Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity Registrant Name | ADVANCED ENERGY INDUSTRIES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-26966 | |
Entity Tax Identification Number | 84-0846841 | |
Entity Address, Address Line One | 1625 Sharp Point Drive | |
Entity Address, City or Town | Fort Collins | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80525 | |
City Area Code | 970 | |
Local Phone Number | 221-4670 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | AEIS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,308,569 | |
Entity Central Index Key | 0000927003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 359,070 | $ 349,301 |
Marketable securities | 746 | 2,470 |
Accounts and other receivable, net of allowances of $2,012 and $1,856 respectively | 93,045 | 100,442 |
Inventories | 92,740 | 97,987 |
Income taxes receivable | 4,578 | 2,220 |
Other current assets | 12,776 | 10,173 |
Current assets from discontinued operations | 67 | 5,855 |
Total current assets | 563,022 | 568,448 |
Property and equipment, net | 34,692 | 31,269 |
Operating lease right-of-use assets | 52,465 | |
Deposits and other assets | 11,404 | 6,874 |
Goodwill | 91,637 | 101,900 |
Intangible assets, net | 68,243 | 54,910 |
Deferred income tax assets | 40,464 | 47,099 |
Non-current assets from discontinued operations | 3,841 | 5,984 |
TOTAL ASSETS | 865,768 | 816,484 |
Current liabilities: | ||
Accounts payable | 37,281 | 39,646 |
Income taxes payable | 6,592 | 13,258 |
Accrued payroll and employee benefits | 20,302 | 21,775 |
Other accrued expenses | 17,063 | 22,999 |
Customer deposits and other | 4,875 | 7,345 |
Current portion of operating lease liability | 9,572 | |
Current liabilities from discontinued operations | 812 | 5,286 |
Total current liabilities | 96,497 | 110,309 |
Operating lease liability | 44,419 | |
LONG-TERM LIABILITIES: | ||
Deferred income tax liabilities | 10,397 | 6,988 |
Uncertain tax positions | 10,160 | 14,318 |
Long term deferred revenue | 8,472 | 29,108 |
Other long-term liabilities | 37,418 | 37,744 |
Non-current liabilities from discontinued operations | 2,356 | 10,715 |
Total liabilities | 209,719 | 209,182 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 1,000 shares authorized, none issued and outstanding | ||
Common stock, $0.001 par value, 70,000 shares authorized; 38,305 and 38,164 issued and outstanding, respectively | 38 | 38 |
Additional paid-in capital | 100,512 | 97,418 |
Accumulated other comprehensive loss | (4,871) | (3,449) |
Retained earnings | 559,839 | 512,783 |
Advanced Energy stockholders' equity | 655,518 | 606,790 |
Noncontrolling interest | 531 | 512 |
Total stockholders' equity | 656,049 | 607,302 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 865,768 | $ 816,484 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowances | $ 2,012 | $ 1,856 |
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 | 0 |
Preferred Stock, Shares Outstanding | 0 | 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) | 38,305,000 | 38,164,000 |
Common stock, shares outstanding (in shares) | 38,305,000 | 38,164,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales, net: | ||||
Total sales, net | $ 134,810 | $ 196,032 | $ 275,553 | $ 391,649 |
Cost of sales: | ||||
Total cost of sales | 70,684 | 94,797 | 145,687 | 186,769 |
Gross profit | 64,126 | 101,235 | 129,866 | 204,880 |
Operating expenses: | ||||
Research and development | 21,840 | 19,195 | 43,129 | 36,832 |
Selling, general and administrative | 27,612 | 24,758 | 56,626 | 53,406 |
Amortization of intangible assets | 1,874 | 1,264 | 3,847 | 2,521 |
Restructuring expense | 1,795 | 3,468 | ||
Total operating expenses | 53,121 | 45,217 | 107,070 | 92,759 |
Operating income | 11,005 | 56,018 | 22,796 | 112,121 |
Other income (expense), net | 15,545 | (485) | 16,288 | (459) |
Income from continuing operations, before income taxes | 26,550 | 55,533 | 39,084 | 111,662 |
Provision for income taxes | 3,177 | 9,133 | 324 | 18,892 |
Income from continuing operations | 23,373 | 46,400 | 38,760 | 92,770 |
Income from discontinued operations, net of income taxes | 8,324 | 5 | 8,315 | 145 |
Net income | 31,697 | 46,405 | 47,075 | 92,915 |
Income from continuing operations attributable to noncontrolling interest | 11 | 44 | 19 | 75 |
Net income attributable to Advanced Energy Industries, Inc. | $ 31,686 | $ 46,361 | $ 47,056 | $ 92,840 |
Basic weighted-average common shares outstanding | 38,274 | 39,349 | 38,236 | 39,484 |
Diluted weighted-average common shares outstanding | 38,462 | 39,603 | 38,443 | 39,807 |
Continuing operations: Basic earnings per share | $ 0.61 | $ 1.18 | $ 1.01 | $ 2.35 |
Continuing operations: Diluted earnings per share | 0.61 | 1.17 | 1.01 | 2.33 |
Discontinued operations: Basic earnings per share | 0.22 | 0.22 | ||
Discontinued operations: Diluted earnings per share | 0.22 | 0.22 | ||
Basic earnings per share | 0.83 | 1.18 | 1.23 | 2.35 |
Diluted earnings per share | $ 0.82 | $ 1.17 | $ 1.22 | $ 2.33 |
Product [Member] | ||||
Sales, net: | ||||
Total sales, net | $ 106,193 | $ 169,235 | $ 218,305 | $ 340,444 |
Cost of sales: | ||||
Total cost of sales | 56,113 | 80,953 | 116,914 | 160,759 |
Service [Member] | ||||
Sales, net: | ||||
Total sales, net | 28,617 | 26,797 | 57,248 | 51,205 |
Cost of sales: | ||||
Total cost of sales | $ 14,571 | $ 13,844 | $ 28,773 | $ 26,010 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 31,697 | $ 46,405 | $ 47,075 | $ 92,915 |
Other comprehensive income: | ||||
Foreign currency translation | 543 | (6,416) | (1,432) | (3,944) |
Minimum benefit retirement liability, net of income taxes | (63) | (132) | (10) | 36 |
Comprehensive income | 32,303 | 40,121 | 45,653 | 88,935 |
Comprehensive income attributable to noncontrolling interest | 11 | 44 | 19 | 75 |
Comprehensive income attributable to Advanced Energy Industries, Inc. | $ 32,292 | $ 40,077 | $ 45,634 | $ 88,860 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Foreign Currency Translation | Minimum Benefit Retirement Liability | Retained Earnings | Non-controlling Interest | Total |
Beginning Balance at Dec. 31, 2017 | $ 40 | $ 184,843 | $ 4,695 | $ (2,162) | $ 333,225 | $ 520,641 | |
Beginning Balance (in shares) at Dec. 31, 2017 | 39,604,000 | ||||||
Non-controlling interest from acquisition | $ 431 | 431 | |||||
Stock issued from equity plans | (4,127) | (4,127) | |||||
Stock issued from equity plans (in shares) | 113,000 | ||||||
Stock-based compensation | 4,494 | 4,494 | |||||
Stock buyback | (12,750) | (12,750) | |||||
Stock buyback (in shares) | (181,000) | ||||||
Foreign currency translation | 2,472 | 2,472 | |||||
Minimum benefit retirement liability | (168) | (168) | |||||
Net income | 46,479 | ||||||
Net Income, Non-controlling Interest | 31 | 46,510 | |||||
Total comprehensive income (loss) | 2,472 | (168) | 46,479 | 31 | 48,814 | ||
Total comprehensive income (loss), Non-controlling interest | 2,472 | (168) | 46,479 | 31 | 48,814 | ||
Ending Balance at Mar. 31, 2018 | $ 40 | 172,460 | 7,167 | (2,330) | 399,410 | 462 | 577,209 |
Ending Balance (in shares) at Mar. 31, 2018 | 39,536,000 | ||||||
Beginning Balance at Dec. 31, 2017 | $ 40 | 184,843 | 4,695 | (2,162) | 333,225 | 520,641 | |
Beginning Balance (in shares) at Dec. 31, 2017 | 39,604,000 | ||||||
Stock buyback | (38,059) | ||||||
Foreign currency translation | (3,944) | ||||||
Minimum benefit retirement liability | (36) | ||||||
Net income | 92,840 | ||||||
Net Income, Non-controlling Interest | 92,915 | ||||||
Total comprehensive income (loss) | 88,935 | ||||||
Total comprehensive income (loss), Non-controlling interest | 88,935 | ||||||
Ending Balance at Jun. 30, 2018 | $ 39 | 150,647 | 751 | (2,198) | 445,771 | 506 | 595,516 |
Ending Balance (in shares) at Jun. 30, 2018 | 39,240,000 | ||||||
Beginning Balance at Mar. 31, 2018 | $ 40 | 172,460 | 7,167 | (2,330) | 399,410 | 462 | 577,209 |
Beginning Balance (in shares) at Mar. 31, 2018 | 39,536,000 | ||||||
Stock issued from equity plans | 1,552 | 1,552 | |||||
Stock issued from equity plans (in shares) | 111,000 | ||||||
Stock-based compensation | 1,943 | 1,943 | |||||
Stock buyback | $ (1) | (25,308) | (25,309) | ||||
Stock buyback (in shares) | (407,000) | ||||||
Foreign currency translation | (6,416) | (6,416) | |||||
Minimum benefit retirement liability | 132 | 132 | |||||
Net income | 46,361 | 46,361 | |||||
Net Income, Non-controlling Interest | 44 | 46,405 | |||||
Total comprehensive income (loss) | (6,416) | 132 | 46,361 | 44 | 40,121 | ||
Total comprehensive income (loss), Non-controlling interest | (6,416) | 132 | 46,361 | 44 | 40,121 | ||
Ending Balance at Jun. 30, 2018 | $ 39 | 150,647 | 751 | (2,198) | 445,771 | 506 | 595,516 |
Ending Balance (in shares) at Jun. 30, 2018 | 39,240,000 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 38 | 97,418 | (590) | (2,859) | 512,783 | 512 | $ 607,302 |
Beginning Balance (in shares) at Dec. 31, 2018 | 38,164,000 | 38,164,000 | |||||
Stock issued from equity plans | (1,707) | $ (1,707) | |||||
Stock issued from equity plans (in shares) | 72,000 | ||||||
Stock-based compensation | 3,199 | ||||||
Foreign currency translation | (1,975) | (1,975) | |||||
Minimum benefit retirement liability | (53) | (53) | |||||
Net income | 15,370 | ||||||
Net Income, Non-controlling Interest | 8 | 15,378 | |||||
Total comprehensive income (loss) | (1,975) | (53) | 15,370 | 8 | 13,350 | ||
Total comprehensive income (loss), Non-controlling interest | (1,975) | (53) | 15,370 | 8 | 13,350 | ||
Ending Balance at Mar. 31, 2019 | $ 38 | 98,910 | (2,565) | (2,912) | 528,153 | 520 | 622,144 |
Ending Balance (in shares) at Mar. 31, 2019 | 38,236,000 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 38 | 97,418 | (590) | (2,859) | 512,783 | 512 | $ 607,302 |
Beginning Balance (in shares) at Dec. 31, 2018 | 38,164,000 | 38,164,000 | |||||
Foreign currency translation | $ (1,432) | ||||||
Minimum benefit retirement liability | 10 | ||||||
Net income | 47,056 | ||||||
Net Income, Non-controlling Interest | 47,075 | ||||||
Total comprehensive income (loss) | 45,653 | ||||||
Total comprehensive income (loss), Non-controlling interest | 45,653 | ||||||
Ending Balance at Jun. 30, 2019 | $ 38 | 100,512 | (2,022) | (2,849) | 559,839 | 531 | $ 656,049 |
Ending Balance (in shares) at Jun. 30, 2019 | 38,305,000 | 38,305,000 | |||||
Beginning Balance at Mar. 31, 2019 | $ 38 | 98,910 | (2,565) | (2,912) | 528,153 | 520 | $ 622,144 |
Beginning Balance (in shares) at Mar. 31, 2019 | 38,236,000 | ||||||
Stock issued from equity plans | 665 | 665 | |||||
Stock issued from equity plans (in shares) | 69,000 | ||||||
Stock-based compensation | 937 | 937 | |||||
Foreign currency translation | 543 | 543 | |||||
Minimum benefit retirement liability | 63 | 63 | |||||
Net income | 31,686 | 31,686 | |||||
Net Income, Non-controlling Interest | 11 | 31,697 | |||||
Total comprehensive income (loss) | 543 | 63 | 31,686 | 11 | 32,303 | ||
Total comprehensive income (loss), Non-controlling interest | 543 | 63 | 31,686 | 11 | 32,303 | ||
Ending Balance at Jun. 30, 2019 | $ 38 | $ 100,512 | $ (2,022) | $ (2,849) | $ 559,839 | $ 531 | $ 656,049 |
Ending Balance (in shares) at Jun. 30, 2019 | 38,305,000 | 38,305,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 47,075 | $ 92,915 |
Income from discontinued operations, net of income taxes | 8,315 | 145 |
Income from continuing operations, net of income taxes | 38,760 | 92,770 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,396 | 5,917 |
Stock-based compensation expense | 4,136 | 6,437 |
Provision for deferred income taxes | 4,509 | (96) |
Gain on sale of central inverter service business | (14,804) | |
Net loss on disposal of assets | 90 | 158 |
Changes in operating assets and liabilities, net of assets acquired: | ||
Accounts and other receivable, net | 6,554 | (8,816) |
Inventories | 1,030 | (31,620) |
Other assets | (6,852) | 1,739 |
Accounts payable | (2,680) | 8,555 |
Other liabilities and accrued expenses | (7,627) | 5,029 |
Income taxes | (13,182) | 7,831 |
Net cash provided by operating activities from continuing operations | 18,330 | 87,904 |
Net cash used in operating activities from discontinued operations | (1,914) | (2,450) |
Net cash provided by operating activities | 16,416 | 85,454 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (91) | |
Proceeds from sale of marketable securities | 1,742 | 4 |
Acquisitions, net of cash acquired | (9,072) | |
Issuance of notes receivable | (2,800) | |
Purchases of property and equipment | (8,866) | (9,426) |
Net cash used in investing activities from continuing operations | (9,924) | (18,585) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Purchase and retirement of common stock | (38,059) | |
Net payments related to stock-based award activities | (1,042) | (2,576) |
Net cash used in financing activities from continuing operations | (1,042) | (40,635) |
EFFECT OF CURRENCY TRANSLATION ON CASH | (932) | (1,160) |
INCREASE IN CASH AND CASH EQUIVALENTS | 4,518 | 25,074 |
CASH AND CASH EQUIVALENTS, beginning of period | 354,552 | 415,037 |
CASH AND CASH EQUIVALENTS, end of period | 359,070 | 440,111 |
Less cash and cash equivalents from discontinued operations | 7,112 | |
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period | 359,070 | 432,999 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 298 | 114 |
Cash paid for income taxes | 11,933 | 12,216 |
Cash received for refunds of income taxes | 1,536 | 703 |
Cash held in banks outside the United States | $ 185,012 | $ 262,064 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | |
BASIS OF PRESENTATION | NOTE 1. 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 precision power products that transform, refine, and modify the raw electrical power from the utility and convert it into various types of highly-controllable usable power that is predictable, repeatable and customizable. Our power solutions enable innovation in complex semiconductor and thin film plasma processes such as dry etch, strip, chemical and physical deposition, high and low voltage applications such as process control, analytical instrumentation and medical equipment, and in temperature-critical thermal applications such as material and chemical processing. We also supply related instrumentation products for advanced temperature measurement and control, electrostatic instrumentation products for test and measurement applications, and gas sensing and monitoring solutions for multiple industrial markets. Our network of service support centers provide local repair and field service capability in key regions as well as provide upgrades and refurbishment services, and sales of used equipment to businesses that use our products. As of December 31, 2015, we discontinued our engineering, production, and sales of our Inverter product line. As such, all Inverter product revenues, costs, assets and liabilities are reported in Discontinued Operations for all periods presented herein, and we currently report as a single unit. See Note 4. Disposed and 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 June 30, 2019, and the results of our operations and cash flows for the three and six months ended June 30, 2019 and 2018. 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, 2018 and other financial information filed with the SEC. Estimates and Assumptions The preparation of our 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 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, right-of-use assets and related liabilities, acquisitions, asset valuations, 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, making it possible that a change in these estimates could occur in the near term. 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, 2018. See Note 16. Leases 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 June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)", Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This ASU changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. We are currently assessing the impact ASU 2016-13 will have on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)" ("ASU 2018-13"). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. ASU 2018-13 is effective for fiscal years ending after December 15, 2019 and shall be applied to all periods presented on a retrospective basis. Early adoption is permitted. We are currently assessing and do not believe ASU 2018-13 will have a significant impact on our fair value measurements disclosure requirements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)" ("ASU 2018-14"). ASU 2018-14 eliminates requirements for certain disclosures and requires additional disclosures under defined benefit pension plans and other post-retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and shall be applied to all periods presented on a retrospective basis. Early adoption is permitted. We are currently assessing and do not believe ASU 2018-14 will have a significant impact on our defined benefit plan disclosure requirements. Recently adopted accounting pronouncements 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 the Tax Act to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. We adopted ASU 2018-02 during the first quarter of fiscal year 2019 which did not materially impact on our Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718)", Improvements to Non-employee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. We adopted ASU 2018-07 during the first quarter of fiscal year 2019 which did not materially impact on our Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815)", Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). This ASU simplifies certain aspects of hedge accounting and results in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and the interim periods within those fiscal years. We adopted ASU 2017-12 during the first quarter of fiscal year 2019 using the modified retrospective basis. The adoption of the provisions of ASU 2017-12 did not materially impact the Company’s Consolidated Balance Sheet or Statement of Operations. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," to increase transparency and comparability among organizations by recognizing lease right-of-use 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. We adopted ASU 2016-02 using the modified retrospective approach and recorded $38.2 million of operating lease right-of-use assets and $38.4 million of operating lease liabilities as the cumulative-effect in the first quarter of fiscal year 2019. As of June 30, 2019, we have recorded $52.5 million of operating lease right-of-use assets and $54.0 million of operating lease liabilities. The adoption of ASU 2016-02 did not materially impact the Company’s Consolidated Statement of Operations or Consolidated Statement of Cash Flows for the period ended June 30, 2019. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisitions | |
BUSINESS ACQUISITIONS | NOTE 2. BUSINESS ACQUISITIONS Artesyn’s Embedded Power Business In May 2019, we entered into a Stock Purchase Agreement (“Acquisition Agreement”) to acquire Artesyn Embedded Technologies, Inc.’s (“Artesyn”) Embedded Power business. Pursuant to the Acquisition Agreement, seller and Artesyn have agreed to complete a business reorganization transaction (the “Corporate Reorganization”) whereby Artesyn’s embedded computing and consumer businesses would be divested from Artesyn. Following the completion of the Corporate Reorganization, we would acquire Artesyn’s remaining embedded power business through the acquisition of all Artesyn’s issued and outstanding shares from seller for a base purchase price of $400.0 million consisting of approximately $364.0 million in cash and the assumption of approximately $36.0 million of liabilities, subject to final adjustments, including working capital as of the closing. Completion of the acquisition of Artesyn is subject to customary closing conditions, including (i) the completion of the Corporate Reorganization, (ii) the absence of injunctions or other legal restraints prohibiting the transaction, (iii) expiration or early termination of any regulatory waiting periods and receipt of required regulatory approvals, (iv) and other conditions such as, absence of a material adverse effect and accuracy of representations and warranties provided. Our obligations under the Acquisition Agreement are not subject to any financing condition; however, if we are unable to obtain the requisite financing to complete the acquisition of Artesyn’s issued and outstanding shares, a $20.0 million reverse break fee may be due and payable to the seller. In connection with the Acquisition Agreement, we entered into a non-binding commitment letter (the “Commitment Letter”) for senior unsecured debt dated as of May 14, 2019, with Bank of America, N.A. and other financial institutions (together the “Commitment Parties”), pursuant to which the Commitment Parties have committed to provide the Company with debt financing in the aggregate principal amount of up to $500.0 million, consisting of a $350.0 million senior unsecured term loan A facility, with a term of 5 years , and $150.0 million of a senior unsecured revolving facility. The Commitment Parties’ obligations under the Commitment Letter are subject to certain conditions, including the completion of the acquisition of Artesyn, the negotiation and execution of definitive documentation consistent with the Commitment Letter; delivery of certain financial information, the absence of a material adverse event, accuracy of specified representations and warranties and other customary closing conditions. LumaSense Technologies Holdings, Inc. In September 2018, we acquired LumaSense Technologies Holdings, Inc. ("LumaSense"), a privately held company with primary operations in Santa Clara, California, Frankfurt, Germany, and Ballerup, Denmark for a net purchase price of $84.7 million in cash. The components of the fair value of the total consideration transferred for our acquisition is as follows: LumaSense Cash paid for acquisition $ 94,946 Cash acquired (10,262) Total fair value of consideration transferred $ 84,684 The following table summarizes estimated fair values of the assets acquired and liabilities assumed from our acquisition, including measurement period adjustments: Preliminary: September 1, 2018 Measurement Period Adjustments Adjusted: September 1, 2018 Accounts and other receivable, net $ 7,167 $ - $ 7,167 Inventories 9,372 - 9,372 Property and equipment 1,353 - 1,353 Goodwill 48,032 (10,215) 37,817 Intangible assets 26,000 17,240 43,240 Deferred income tax assets 8,116 (1,785) 6,331 Other assets 5,126 - 5,126 Total assets acquired 105,166 5,240 110,406 Accounts payable 5,734 - 5,734 Deferred income tax liabilities 7,984 3,769 11,753 Other liabilities 6,764 1,471 8,235 Total liabilities assumed 20,482 5,240 25,722 Total fair value of net assets acquired $ 84,684 $ - $ 84,684 A summary of the intangible assets acquired, amortization method and estimated useful lives are as follows: Amortization LumaSense Method Useful Life Technology $ 35,530 Straight-line 15 Customer relationships 4,360 Straight-line 10 Tradename 3,350 Straight-line 10 Total $ 43,240 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. The goodwill represents expected operating synergies from combining operations with the acquired companies and the estimated value associated with the enhancements to our comprehensive product lines. During the six months ended June 30, 2019, we adjusted the estimated values of the assets acquired and liabilities assumed based upon the preliminary valuation report. These adjustments included additional liabilities, changes to deferred taxes and changes in the allocation of excess purchase price between goodwill and intangibles. Advanced Energy is in the process of finalizing the assessment of fair value for the assets acquired and liabilities assumed related to the LumaSense acquisition. Pro forma results for Advanced Energy Inc. giving effect to the LumaSense Technologies Holdings, Inc. Transaction The following unaudited pro forma financial information presents the combined results of operations of Advanced Energy Inc. and LumaSense as if the acquisitions had been completed as of the beginning of the prior fiscal year, or January 1, 2018. The unaudited pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place on January 1, 2018, nor are they indicative of future results. The unaudited pro forma financial information for the three and six months ended June 30, 2019 includes Advanced Energy’s results, including the post-acquisition results of LumaSense, since September 1, 2018. The unaudited pro forma financial information for the three and six months ended June 30, 2018 combines Advanced Energy’s results with the pre-acquisition results of LumaSense for that period. The following tables present our unaudited pro forma results for the acquisition of LumaSense: Three Months Ended June 30, 2019 2018 As Reported Pro Forma As Reported Pro Forma Total sales $ 134,810 $ 134,810 $ 196,032 $ 210,866 Net income attributable to Advanced Energy Industries, Inc. $ 31,686 $ 32,839 $ 46,361 $ 46,375 Earnings per share: Basic earnings per share $ 0.83 $ 0.86 $ 1.18 $ 1.18 Diluted earnings per share $ 0.82 $ 0.85 $ 1.17 $ 1.17 Six Months Ended June 30, 2019 2018 As Reported Pro Forma As Reported Pro Forma Total sales $ 275,553 $ 275,553 $ 391,649 $ 421,331 Net income attributable to Advanced Energy Industries, Inc. $ 47,056 $ 48,401 $ 92,840 $ 92,684 Earnings per share: Basic earnings per share $ 1.23 $ 1.27 $ 2.35 $ 2.35 Diluted earnings per share $ 1.22 $ 1.26 $ 2.33 $ 2.33 The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisitions been completed as of January 1, 2018. These adjustments including amortization charges for acquired intangible assets, adjustments for acquisition transaction costs and amortization of purchased gross profit. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above. LumaSense’s operating results have been included in the Advanced Energy’s operating results for the periods subsequent to the completion of the acquisition on September 1, 2018. During the three months ended June 30, 2019, LumaSense contributed total sales of $11.8 million and net income of $1.7 million. During the six months ended June 30, 2019, LumaSense contributed total sales of $23.8 million and net income of $2.6 million. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
REVENUE | NOTE 3. REVENUE Revenue Recognition We recognize revenue when we have satisfied our performance obligations which typically occurs when control of the products or services have been transferred 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 is less than 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 technology 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 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 services group offers warranty and after-market 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 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, Singapore 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 is recognized ratably over the underlying terms as we do not have historical information which would allow us to project the estimated service usage pattern at this time. In May 2019, we sold our grid-tied central inverter repair and service operation to a third party. In connection with this sale, approximately $22.0 million of deferred revenue related to extended warranties and service contracts, were transferred to the buyer. See Note 4. Disposed and Discontinued Operations Disaggregation of Revenue The following table presents our net sales by product line: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Semiconductor equipment $ 65,086 $ 127,291 $ 132,600 $ 263,301 Industrial technology equipment 41,107 41,944 85,705 77,143 Service 28,617 26,797 57,248 51,205 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 The following table presents our net sales by geographic region: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 North America $ 61,393 $ 101,942 $ 119,899 $ 209,839 Asia 50,962 70,165 109,397 136,329 Europe 22,092 23,815 45,518 45,264 Other Countries 363 110 739 217 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Product and service revenue recognized at point in time $ 134,297 $ 195,089 $ 274,137 $ 389,772 Extended warranty and service contracts recognized over time 513 943 1,416 1,877 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 |
Disposed and Discontinued Opera
Disposed and Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Disposed and Discontinued Operations | |
DISPOSED AND DISCONTINUED OPERATIONS | NOTE 4. DISPOSED AND DISCONTINUED OPERATIONS Disposed Operations In May 2019, we sold our grid-tied central solar inverter services business to Bold Renewables Holdings, LLC (“Buyer”) for $1.00 dollar and assumption of our initial product warranty and our extended warranty service obligations. In connection with this transaction, we entered into a Loan and Security Agreement with the Buyer. Under this agreement, we initially loaned $2.8 million to the buyer at closing and have made available an additional $5.25 million that may be borrowed in the future, subject to certain operating and liquidity covenants, for operating needs over the next ten years. The borrowings under the Loan and Security Agreement bear interest at 0% for the first seven years and 5% thereafter. Additionally, the Loan and Security Agreement provides for early payment discounts of 50% during the first three years, 45% for years four and five and 40% thereafter up to 30 days prior to the maturity of the Loan and Security Agreement. A discount on the initial $2.8 million funding under the Loan and Security Agreement of $2.3 million has been recognized as a reduction to the gain recognized on the sale. As a result of the transaction, we reduced our liabilities held in discontinued operations approximately $10.9 million related to initial product warranty and reduced Other liabilities of our continuing operations of approximately $22.0 million related to extended warranty service obligations as well as other assets and liabilities associated with the continuing grid-tied central solar inverter service and repair business. A $14.8 million non-cash gain was recognized in Other income (expense) from continuing operations and an $8.6 million non-cash gain, net of tax expense of $2.4 million, was recognized in Income from discontinued operations. 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 (loss) 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 (loss) from discontinued operations, net of income taxes" are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Sales $ — $ — $ — $ — Cost of sales (200) (200) (200) (88) Total operating expense 381 92 381 31 Operating income (loss) from discontinued operations (181) 108 (181) 57 Other income (expense) 10,923 (127) 10,919 (3) Income (loss) from discontinued operations before income taxes 10,742 (19) 10,738 54 Provision (benefit) for income taxes 2,418 (24) 2,423 (91) Income from discontinued operations, net of income taxes $ 8,324 $ 5 $ 8,315 $ 145 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: June 30, December 31, 2019 2018 Cash and cash equivalents $ — $ 5,251 Other current assets — 406 Inventories 67 198 Current assets of discontinued operations $ 67 $ 5,855 Other assets $ — $ 67 Deferred income tax assets 3,841 5,917 Non-current assets of discontinued operations $ 3,841 $ 5,984 Accounts payable and other accrued expenses $ 348 $ 350 Accrued warranty 464 4,936 Current liabilities of discontinued operations $ 812 $ 5,286 Accrued warranty $ 2,210 $ 10,429 Other liabilities 146 286 Non-current liabilities of discontinued operations $ 2,356 $ 10,715 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
INCOME TAXES | NOTE 5. INCOME TAXES The following table sets out the tax expense and the effective tax rate for our income from continuing operations: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income from continuing operations, before income taxes $ 26,550 $ 55,533 $ 39,084 $ 111,662 Provision for income taxes 3,177 9,133 324 18,892 Effective tax rate 12.0 % 16.4 % 0.8 % 16.9 % Our effective tax rates differ from the U.S. federal statutory rate of 21% for the three and six months ended June 30, 2019 and 2018, respectively, primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, partially offset by additional GILTI tax in the U.S. The effective tax rate for the first half of 2019 was lower than the same period in 2018 primarily due to the release of liabilities for uncertain tax positions in the first quarter of 2019 based on the completion of additional procedures during the quarter to support a change in facts with respect to a specific prior period position. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
EARNINGS PER SHARE | NOTE 6. 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 and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income from continuing operations $ 23,373 $ 46,400 $ 38,760 $ 92,770 Income from continuing operations attributable to noncontrolling interest 11 44 19 75 Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 23,362 $ 46,356 $ 38,741 $ 92,695 Basic weighted-average common shares outstanding 38,274 39,349 38,236 39,484 Assumed exercise of dilutive stock options and restricted stock units 188 254 207 323 Diluted weighted-average common shares outstanding 38,462 39,603 38,443 39,807 Continuing operations: Basic earnings per share $ 0.61 $ 1.18 $ 1.01 $ 2.35 Diluted earnings per share $ 0.61 $ 1.17 $ 1.01 $ 2.33 The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Restricted stock units 29 6 — 2 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 of the share repurchase program to December 2019 from its original maturity of March 2018. In May 2018 our Board of Directors approved a $50 million increase in its authorization to repurchase shares of Company common stock under this same program. As of June 30, 2019, we had $24.9 million remaining for the future repurchase of shares of our common stock. In order to execute the repurchase of shares of our common stock, the company periodically enters into stock repurchase agreements. During the three and six months ended June 30, 2019 and 2018, the company has repurchased the following shares of common stock: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amount paid to repurchase shares $ — $ 25,309 $ — $ 38,059 Number of shares repurchased — 407 — 588 Average repurchase price per share $ — $ 62.13 $ — $ 64.70 There were no shares repurchased from related parties. All shares repurchased were recognized as a reduction to Additional paid-in capital. Repurchased shares were retired and assumed the status of authorized and unissued shares. |
Marketable Securities and Asset
Marketable Securities and Assets Measured at Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Marketable Securities and Assets Measured at Fair Value | |
MARKETABLE SECURITIES AND ASSETS MEASURED AT FAIR VALUE | NOTE 7. MARKETABLE SECURITIES AND ASSETS MEASURED AT FAIR VALUE Our investments with original maturities of more than three months at the 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: June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Total marketable securities $ 744 $ 746 $ 2,463 $ 2,470 The maturities of our marketable securities available for sale as of June 30, 2019 are as follows: Earliest Latest Certificates of deposit 7/28/2019 to 4/30/2020 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 June 30, 2019, 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 June 30, 2019 and December 31, 2018. 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 June 30, 2019 and December 31, 2018. June 30, 2019 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 746 $ — $ 746 December 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,470 $ — $ 2,470 There were no transfers in or out of Level 1, 2, or 3 fair value measurements during three and six months ended June 30, 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Financial Instruments | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS We are impacted by changes in foreign currency exchange rates. We may manage these risks through the use of derivative financial instruments, primarily forward contracts with banks for one-month periods. These forward contracts 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. We did not enter into any new foreign currency exchange forward contracts during the three and six months ended June 30, 2019 and 2018. We did not have any currency exchange rate contracts outstanding as of June 30, 2019 and 2018. During the three and six months ended June 30, 2019 and 2018 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency loss from foreign currency exchange contracts $ — $ — $ — $ (750) 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, net, in our Unaudited Condensed Consolidated Statements of Operations. |
Accounts and Other Receivable
Accounts and Other Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Accounts and Other Receivable | |
ACCOUNTS AND OTHER RECEIVABLE | NOTE 9. 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: June 30, December 31, 2019 2018 Amounts billed, net $ 77,958 $ 80,709 Unbilled receivables 15,087 19,733 Total receivables, net $ 93,045 $ 100,442 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 | 6 Months Ended |
Jun. 30, 2019 | |
Inventories | |
INVENTORIES | NOTE 10. 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 are as follows: June 30, December 31, 2019 2018 Parts and raw materials $ 69,995 $ 76,647 Work in process 8,498 6,644 Finished goods 14,247 14,696 Total $ 92,740 $ 97,987 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property and Equipment | |
PROPERTY AND EQUIPMENT | NOTE 11. PROPERTY AND EQUIPMENT Property and equipment, net is comprised of the following: June 30, December 31, 2019 2018 Buildings and land $ 1,693 $ 1,737 Machinery and equipment 42,962 41,330 Computer and communication equipment 25,812 24,051 Furniture and fixtures 3,931 3,203 Vehicles 282 282 Leasehold improvements 22,025 20,593 Construction in process 2,781 867 99,486 92,063 Less: Accumulated depreciation (64,794) (60,794) Property and equipment, net $ 34,692 $ 31,269 Depreciation expense recorded in continuing operations and included in selling, general and administrative expense is as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Depreciation expense $ 2,341 $ 1,792 $ 4,549 $ 3,396 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | |
GOODWILL | NOTE 12. GOODWILL The following summarizes the changes in goodwill during the six months ended June 30, 2019: Effect of Beginning Changes in Ending Balance Adjustments Exchange Rates Balance June 30, 2019 $ 101,900 $ (10,215) $ (48) $ 91,637 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | |
INTANGIBLE ASSETS | NOTE 13. INTANGIBLE ASSETS Intangible assets consisted of the following as of June 30, 2019 and December 31, 2018: Gross Carrying Accumulated Net Carrying June 30, 2019 Amount Amortization Amount Technology $ 55,365 $ (10,009) $ 45,356 Customer relationships 33,832 (15,168) 18,664 Trademarks and other 5,843 (1,620) 4,223 Total $ 95,040 $ (26,797) $ 68,243 Gross Carrying Accumulated Net Carrying December 31, 2018 Amount Amortization Amount Technology $ 39,879 $ (7,927) $ 31,952 Customer relationships 35,509 (13,484) 22,025 Trademarks and other 2,501 (1,568) 933 Total $ 77,889 $ (22,979) $ 54,910 Amortization expense related to intangible assets is as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 1,874 $ 1,264 $ 3,847 $ 2,521 Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2019 (remaining) $ 4,467 2020 7,395 2021 7,294 2022 7,033 2023 7,014 Thereafter 35,040 Total $ 68,243 |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Costs | |
RESTRUCTURING COSTS | NOTE 14. RESTRUCTURING COSTS During 2018, we committed to a restructuring plan to optimize our manufacturing footprint and to improve our operating efficiencies and synergies related to our recent acquisitions. The table below summarizes the restructuring charges: Three Months Six Months Cumulative Cost Ended June 30, Ended June 30, Through June 30, 2019 2019 2019 Severance and related charges $ 1,565 $ 1,718 $ 5,957 Facility relocation and closure charges 230 1,750 1,750 Total restructuring charges $ 1,795 $ 3,468 $ 7,707 The following table summarizes our restructuring liabilities at June 30, 2019: Cost Incurred Cost Paid Effect of Balance at and or Changes in Balance at December 31, Charged to Otherwise Exchange June 30, 2018 Expense Settled Rates 2019 Total restructuring liabilities $ 3,806 $ 3,468 $ (3,799) $ 1 $ 3,476 As of December 31, 2018 and June 30, 2019 the accrued restructuring liabilities related primarily to severance and related charges. |
Warranties
Warranties | 6 Months Ended |
Jun. 30, 2019 | |
Warranties | |
WARRANTIES | NOTE 15. 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 and configuration. 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balances at beginning of period $ 2,264 $ 2,084 $ 2,084 $ 2,312 Acquired warranty 1,200 — 1,200 92 Increases to accruals 85 306 604 484 Warranty expenditures (286) (396) (631) (902) Effect of changes in exchange rates — (13) 6 (5) Balances at end of period $ 3,263 $ 1,981 $ 3,263 $ 1,981 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
LEASES | NOTE 16. LEASES We lease manufacturing and office space under non-cancelable operating leases. Some of these leases contain provisions for landlord funded leasehold improvements which are recorded as right of use assets with related liabilities. Additionally, several existing operating leases had deferred rent balances under ASC 840 which resulted in adjusted right of use asset balances recorded upon adoption of ASC 842. Most leases include one or more options to renew. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease terms, along with the right-of-use assets ("ROU") and lease liabilities. In many cases, we have lease terms that are less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. New leases are negotiated and executed to meet business objectives on an on-going basis. Our leases do not provide an implicit rate. Accordingly, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. Maturities of our lease liabilities for all operating leases at June 30, 2019 are as follows: Year Ending December 31, 2019 (remaining) $ 5,045 2020 9,094 2021 9,012 2022 6,320 2023 4,908 Thereafter 29,274 Total lease payments $ 63,653 Less: Interest (9,662) Present value of lease liabilities $ 53,991 The weighted average remaining lease term and discount rate for all our operating leases as of June 30, 2019 were as follows: Weighted Average Remaining Lease Weighted Average Term Discount Rate Operating leases 8.43 years 3.75 % Cash paid for amounts included in the measurement of lease liabilities for the six months ended June 30, 2019 was as follows: Cash Outflow Operating leases $ 5,914 |
Pension Liability
Pension Liability | 6 Months Ended |
Jun. 30, 2019 | |
Pension Liability | |
PENSION LIABILITY | NOTE 17. PENSION LIABILITY In connection with the acquisition of HiTek Power Group and LumaSense, we acquired the HiTek Power Limited Pension Scheme (the "HiTek Plan") and the LumaSense Technologies GmbH pension obligation (the "LumaSense Plan"), respectively. These plans are both closed to new participants. 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 $0.8 million into the HiTek Plan through April 30, 2024, and then $1.7 million from May 1, 2024 through November 30, 2033. We are not currently committed to future payments to the LumaSense Plan. The net pension liability is included in Other long-term liabilities in our balance sheet as follows: June 30, December 31, 2019 2018 Pension liability $ 19,084 $ 19,266 The following table sets forth the components of net periodic pension cost for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest cost $ 195 $ 214 $ 394 $ 432 Expected return on plan assets (166) (158) (336) (319) Amortization of actuarial gains and losses 115 133 233 269 Net periodic pension cost $ 144 $ 189 $ 291 $ 382 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
STOCK-BASED COMPENSATION | NOTE 18. 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 June 30, 2019, there were 3.1 million shares reserved and 2.3 million shares available for grant 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 generally 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 and six months ended June 30, 2019 and 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation expense $ 937 $ 1,943 $ 4,136 $ 6,437 Changes in the outstanding RSU awards during the three and six months ended June 30, 2019 were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Weighted- Weighted- Average Average Grant Date Grant Date Number of RSUs Fair Value Number of RSUs Fair Value RSUs outstanding at beginning of period 577 $ 56.73 352 $ 58.17 RSUs granted 27 $ 51.88 358 $ 51.93 RSUs vested (49) $ 59.70 (145) $ 52.04 RSUs forfeited (2) $ 55.62 (12) $ 35.28 RSUs outstanding at end of period 553 $ 56.23 553 $ 56.23 Changes in the outstanding stock option awards during the three and six months ended June 30, 2019 were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Weighted- Weighted- Average Average Number of Exercise Price Number of Exercise Price Options per Share Options per Share Options outstanding at beginning of period 220 $ 21.21 230 $ 20.73 Options exercised (6) $ 12.87 (16) $ 11.45 Options expired (1) $ 7.95 (1) $ 7.82 Options outstanding at end of period 213 $ 21.50 213 $ 21.50 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. COMMITMENTS AND CONTINGENCIES We have firm purchase commitments and agreements with various suppliers to ensure the availability of components. Purchase commitments as of June 30, 2019 is approximately $108.4 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 and six months ended June 30, 2019. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
RELATED PARTY TRANSACTIONS | NOTE 20. 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 and six months ended June 30, 2019 and 2018, we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Sales to related parties $ 660 $ 316 $ 1,012 $ 389 Number of related party customers 1 1 1 1 Our accounts receivable balance from related party customers with outstanding balances as of June 30, 2019 and December 31, 2018 is as follows: June 30, December 31, 2019 2018 Accounts receivable from related parties $ 429 $ 109 Number of related party customers 1 1 |
Significant Customer Informatio
Significant Customer Information | 6 Months Ended |
Jun. 30, 2019 | |
Significant Customer Information | |
SIGNIFICANT CUSTOMER INFORMATION | NOTE 21. 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 and six months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 Applied Materials, Inc. $ 33,731 25.0 % $ 67,741 34.6 % LAM Research 19,802 14.7 % 32,764 16.7 % Six Months Ended June 30, 2019 2018 Applied Materials, Inc. $ 70,021 25.4 % $ 137,613 35.1 % LAM Research 39,373 14.3 % 72,490 18.5 % 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 June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Applied Materials, Inc. $ 24,130 25.9 % $ 34,301 34.2 % LAM Research 11,953 12.8 % 12,181 12.1 % 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 | 6 Months Ended |
Jun. 30, 2019 | |
Credit Facility | |
CREDIT FACILITY | NOTE 22. 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 on 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 June 30, 2019, the interest rate was 3.65%. 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 June 30, 2019, the Company is in compliance with all covenants required under the Loan Agreement. At June 30, 2019 our credit availability under the Loan Agreement was $150.0 million. Interest expense related to unused line of credit fees was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Unused line of credit fees $ 58 $ 58 $ 114 $ 114 |
Revenue (Policies)
Revenue (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Revenue Recognition | We recognize revenue when we have satisfied our performance obligations which typically occurs when control of the products or services have been transferred 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 (
Commitments and Contingencies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Purchase Commitments | Our policy with respect to all purchase commitments is to record losses, if any, when they are probable and reasonably estimable. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisitions | |
Schedule of components of the fair value of total consideration transferred | The components of the fair value of the total consideration transferred for our acquisition is as follows: LumaSense Cash paid for acquisition $ 94,946 Cash acquired (10,262) Total fair value of consideration transferred $ 84,684 |
Schedule of estimated fair value of assets acquired and liabilities assumed | The following table summarizes estimated fair values of the assets acquired and liabilities assumed from our acquisition, including measurement period adjustments: Preliminary: September 1, 2018 Measurement Period Adjustments Adjusted: September 1, 2018 Accounts and other receivable, net $ 7,167 $ - $ 7,167 Inventories 9,372 - 9,372 Property and equipment 1,353 - 1,353 Goodwill 48,032 (10,215) 37,817 Intangible assets 26,000 17,240 43,240 Deferred income tax assets 8,116 (1,785) 6,331 Other assets 5,126 - 5,126 Total assets acquired 105,166 5,240 110,406 Accounts payable 5,734 - 5,734 Deferred income tax liabilities 7,984 3,769 11,753 Other liabilities 6,764 1,471 8,235 Total liabilities assumed 20,482 5,240 25,722 Total fair value of net assets acquired $ 84,684 $ - $ 84,684 |
Summary of intangible assets | A summary of the intangible assets acquired, amortization method and estimated useful lives are as follows: Amortization LumaSense Method Useful Life Technology $ 35,530 Straight-line 15 Customer relationships 4,360 Straight-line 10 Tradename 3,350 Straight-line 10 Total $ 43,240 |
Schedule of unaudited pro forma information | The following tables present our unaudited pro forma results for the acquisition of LumaSense: Three Months Ended June 30, 2019 2018 As Reported Pro Forma As Reported Pro Forma Total sales $ 134,810 $ 134,810 $ 196,032 $ 210,866 Net income attributable to Advanced Energy Industries, Inc. $ 31,686 $ 32,839 $ 46,361 $ 46,375 Earnings per share: Basic earnings per share $ 0.83 $ 0.86 $ 1.18 $ 1.18 Diluted earnings per share $ 0.82 $ 0.85 $ 1.17 $ 1.17 Six Months Ended June 30, 2019 2018 As Reported Pro Forma As Reported Pro Forma Total sales $ 275,553 $ 275,553 $ 391,649 $ 421,331 Net income attributable to Advanced Energy Industries, Inc. $ 47,056 $ 48,401 $ 92,840 $ 92,684 Earnings per share: Basic earnings per share $ 1.23 $ 1.27 $ 2.35 $ 2.35 Diluted earnings per share $ 1.22 $ 1.26 $ 2.33 $ 2.33 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue | |
Schedule of disaggregation of revenue | Disaggregation of Revenue The following table presents our net sales by product line: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Semiconductor equipment $ 65,086 $ 127,291 $ 132,600 $ 263,301 Industrial technology equipment 41,107 41,944 85,705 77,143 Service 28,617 26,797 57,248 51,205 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 The following table presents our net sales by geographic region: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 North America $ 61,393 $ 101,942 $ 119,899 $ 209,839 Asia 50,962 70,165 109,397 136,329 Europe 22,092 23,815 45,518 45,264 Other Countries 363 110 739 217 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Product and service revenue recognized at point in time $ 134,297 $ 195,089 $ 274,137 $ 389,772 Extended warranty and service contracts recognized over time 513 943 1,416 1,877 Total $ 134,810 $ 196,032 $ 275,553 $ 391,649 |
Disposed and Discontinued Ope_2
Disposed and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disposed and Discontinued Operations | |
Schedule of disposal groups, including discontinued operations | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Sales $ — $ — $ — $ — Cost of sales (200) (200) (200) (88) Total operating expense 381 92 381 31 Operating income (loss) from discontinued operations (181) 108 (181) 57 Other income (expense) 10,923 (127) 10,919 (3) Income (loss) from discontinued operations before income taxes 10,742 (19) 10,738 54 Provision (benefit) for income taxes 2,418 (24) 2,423 (91) Income from discontinued operations, net of income taxes $ 8,324 $ 5 $ 8,315 $ 145 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: June 30, December 31, 2019 2018 Cash and cash equivalents $ — $ 5,251 Other current assets — 406 Inventories 67 198 Current assets of discontinued operations $ 67 $ 5,855 Other assets $ — $ 67 Deferred income tax assets 3,841 5,917 Non-current assets of discontinued operations $ 3,841 $ 5,984 Accounts payable and other accrued expenses $ 348 $ 350 Accrued warranty 464 4,936 Current liabilities of discontinued operations $ 812 $ 5,286 Accrued warranty $ 2,210 $ 10,429 Other liabilities 146 286 Non-current liabilities of discontinued operations $ 2,356 $ 10,715 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income from continuing operations, before income taxes $ 26,550 $ 55,533 $ 39,084 $ 111,662 Provision for income taxes 3,177 9,133 324 18,892 Effective tax rate 12.0 % 16.4 % 0.8 % 16.9 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
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 and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income from continuing operations $ 23,373 $ 46,400 $ 38,760 $ 92,770 Income from continuing operations attributable to noncontrolling interest 11 44 19 75 Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 23,362 $ 46,356 $ 38,741 $ 92,695 Basic weighted-average common shares outstanding 38,274 39,349 38,236 39,484 Assumed exercise of dilutive stock options and restricted stock units 188 254 207 323 Diluted weighted-average common shares outstanding 38,462 39,603 38,443 39,807 Continuing operations: Basic earnings per share $ 0.61 $ 1.18 $ 1.01 $ 2.35 Diluted earnings per share $ 0.61 $ 1.17 $ 1.01 $ 2.33 |
Schedule of stock options and restricted units excluded in the computation of diluted earnings per share | The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Restricted stock units 29 6 — 2 |
Schedule of repurchase of shares of common stock | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amount paid to repurchase shares $ — $ 25,309 $ — $ 38,059 Number of shares repurchased — 407 — 588 Average repurchase price per share $ — $ 62.13 $ — $ 64.70 |
Marketable Securities and Ass_2
Marketable Securities and Assets Measured at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Marketable Securities and Assets Measured at Fair Value | |
Schedule of composition of our marketable securities | Our marketable securities consist of certificates of deposit as follows: June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Total marketable securities $ 744 $ 746 $ 2,463 $ 2,470 |
Schedule of maturities of our marketable securities available for sale | The maturities of our marketable securities available for sale as of June 30, 2019 are as follows: Earliest Latest Certificates of deposit 7/28/2019 to 4/30/2020 |
Schedule of fair value, assets measured on recurring basis | June 30, 2019 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 746 $ — $ 746 December 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,470 $ — $ 2,470 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Financial Instruments | |
Schedule of derivative instruments, gain (loss) | During the three and six months ended June 30, 2019 and 2018 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency loss from foreign currency exchange contracts $ — $ — $ — $ (750) |
Accounts and Other Receivable (
Accounts and Other Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts and Other Receivable | |
Schedule of accounts and other receivables | Accounts and other receivable are recorded at net realizable value. Components of accounts and other receivable, net of reserves, are as follows: June 30, December 31, 2019 2018 Amounts billed, net $ 77,958 $ 80,709 Unbilled receivables 15,087 19,733 Total receivables, net $ 93,045 $ 100,442 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventories | |
Schedule of 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 are as follows: June 30, December 31, 2019 2018 Parts and raw materials $ 69,995 $ 76,647 Work in process 8,498 6,644 Finished goods 14,247 14,696 Total $ 92,740 $ 97,987 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property and Equipment | |
Schedule of details of property and equipment | Property and equipment, net is comprised of the following: June 30, December 31, 2019 2018 Buildings and land $ 1,693 $ 1,737 Machinery and equipment 42,962 41,330 Computer and communication equipment 25,812 24,051 Furniture and fixtures 3,931 3,203 Vehicles 282 282 Leasehold improvements 22,025 20,593 Construction in process 2,781 867 99,486 92,063 Less: Accumulated depreciation (64,794) (60,794) Property and equipment, net $ 34,692 $ 31,269 |
Schedule of depreciation expense recorded in continuing operations | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Depreciation expense $ 2,341 $ 1,792 $ 4,549 $ 3,396 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of the changes in goodwill | The following summarizes the changes in goodwill during the six months ended June 30, 2019: Effect of Beginning Changes in Ending Balance Adjustments Exchange Rates Balance June 30, 2019 $ 101,900 $ (10,215) $ (48) $ 91,637 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of intangible assets | Intangible assets consisted of the following as of June 30, 2019 and December 31, 2018: Gross Carrying Accumulated Net Carrying June 30, 2019 Amount Amortization Amount Technology $ 55,365 $ (10,009) $ 45,356 Customer relationships 33,832 (15,168) 18,664 Trademarks and other 5,843 (1,620) 4,223 Total $ 95,040 $ (26,797) $ 68,243 Gross Carrying Accumulated Net Carrying December 31, 2018 Amount Amortization Amount Technology $ 39,879 $ (7,927) $ 31,952 Customer relationships 35,509 (13,484) 22,025 Trademarks and other 2,501 (1,568) 933 Total $ 77,889 $ (22,979) $ 54,910 |
Schedule of amortization expense relating to intangible assets | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 1,874 $ 1,264 $ 3,847 $ 2,521 |
Schedule of expected future amortization expense | Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2019 (remaining) $ 4,467 2020 7,395 2021 7,294 2022 7,033 2023 7,014 Thereafter 35,040 Total $ 68,243 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Costs | |
Schedule of restructuring and related costs | Three Months Six Months Cumulative Cost Ended June 30, Ended June 30, Through June 30, 2019 2019 2019 Severance and related charges $ 1,565 $ 1,718 $ 5,957 Facility relocation and closure charges 230 1,750 1,750 Total restructuring charges $ 1,795 $ 3,468 $ 7,707 |
Schedule of restructuring reserve by type of cost | The following table summarizes our restructuring liabilities at June 30, 2019: Cost Incurred Cost Paid Effect of Balance at and or Changes in Balance at December 31, Charged to Otherwise Exchange June 30, 2018 Expense Settled Rates 2019 Total restructuring liabilities $ 3,806 $ 3,468 $ (3,799) $ 1 $ 3,476 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Warranties | |
Schedule of changes in accrued product warranties | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balances at beginning of period $ 2,264 $ 2,084 $ 2,084 $ 2,312 Acquired warranty 1,200 — 1,200 92 Increases to accruals 85 306 604 484 Warranty expenditures (286) (396) (631) (902) Effect of changes in exchange rates — (13) 6 (5) Balances at end of period $ 3,263 $ 1,981 $ 3,263 $ 1,981 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Schedule of maturities of lease liabilities | Maturities of our lease liabilities for all operating leases at June 30, 2019 are as follows: Year Ending December 31, 2019 (remaining) $ 5,045 2020 9,094 2021 9,012 2022 6,320 2023 4,908 Thereafter 29,274 Total lease payments $ 63,653 Less: Interest (9,662) Present value of lease liabilities $ 53,991 |
Schedule of additional lease information | The weighted average remaining lease term and discount rate for all our operating leases as of June 30, 2019 were as follows: Weighted Average Remaining Lease Weighted Average Term Discount Rate Operating leases 8.43 years 3.75 % Cash paid for amounts included in the measurement of lease liabilities for the six months ended June 30, 2019 was as follows: Cash Outflow Operating leases $ 5,914 |
Pension Liability (Tables)
Pension Liability (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Pension Liability | |
Schedule of net funded status | The net pension liability is included in Other long-term liabilities in our balance sheet as follows: June 30, December 31, 2019 2018 Pension liability $ 19,084 $ 19,266 |
Schedule of net benefit costs | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest cost $ 195 $ 214 $ 394 $ 432 Expected return on plan assets (166) (158) (336) (319) Amortization of actuarial gains and losses 115 133 233 269 Net periodic pension cost $ 144 $ 189 $ 291 $ 382 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | |
Schedule of stock-based compensation | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation expense $ 937 $ 1,943 $ 4,136 $ 6,437 |
Summary of stock option activity | Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Weighted- Weighted- Average Average Grant Date Grant Date Number of RSUs Fair Value Number of RSUs Fair Value RSUs outstanding at beginning of period 577 $ 56.73 352 $ 58.17 RSUs granted 27 $ 51.88 358 $ 51.93 RSUs vested (49) $ 59.70 (145) $ 52.04 RSUs forfeited (2) $ 55.62 (12) $ 35.28 RSUs outstanding at end of period 553 $ 56.23 553 $ 56.23 Changes in the outstanding stock option awards during the three and six months ended June 30, 2019 were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Weighted- Weighted- Average Average Number of Exercise Price Number of Exercise Price Options per Share Options per Share Options outstanding at beginning of period 220 $ 21.21 230 $ 20.73 Options exercised (6) $ 12.87 (16) $ 11.45 Options expired (1) $ 7.95 (1) $ 7.82 Options outstanding at end of period 213 $ 21.50 213 $ 21.50 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
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 and six months ended June 30, 2019 and 2018, we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Sales to related parties $ 660 $ 316 $ 1,012 $ 389 Number of related party customers 1 1 1 1 Our accounts receivable balance from related party customers with outstanding balances as of June 30, 2019 and December 31, 2018 is as follows: June 30, December 31, 2019 2018 Accounts receivable from related parties $ 429 $ 109 Number of related party customers 1 1 |
Significant Customer Informat_2
Significant Customer Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Customer Information | |
Schedule of revenue by major customers by reporting segments | The following table summarizes sales, and percentages of sales, by customers that individually accounted for 10% or more of our sales for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 Applied Materials, Inc. $ 33,731 25.0 % $ 67,741 34.6 % LAM Research 19,802 14.7 % 32,764 16.7 % Six Months Ended June 30, 2019 2018 Applied Materials, Inc. $ 70,021 25.4 % $ 137,613 35.1 % LAM Research 39,373 14.3 % 72,490 18.5 % 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 June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Applied Materials, Inc. $ 24,130 25.9 % $ 34,301 34.2 % LAM Research 11,953 12.8 % 12,181 12.1 % |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Credit Facility | |
Schedule of interest expense related to unused line of credit fees | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Unused line of credit fees $ 58 $ 58 $ 114 $ 114 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating lease right-of-use assets | $ 52,465 | |
Operating Lease, Liability | 53,991 | |
Accounting Standards Update 2016-02 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating lease right-of-use assets | 52,500 | $ 38,200 |
Operating Lease, Liability | $ 54,000 | $ 38,400 |
Business Acquisitions - Artesyn
Business Acquisitions - Artesyn's Embedded Power Business (Details) - Artesyn's Embedded Power Business [Member] - USD ($) $ in Millions | May 14, 2019 | May 31, 2019 |
Business Acquisition [Line Items] | ||
Reverse break fee | $ 20 | |
Pro Forma [Member] | ||
Business Acquisition [Line Items] | ||
Base purchase price | 400 | |
Cash paid for acquisition | 364 | |
Liabilities assumed | $ 36 | |
Commitment Parties | Non-Binding Commitment Letter [Member] | ||
Business Acquisition [Line Items] | ||
Contingent debt financing | $ 500 | |
Term Loan A Facility [Member] | Commitment Parties | Non-Binding Commitment Letter [Member] | ||
Business Acquisition [Line Items] | ||
Contingent debt financing | $ 350 | |
Contingent debt term | 5 years | |
Revolving Credit Facility [Member] | Commitment Parties | Non-Binding Commitment Letter [Member] | ||
Business Acquisition [Line Items] | ||
Contingent debt financing | $ 150 |
Business Acquisitions - Conside
Business Acquisitions - Consideration Transferred (Details) - LumaSense Technology Holdings Inc. [Member] $ in Thousands | 1 Months Ended |
Sep. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |
Cash paid for acquisition | $ 94,946 |
Cash acquired | (10,262) |
Total fair value of consideration transferred | $ 84,684 |
Business Acquisitions - Assets
Business Acquisitions - Assets Acquired and Liabilities Assumed (Details) - LumaSense Technology Holdings Inc. [Member] $ in Thousands | Sep. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Accounts and other receivable, net | $ 7,167 |
Inventories | 9,372 |
Property and equipment | 1,353 |
Goodwill | 37,817 |
Intangible assets | 43,240 |
Deferred income tax assets | 6,331 |
Other assets | 5,126 |
Total assets acquired | 110,406 |
Accounts payable | 5,734 |
Deferred income tax liabilities | 11,753 |
Other liabilities | 8,235 |
Total liabilities assumed | 25,722 |
Total fair value of net assets acquired | 84,684 |
Preliminary [Member] | |
Business Acquisition [Line Items] | |
Accounts and other receivable, net | 7,167 |
Inventories | 9,372 |
Property and equipment | 1,353 |
Goodwill | 48,032 |
Intangible assets | 26,000 |
Deferred income tax assets | 8,116 |
Other assets | 5,126 |
Total assets acquired | 105,166 |
Accounts payable | 5,734 |
Deferred income tax liabilities | 7,984 |
Other liabilities | 6,764 |
Total liabilities assumed | 20,482 |
Total fair value of net assets acquired | 84,684 |
Measurement Period Adjustments [Member] | |
Business Acquisition [Line Items] | |
Goodwill | (10,215) |
Intangible assets | 17,240 |
Deferred income tax assets | (1,785) |
Total assets acquired | 5,240 |
Deferred income tax liabilities | 3,769 |
Other liabilities | 1,471 |
Total liabilities assumed | $ 5,240 |
Business Acquisitions - Intangi
Business Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Sep. 01, 2018 | |
Technology-Based Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 15 years | |
Tradename [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
LumaSense Technology Holdings Inc. [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | $ 43,240 | |
LumaSense Technology Holdings Inc. [Member] | Technology-Based Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | 35,530 | |
LumaSense Technology Holdings Inc. [Member] | Tradename [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | 3,350 | |
LumaSense Technology Holdings Inc. [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | $ 4,360 |
Business Acquisitions - Unaudit
Business Acquisitions - Unaudited Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Total sales, As Reported | $ 134,810 | $ 196,032 | $ 275,553 | $ 391,649 | ||
Total sales, Pro Forma | 134,810 | 210,866 | 275,553 | 421,331 | ||
Net income attributable to Advanced Energy Industries, Inc, As Reported | 31,686 | 46,361 | 47,056 | 92,840 | ||
Net income attributable to Advanced Energy Industries, Inc., Pro Forma | $ 32,839 | $ 46,375 | $ 48,401 | $ 92,684 | ||
Earnings Per Share, Pro Forma [Abstract] | ||||||
Basic earnings per share, As Reported | $ 0.83 | $ 1.18 | $ 1.23 | $ 2.35 | ||
Basic earnings per share, Pro Forma | 0.86 | 1.18 | 1.27 | 2.35 | ||
Diluted earnings per share, As Reported | 0.82 | 1.17 | 1.22 | 2.33 | ||
Diluted earnings per share, Pro Forma | $ 0.85 | $ 1.17 | $ 1.26 | $ 2.33 | ||
Net income | $ 31,697 | $ 15,378 | $ 46,405 | $ 46,510 | $ 47,075 | $ 92,915 |
LumaSense Technology Holdings Inc. [Member] | ||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Total sales, As Reported | 11,800 | 23,800 | ||||
Earnings Per Share, Pro Forma [Abstract] | ||||||
Net income | $ 1,700 | $ 2,600 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 204 Months Ended | ||
May 31, 2019 | Dec. 31, 2035 | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Deferred revenue transferred to buyer during sale | $ 22 | |||
Deferred Service Revenue | $ 9.9 | $ 33.4 | ||
Minimum [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Recognition of Deferred Revenue, Expected Annual Amount | $ 0.1 | |||
Maximum [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Recognition of Deferred Revenue, Expected Annual Amount | $ 1 |
Revenue - Revenue by product li
Revenue - Revenue by product line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 134,810 | $ 196,032 | $ 275,553 | $ 391,649 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 61,393 | 101,942 | 119,899 | 209,839 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 50,962 | 70,165 | 109,397 | 136,329 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,092 | 23,815 | 45,518 | 45,264 |
Other Countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 363 | 110 | 739 | 217 |
Semiconductor Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 65,086 | 127,291 | 132,600 | 263,301 |
Industrial Technology Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 41,107 | 41,944 | 85,705 | 77,143 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 28,617 | $ 26,797 | $ 57,248 | $ 51,205 |
Revenue - Extended Warranty Rev
Revenue - Extended Warranty Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 134,810 | $ 196,032 | $ 275,553 | $ 391,649 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 134,297 | 195,089 | 274,137 | 389,772 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 513 | $ 943 | $ 1,416 | $ 1,877 |
Disposed and Discontinued Ope_3
Disposed and Discontinued Operations - Disposed Operations (Details) - Grid Tied Central Solar Inverter Services Business[Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - Bold Renewables Holdings, LLC [Member] - USD ($) | 1 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of services | $ 1 | |
Loan | 2,800,000 | $ 2,800,000 |
Amount available to borrow | $ 5,250,000 | |
Loan term | 10 years | |
Disposed operation of discount eligibility | 30 days | |
Disposed operations recognized reduction to gain on sale | $ 2,300,000 | |
Non-cash gain, net of tax expense, from discontinued operations | 8,600,000 | |
Continuing Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of extended warranty service obligation | 22,000,000 | |
Non cash gain from continuing operations | 14,800,000 | |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of reduced liabilities held in discontinued operations | 10,900,000 | |
Tax expense from discontinued operations | $ 2,400,000 | |
Interest Rate, First Seven Years [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of interest (percent) | 0.00% | |
Interest Rate, Thereafter [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of interest (percent) | 5.00% | |
Discounts On First Three Years [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of early payment discounts (percent) | 50.00% | |
Discounts On Year Four And Five [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of early payment discounts (percent) | 45.00% | |
Discounts Thereafter [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposed operations of early payment discounts (percent) | 40.00% |
Disposed and Discontinued Ope_4
Disposed and Discontinued Operations - Statement of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disposed and Discontinued Operations | ||||
Cost of sales | $ (200) | $ (200) | $ (200) | $ (88) |
Total operating expense | 381 | 92 | 381 | 31 |
Operating income (loss) from discontinued operations | (181) | 108 | (181) | 57 |
Other income (expense) | (127) | (3) | ||
Other income (expense) | 10,923 | 10,919 | ||
Income (loss) from discontinued operations before income taxes | 10,742 | (19) | 10,738 | 54 |
Provision (benefit) for income taxes | 2,418 | (24) | 2,423 | (91) |
Income from discontinued operations, net of income taxes | $ 8,324 | $ 5 | $ 8,315 | $ 145 |
Disposed and Discontinued Ope_5
Disposed and Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Disposed and Discontinued Operations | |||
Cash and cash equivalents | $ 5,251 | $ 7,112 | |
Other current assets | 406 | ||
Inventories | $ 67 | 198 | |
Current assets of discontinued operations | 67 | 5,855 | |
Other assets | 67 | ||
Deferred income tax assets | 3,841 | 5,917 | |
Non-current assets of discontinued operations | 3,841 | 5,984 | |
Accounts payable and other accrued expenses | 348 | 350 | |
Accrued warranty | 464 | 4,936 | |
Current liabilities of discontinued operations | 812 | 5,286 | |
Accrued warranty | 2,210 | 10,429 | |
Other liabilities | 146 | 286 | |
Non-current liabilities of discontinued operations | $ 2,356 | $ 10,715 |
Income Taxes - Schedule of tax
Income Taxes - Schedule of tax expense and effective tax rate for income from continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes | ||||
Income from continuing operations, before income taxes | $ 26,550 | $ 55,533 | $ 39,084 | $ 111,662 |
Provision for income taxes | $ 3,177 | $ 9,133 | $ 324 | $ 18,892 |
Effective tax rate | 12.00% | 16.40% | 0.80% | 16.90% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of weighted-average shares outstanding used in calculation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share | ||||
Income from continuing operations | $ 23,373 | $ 46,400 | $ 38,760 | $ 92,770 |
Income from continuing operations attributable to noncontrolling interest | 11 | 44 | 19 | 75 |
Income from continuing operations attributable to Advanced Energy Industries, Inc. | $ 23,362 | $ 46,356 | $ 38,741 | $ 92,695 |
Basic weighted-average common shares outstanding | 38,274 | 39,349 | 38,236 | 39,484 |
Assumed exercise of dilutive stock options and restricted stock units | 188 | 254 | 207 | 323 |
Diluted weighted-average common shares outstanding | 38,462 | 39,603 | 38,443 | 39,807 |
Continuing Operations: | ||||
Basic earnings per share | $ 0.61 | $ 1.18 | $ 1.01 | $ 2.35 |
Diluted earnings per share | $ 0.61 | $ 1.17 | $ 1.01 | $ 2.33 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of stock options and restricted units excluded in the computation of diluted earnings per share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2018 | |
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 | 29 | 6 | 2 |
Earnings Per Share - Stock Buyb
Earnings Per Share - Stock Buyback (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 03, 2018 | Sep. 16, 2015 | |
Earnings Per Share | ||||||
Authorized amount | $ 150,000 | |||||
Authorized program period repurchase | 30 months | |||||
Authorized amount increase | $ 50,000 | |||||
Remaining authorized repurchase amount | $ 24,900 | |||||
Amount paid to repurchase shares | $ 25,309 | $ 12,750 | $ 38,059 | |||
Number of shares repurchased | 407 | 588 | ||||
Average repurchase price per share | $ 62.13 | $ 64.70 |
Marketable Securities and Ass_3
Marketable Securities and Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Marketable Securities and Assets Measured at Fair Value | ||
Cost | $ 744 | $ 2,463 |
Fair value | $ 746 | $ 2,470 |
Marketable Securities and Ass_4
Marketable Securities and Assets Measured at Fair Value - Maturities of marketable securities available for sale (Details) - Certificates of Deposit [Member] | Jun. 30, 2019 |
Minimum [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Maturities of marketable securities, by date | Jul. 28, 2019 |
Maximum [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Maturities of marketable securities, by date | Apr. 30, 2020 |
Marketable Securities and Ass_5
Marketable Securities and Assets Measured at Fair Value - Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Transfers from level 1 to level 2, Assets | $ 0 | $ 0 | |
Transfers from level 1 to level 2, Liabilities | 0 | 0 | |
Transfers from level 2 to level 1, Assets | 0 | 0 | |
Transfers from level 2 to level 1, Liabilities | 0 | 0 | |
Transfers in or out, Assets | 0 | 0 | |
Transfers in or out, Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Assets, Fair Value Disclosure | 746 | 746 | $ 2,470 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Assets, Fair Value Disclosure | $ 746 | $ 746 | $ 2,470 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Foreign Exchange [Member] | |
Derivative [Line Items] | |
Foreign currency loss from foreign currency exchange contracts | $ (750) |
Accounts and Other Receivable_2
Accounts and Other Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | $ 93,045 | $ 100,442 |
Amounts billed, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | 77,958 | 80,709 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | $ 15,087 | $ 19,733 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventories | ||
Parts and raw materials | $ 69,995 | $ 76,647 |
Work in process | 8,498 | 6,644 |
Finished goods | 14,247 | 14,696 |
Inventory, Net | $ 92,740 | $ 97,987 |
Property and Equipment - Detail
Property and Equipment - Details of property and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 99,486 | $ 92,063 |
Less: Accumulated depreciation | (64,794) | (60,794) |
Property and equipment, net | 34,692 | 31,269 |
Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,693 | 1,737 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,962 | 41,330 |
Computer and Communication Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,812 | 24,051 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,931 | 3,203 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 282 | 282 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,025 | 20,593 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,781 | $ 867 |
Property and Equipment - Deprec
Property and Equipment - Depreciation expense recorded in continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property and Equipment | ||||
Depreciation expense | $ 2,341 | $ 1,792 | $ 4,549 | $ 3,396 |
Goodwill - Schedule of the chan
Goodwill - Schedule of the changes in goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill and Intangible Assets | |
Beginning Balance | $ 101,900 |
Adjustments | (10,215) |
Effect of Changes in Exchange Rates | (48) |
Ending Balance | $ 91,637 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 95,040 | $ 77,889 |
Finite-Lived Intangible Assets, Accumulated Amortization | (26,797) | (22,979) |
Finite-lived intangible assets, net | 68,243 | 54,910 |
Technology Equipment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 55,365 | 39,879 |
Finite-Lived Intangible Assets, Accumulated Amortization | (10,009) | (7,927) |
Finite-lived intangible assets, net | 45,356 | 31,952 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 33,832 | 35,509 |
Finite-Lived Intangible Assets, Accumulated Amortization | (15,168) | (13,484) |
Finite-lived intangible assets, net | 18,664 | 22,025 |
Trademarks and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5,843 | 2,501 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,620) | (1,568) |
Finite-lived intangible assets, net | $ 4,223 | $ 933 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of amortization expense relating to intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets | ||||
Amortization expense | $ 1,874 | $ 1,264 | $ 3,847 | $ 2,521 |
Intangible Assets - Schedule _3
Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets | ||
2019 (remaining) | $ 4,467 | |
2020 | 7,395 | |
2021 | 7,294 | |
2022 | 7,033 | |
2023 | 7,014 | |
Thereafter | 35,040 | |
Finite-lived intangible assets, net | $ 68,243 | $ 54,910 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Reserve by Cost Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 18 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 1,795 | $ 3,468 | $ 7,707 |
Severance and related charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | 1,565 | 1,718 | 5,957 |
Facility relocation and closure charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expense | $ 230 | $ 1,750 | $ 1,750 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 18 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 3,806 | ||
Cost incurred and charged to expense | $ 1,795 | 3,468 | $ 7,707 |
Cost paid or otherwise settled | (3,799) | ||
Effect of change in exchange rates | 1 | ||
Ending balance | $ 3,476 | $ 3,476 | $ 3,476 |
Warranties - Narrative (Details
Warranties - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
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
Warranties - Changes in accrued product warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balances at beginning of period | $ 2,264 | $ 2,084 | $ 2,084 | $ 2,312 |
Acquired warranty | 1,200 | 1,200 | 92 | |
Increases to accruals | 85 | 306 | 604 | 484 |
Warranty expenditures | (286) | (396) | (631) | (902) |
Effect of changes in exchange rates | (13) | 6 | (5) | |
Balances at end of period | $ 3,263 | $ 1,981 | $ 3,263 | $ 1,981 |
Leases (Details)
Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases | |
Operating lease right-of-use asset | $ 52,465 |
Operating Lease, Liability | $ 53,991 |
Leases - Operating lease maturi
Leases - Operating lease maturity schedule (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases | |
2019 (remaining) | $ 5,045 |
2020 | 9,094 |
2021 | 9,012 |
2022 | 6,320 |
2023 | 4,908 |
Thereafter | 29,274 |
Total lease payments | 63,653 |
Less: Interest | (9,662) |
Present value of lease liabilities | $ 53,991 |
Leases - Additional lease cost
Leases - Additional lease cost information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases | |
Weighted Average Remaining Lease Term | 8 years 5 months 4 days |
Weighted Average Discount Rate | 3.75% |
Operating leases | $ 5,914 |
Pension Liability (Details)
Pension Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 19,084 | $ 19,084 | $ 19,266 | ||
Defined Benefit Plan, Interest Cost | 195 | $ 214 | 394 | $ 432 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (166) | (158) | (336) | (319) | |
Defined Benefit Plan, Amortization of Gain (Loss) | 115 | 133 | 233 | 269 | |
Pension Cost (Reversal of Cost) | 144 | $ 189 | 291 | $ 382 | |
Payments through April 30, 2024 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 800 | 800 | |||
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 | $ 1,700 | $ 1,700 |
Pension Liability - Net periodi
Pension Liability - Net periodic pension expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Liability | ||||
Defined Benefit Plan, Interest Cost | $ 195 | $ 214 | $ 394 | $ 432 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (166) | (158) | (336) | (319) |
Defined Benefit Plan, Amortization of Gain (Loss) | 115 | 133 | 233 | 269 |
Pension Cost (Reversal of Cost) | $ 144 | $ 189 | $ 291 | $ 382 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) shares in Millions | 6 Months Ended |
Jun. 30, 2019shares | |
2017 OMNIBUS Incentive Plan [Member] [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Reserved | 3.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2.3 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stock Option Awards [Member] | |
Share based Compensation Arrangement By Share based Payment Award Options Contractual Term | 10 years |
Stock Option Awards [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Stock Option Awards [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of stock-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation | ||||
Stock-based compensation expense | $ 937 | $ 1,943 | $ 4,136 | $ 6,437 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of non-vested Restricted Stock Units activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
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 | $ 51.88 | $ 51.93 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 55.62 | $ 35.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 553 | 553 | 577 | 352 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 27 | 358 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 59.70 | $ 52.04 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (49) | (145) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (2) | (12) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 56.23 | $ 56.23 | $ 56.73 | $ 58.17 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of stock option activity (Details) - Time Based [Member] - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 213 | 213 | 220 | 230 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 21.50 | $ 21.50 | $ 21.21 | $ 20.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (6) | (16) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 12.87 | $ 11.45 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (1) | (1) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 7.95 | $ 7.82 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2019USD ($) |
Commitments and Contingencies | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 108.4 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)company | Jun. 30, 2018company | Jun. 30, 2019USD ($)company | Jun. 30, 2018company | Dec. 31, 2018USD ($)company | |
Related Party Transaction [Line Items] | |||||
Related Party Transactions, Number of Companies | 1 | 1 | 1 | 1 | |
Accounts Receivable, Related Parties | $ | $ 429 | $ 429 | $ 109 | ||
Management [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transactions, Number of Companies | 1 | 1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of related party transactions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)company | Jun. 30, 2018USD ($)company | Jun. 30, 2019USD ($)company | Jun. 30, 2018USD ($)company | Dec. 31, 2018USD ($)company | |
Related Party Transaction [Line Items] | |||||
Accounts Receivable, Related Parties | $ | $ 429 | $ 429 | $ 109 | ||
Sales - related parties | $ | $ 660 | $ 316 | $ 1,012 | $ 389 | |
Related Party Transactions, Number of Companies | company | 1 | 1 | 1 | 1 | |
Management [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transactions, Number of Companies | company | 1 | 1 |
Significant Customer Informat_3
Significant Customer Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||||
Total sales, As Reported | $ 134,810 | $ 196,032 | $ 275,553 | $ 391,649 | |
Product [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total sales, As Reported | $ 106,193 | $ 169,235 | $ 218,305 | $ 340,444 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Applied Materials, Inc. [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 25.00% | 34.60% | 25.40% | 35.10% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Applied Materials, Inc. [Member] | Product [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total sales, As Reported | $ 33,731 | $ 67,741 | $ 70,021 | $ 137,613 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Lam Research [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Percentage | 14.70% | 16.70% | 14.30% | 18.50% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Lam Research [Member] | Product [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Total sales, As Reported | $ 19,802 | $ 32,764 | $ 39,373 | $ 72,490 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Applied Materials, Inc. [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Amount | 24,130 | $ 24,130 | $ 34,301 | ||
Concentration Risk, Percentage | 25.90% | 34.20% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Lam Research [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Concentration Risk, Amount | $ 11,953 | $ 11,953 | $ 12,181 | ||
Concentration Risk, Percentage | 12.80% | 12.10% |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | ||||
Interest Expense | $ 58 | $ 58 | $ 114 | $ 114 |
Bank of America N.A. [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 150,000 | $ 150,000 | ||
Debt, Weighted Average Interest Rate | 3.65% | 3.65% | ||
Funded Debt To EBITDA Ratio | 2 | |||
Credit availability under the Loan Agreement | $ 150,000 | $ 150,000 | ||
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% |
Uncategorized Items - aeis-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,706,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,706,000 |