing operations | 34,885 | 42,659 |
Net cash used in operating activities from discontinued operations | (1,784) | (2,453) |
Net cash provided by operating activities | 33,101 | 40,206 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition, net of cash acquired | (6,072) | 0 |
Purchase of foreign exchange hedge | 0 | (3,489) |
Purchases of property and equipment | (3,923) | (1,391) |
Net cash used in investing activities from continuing operations | (9,995) | (4,880) |
Net cash used in investing activities from discontinued operations | 0 | 0 |
Net cash used in investing activities | (9,995) | (4,880) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Purchase and retirement of common stock | 12,750 | 0 |
Net payments related to stock-based award activities | (4,032) | (1,688) |
Net cash used in financing activities from continuing operations | (16,782) | (1,688) |
Net cash used in financing activities from discontinued operations | 0 | 0 |
Net cash used in financing activities | (16,782) | (1,688) |
EFFECT OF CURRENCY TRANSLATION ON CASH | 167 | 1,133 |
INCREASE IN CASH AND CASH EQUIVALENTS | 6,491 | 34,771 |
CASH AND CASH EQUIVALENTS, beginning of period | 415,037 | 289,517 |
CASH AND CASH EQUIVALENTS, end of period | 421,528 | 324,288 |
Less cash and cash equivalents from discontinued operations | 7,654 | 6,339 |
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period | 413,874 | 317,949 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 56 | 0 |
Cash paid for income taxes | 3,404 | 918 |
Cash received for refunds of income taxes | 95 | 396 |
Cash held in banks outside the United States | $ 320,753 | $ 239,553 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies and Estimates | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Advanced Energy Industries, Inc., a Delaware corporation, and its wholly-owned subsidiaries ("we," "us," "our," "Advanced Energy," or the "Company") design, manufacture, sell, and support power conversion products that transform electrical power into various usable forms. Our products enable manufacturing processes that use thin films for various products, such as semiconductor devices, flat panel displays, solar cells, architectural glass, optical coating and decorative and functional coating for consumer products. We also supply thermal instrumentation products for advanced temperature control in the thin film process for these same markets. Our power control modules provide power control solutions for industrial applications where heat treatment and processing are used such as glass manufacturing, metal fabrication and treatment, and material and chemical processing. Our high voltage power supplies and modules are used in applications such as semiconductor ion implantation, scanning electron microscopy, chemical analysis such as mass spectrometry and various applications using X-ray technology and electron guns for both analytical and processing applications. Our network of global service support centers provides a recurring revenue opportunity as we offer repair services, conversions, upgrades, and refurbishments and sales of used equipment to companies using our products. As of December 31, 2015, we discontinued the production, engineering, and sales of our solar inverter product line. As such, all solar inverter revenues, costs, assets and liabilities are reported in Discontinued Operations for all periods presented herein. See Note 4. Discontinued Operations. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company as of March 31, 2018 , and the results of our operations and cash flows for the three months ended March 31, 2018 and 2017 . The Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and other financial information filed with the SEC. Estimates and Assumptions The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We believe that the significant estimates, assumptions, and judgments when accounting for items and matters such as allowances for doubtful accounts, excess and obsolete inventory, warranty reserves, acquisitions, asset valuations, goodwill, asset life, depreciation, amortization, recoverability of assets, impairments, deferred revenue, stock option and restricted stock grants, taxes, and other provisions are reasonable, based upon information available at the time they are made. Actual results may differ from these estimates. Critical Accounting Policies Our accounting policies are described in our audited Consolidated Financial Statements and Notes contained in our Annual Report on Form 10-K for the year ended December 31, 2017 . See Note 3. Revenue for the updated revenue recognition policy in accordance with ASU 2014-09, "Revenue from Contracts with Customers". New Accounting Standards From time to time, the Financial Accounting Standards Board ("FASB") or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification ("ASC") are communicated through issuance of an Accounting Standards Update ("ASU"). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on the Consolidated Financial Statements upon adoption. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within the year of adoption. Early adoption is permitted. Advanced Energy is currently assessing and has not yet determined the impact ASU 2016-02 may have on its Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income" to give companies the option to reclassify the income tax effects on items within accumulated other comprehensive income resulting from U.S. tax reform to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted. Advanced Energy is currently assessing and has not yet determined the impact ASU 2018-02 may have on its Consolidated Financial Statements. Recently adopted accounting pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" and has subsequently issued several supplemental and/or clarifying ASUs (collectively known as "ASC 606"). ASC 606 implements a five step model for how an entity should recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 is effective for fiscal periods beginning after December 15, 2017 and for the interim periods within that year. We adopted ASC 606 during the first quarter of fiscal year 2018 using the modified retrospective approach and recorded an adjustment to reflect the cumulative-effect of its adoption on all contracts with customers. See Note 3. Revenue for further details. In October 2016, the FASB issued ASU 2016-16, "Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory." ASU 2016-16 changes the timing of income tax recognition for an intercompany sale of assets. ASU 2016-16 requires the seller’s tax effects and the buyer’s deferred taxes to be recognized immediately upon the sale instead of deferring accounting for the income tax implications until the assets are sold to a third party or recovered through use. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 including interim periods within the year of adoption. We adopted ASU 2016-16 during the first quarter of fiscal year 2018 using the modified retrospective approach and recorded a adjustment to reflect the cumulative-effect of its adoption. Cumulative-effect of recently adopted accounting pronouncements The following table reflects the cumulative-effect of the adoption of ASC 606 and ASU 2016-16 using the modified retrospective approach for: December 31, 2017 Impact of Impact of January 1, 2018 as reported ASC 606 ASU 2016-16 as adjusted Accounts and other receivable, net $ 87,429 $ 8,251 $ — $ 95,680 Inventories 78,450 (3,561 ) — 74,889 Total current assets 595,225 4,690 — 599,915 Deferred income tax assets 18,841 — 17,080 35,921 Total assets 733,308 4,690 17,080 755,078 Income taxes payable 5,365 — 921 6,286 Deferred income tax liabilities 4,556 1,143 — 5,699 Total liabilities 212,667 1,143 921 214,731 Retained earnings 333,225 3,547 16,159 352,931 Total stockholders’ equity 520,641 3,547 16,159 540,347 Total liabilities and stockholders' equity 733,308 4,690 17,080 755,078 |
Business Acquisition (Notes)
Business Acquisition (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITION On February 1, 2018, Advanced Energy acquired Trek Holding Co., LTD ("Trek"), a privately held company with operations in Tokyo, Japan and Lockport, New York. Trek has a 95% ownership interest in its U.S. subsidiary which is also its primary operation. The components of the fair value of the total consideration transferred for the Trek acquisition are as follows: Cash paid to owners $ 11,723 Cash acquired (5,651 ) Total fair value of consideration transferred $ 6,072 The following table summarizes estimated fair values of the assets acquired and liabilities assumed as of February 1, 2018: Accounts and other receivable, net $ 2,818 Inventories 4,037 Other current assets 275 Property and equipment 594 Other non-current assets 579 Deferred income tax assets 702 Accounts payable (747 ) Other accrued expenses (2,696 ) 5,562 Amortizable intangible assets: Technology 200 Customer relationships 200 Total amortizable intangible assets 400 Total identifiable net assets 5,962 Goodwill 110 Total fair value of consideration received $ 6,072 A summary of the intangible assets acquired, amortization method and estimated useful lives as of February 1, 2018 follows: Amount Amortization Method Useful Life Technology $ 200 Straight-line 10 Customer relationships 200 Straight-line 10 Total $ 400 Goodwill and intangible assets are recorded in the functional currency of the entity and are subject to changes due to translation at each balance sheet date. Advanced Energy is in the process of finalizing the assessment of fair value for the assets acquired and liabilities assumed. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Adoption of ASC 606, "Revenue from Contract with Customers" Advanced Energy adopted ASC 606 using the modified retrospective method by recognizing the cumulative effect of the adoption of ASC 606, for all contracts with customers, to the opening balance of equity at January 1, 2018. Therefore, our comparative financial information as of December 31, 2017 has not been adjusted and continues to be reported under ASC Topic 605. The cumulative effect adjustment was based on the timing difference of revenue recognition between ASC Topic 605 and ASC 606 related to our inventory stocking agreements. Under ASC 606, revenue related to our inventory stocking agreements are recognized when inventory is shipped to our customers. Under ASC Topic 605, revenue was recognized when the inventory was consumed by our customers. The tables below show the quantitative impact of ASC 606 on our consolidated financial statements. March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Accounts and other receivable, net $ 116,900 $ (9,710 ) $ 107,190 Inventories 96,842 4,086 100,928 Total current assets 650,572 (5,624 ) 644,948 TOTAL ASSETS 813,661 (5,624 ) 808,037 Income taxes payable 13,011 (230 ) 12,781 Total current liabilities 126,634 (230 ) 126,404 Deferred income tax liabilities 6,592 (1,143 ) 5,449 Total liabilities 236,452 (1,373 ) 235,079 Retained earnings 399,410 (4,251 ) 395,159 Advanced Energy stockholders’ equity 576,747 (4,251 ) 572,496 Total stockholders’ equity 577,209 (4,251 ) 572,958 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 813,661 $ (5,624 ) $ 808,037 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Product sales $ 171,209 $ (1,460 ) $ 169,749 Total sales 195,617 (1,460 ) 194,157 Product cost of sales 79,806 (526 ) 79,280 Total cost of sales 91,972 (526 ) 91,446 Gross profit 103,645 (934 ) 102,711 Operating income 56,103 (934 ) 55,169 Income from continuing operations, before income taxes 56,129 (934 ) 55,195 Provision for income taxes 9,759 (230 ) 9,529 Income from continuing operations 46,370 (704 ) 45,666 Net income 46,510 (704 ) 45,806 Net income attributable to Advanced Energy Industries, Inc. $ 46,479 $ (704 ) $ 45,775 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Net income $ 46,510 $ (704 ) $ 45,806 Changes in operating assets and liabilities, net of assets acquired: Accounts and other receivable, net (17,457 ) 1,460 (15,997 ) Inventories (17,113 ) (526 ) (17,639 ) Income taxes 5,642 (230 ) 5,412 Net cash provided by operating activities from continuing operations $ 34,885 $ — $ 34,885 Revenue Recognition We recognize revenue when we have satisfied our performance obligations which typically occurs when control of the products or services have been transfered to our customers. The transaction price is based upon the standalone selling price. In most transactions, we have no obligations to our customers after the date products are shipped, other than pursuant to warranty obligations. Shipping and handling fees billed to customers, if any, are recognized as revenue. The related shipping and handling costs are recognized in cost of sales. Support services include warranty and non-warranty repair services, upgrades, and refurbishments on the products we sell. Repairs that are covered under our standard warranty do not generate revenue. Practical Expedients We expense incremental costs of obtaining contracts when the amortization period of the costs are less then 1 year. These costs are included in selling, general, and administrative expenses. Nature of goods and services Products Advanced Energy provides highly-engineered, mission-critical, precision power conversion, measurement and control solutions to our global customers. We design, manufacture, sell and support precision power products that transform electrical power into various usable forms. Our power conversion products refine, modify and control the raw electrical power from a utility and convert it into power that is predictable, repeatable and customizable. Our products enable thin film manufacturing processes such as plasma enhanced chemical and physical deposition and etch for various semiconductor and industrial products, industrial thermal applications for material and chemical processes, and specialty power for critical industrial applications. We also supply thermal instrumentation products for advanced temperature measurement and control in these markets. Our products are designed to enable new process technologies, improve productivity, and lower the cost of ownership for our customers. We also provide repair and maintenance services for all of our products. We principally serve original equipment manufacturers ("OEM") and end customers in the semiconductor, flat panel display, high voltage, solar panel, and other industrial capital equipment markets. Our products are used in diverse markets, applications, and processes including the manufacture of capital equipment for semiconductor device manufacturing, thin film applications for thin film renewables and architectural glass, and for other thin film applications including flat panel displays, and industrial coatings. Services Our global support services group offers in-warranty and out-of-warranty repair services in the regions in which we operate, providing us with preventive maintenance opportunities. Our customers continue to pursue low cost of ownership of their capital equipment and are increasingly sensitive to the significant costs of system downtime. They expect that suppliers offer comprehensive local repair service and customer support. To meet these market requirements, we maintain a worldwide support organization comprising of both direct and indirect activities through partnership with local distributors primarily in the United States ("U.S."), the People’s Republic of China ("PRC"), Japan, South Korea, Taiwan, Germany, and United Kingdom. As part of our ongoing service business, we satisfy our service obligations under preventative maintenance contracts and extended warranties which had previously been offered on our discontinued inverter products. Any up-front fees received for extended warranties or maintenance plans are deferred. Revenue under these arrangements are recognized ratably over the underlying terms as we do not have historical information which would allow us to project the estimated service usage pattern. We have deferred revenue related to our extended warranties and service contracts totaling $36.3 million as of March 31, 2018 and $37.5 million as of December 31, 2017 . Disaggregation of Revenue The following table presents our net sales by product line: Three Months Ended March 31, 2018 2017 Semiconductor capital market $ 136,010 $ 104,648 Industrial power capital market 35,199 24,179 Global support 24,408 20,524 Total $ 195,617 $ 149,351 The following table presents our net sales by geographic region: Three Months Ended March 31, 2018 2017 Sales to external customers: United States $ 130,369 66.5 % $ 104,715 70.1 % Canada 111 0.1 % 16 0.1 % North America 130,480 66.6 % 104,731 70.2 % People's Republic of China 9,551 4.9 % 8,133 5.4 % Other Asian countries 30,307 15.5 % 21,436 14.4 % Asia 39,858 20.4 % 29,569 19.8 % Germany 19,286 9.9 % 11,854 7.9 % United Kingdom 1,948 1.0 % 3,197 2.1 % Other European countries 4,045 2.1 % — — % Europe 25,279 13.0 % 15,051 10.0 % Total $ 195,617 100.0 % $ 149,351 100.0 % |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS In December 2015, we completed the wind down of engineering, manufacturing and sales of our solar inverter product line (the "inverter business"). Accordingly, the results of our inverter business have been reflected as "Income from discontinued operations, net of income taxes" on our Consolidated Statements of Operations for all periods presented herein. The effect of our sales of extended inverter warranties to our customers continues to be reflected in deferred revenue in our Consolidated Balance Sheets. Deferred revenue for extended inverter warranties and the associated costs of warranty service will be reflected in Sales and Cost of goods sold, respectively, from continuing operations in future periods in our Consolidated Statement of Operations, as the deferred revenue, is earned and the associated services are rendered. Extended warranties related to the inverter product line are no longer offered. The significant items included in "Income from discontinued operations, net of income taxes" are as follows: Three Months Ended March 31, 2018 2017 Sales $ — $ — Cost of sales 112 (828 ) Total operating income (including restructuring) (61 ) (1,120 ) Operating (loss) income from discontinued operations (51 ) 1,948 Other income 124 163 Income from discontinued operations before income taxes 73 2,111 (Benefit) provision for income taxes (67 ) 17 Income from discontinued operations, net of income taxes $ 140 $ 2,094 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: March 31, December 31, 2018 2017 Cash and cash equivalents $ 7,654 $ 7,754 Accounts and other receivables, net 1,379 1,363 Inventories 605 418 Current assets of discontinued operations $ 9,638 $ 9,535 Other assets $ 71 $ 72 Deferred income tax assets 11,013 11,013 Non-current assets of discontinued operations $ 11,084 $ 11,085 Accounts payable and other accrued expenses $ 517 $ 545 Accrued warranty 6,755 7,305 Current liabilities of discontinued operations $ 7,272 $ 7,850 Accrued warranty $ 14,109 $ 15,112 Other liabilities 170 165 Non-current liabilities of discontinued operations $ 14,279 $ 15,277 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table sets out the tax expense and the effective tax rate for our income from continuing operations: Three Months Ended March 31, 2018 2017 Income from continuing operations, before income taxes $ 56,129 $ 40,060 Provision for income taxes 9,759 4,619 Effective tax rate 17.4 % 11.5 % On December 22, 2017, the U.S. enacted the 2017 Tax Cuts and Jobs Act (“Tax Act”), which contains several key tax provisions that affected our financial results for 2017, including a one-time mandatory transition tax on our accumulated foreign earnings and the reduction of the corporate income tax rate from 35% to 21% , effective January 1, 2018, which required a revaluation of our U.S. deferred tax assets. The Tax Act also contains several key tax provisions that will affect our financial results for 2018, including reduction of the corporate income tax rate from 35% to 21% and application of the global intangible low-taxed income of foreign subsidiaries (“GILTI tax”), among others. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next 12 months, we consider the accounting for the transition tax, deferred tax re-measurements, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. We expect to complete our analysis within the measurement period in accordance with SAB 118. Our effective tax rates differ from the U.S. federal statutory rate of 21% and 35% for the three months ended March 31, 2018 and 2017, respectively, primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates. Our effective tax rate for the three months ended March 31, 2018 was also impacted by the effect of the recently enacted Tax Act, with the benefit from the corporate income tax rate reduction to 21% offset by additional GILTI tax, and entry into additional foreign taxable jurisdictions. Additionally, the March 2018 rate includes $1.9 million in tax expense related to our change in estimated U.S. transition tax. Our policy is to classify accrued interest and penalties related to unrecognized tax benefits in our income tax provision. The amount of interest and penalties accrued related to our unrecognized tax benefits for the three months ended March 31, 2018 and 2017 was not significant. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of our diluted EPS is similar to the computation of our basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if our outstanding stock options and restricted stock units had been converted to common shares, and if such assumed conversion is dilutive. The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Income from continuing operations $ 46,370 $ 35,441 Income attributable to noncontrolling interest 31 — Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 46,339 $ 35,441 Basic weighted-average common shares outstanding 39,619 39,738 Assumed exercise of dilutive stock options and restricted stock units 376 441 Diluted weighted-average common shares outstanding 39,995 40,179 Continuing operations: Basic earnings per share $ 1.17 $ 0.89 Diluted earnings per share $ 1.16 $ 0.88 The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended March 31, 2018 2017 Restricted stock units 2 1 Stock Buyback In September 2015, our Board of Directors authorized a program to repurchase up to $150.0 million of our stock over a thirty-month period. In November 2017, our Board of Directors approved an extension to the share repurchase program to December 2019 from its original maturity of March 2018. As of March 31, 2018 , we had $57.3 million remaining for the authorized repurchase of shares. In March 2018, we entered into Stock Repurchase Plan and Agreement to repurchase up to $50.0 million of our common stock through December 31, 2018 subject to certain pricing conditions. In March 2018 we repurchased $12.8 million of shares of our common stock in the open market under the Stock Repurchase Plan and Agreement. A total of 180,942 shares of our common stock was repurchased at an average price of $70.47 per share. There were no shares repurchased from related parties. The $12.8 million share repurchase was recognized as a reduction to Additional paid-in capital. Repurchased shares were retired and assumed the status of authorized and unissued shares. As of March 31, 2018 , we had $37.2 million remaining for the authorized repurchase of shares under the Stock Repurchase Plan and Agreement. Subsequent to March 31, 2018 we repurchased $15.7 million of shares of our common stock in the open market under the Stock Repurchase Plan and Agreement. A total of 254,015 shares of our common stock was repurchased at an average price of $62.01 per share. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES AND ASSETS MEASURED AT FAIR VALUE Our investments with original maturities of more than three months at time of purchase and that are intended to be held for no more than 12 months, are considered marketable securities available for sale. Our marketable securities consist of certificates of deposit as follows: March 31, 2018 December 31, 2017 Cost Fair Value Cost Fair Value Total marketable securities $ 3,196 $ 3,197 $ 3,103 $ 3,104 The maturities of our marketable securities available for sale as of March 31, 2018 are as follows: Earliest Latest Certificates of deposit 4/10/2018 to 3/18/2019 The value and liquidity of the marketable securities we hold are affected by market conditions, as well as the ability of the issuers of such securities to make principal and interest payments when due, and the functioning of the markets in which these securities are traded. As of March 31, 2018 , we do not believe any of the underlying issuers of our marketable securities are at risk of default. The following tables present information about our marketable securities measured at fair value, on a recurring basis, as of March 31, 2018 and December 31, 2017 . The tables indicate the fair value hierarchy of the valuation techniques utilized to determine fair value. We did not have any financial liabilities measured at fair value, on a recurring basis, as of March 31, 2018 and December 31, 2017 . March 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 3,197 $ — $ 3,197 December 31, 2017 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 3,104 $ — $ 3,104 There were no transfers in or out of Level 1, 2, or 3 fair value measurements during the three months ended March 31, 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We are impacted by changes in foreign currency exchange rates. We manage these risks through the use of derivative financial instruments, primarily forward contracts with banks. We did not enter into any new foreign currency exchange forward contracts during the three months ended March 31, 2018 . During the three months ended March 31, 2017 , we entered into foreign currency exchange forward contracts to manage the exchange rate risk associated with intercompany debt denominated in nonfunctional currencies. These derivative instruments are not designated as hedges; however, they do offset the fluctuations of our intercompany debt due to foreign exchange rate changes. These forward contracts are typically for one month periods. We did not have any currency exchange rate contracts outstanding as of March 31, 2018 . At December 31, 2017 we had outstanding Euro and Pound Sterling forward contracts. The notional amount of foreign currency exchange contracts outstanding at December 31, 2017 was $16.3 million and the fair value of these contracts was not significant at December 31, 2017 . During the three months ended March 31, 2018 and 2017 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended March 31, 2018 2017 Foreign currency (loss) gain from foreign currency exchange contracts $ (750 ) $ 39 These gains and losses were offset by corresponding gains and losses on the revaluation of the underlying intercompany debt and both are included as a component of Other income (expense), net , in our Unaudited Condensed Consolidated Statements of Operations. During the first quarter of 2017 we entered into a foreign currency exchange rate forward contract at a cost of $3.5 million , to mitigate the exchange rate risk associated with a planned offshore acquisition which was not consummated. This derivative instrument was designated as a hedge for accounting purposes. The hedge expired upon maturity in the first quarter of 2017. The cost of the forward contract is recorded as a component of Other income (expense), net in our Condensed Consolidated Statement of Operations. |
Accounts and Other Receivables
Accounts and Other Receivables | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLE Accounts and other receivable are recorded at net realizable value. Components of accounts and other receivable, net of reserves, are as follows: March 31, December 31, 2018 2017 Amounts billed, net $ 107,190 $ 87,429 Unbilled receivables 9,710 — Total receivables, net $ 116,900 $ 87,429 Amounts billed, net consist of amounts that have been invoiced to our customers in accordance with our terms and conditions and are shown net of an allowance for doubtful accounts. Unbilled receivables consist of amounts where we have satisfied our contractual obligations related to inventory stocking contracts with customers. Such amounts typically become billable to the customer upon their consumption of the inventory managed under the stocking contracts. We anticipate that substantially all unbilled receivables will be invoiced and collected over the next twelve months. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Our inventories are valued at the lower of cost or net realizable value and computed on a first-in, first-out (FIFO) basis. Components of inventories, net of reserves, are as follows: March 31, December 31, 2018 2017 Parts and raw materials $ 71,284 $ 58,567 Work in process 13,054 7,986 Finished goods 12,504 11,897 Total $ 96,842 $ 78,450 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net is comprised of the following: March 31, December 31, 2018 2017 Buildings and land $ 1,846 $ 1,788 Machinery and equipment 37,886 36,579 Computer and communication equipment 25,391 26,819 Furniture and fixtures 1,479 1,568 Vehicles 273 341 Leasehold improvements 14,156 17,286 Construction in process 725 802 81,756 85,183 Less: Accumulated depreciation (61,050 ) (67,388 ) Property and equipment, net $ 20,706 $ 17,795 Depreciation expense recorded in continuing operations and included in selling, general and administrative expense is as follows: Three Months Ended March 31, 2018 2017 Depreciation expense $ 1,604 $ 1,025 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following summarizes the changes in goodwill during the three months ended March 31, 2018 : Beginning Balance Additions Effect of Changes in Exchange Rates Ending Balance March 31, 2018 $ 53,812 $ 110 $ 984 $ 54,906 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following as of March 31, 2018 and December 31, 2017: March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 30,885 $ (11,763 ) $ 19,122 Technology 19,397 (6,192 ) 13,205 Trademarks and other 2,707 (1,589 ) 1,118 Total $ 52,989 $ (19,544 ) $ 33,445 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 30,034 $ (10,787 ) $ 19,247 Technology 18,702 (5,559 ) 13,143 Trademarks and other 2,623 (1,514 ) 1,109 Total $ 51,359 $ (17,860 ) $ 33,499 Amortization expense related to intangible assets is as follows: Three Months Ended March 31, 2018 2017 Amortization expense $ 1,257 $ 962 Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2018 (remaining) $ 3,778 2019 5,019 2020 4,313 2021 4,207 2022 3,938 Thereafter 12,190 Total $ 33,445 |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | WARRANTIES Provisions of our sales agreements include customary product warranties, ranging from 12 months to 24 months following installation. The estimated cost of our warranty obligation is recorded when revenue is recognized and is based upon our historical experience by product, configuration and geographic region. Our estimated warranty obligation is included in Other accrued expenses in our Consolidated Balance Sheets. Changes in our product warranty obligation are as follows: Three Months Ended March 31, 2018 2017 Balances at beginning of period $ 2,312 $ 2,329 Warranty liabilities acquired 92 — Increases to accruals 178 2,181 Warranty expenditures (506 ) (389 ) Effect of changes in exchange rates 8 5 Balances at end of period $ 2,084 $ 4,126 |
Pension Liability (Notes)
Pension Liability (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Liability | PENSION LIABILITY In connection with the acquisition of HiTek Power Group, a privately-held provider of high voltage power solutions, in 2014, we acquired the HiTek Power Limited Pension Scheme (the "HiTek Plan"). The HiTek Plan has been closed to new participants since April 1, 2002 and to additional accruals since April 5, 2005. In order to measure the expense and related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. We are committed to make annual fixed payments of $0.9 million into the HiTek Plan through April 30, 2024, and then $1.9 million from May 1, 2024 through November 30, 2033. The net pension liability is included in Other long-term liabilities in our balance sheet as follows: March 31, December 31, 2018 2017 Pension liability $ 20,490 $ 19,797 The following table sets forth the components of net periodic pension cost for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Interest cost $ 218 $ 264 Expected return on plan assets (161 ) (140 ) Amortization of actuarial gains and losses 136 70 Net periodic pension cost $ 193 $ 194 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | Changes in the outstanding RSU awards during the three months ended March 31, 2018 were as follows: Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 386 $ 51.06 RSUs granted 160 $ 69.32 RSUs vested (155 ) $ 52.59 RSUs forfeited (55 ) $ 47.51 RSUs outstanding at end of period 336 $ 59.64 STOCK-BASED COMPENSATION On May 4, 2017, the shareholders approved the Company's 2017 Omnibus Incentive Plan ("the 2017 Plan") and all shares that were then available for issuance under the 2008 Omnibus Incentive Plan are now available for issuance under the 2017 Plan. The 2017 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units (including deferred stock units), unrestricted stock, and dividend equivalent rights. Any of the awards issued under the 2017 Plan may be issued as performance-based awards to align compensation awards to the attainment of annual or long-term performance goals. As of March 31, 2018 , there were 2.7 million shares available for grant and 3.3 million shares reserved under the 2017 Plan. Restricted stock units ("RSU’s") are generally granted with a grant date fair value equal to the market price of our stock at the date of grant and with either a three or four year vesting schedule or performance-based vesting as determined at the time of grant. Stock option awards are generally granted with an exercise price equal to the market price of our stock at the date of grant and with either a three or four year vesting schedule or performance-based vesting as determined at the time of grant. Stock option awards generally have a term of 10 years. We recognize stock-based compensation expense based on the fair value of the awards issued and the functional area of the employee receiving the award. Stock-based compensation for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, 2018 2017 Stock-based compensation expense $ 4,494 $ 3,398 Changes in the outstanding RSU awards during the three months ended March 31, 2018 were as follows: Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 386 $ 51.06 RSUs granted 160 $ 69.32 RSUs vested (155 ) $ 52.59 RSUs forfeited (55 ) $ 47.51 RSUs outstanding at end of period 336 $ 59.64 Changes in the outstanding stock option awards during the three months ended March 31, 2018 were as follows: Number of Options Weighted-Average Exercise Price per Share Options outstanding at beginning of period 317 $ 18.97 Options exercised (17 ) $ 18.36 Options expired (1 ) $ 12.19 Options outstanding at end of period 299 $ 19.02 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We have firm purchase commitments and agreements with various suppliers to ensure the availability of components. The obligation as of March 31, 2018 is approximately $177.4 million . Our policy with respect to all purchase commitments is to record losses, if any, when they are probable and reasonably estimable. We continuously monitor these commitments for exposure to potential losses and will record a provision for losses when it is deemed necessary. We are involved in disputes and legal actions arising in the normal course of our business. There have been no material developments in legal proceedings in which we are involved during the three months ended March 31, 2018 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Members of our Board of Directors hold various executive positions and serve as directors at other companies, including companies that are our customers. During the three months ended March 31, 2018 , we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended March 31, 2018 2017 Sales to related parties $ 73 $ 577 Number of related party customers 1 1 Our accounts receivable balance from related party customers with outstanding balances as of March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, 2018 2017 Accounts receivable from related parties $ 7 $ 27 Number of related party customers 1 1 |
Geographic and Customer Informa
Geographic and Customer Information Geographic and Customer Information (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |
Segment Reporting Disclosure [Text Block] | SIGNIFICANT CUSTOMER INFORMATION The following table summarizes sales, and percentages of sales, by customers that individually accounted for 10% or more of our sales for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 % of Total Sales 2017 % of Total Sales Applied Materials, Inc. $ 69,872 35.7 % $ 54,518 36.5 % LAM Research 39,726 20.3 % 32,016 21.4 % The following table summarizes the accounts receivable balances, and percentages of the total accounts receivable, for customers that individually accounted for 10% or more of accounts receivable as of March 31, 2018 and December 31, 2017 : March 31, December 31, 2018 2017 Applied Materials, Inc. $ 46,131 39.5 % $ 36,755 42.0 % LAM Research 15,957 13.7 % 5,421 6.2 % Our sales to Applied Materials, Inc. and LAM Research include precision power products used in semiconductor processing and solar and flat panel display. No other customer accounted for 10% or more of our sales or accounts receivable balances during these periods. |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY | CREDIT FACILITY The Company is party to a Loan Agreement, as amended (the "Loan Agreement") with Bank of America N.A. ("BA") which provides a revolving line of credit of up to $150.0 million subject to certain funding conditions. The Loan Agreement expires in July 28, 2022 . Interest on amounts drawn shall be paid quarterly based upon the LIBOR Daily Floating Rate then in effect, plus between one and one-quarter ( 1.25% ) and one and three-quarters ( 1.75% ) percentage points depending on the Funded Debt to EBITDA ratio. As of March 31, 2018 , the interest rate was 3.13% . The Loan Agreement also requires the Company to pay the lender on a quarterly basis an unused commitment fee based on credit availability. The obligations under the Loan Agreement are unsecured until the Funded Debt to EBITDA ratio exceeds 2.0 to 1.0, at which time the Company and certain affiliates’ tangible and intangible personal property will be subject to a first priority, perfected lien and security interest in favor of BA pursuant to a Security Agreement. As of March 31, 2018 , the Company is in compliance with all covenants required under the Loan Agreement. At March 31, 2018 our credit availability under the Loan Agreement was $150.0 million . During the three months ended March 31, 2018 , we had less than $0.1 million of expenses related to interest and unused line of credit fees. |
Revenue (Policies)
Revenue (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | We recognize revenue when we have satisfied our performance obligations which typically occurs when control of the products or services have been transfered to our customers. The transaction price is based upon the standalone selling price. In most transactions, we have no obligations to our customers after the date products are shipped, other than pursuant to warranty obligations. Shipping and handling fees billed to customers, if any, are recognized as revenue. The related shipping and handling costs are recognized in cost of sales. Support services include warranty and non-warranty repair services, upgrades, and refurbishments on the products we sell. Repairs that are covered under our standard warranty do not generate revenue. |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Our policy with respect to all purchase commitments is to record losses, if any, when they are probable and reasonably estimable. |
Basis of Presentation - (Tables
Basis of Presentation - (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table reflects the cumulative-effect of the adoption of ASC 606 and ASU 2016-16 using the modified retrospective approach for: December 31, 2017 Impact of Impact of January 1, 2018 as reported ASC 606 ASU 2016-16 as adjusted Accounts and other receivable, net $ 87,429 $ 8,251 $ — $ 95,680 Inventories 78,450 (3,561 ) — 74,889 Total current assets 595,225 4,690 — 599,915 Deferred income tax assets 18,841 — 17,080 35,921 Total assets 733,308 4,690 17,080 755,078 Income taxes payable 5,365 — 921 6,286 Deferred income tax liabilities 4,556 1,143 — 5,699 Total liabilities 212,667 1,143 921 214,731 Retained earnings 333,225 3,547 16,159 352,931 Total stockholders’ equity 520,641 3,547 16,159 540,347 Total liabilities and stockholders' equity 733,308 4,690 17,080 755,078 March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Accounts and other receivable, net $ 116,900 $ (9,710 ) $ 107,190 Inventories 96,842 4,086 100,928 Total current assets 650,572 (5,624 ) 644,948 TOTAL ASSETS 813,661 (5,624 ) 808,037 Income taxes payable 13,011 (230 ) 12,781 Total current liabilities 126,634 (230 ) 126,404 Deferred income tax liabilities 6,592 (1,143 ) 5,449 Total liabilities 236,452 (1,373 ) 235,079 Retained earnings 399,410 (4,251 ) 395,159 Advanced Energy stockholders’ equity 576,747 (4,251 ) 572,496 Total stockholders’ equity 577,209 (4,251 ) 572,958 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 813,661 $ (5,624 ) $ 808,037 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Product sales $ 171,209 $ (1,460 ) $ 169,749 Total sales 195,617 (1,460 ) 194,157 Product cost of sales 79,806 (526 ) 79,280 Total cost of sales 91,972 (526 ) 91,446 Gross profit 103,645 (934 ) 102,711 Operating income 56,103 (934 ) 55,169 Income from continuing operations, before income taxes 56,129 (934 ) 55,195 Provision for income taxes 9,759 (230 ) 9,529 Income from continuing operations 46,370 (704 ) 45,666 Net income 46,510 (704 ) 45,806 Net income attributable to Advanced Energy Industries, Inc. $ 46,479 $ (704 ) $ 45,775 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Net income $ 46,510 $ (704 ) $ 45,806 Changes in operating assets and liabilities, net of assets acquired: Accounts and other receivable, net (17,457 ) 1,460 (15,997 ) Inventories (17,113 ) (526 ) (17,639 ) Income taxes 5,642 (230 ) 5,412 Net cash provided by operating activities from continuing operations $ 34,885 $ — $ 34,885 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The components of the fair value of the total consideration transferred for the Trek acquisition are as follows: Cash paid to owners $ 11,723 Cash acquired (5,651 ) Total fair value of consideration transferred $ 6,072 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes estimated fair values of the assets acquired and liabilities assumed as of February 1, 2018: Accounts and other receivable, net $ 2,818 Inventories 4,037 Other current assets 275 Property and equipment 594 Other non-current assets 579 Deferred income tax assets 702 Accounts payable (747 ) Other accrued expenses (2,696 ) 5,562 Amortizable intangible assets: Technology 200 Customer relationships 200 Total amortizable intangible assets 400 Total identifiable net assets 5,962 Goodwill 110 Total fair value of consideration received $ 6,072 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | A summary of the intangible assets acquired, amortization method and estimated useful lives as of February 1, 2018 follows: Amount Amortization Method Useful Life Technology $ 200 Straight-line 10 Customer relationships 200 Straight-line 10 Total $ 400 |
Revenue Revenue by Product Line
Revenue Revenue by Product Line (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 The following table presents our net sales by product line: Three Months Ended March 31, 2018 2017 Semiconductor capital market $ 136,010 $ 104,648 Industrial power capital market 35,199 24,179 Global support 24,408 20,524 Total $ 195,617 $ 149,351 The following table presents our net sales by geographic region: Three Months Ended March 31, 2018 2017 Sales to external customers: United States $ 130,369 66.5 % $ 104,715 70.1 % Canada 111 0.1 % 16 0.1 % North America 130,480 66.6 % 104,731 70.2 % People's Republic of China 9,551 4.9 % 8,133 5.4 % Other Asian countries 30,307 15.5 % 21,436 14.4 % Asia 39,858 20.4 % 29,569 19.8 % Germany 19,286 9.9 % 11,854 7.9 % United Kingdom 1,948 1.0 % 3,197 2.1 % Other European countries 4,045 2.1 % — — % Europe 25,279 13.0 % 15,051 10.0 % Total $ 195,617 100.0 % $ 149,351 100.0 % The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 |
Revenue Revenue by Geographical
Revenue Revenue by Geographical Location (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 The following table presents our net sales by product line: Three Months Ended March 31, 2018 2017 Semiconductor capital market $ 136,010 $ 104,648 Industrial power capital market 35,199 24,179 Global support 24,408 20,524 Total $ 195,617 $ 149,351 The following table presents our net sales by geographic region: Three Months Ended March 31, 2018 2017 Sales to external customers: United States $ 130,369 66.5 % $ 104,715 70.1 % Canada 111 0.1 % 16 0.1 % North America 130,480 66.6 % 104,731 70.2 % People's Republic of China 9,551 4.9 % 8,133 5.4 % Other Asian countries 30,307 15.5 % 21,436 14.4 % Asia 39,858 20.4 % 29,569 19.8 % Germany 19,286 9.9 % 11,854 7.9 % United Kingdom 1,948 1.0 % 3,197 2.1 % Other European countries 4,045 2.1 % — — % Europe 25,279 13.0 % 15,051 10.0 % Total $ 195,617 100.0 % $ 149,351 100.0 % The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 |
Revenue 606 Financial Statement
Revenue 606 Financial Statement Impacts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table reflects the cumulative-effect of the adoption of ASC 606 and ASU 2016-16 using the modified retrospective approach for: December 31, 2017 Impact of Impact of January 1, 2018 as reported ASC 606 ASU 2016-16 as adjusted Accounts and other receivable, net $ 87,429 $ 8,251 $ — $ 95,680 Inventories 78,450 (3,561 ) — 74,889 Total current assets 595,225 4,690 — 599,915 Deferred income tax assets 18,841 — 17,080 35,921 Total assets 733,308 4,690 17,080 755,078 Income taxes payable 5,365 — 921 6,286 Deferred income tax liabilities 4,556 1,143 — 5,699 Total liabilities 212,667 1,143 921 214,731 Retained earnings 333,225 3,547 16,159 352,931 Total stockholders’ equity 520,641 3,547 16,159 540,347 Total liabilities and stockholders' equity 733,308 4,690 17,080 755,078 March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Accounts and other receivable, net $ 116,900 $ (9,710 ) $ 107,190 Inventories 96,842 4,086 100,928 Total current assets 650,572 (5,624 ) 644,948 TOTAL ASSETS 813,661 (5,624 ) 808,037 Income taxes payable 13,011 (230 ) 12,781 Total current liabilities 126,634 (230 ) 126,404 Deferred income tax liabilities 6,592 (1,143 ) 5,449 Total liabilities 236,452 (1,373 ) 235,079 Retained earnings 399,410 (4,251 ) 395,159 Advanced Energy stockholders’ equity 576,747 (4,251 ) 572,496 Total stockholders’ equity 577,209 (4,251 ) 572,958 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 813,661 $ (5,624 ) $ 808,037 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Product sales $ 171,209 $ (1,460 ) $ 169,749 Total sales 195,617 (1,460 ) 194,157 Product cost of sales 79,806 (526 ) 79,280 Total cost of sales 91,972 (526 ) 91,446 Gross profit 103,645 (934 ) 102,711 Operating income 56,103 (934 ) 55,169 Income from continuing operations, before income taxes 56,129 (934 ) 55,195 Provision for income taxes 9,759 (230 ) 9,529 Income from continuing operations 46,370 (704 ) 45,666 Net income 46,510 (704 ) 45,806 Net income attributable to Advanced Energy Industries, Inc. $ 46,479 $ (704 ) $ 45,775 Three Months Ended March 31, 2018 Balances without adoption of As Reported Adjustments ASC 606 Net income $ 46,510 $ (704 ) $ 45,806 Changes in operating assets and liabilities, net of assets acquired: Accounts and other receivable, net (17,457 ) 1,460 (15,997 ) Inventories (17,113 ) (526 ) (17,639 ) Income taxes 5,642 (230 ) 5,412 Net cash provided by operating activities from continuing operations $ 34,885 $ — $ 34,885 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended March 31, 2018 2017 Sales $ — $ — Cost of sales 112 (828 ) Total operating income (including restructuring) (61 ) (1,120 ) Operating (loss) income from discontinued operations (51 ) 1,948 Other income 124 163 Income from discontinued operations before income taxes 73 2,111 (Benefit) provision for income taxes (67 ) 17 Income from discontinued operations, net of income taxes $ 140 $ 2,094 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: March 31, December 31, 2018 2017 Cash and cash equivalents $ 7,654 $ 7,754 Accounts and other receivables, net 1,379 1,363 Inventories 605 418 Current assets of discontinued operations $ 9,638 $ 9,535 Other assets $ 71 $ 72 Deferred income tax assets 11,013 11,013 Non-current assets of discontinued operations $ 11,084 $ 11,085 Accounts payable and other accrued expenses $ 517 $ 545 Accrued warranty 6,755 7,305 Current liabilities of discontinued operations $ 7,272 $ 7,850 Accrued warranty $ 14,109 $ 15,112 Other liabilities 170 165 Non-current liabilities of discontinued operations $ 14,279 $ 15,277 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax expense and the effective tax rate for our income from continuing operations | The following table sets out the tax expense and the effective tax rate for our income from continuing operations: Three Months Ended March 31, 2018 2017 Income from continuing operations, before income taxes $ 56,129 $ 40,060 Provision for income taxes 9,759 4,619 Effective tax rate 17.4 % 11.5 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS | The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Income from continuing operations $ 46,370 $ 35,441 Income attributable to noncontrolling interest 31 — Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 46,339 $ 35,441 Basic weighted-average common shares outstanding 39,619 39,738 Assumed exercise of dilutive stock options and restricted stock units 376 441 Diluted weighted-average common shares outstanding 39,995 40,179 Continuing operations: Basic earnings per share $ 1.17 $ 0.89 Diluted earnings per share $ 1.16 $ 0.88 |
Schedule of stock options and restricted units were excluded in the computation of diluted earnings per share because they were anti-dilutive | The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended March 31, 2018 2017 Restricted stock units 2 1 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31, 2018 and December 31, 2017 . The tables indicate the fair value hierarchy of the valuation techniques utilized to determine fair value. We did not have any financial liabilities measured at fair value, on a recurring basis, as of March 31, 2018 and December 31, 2017 . March 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 3,197 $ — $ 3,197 December 31, 2017 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 3,104 $ — $ 3,104 |
The composition of our marketable securities | Our marketable securities consist of certificates of deposit as follows: March 31, 2018 December 31, 2017 Cost Fair Value Cost Fair Value Total marketable securities $ 3,196 $ 3,197 $ 3,103 $ 3,104 |
The maturities of our marketable securities available for sale | The maturities of our marketable securities available for sale as of March 31, 2018 are as follows: Earliest Latest Certificates of deposit 4/10/2018 to 3/18/2019 |
Derivative Financial Instrume38
Derivative Financial Instruments Gains and Losses related to Foreign Currency Contracts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | During the three months ended March 31, 2018 and 2017 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended March 31, 2018 2017 Foreign currency (loss) gain from foreign currency exchange contracts $ (750 ) $ 39 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Components of accounts and other receivable, net of reserves, are as follows: March 31, December 31, 2018 2017 Amounts billed, net $ 107,190 $ 87,429 Unbilled receivables 9,710 — Total receivables, net $ 116,900 $ 87,429 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Our inventories are valued at the lower of cost or net realizable value and computed on a first-in, first-out (FIFO) basis. Components of inventories, net of reserves, are as follows: March 31, December 31, 2018 2017 Parts and raw materials $ 71,284 $ 58,567 Work in process 13,054 7,986 Finished goods 12,504 11,897 Total $ 96,842 $ 78,450 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Details of property and equipment | Property and equipment, net is comprised of the following: March 31, December 31, 2018 2017 Buildings and land $ 1,846 $ 1,788 Machinery and equipment 37,886 36,579 Computer and communication equipment 25,391 26,819 Furniture and fixtures 1,479 1,568 Vehicles 273 341 Leasehold improvements 14,156 17,286 Construction in process 725 802 81,756 85,183 Less: Accumulated depreciation (61,050 ) (67,388 ) Property and equipment, net $ 20,706 $ 17,795 |
Depreciation expense recorded in continuing operations | Three Months Ended March 31, 2018 2017 Depreciation expense $ 1,604 $ 1,025 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the changes in goodwill | The following summarizes the changes in goodwill during the three months ended March 31, 2018 : Beginning Balance Additions Effect of Changes in Exchange Rates Ending Balance March 31, 2018 $ 53,812 $ 110 $ 984 $ 54,906 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | ntangible assets consisted of the following as of March 31, 2018 and December 31, 2017: March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 30,885 $ (11,763 ) $ 19,122 Technology 19,397 (6,192 ) 13,205 Trademarks and other 2,707 (1,589 ) 1,118 Total $ 52,989 $ (19,544 ) $ 33,445 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 30,034 $ (10,787 ) $ 19,247 Technology 18,702 (5,559 ) 13,143 Trademarks and other 2,623 (1,514 ) 1,109 Total $ 51,359 $ (17,860 ) $ 33,499 |
Schedule of amortization expense relating to other intangible assets | Three Months Ended March 31, 2018 2017 Amortization expense $ 1,257 $ 962 |
Schedule of expected future amortization expense | Year Ending December 31, 2018 (remaining) $ 3,778 2019 5,019 2020 4,313 2021 4,207 2022 3,938 Thereafter 12,190 Total $ 33,445 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Changes in accrued product warranties | Three Months Ended March 31, 2018 2017 Balances at beginning of period $ 2,312 $ 2,329 Warranty liabilities acquired 92 — Increases to accruals 178 2,181 Warranty expenditures (506 ) (389 ) Effect of changes in exchange rates 8 5 Balances at end of period $ 2,084 $ 4,126 |
Pension Liability (Tables)
Pension Liability (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Funded Status [Table Text Block] | The net pension liability is included in Other long-term liabilities in our balance sheet as follows: March 31, December 31, 2018 2017 Pension liability $ 20,490 $ 19,797 |
Schedule of Net Benefit Costs [Table Text Block] | the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Interest cost $ 218 $ 264 Expected return on plan assets (161 ) (140 ) Amortization of actuarial gains and losses 136 70 Net periodic pension cost $ 193 $ 194 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation | Stock-based compensation for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended March 31, 2018 2017 Stock-based compensation expense $ 4,494 $ 3,398 |
Summary of stock option activity | Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 386 $ 51.06 RSUs granted 160 $ 69.32 RSUs vested (155 ) $ 52.59 RSUs forfeited (55 ) $ 47.51 RSUs outstanding at end of period 336 $ 59.64 Changes in the outstanding stock option awards during the three months ended March 31, 2018 were as follows: Number of Options Weighted-Average Exercise Price per Share Options outstanding at beginning of period 317 $ 18.97 Options exercised (17 ) $ 18.36 Options expired (1 ) $ 12.19 Options outstanding at end of period 299 $ 19.02 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Members of our Board of Directors hold various executive positions and serve as directors at other companies, including companies that are our customers. During the three months ended March 31, 2018 , we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended March 31, 2018 2017 Sales to related parties $ 73 $ 577 Number of related party customers 1 1 Our accounts receivable balance from related party customers with outstanding balances as of March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, 2018 2017 Accounts receivable from related parties $ 7 $ 27 Number of related party customers 1 1 |
Geographic and Customer Infor48
Geographic and Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Customer Information [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The following table summarizes sales, and percentages of sales, by customers that individually accounted for 10% or more of our sales for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 % of Total Sales 2017 % of Total Sales Applied Materials, Inc. $ 69,872 35.7 % $ 54,518 36.5 % LAM Research 39,726 20.3 % 32,016 21.4 % The following table summarizes the accounts receivable balances, and percentages of the total accounts receivable, for customers that individually accounted for 10% or more of accounts receivable as of March 31, 2018 and December 31, 2017 : March 31, December 31, 2018 2017 Applied Materials, Inc. $ 46,131 39.5 % $ 36,755 42.0 % LAM Research 15,957 13.7 % 5,421 6.2 % |
Revenue by timing of Transfer (
Revenue by timing of Transfer (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 The following table presents our net sales by product line: Three Months Ended March 31, 2018 2017 Semiconductor capital market $ 136,010 $ 104,648 Industrial power capital market 35,199 24,179 Global support 24,408 20,524 Total $ 195,617 $ 149,351 The following table presents our net sales by geographic region: Three Months Ended March 31, 2018 2017 Sales to external customers: United States $ 130,369 66.5 % $ 104,715 70.1 % Canada 111 0.1 % 16 0.1 % North America 130,480 66.6 % 104,731 70.2 % People's Republic of China 9,551 4.9 % 8,133 5.4 % Other Asian countries 30,307 15.5 % 21,436 14.4 % Asia 39,858 20.4 % 29,569 19.8 % Germany 19,286 9.9 % 11,854 7.9 % United Kingdom 1,948 1.0 % 3,197 2.1 % Other European countries 4,045 2.1 % — — % Europe 25,279 13.0 % 15,051 10.0 % Total $ 195,617 100.0 % $ 149,351 100.0 % The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2018 2017 Product and service revenue recognized at point in time $ 194,683 $ 148,530 Extended warranty and service contracts recognized over time 934 821 Total $ 195,617 $ 149,351 |
Basis of Presentation - Cumulat
Basis of Presentation - Cumulative Effect of Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Stockholders' Equity Attributable to Parent | $ 576,747 | $ 520,641 | |
Accounts and Other Receivables, Net, Current | 116,900 | $ 95,680 | 87,429 |
Inventories | 96,842 | 74,889 | 78,450 |
Assets, Current | 650,572 | 599,915 | 595,225 |
Deferred income tax assets | 38,741 | 35,921 | 18,841 |
Assets | 813,661 | 755,078 | 733,308 |
Accrued Income Taxes, Current | 13,011 | 6,286 | 5,365 |
Deferred Tax Liabilities, Net, Noncurrent | 6,592 | 5,699 | 4,556 |
Liabilities | 236,452 | 214,731 | 212,667 |
Retained Earnings (Accumulated Deficit) | 399,410 | 352,931 | 333,225 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 577,209 | 540,347 | 520,641 |
Liabilities and Equity | 813,661 | 755,078 | $ 733,308 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Stockholders' Equity Attributable to Parent | 572,496 | ||
Accounts and Other Receivables, Net, Current | 107,190 | ||
Inventories | 100,928 | ||
Assets, Current | 644,948 | ||
Assets | 808,037 | ||
Accrued Income Taxes, Current | 12,781 | ||
Deferred Tax Liabilities, Net, Noncurrent | 5,449 | ||
Liabilities | 235,079 | ||
Retained Earnings (Accumulated Deficit) | 395,159 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 572,958 | ||
Liabilities and Equity | 808,037 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Stockholders' Equity Attributable to Parent | (4,251) | ||
Accounts and Other Receivables, Net, Current | (9,710) | 8,251 | |
Inventories | 4,086 | (3,561) | |
Assets, Current | (5,624) | 4,690 | |
Deferred income tax assets | 0 | ||
Assets | (5,624) | 4,690 | |
Accrued Income Taxes, Current | (230) | 0 | |
Deferred Tax Liabilities, Net, Noncurrent | (1,143) | 1,143 | |
Liabilities | (1,373) | 1,143 | |
Retained Earnings (Accumulated Deficit) | (4,251) | 3,547 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (4,251) | 3,547 | |
Liabilities and Equity | $ (5,624) | 4,690 | |
Accounting Standards Update 2016-16 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts and Other Receivables, Net, Current | 0 | ||
Inventories | 0 | ||
Assets, Current | 0 | ||
Deferred income tax assets | 17,080 | ||
Assets | 17,080 | ||
Accrued Income Taxes, Current | 921 | ||
Deferred Tax Liabilities, Net, Noncurrent | 0 | ||
Liabilities | 921 | ||
Retained Earnings (Accumulated Deficit) | 16,159 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 16,159 | ||
Liabilities and Equity | $ 17,080 |
Business Acquisition - (Details
Business Acquisition - (Details) | Feb. 01, 2018 |
Trek Holding Co., LTD [Member] | Trek Holding Co., LTD [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage | 95.00% |
Business Acquisition Considerat
Business Acquisition Consideration Transferred (Details) - Excelsys Acquisition [Member] $ in Thousands | Feb. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash paid to owners | $ 11,723 |
Cash acquired | (5,651) |
Total fair value of consideration transferred | $ 6,072 |
Business Acquisition Assets Acq
Business Acquisition Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 54,906 | $ 53,812 | |
Excelsys Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | $ 2,818 | ||
Inventories | 4,037 | ||
Other current assets | 275 | ||
Property and equipment | 594 | ||
Other non-current assets | 579 | ||
Deferred income tax assets | 702 | ||
Accounts payable | (747) | ||
Other accrued expenses | (2,696) | ||
Net tangible assets acquired (liabilities) assumed | 5,562 | ||
Amortizable intangible assets: | 400 | ||
Total identifiable net assets | 5,962 | ||
Goodwill | 110 | ||
Total fair value of consideration received | 6,072 | ||
Customer Relationships [Member] | Excelsys Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets: | 200 | ||
Technology Equipment [Member] | Excelsys Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets: | $ 200 |
Business Acquisition Intangible
Business Acquisition Intangible Assets Acquired (Details) - Excelsys Acquisition [Member] $ in Thousands | Feb. 01, 2018USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortizable intangible assets: | $ 400 |
Tradename [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortizable intangible assets: | $ 200 |
Useful Life | 10 years |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortizable intangible assets: | $ 200 |
Technology Equipment [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 10 years |
Revenue - Extended Warranty Rev
Revenue - Extended Warranty Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 195,617 | $ 149,351 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 934 | 821 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | $ 194,683 | $ 148,530 |
Revenue Revenue by product li56
Revenue Revenue by product line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Product | $ 171,209 | $ 128,827 |
Services | 24,408 | 20,524 |
Revenue, Net | 195,617 | 149,351 |
CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 111 | 16 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 130,369 | 104,715 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 130,480 | 104,731 |
CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 9,551 | 8,133 |
Other Asian Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 30,307 | 21,436 |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 39,858 | 29,569 |
GERMANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 19,286 | 11,854 |
UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 1,948 | 3,197 |
Other European Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 4,045 | 0 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Net | 25,279 | 15,051 |
Semiconductor Capital Marker [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Product | 136,010 | 104,648 |
Industrial Power Capital Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Product | $ 35,199 | $ 24,179 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.10% | 0.10% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 66.50% | 70.10% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 66.60% | 70.20% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 4.90% | 5.40% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Other Asian Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 15.50% | 14.40% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 20.40% | 19.80% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 9.90% | 7.90% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 2.10% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Other European Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 2.10% | 0.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 10.00% |
Revenue ASC 606 Financial State
Revenue ASC 606 Financial Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts and Other Receivables, Net, Current | $ 116,900 | $ 95,680 | $ 87,429 | |
Inventories | 96,842 | 74,889 | 78,450 | |
Assets, Current | 650,572 | 599,915 | 595,225 | |
Assets | 813,661 | 755,078 | 733,308 | |
Accrued Income Taxes, Current | 13,011 | 6,286 | 5,365 | |
Liabilities, Current | 126,634 | 106,119 | ||
Deferred Tax Liabilities, Net, Noncurrent | 6,592 | 5,699 | 4,556 | |
Liabilities | 236,452 | 214,731 | 212,667 | |
Retained Earnings (Accumulated Deficit) | 399,410 | 352,931 | 333,225 | |
Stockholders' Equity Attributable to Parent | 576,747 | 520,641 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 577,209 | 540,347 | 520,641 | |
Liabilities and Equity | 813,661 | 755,078 | $ 733,308 | |
Income Statement [Abstract] | ||||
Product | 171,209 | $ 128,827 | ||
Revenue, Net | 195,617 | 149,351 | ||
Product | 79,806 | 60,117 | ||
Cost of Goods and Services Sold | 91,972 | 70,520 | ||
Gross Profit | 103,645 | 78,831 | ||
Operating Income (Loss) | 56,103 | 43,268 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 56,129 | 40,060 | ||
Provision for income taxes | 9,759 | 4,619 | ||
Income from continuing operations attributable to Advanced Energy Industries, Inc. | 46,370 | 35,441 | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 46,510 | 37,535 | ||
Net Income (Loss) Attributable to Parent | 46,479 | 37,535 | ||
Statement of Cash Flows [Abstract] | ||||
Increase (Decrease) in Accounts Receivable | 17,457 | 431 | ||
Increase (Decrease) in Inventories | 17,113 | 8,047 | ||
Increase (Decrease) in Income Taxes | 5,642 | 3,286 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 34,885 | $ 42,659 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Income Statement [Abstract] | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (704) | |||
Statement of Cash Flows [Abstract] | ||||
Increase (Decrease) in Accounts Receivable | 1,460 | |||
Increase (Decrease) in Inventories | (526) | |||
Increase (Decrease) in Income Taxes | (230) | |||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 0 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts and Other Receivables, Net, Current | 107,190 | |||
Inventories | 100,928 | |||
Assets, Current | 644,948 | |||
Assets | 808,037 | |||
Accrued Income Taxes, Current | 12,781 | |||
Liabilities, Current | 126,404 | |||
Deferred Tax Liabilities, Net, Noncurrent | 5,449 | |||
Liabilities | 235,079 | |||
Retained Earnings (Accumulated Deficit) | 395,159 | |||
Stockholders' Equity Attributable to Parent | 572,496 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 572,958 | |||
Liabilities and Equity | 808,037 | |||
Income Statement [Abstract] | ||||
Product | 169,749 | |||
Revenue, Net | 194,157 | |||
Product | 79,280 | |||
Cost of Goods and Services Sold | 91,446 | |||
Gross Profit | 102,711 | |||
Operating Income (Loss) | 55,169 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 55,195 | |||
Provision for income taxes | 9,529 | |||
Income from continuing operations attributable to Advanced Energy Industries, Inc. | 45,666 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 45,806 | |||
Net Income (Loss) Attributable to Parent | 45,775 | |||
Statement of Cash Flows [Abstract] | ||||
Increase (Decrease) in Accounts Receivable | 15,997 | |||
Increase (Decrease) in Inventories | 17,639 | |||
Increase (Decrease) in Income Taxes | 5,412 | |||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 34,885 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts and Other Receivables, Net, Current | (9,710) | 8,251 | ||
Inventories | 4,086 | (3,561) | ||
Assets, Current | (5,624) | 4,690 | ||
Assets | (5,624) | 4,690 | ||
Accrued Income Taxes, Current | (230) | 0 | ||
Liabilities, Current | (230) | |||
Deferred Tax Liabilities, Net, Noncurrent | (1,143) | 1,143 | ||
Liabilities | (1,373) | 1,143 | ||
Retained Earnings (Accumulated Deficit) | (4,251) | 3,547 | ||
Stockholders' Equity Attributable to Parent | (4,251) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (4,251) | 3,547 | ||
Liabilities and Equity | (5,624) | $ 4,690 | ||
Income Statement [Abstract] | ||||
Product | (1,460) | |||
Revenue, Net | (1,460) | |||
Product | (526) | |||
Cost of Goods and Services Sold | (526) | |||
Gross Profit | (934) | |||
Operating Income (Loss) | (934) | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (934) | |||
Provision for income taxes | (230) | |||
Income from continuing operations attributable to Advanced Energy Industries, Inc. | (704) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (704) | |||
Net Income (Loss) Attributable to Parent | $ (704) |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue [Abstract] | ||
Deferred Service Revenue | $ 36.3 | $ 37.5 |
Discontinued Operations Stateme
Discontinued Operations Statement of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | $ 0 | $ 0 |
Cost of sales | 112 | (828) |
Total operating income (including restructuring) | (61) | (1,120) |
Operating (loss) income from discontinued operations | (51) | 1,948 |
Other income | 124 | 163 |
(Benefit) provision for income taxes | 73 | 2,111 |
(Benefit) provision for income taxes | (67) | 17 |
Income from discontinued operations, net of income taxes | $ 140 | $ 2,094 |
Discontinued Operations Assets
Discontinued Operations Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 7,654 | $ 7,754 | $ 6,339 |
Accounts and other receivables, net | 1,379 | 1,363 | |
Inventories | 605 | 418 | |
Current assets of discontinued operations | 9,638 | 9,535 | |
Other assets | 71 | 72 | |
Deferred income tax assets | 11,013 | 11,013 | |
Non-current assets of discontinued operations | 11,084 | 11,085 | |
Accounts payable and other accrued expenses | 517 | 545 | |
Accrued warranty | 6,755 | 7,305 | |
Current liabilities of discontinued operations | 7,272 | 7,850 | |
Accrued warranty | 14,109 | 15,112 | |
Other liabilities | 170 | 165 | |
Non-current liabilities of discontinued operations | $ 14,279 | $ 15,277 |
Income Taxes Schedule of tax ex
Income Taxes Schedule of tax expense and the effective tax rate for our income from continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 35.00% |
Income from continuing operations, before income taxes | $ 56,129 | $ 40,060 |
Provision for income taxes | $ 9,759 | $ 4,619 |
Effective tax rate | 17.40% | 11.50% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Federal statutory income tax rate | 21.00% | 35.00% |
Earnings Per Share Reconciliati
Earnings Per Share Reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations attributable to Advanced Energy Industries, Inc. | $ 46,370 | $ 35,441 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 31 | 0 |
Income from continuing operations attributable to noncontrolling interest | 31 | 0 |
Income from continuing operations, net of income taxes | 46,339 | 35,441 |
Net Income (Loss) Attributable to Parent | $ 46,479 | $ 37,535 |
Basic weighted-average common shares outstanding | 39,619 | 39,738 |
Assumed exercise of dilutive stock options and restricted stock units | 376 | 441 |
Diluted weighted-average common shares outstanding | 39,995 | 40,179 |
Income from Continuing Operations: | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.17 | $ 0.89 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 1.16 | $ 0.88 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of stock options and restricted units were excluded in the computation of diluted earnings per share because they were anti-dilutive (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted units excluded from the computation of diluted earnings per share because they were anti-dilutive | 2 | 1 |
Earnings Per Share Stock Buybac
Earnings Per Share Stock Buyback (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Apr. 30, 2018 | Aug. 31, 2017 | Mar. 31, 2018 | Sep. 16, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount | $ 50 | $ 150 | ||
Treasury stock, common, value | 12.8 | |||
Treasury stock, shares, acquired (in shares) | 180,942 | |||
Treasury stock acquired, average cost per share (in dollars per share) | $ 70.47 | |||
Remaining authorized repurchase amount | 57.3 | |||
Stock Repurchase Plan and Agreement [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Remaining authorized repurchase amount | $ 37.2 | |||
Subsequent Event [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, common, value | $ 15.7 | |||
Treasury stock, shares, acquired (in shares) | 254,015 | |||
Treasury stock acquired, average cost per share (in dollars per share) | $ 62.01 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 3,197 | $ 3,104 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 3,196 | $ 3,103 |
Marketable Securities The matur
Marketable Securities The maturities of our marketable securities available for sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 3,197 | $ 3,104 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 3,196 | $ 3,103 |
Certificates of Deposit [Member] | Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturities of marketable securites, by date | Apr. 10, 2018 | |
Certificates of Deposit [Member] | Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturities of marketable securites, by date | Mar. 18, 2019 |
Marketable Securities Compositi
Marketable Securities Composition of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 3,197 | $ 3,104 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 3,196 | $ 3,103 |
Marketable Securities Fair Valu
Marketable Securities Fair Value of our Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | $ 3,197 | $ 3,104 |
Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 3,197 | 3,104 |
Fair Value, Inputs, Level 3 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | $ 0 | $ 0 |
Derivative Financial Instrume70
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 16.3 | |
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 3.5 |
Derivative Financial Instrume71
Derivative Financial Instruments Gain (loss) on foreign currency exchange contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (750) | $ 39 |
Accounts and Other Receivable72
Accounts and Other Receivables Components of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts and Other Receivables, Net, Current | $ 116,900 | $ 95,680 | $ 87,429 |
Billed Revenues [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts and Other Receivables, Net, Current | 107,190 | 87,429 | |
Unbilled Revenues [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts and Other Receivables, Net, Current | $ 9,710 | $ 0 |
Inventories Components of inven
Inventories Components of inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Parts and raw materials | $ 71,284 | $ 58,567 | |
Work in process | 13,054 | 7,986 | |
Finished goods | 12,504 | 11,897 | |
Inventory, Net | $ 96,842 | $ 74,889 | $ 78,450 |
Property and Equipment Details
Property and Equipment Details of property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 81,756 | $ 85,183 |
Less: Accumulated depreciation | (61,050) | (67,388) |
Property and equipment, net | 20,706 | 17,795 |
Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,846 | 1,788 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 37,886 | 36,579 |
Computer and Communication Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,391 | 26,819 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,479 | 1,568 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 273 | 341 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,156 | 17,286 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 725 | $ 802 |
Property and Equipment Deprecia
Property and Equipment Depreciation expense recorded in continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,604 | $ 1,025 |
Goodwill Schedule of the change
Goodwill Schedule of the changes in goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 53,812 |
Additions | 110 |
Effect of Changes in Exchange Rates | 984 |
Ending Balance | $ 54,906 |
Intangible Assets Schedule of o
Intangible Assets Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 52,989 | $ 51,359 |
Finite-Lived Intangible Assets, Accumulated Amortization | (19,544) | (17,860) |
Finite-lived intangible assets, net | 33,445 | 33,499 |
Technology-based [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 19,397 | 18,702 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,192) | (5,559) |
Finite-lived intangible assets, net | 13,205 | 13,143 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 30,885 | 30,034 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,763) | (10,787) |
Finite-lived intangible assets, net | 19,122 | 19,247 |
Trademarks and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,707 | 2,623 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,589) | (1,514) |
Finite-lived intangible assets, net | $ 1,118 | $ 1,109 |
Intangible Assets Schedule of a
Intangible Assets Schedule of amortization expense relating to other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 52,989 | $ 51,359 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (19,544) | (17,860) | |
Finite-lived intangible assets, net | 33,445 | 33,499 | |
Amortization expense | 1,257 | $ 962 | |
Technology Equipment [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 19,397 | 18,702 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,192) | (5,559) | |
Finite-lived intangible assets, net | $ 13,205 | $ 13,143 |
Intangible Assets Schedule of F
Intangible Assets Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 (remaining) | $ 3,778 | |
2,017 | 5,019 | |
2,018 | 4,313 | |
2,019 | 4,207 | |
2,020 | 3,938 | |
Thereafter | 12,190 | |
Finite-lived intangible assets, net | $ 33,445 | $ 33,499 |
Warranties Narrative (Details)
Warranties Narrative (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum [Member] | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty Term | 12 months |
Maximum [Member] | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty Term | 24 months |
Warranties Changes in accrued p
Warranties Changes in accrued product warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balances at beginning of period | $ 2,312 | $ 2,329 |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 92 | 0 |
Increases to accruals related to sales during the period | 178 | 2,181 |
Product Warranty Expense | (506) | (389) |
Product Warranty Accrual, Foreign Exchange Impact | 8 | 5 |
Balances at end of period | $ 2,084 | $ 4,126 |
Pension Liability (Details)
Pension Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (20,490) | $ (19,797) | |
Defined Benefit Plan, Interest Cost | 218 | $ 264 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (161) | (140) | |
Pension Cost (Reversal of Cost) | 193 | $ 194 | |
Payments through April 30, 2024 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 900 | ||
Payments from May 1, 2024 through November 30, 2033 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 1,900 |
Pension Liability Net Periodic
Pension Liability Net Periodic Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ 161 | $ 140 |
Defined Benefit Plan, Interest Cost | 218 | 264 |
Defined Benefit Plan, Amortization of Gain (Loss) | 136 | 70 |
Pension Cost (Reversal of Cost) | $ 193 | $ 194 |
Pension Liability Net Pension L
Pension Liability Net Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (20,490) | $ (19,797) |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of stock-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 4,494 | $ 3,398 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary of stock option activity (Details) - Time Based [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 299 | 317 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 19.02 | $ 18.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (17) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 18.36 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (1) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 12.19 |
Stock-Based Compensation Summ87
Stock-Based Compensation Summary of non-vested Restricted Stock Units activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 69.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 47.51 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 336 | 386 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 160 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 52.59 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (155) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (55) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 59.64 | $ 51.06 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) shares in Millions | Mar. 31, 2018shares |
2017 OMNIBUS Incentive Plan [Member] [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2.7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2018USD ($) |
Other Commitments [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 177.4 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Companies | Mar. 31, 2017Companies | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | 1 | 1 | |
Accounts Receivable, Related Parties | $ | $ 7 | $ 27 | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | 1 | 1 |
Related Party Transactions Sche
Related Party Transactions Schedule of related party transactions (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Companies | Mar. 31, 2017USD ($)Companies | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties | $ | $ 7 | $ 27 | |
Sales - related parties | $ | $ 73 | $ 577 | |
Related Party Transactions, Number of Companies | Companies | 1 | 1 | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | Companies | 1 | 1 |
Geographic and Customer Infor92
Geographic and Customer Information Significant Customer Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Product | $ 171,209 | $ 128,827 | |
Applied Materials, Inc. [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Product | $ 69,872 | $ 54,518 | |
Concentration Risk, Percentage | 35.70% | 36.50% | |
Lam Research [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Product | $ 39,726 | $ 32,016 | |
Concentration Risk, Percentage | 20.30% | 21.40% | |
Accounts Receivable [Member] | Applied Materials, Inc. [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 39.50% | 42.00% | |
Concentration Risk, Amount | $ 46,131 | $ 36,755 | |
Accounts Receivable [Member] | Lam Research [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.70% | 6.20% | |
Concentration Risk, Amount | $ 15,957 | $ 5,421 |
Credit Facility (Details)
Credit Facility (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Interest Expense | $ 0.1 |
Bank of America N.A. [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 150 |
Debt, Weighted Average Interest Rate | 3.13% |
Funded Debt To EBITDA Ratio | 2 |
London Interbank Offered Rate (LIBOR) [Member] | Bank of America N.A. [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Funded Debt To EBITDA Ratio [Member] | Bank of America N.A. [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |