Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-26966 | |
Entity Registrant Name | ADVANCED ENERGY INDUSTRIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0846841 | |
Entity Address, Address Line One | 1595 Wynkoop Street, Suite 800 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 970 | |
Local Phone Number | 407-6626 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | AEIS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,442,660 | |
Entity Central Index Key | 0000927003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,017,780 | $ 1,044,556 |
Accounts receivable, net | 247,510 | 282,430 |
Inventories | 361,337 | 336,137 |
Other current assets | 44,990 | 48,771 |
Total current assets | 1,671,617 | 1,711,894 |
Property and equipment, net | 175,453 | 167,665 |
Operating lease right-of-use assets | 106,167 | 95,432 |
Other assets | 135,627 | 136,448 |
Intangible assets, net | 154,390 | 161,478 |
Goodwill | 280,834 | 283,840 |
TOTAL ASSETS | 2,524,088 | 2,556,757 |
Current liabilities: | ||
Accounts payable | 137,934 | 141,850 |
Accrued payroll and employee benefits | 49,384 | 73,595 |
Other accrued expenses | 60,094 | 66,662 |
Customer deposits and other | 13,531 | 15,997 |
Current portion of long-term debt | 20,000 | 20,000 |
Current portion of operating lease liabilities | 17,049 | 17,744 |
Total current liabilities | 297,992 | 335,848 |
Long-term debt, net | 891,495 | 895,679 |
Operating lease liabilities | 99,853 | 89,330 |
Pension benefits | 48,567 | 49,135 |
Other long-term liabilities | 43,298 | 42,583 |
Total liabilities | 1,381,205 | 1,412,575 |
Commitments and contingencies (Note 15) | ||
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; 37,434 and 37,318 issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 37 | 37 |
Additional paid-in capital | 153,643 | 148,300 |
Accumulated other comprehensive income | (1,855) | 6,114 |
Retained earnings | 991,058 | 989,731 |
Total stockholders' equity | 1,142,883 | 1,144,182 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,524,088 | $ 2,556,757 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Unaudited Consolidated Balance Sheets | ||
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 (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 37,434 | 37,318 |
Common stock, shares outstanding (in shares) | 37,434 | 37,318 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unaudited Consolidated Statements of Operations | ||
Revenue, net | $ 327,475 | $ 425,040 |
Cost of revenue | 214,646 | 269,929 |
Gross profit | 112,829 | 155,111 |
Operating expenses: | ||
Research and development | 49,836 | 51,610 |
Selling, general, and administrative | 55,124 | 55,358 |
Amortization of intangible assets | 6,947 | 7,062 |
Restructuring, asset impairments, and other charges | 245 | 1,043 |
Total operating expenses | 112,152 | 115,073 |
Operating income | 677 | 40,038 |
Interest income | 12,645 | 3,585 |
Interest expense | (7,127) | (2,730) |
Other income (expense), net | 1,379 | (1,405) |
Income from continuing operations, before income tax | 7,574 | 39,488 |
Income tax provision | 1,787 | 7,736 |
Income from continuing operations | 5,787 | 31,752 |
Loss from discontinued operations, net of income tax | (571) | (831) |
Net income | $ 5,216 | $ 30,921 |
Basic weighted-average common shares outstanding | 37,359 | 37,475 |
Diluted weighted-average common shares outstanding | 37,687 | 37,757 |
Earnings per share: | ||
Basic earnings per share | $ 0.15 | $ 0.85 |
Diluted earnings per share | 0.15 | 0.84 |
Basic loss per share | (0.02) | (0.02) |
Diluted loss per share | (0.02) | (0.02) |
Net income: | ||
Basic earnings per share | 0.14 | 0.83 |
Diluted earnings per share | $ 0.14 | $ 0.82 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unaudited Consolidated Statements of Comprehensive Income (Loss) | ||
Net income | $ 5,216 | $ 30,921 |
Other comprehensive loss, net of income tax | ||
Foreign currency translation | (6,589) | (196) |
Change in fair value of cash flow hedges | (1,380) | (1,817) |
Comprehensive income (loss) | $ (2,753) | $ 28,908 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Beginning Balance at Dec. 31, 2022 | $ 37 | $ 134,640 | $ 16,320 | $ 915,270 | $ 1,066,267 |
Beginning Balance (in shares) at Dec. 31, 2022 | 37,429 | ||||
Stock issued from equity plans | (1,991) | (1,991) | |||
Stock issued from equity plans (in shares) | 100 | ||||
Stock-based compensation | 6,543 | 6,543 | |||
Dividends declared ($0.10 per share) | (3,814) | (3,814) | |||
Other comprehensive loss | (2,013) | (2,013) | |||
Net income | 30,921 | 30,921 | |||
Ending Balance at Mar. 31, 2023 | $ 37 | 139,192 | 14,307 | 942,377 | 1,095,913 |
Ending Balance (in shares) at Mar. 31, 2023 | 37,529 | ||||
Beginning Balance at Dec. 31, 2023 | $ 37 | 148,300 | 6,114 | 989,731 | $ 1,144,182 |
Beginning Balance (in shares) at Dec. 31, 2023 | 37,318 | 37,318 | |||
Stock issued from equity plans | (5,327) | $ (5,327) | |||
Stock issued from equity plans (in shares) | 116 | ||||
Stock-based compensation | 10,591 | 10,591 | |||
Dividends declared ($0.10 per share) | (3,810) | (3,810) | |||
Other comprehensive loss | (7,969) | (7,969) | |||
Deferred compensation | 79 | (79) | |||
Net income | 5,216 | 5,216 | |||
Ending Balance at Mar. 31, 2024 | $ 37 | $ 153,643 | $ (1,855) | $ 991,058 | $ 1,142,883 |
Ending Balance (in shares) at Mar. 31, 2024 | 37,434 | 37,434 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unaudited Consolidated Statements of Stockholders' Equity | ||
Dividends declared (in dollars per share) | $ 0.10 | $ 0.10 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,216 | $ 30,921 |
Less: loss from discontinued operations, net of income tax | (571) | (831) |
Income from continuing operations, net of income tax | 5,787 | 31,752 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 16,952 | 16,523 |
Stock-based compensation | 11,005 | 6,801 |
Amortization of debt issuance costs and debt discount | 816 | 128 |
Deferred income tax benefit | (9) | (617) |
Loss (gain) on disposal and sale of assets | (7) | 115 |
Unrealized gain on investment | (441) | |
Changes in operating assets and liabilities, net of assets acquired | ||
Accounts receivable, net | 33,444 | 13,590 |
Inventories | (26,786) | (25,699) |
Other assets | 2,617 | (8,971) |
Accounts payable | (3,001) | 16,770 |
Other liabilities and accrued expenses | (32,384) | (18,512) |
Net cash from operating activities from continuing operations | 7,993 | 31,880 |
Net cash from operating activities from discontinued operations | (710) | (2,069) |
Net cash from operating activities | 7,283 | 29,811 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of long-term investments | (2,092) | |
Purchases of property and equipment | (16,629) | (16,210) |
Net cash from investing activities | (18,721) | (16,210) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on long-term borrowings | (5,000) | (5,000) |
Dividend payments | (3,810) | (3,814) |
Net payments related to stock-based awards | (5,327) | (1,991) |
Net cash from financing activities | (14,137) | (10,805) |
EFFECT OF CURRENCY TRANSLATION ON CASH AND CASH EQUIVALENTS | (1,201) | 51 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (26,776) | 2,847 |
CASH AND CASH EQUIVALENTS, beginning of period | 1,044,556 | 458,818 |
CASH AND CASH EQUIVALENTS, end of period | 1,017,780 | 461,665 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 6,302 | 2,590 |
Cash paid for income taxes | $ 2,471 | $ 2,838 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Advanced Energy Industries, Inc., a Delaware corporation, and its consolidated subsidiaries (“we,” “us,” “our,” “Advanced Energy,” or the “Company”) provides highly engineered, critical, precision power conversion, measurement, and control solutions to our global customers. We design, manufacture, sell and support precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of highly controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a wide range of complex equipment. Many of our products enable customers to reduce or optimize their energy consumption through increased power conversion efficiency, power density, power coupling, and process control across a wide range of applications . In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly Advanced Energy’s financial position as of March 31, 2024, and the results of our operations and cash flows for the three months ended March 31, 2024 and 2023. The unaudited 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 omitted pursuant to such rules and regulations. These unaudited 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 year ended December 31, 2023 and other financial information filed with the SEC. Use of Estimates in the Preparation of the Consolidated Financial Statements 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, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The significant estimates, assumptions, and judgments include, but are not limited to, excess and obsolete inventory, income taxes and other provisions, and acquisitions and asset valuations. Significant Accounting Policies Our accounting policies are described in Note 1 to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023. 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, will not have a material impact on the consolidated financial statements upon adoption. New Accounting Standards Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands disclosure requirements to require additional information about significant segment expenses. In addition, the ASU enhances interim disclosures, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and provides new disclosures requirements for entities with a single reportable segment. This guidance will be effective for us in our Annual Report on Form 10-K for the year ending December 31, 2024. We do not expect the above guidance to materially impact our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 “Improvements to Income Tax Disclosures.” ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional disclosure on income taxes paid. This guidance will be effective for us on January 1, 2025. We do not expect the above guidance to materially impact our consolidated financial statements. In March 2024, the U.S. Securities and Exchange Commission (the “SEC”) issued climate-related disclosure rules. These rules do not change accounting treatment, but they significantly expand the climate-related information companies are required to disclose. Several petitions were filed challenging these climate-related disclosure rules and, in April 2024, the SEC voluntarily stayed the rules, pending completion of judicial review. We do not expect the above disclosure requirement to materially impact our consolidated financial statements. We are evaluating the disclosure requirements and changes to our business processes, systems, and controls to support the additional disclosures. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE | |
REVENUE | NOTE 2. REVENUE Disaggregation of revenue The following tables present additional information regarding our revenue: Revenue by Market Three Months Ended March 31, 2024 2023 Semiconductor Equipment $ 179,903 $ 194,209 Industrial and Medical 83,418 123,020 Data Center Computing 41,902 59,659 Telecom and Networking 22,252 48,152 Total $ 327,475 $ 425,040 Revenue by Region Three Months Ended March 31, 2024 2023 North America $ 134,079 40.9 % $ 180,942 42.5 % Asia 151,943 46.4 179,183 42.2 Europe 40,553 12.4 62,566 14.7 Other 900 0.3 2,349 0.6 Total $ 327,475 100.0 % $ 425,040 100.0 % Revenue by Significant Countries Three Months Ended March 31, 2024 2023 United States $ 107,816 32.9 % $ 153,506 36.1 % Taiwan 39,473 12.1 36,361 8.6 China 18,891 5.8 37,456 8.8 All others 161,295 49.2 197,717 46.5 Total $ 327,475 100.0 % $ 425,040 100.0 % We attribute revenue to individual countries and regions based on the customer’s ship to location. Apart from the United States and Taiwan, no revenue attributable to any individual country exceeded 10% of our total consolidated revenues during the periods presented. Revenue by Category Three Months Ended March 31, 2024 2023 Product $ 286,264 $ 379,274 Services and other 41,211 45,766 Total $ 327,475 $ 425,040 Other revenue includes certain spare parts and products sold by our service group. Significant Customers During the three months ended March 31, 2024, Applied Materials, Inc. and Lam Research Corporation accounted for 30% and 10%, respectively, of our total revenue. During the three months ended March 31, 2023, Applied Materials Inc. accounted for 21% of our total revenue. As of March 31, 2024, the account receivable balance from Applied Materials, Inc. and Lam Research Corporation accounted for 37% and 10%, respectively, of our total accounts receivable. As of December 31, 2023, the account receivable balance from Applied Materials, Inc. accounted for 26% of our total accounts receivable. No other customer’s account receivable exceeded 10% of our total accounts receivable in the periods presented. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAX | |
INCOME TAX | NOTE 3. INCOME TAX The following table summarizes tax expense and the effective tax rate for our income from continuing operations: Three Months Ended March 31, 2024 2023 Income from continuing operations, before income tax $ 7,574 $ 39,488 Income tax provision $ 1,787 $ 7,736 Effective tax rate 23.6 % 19.6 % Our effective tax rates differ from the U.S. federal statutory rate of 21% for the three months ended March 31, 2024 and 2023, primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, as well as tax credits, partially offset by net U.S. tax on foreign operations. The effective tax rate for 2024 was higher than the same periods in 2023 primarily due to unfavorable mix of earnings. As of January 1, 2024, the Pillar II minimum global effective tax rate of 15% enacted by the Organization for Economic Cooperation and Development (“OECD”) was effectuated. More than 140 countries agreed to enact the Pillar II global minimum tax. However, the timing of the implementation for each country varies. To date, we have determined that there was an immaterial global minimum tax liability as a result of Pillar II, as certain tax jurisdictions either will not have Pillar II enacted until after December 31, 2024 or satisfied the safe harbor test to prevent any minimum tax under Pillar II. We continue to monitor the jurisdictions for any changes and include any appropriate minimum tax throughout the year. |
STOCKHOLDERS' EQUITY AND EARNIN
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | NOTE 4. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE Accumulated Other Comprehensive Income The following table summarizes the components of, and changes in, accumulated other comprehensive income Foreign Currency Translation Change in Fair Value of Cash Flow Hedges Minimum Pension Benefit Retirement Liability Total Balance at December 31, 2023 $ (10,796) $ 5,474 $ 11,436 $ 6,114 Other comprehensive income prior to reclassifications (6,589) 1,405 - (5,184) Amounts reclassified from accumulated other comprehensive income - (2,785) - (2,785) Balance at March 31, 2024 $ (17,385) $ 4,094 $ 11,436 $ (1,855) Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Three Months Ended March 31, To Caption on 2024 Consolidated Statements of Operations Cash flow hedges $ (2,785) Interest expense Earnings Per Share The following table summarizes our earnings per share (“EPS”): Three Months Ended March 31, 2024 2023 Income from continuing operations $ 5,787 $ 31,752 Basic weighted-average common shares outstanding 37,359 37,475 Dilutive effect of stock awards 328 282 Diluted weighted-average common shares outstanding 37,687 37,757 EPS from continuing operations Basic EPS $ 0.15 $ 0.85 Diluted EPS $ 0.15 $ 0.84 Anti-dilutive shares not included above Stock awards 28 102 Warrants 3,194 — Total anti-dilutive shares 3,222 102 We compute basic earnings per share of common stock (“Basic EPS”) by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. See Note 16. Long-Term Debt ● Dilutive impact associated with the Convertible Notes using the if-converted method. The Convertible Notes are repayable in cash up to par value and in cash or shares of common stock for the excess over par value. When the stock price is lower than the strike price, there is no dilutive or anti-dilutive impact. Prior to conversion, we do not consider the Note Hedges for purposes of Diluted EPS as their effect would be anti-dilutive. Upon conversion, we expect the Note Hedges to offset the dilutive effect of the Convertible Notes when the stock price is above $137.46 but below $179.76 ; ● Additional common shares that would have been outstanding if our outstanding stock awards had been converted to common shares using the treasury stock method. We exclude any stock awards that have an anti-dilutive effect; and ● Dilutive effect of the Warrants issued concurrently with the Convertible Notes using the treasury stock method. For all periods presented, the Warrants did not increase the weighted-average number of common shares outstanding because the $179.76 exercise price of the Warrants exceeded the average market price of our common stock. Share Repurchase At , 2024, the remaining amount authorized by the Board of Directors (“the Board”) for future share repurchases was $199.2 million with no time limitation. There were no share repurchases during any periods presented. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 5. FAIR VALUE MEASUREMENTS The following tables present information about our assets and liabilities measured at fair value on a recurring basis: March 31, 2024 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — $ 177 $ — $ 177 Foreign currency forward contracts Other accrued expenses — 195 — 195 Interest rate swaps Other current assets — 5,211 — 5,211 Investments Other assets — 8,519 — 8,519 December 31, 2023 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — $ 163 $ — $ 163 Interest rate swaps Other assets — 6,995 — 6,995 Investments Other assets — 5,952 — 5,952 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS Changes in foreign currency exchange rates impact our results of operations and cash flows. We may manage these risks through the use of derivative financial instruments, primarily forward contracts with banks. These forward contracts manage the exchange rate risk associated with assets and liabilities denominated in nonfunctional currencies. Typically, we execute these derivative instruments for one-month periods and do not designate them as hedges; however, they do partially offset the economic fluctuations of certain of our assets and liabilities due to foreign exchange rate changes. The following table summarizes the notional amount of outstanding foreign currency forward contracts: March 31, December 31, 2024 2023 Foreign currency forward contracts $ 86,825 $ — Gains and losses related to foreign currency exchange contracts were offset by corresponding gains and losses on the revaluation of the underlying assets and liabilities. Both are included as a component of other income (expense), net in our Consolidated Statements of Operations. We have executed interest rate swap contracts that fix a portion of the interest payments related to the outstanding principal balance on our Term Loan Facility to a total interest rate of 1.172%. The interest rate swap contracts expire on September 10, 2024 and are accounted for as cash flow hedging instruments. See Note 16. Long-Term Debt The following table summarizes the notional amount of our qualified hedging instruments: March 31, December 31, 2024 2023 Interest rate swap contracts $ 216,344 $ 220,719 The following table summarizes the amounts, net of tax, recorded in accumulated other comprehensive income on the Consolidated Balance Sheets for qualifying hedges. March 31, December 31, 2024 2023 Interest rate swap contract gains $ 4,094 $ 5,350 See Note 6. Fair Value Measurements As a result of using derivative financial instruments, we are exposed to the risk that counterparties to contracts could fail to meet their contractual obligations. We manage this credit risk by reviewing counterparty creditworthiness on a regular basis and limiting exposure to any single counterparty. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 3 Months Ended |
Mar. 31, 2024 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | NOTE 7. ACCOUNTS RECEIVABLE, NET We record accounts receivable at net realizable value. Our accounts receivable, net balance on the Consolidated Balance Sheets was $247.5 million at March 31, 2024. The following table summarizes the changes in expected credit losses related to receivables: December 31, 2023 $ 1,762 Additions 33 March 31, 2024 $ 1,795 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
INVENTORIES | NOTE 8. INVENTORIES We value inventories at the lower of cost or net realizable value, computed on a first-in, first-out basis. Components of inventories were as follows: March 31, December 31, 2024 2023 Parts and raw materials $ 264,042 $ 249,698 Work in process 15,730 14,595 Finished goods 81,565 71,844 Total $ 361,337 $ 336,137 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 9. PROPERTY AND EQUIPMENT, NET Property and equipment, net is comprised of the following: Estimated Useful March 31, December 31, Life (in years) 2024 2023 Buildings, machinery, and equipment 5 to 25 $ 196,042 $ 191,744 Software 3 to 10 29,905 24,526 Computer equipment, furniture, fixtures, and vehicles 3 to 5 19,430 19,281 Leasehold improvements 2 to 10 81,365 79,764 Capital projects in process 25,159 21,721 351,901 337,036 Less: Accumulated depreciation (176,448) (169,371) Property and equipment, net $ 175,453 $ 167,665 The following table summarizes depreciation expense. All depreciation expense is recorded in income from continuing operations: Three Months Ended March 31, 2024 2023 Depreciation expense $ 10,005 $ 9,461 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2024 | |
INTANGIBLE ASSETS AND GOODWILL | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 10. INTANGIBLE ASSETS AND GOODWILL Intangible assets consisted of the following: March 31, 2024 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 97,514 $ (63,086) $ 34,428 6.9 Customer relationships 167,981 (61,451) 106,530 9.3 Trademarks and other 27,104 (13,672) 13,432 5.3 Total $ 292,599 $ (138,209) $ 154,390 8.4 December 31, 2023 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 97,961 $ (60,412) $ 37,549 6.8 Customer relationships 168,685 (58,835) 109,850 9.5 Trademarks and other 27,141 (13,062) 14,079 5.6 Total $ 293,787 $ (132,309) $ 161,478 8.5 Amortization expense related to intangible assets is as follows: Three Months Ended March 31, 2024 2023 Amortization expense $ 6,947 $ 7,062 Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2024 (remaining) $ 18,259 2025 20,988 2026 19,272 2027 17,366 2028 16,131 Thereafter 62,374 Total $ 154,390 The following table summarizes the changes in goodwill: December 31, 2023 $ 283,840 Foreign currency translation and other (3,006) March 31, 2024 $ 280,834 |
RESTRUCTURING, ASSET IMPAIRMENT
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | NOTE 11. RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES Details of restructuring, asset impairments, and other charges are as follows: Three Months Ended March 31, 2024 2023 Restructuring $ (31) 1,043 Other charges 276 — Total restructuring, asset impairments, and other charges $ 245 $ 1,043 Restructuring We have two restructuring plans in process: 2023 Plan In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect additional charges of $1.0 million to $2.0 million to be incurred in future periods through the second quarter of 2025. We anticipate the 2023 Plan will be substantially completed by the end of 2024, with the final activities concluding in the second quarter 2025. 2022 Plan This plan was approved to further improve our operating efficiencies and drive the realization of synergies from our business combinations by consolidating our operations, optimizing our factory footprint, including moving certain production into our higher volume factories, reducing redundancies, and lowering our cost structure. We anticipate the 2022 Plan will be substantially completed by the end of 2024. Our restructuring liabilities are included in other accrued expenses in our Consolidated Balance Sheets. Changes in restructuring liabilities were as follows: 2023 Plan 2022 Plan Other Total December 31, 2023 $ 14,224 $ 2,930 $ 188 $ 17,342 Costs incurred and charged to expense (88) 57 — (31) Costs paid or otherwise settled (4,099) (2,220) (188) (6,507) March 31, 2024 $ 10,037 $ 767 $ — $ 10,804 Charges related to our restructuring plans are as follows: Three Months Ended March 31, 2024 2023 Severance and related charges $ (31) $ 1,043 Cumulative Cost Through March 31, 2024 2023 Plan 2022 Plan Total Severance and related charges $ 17,015 $ 14,044 $ 31,059 Other Charges In connection with vacating and relocating facilities, we incurred other charges of $0.3 million. |
WARRANTIES
WARRANTIES | 3 Months Ended |
Mar. 31, 2024 | |
WARRANTIES | |
WARRANTIES | NOTE 12. WARRANTIES Our sales agreements include customary product warranty provisions, which generally range from 12 to 36 months after shipment. We record the estimated warranty obligations cost when we recognize revenue. This estimate is based on 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 were as follows: December 31, 2023 $ 4,007 Net increases to accruals 436 Warranty expenditures (595) Effect of changes in exchange rates 139 March 31, 2024 $ 3,987 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
LEASES | NOTE 13. LEASES Components of total operating lease cost were as follows: Three Months Ended March 31, 2024 2023 Operating lease cost $ 5,860 $ 5,680 Short-term and variable lease cost 667 1,083 Total operating lease cost $ 6,527 $ 6,763 Payments on our operating lease liabilities are as follows: Year Ending December 31, 2024 (remaining) $ 17,405 2025 20,576 2026 17,968 2027 15,529 2028 15,168 Thereafter 60,360 Total lease payments 147,006 Less: Interest (30,104) Present value of lease liabilities $ 116,902 In addition to the above, we have lease agreements with total payments of $36.3 million that commence on various dates in 2024 and 2025 and extend through 2040. The following tables present additional information about our lease agreements: March 31, December 31, 2024 2023 Weighted average remaining lease term (in years) 8.5 8.3 Weighted average discount rate 5.2 % 5.0 % Three Months Ended March 31, 2024 2023 Cash paid for operating leases $ 5,721 $ 5,820 Right-of-use assets obtained in exchange for operating lease liabilities $ 16,837 $ 208 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 14. STOCK-BASED COMPENSATION The Compensation Committee of our Board administers our stock plans. As of March 31, 2024, we had two active stock-based incentive compensation plans: the 2023 Omnibus Incentive Plan (“the 2023 Incentive Plan”) and the Employee Stock Purchase Plan (“ESPP”). The 2023 Incentive Plan was approved by stockholders on April 27, 2023 and amended and restated on November 2, 2023. We issue all new equity compensation grants under these two plans; however, outstanding awards previously issued under inactive plans will continue to vest and remain exercisable in accordance with the terms of the respective plans. The 2023 Incentive Plan provides for the grant of awards including stock . The following table summarizes information related to our stock-based incentive compensation plans: March 31, 2024 Shares available for future issuance under the 2023 Incentive Plan 1,840 Shares available for future issuance under the ESPP 577 Stock-based Compensation Expense 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. During the three months ended March 31, 2024, stock-based compensation expense includes $1.8 million related to a modification for accounting purposes of prior awards. Stock-based compensation was as follows: Three Months Ended March 31, 2024 2023 Stock-based compensation expense $ 11,005 $ 6,801 Restricted Stock Units Generally, we grant restricted stock units (“RSUs”) with a three year time-based vesting schedule. Certain RSUs contain performance-based or market-based vesting conditions in addition to the time-based vesting requirements. RSUs are generally granted with a grant date fair value based on the market price of our stock on the date of grant. Changes in our RSUs were as follows: Three Months Ended March 31, 2024 Weighted- Average Number of Grant Date RSUs Fair Value RSUs outstanding at beginning of period 917 $ 85.96 RSUs granted 502 $ 105.06 RSUs vested (171) $ 89.48 RSUs forfeited (73) $ 74.93 RSUs outstanding at end of period 1,175 $ 94.29 Stock Options Generally, we grant stock option awards with an exercise price equal to the market price of our stock at the date of grant and with either a three Changes in our stock options were as follows: Three Months Ended March 31, 2024 Weighted- Average Number of Exercise Price Options per Share Options outstanding at beginning of period 89 $ 76.69 Options exercised (2) $ 26.32 Options outstanding at end of period 87 $ 78.14 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 15. COMMITMENTS AND CONTINGENCIES We are involved in disputes and legal actions arising in the normal course of our business. While we currently believe that the amount of any ultimate loss would not be material to our financial position, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate loss could have a material adverse effect on our financial position or reported results of operations. An unfavorable decision in intellectual property litigation also could require material changes in production processes and products or result in our inability to ship products or components found to have violated third party intellectual property rights. We accrue loss contingencies in connection with our commitments and contingencies, including litigation, when it is probable that a loss has occurred, and the amount of such loss can be reasonably estimated. We are not currently a party to any legal action that we believe would reasonably have a material adverse impact on our business, financial condition, results of operations or cash flows. We maintain defined benefit pension plans for certain of our non-U.S. employees, including the United Kingdom. In light of the recent United Kingdom’s High Court ruling in the case of Virgin Media Ltd v. NTL Pension Trustees II Ltd & Ors, which is scheduled for appeal in June 2024, we are reviewing past amendments made to our United Kingdom pension plans to evaluate whether any changes were implemented in conflict with section 37 of the United Kingdom Pension Schemes Act 1993. Should there be a challenge to any previous amendments to our pension plan in the United Kingdom, we could face potential litigation and compliance risks. We continue to account for our United Kingdom pension arrangements in accordance with the plan agreements and amendments, as we believe they represent a mutual understanding and agreement among all parties. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 16. LONG-TERM DEBT Long-term debt on our Consolidated Balance Sheets consists of the following: March 31, December 31, 2024 2023 Convertible Notes due 2028 $ 575,000 $ 575,000 Term Loan Facility due 2026 350,000 355,000 Gross long-term debt, including current maturities 925,000 930,000 Less: debt discount (13,505) (14,321) Net long-term debt, including current maturities 911,495 915,679 Less: current maturities (20,000) (20,000) Net long-term debt $ 891,495 $ 895,679 For all periods presented, we were in compliance with the covenants under all debt agreements. Contractual maturities of our gross long-term debt, including current maturities, are as follows: Year Ending December 31, 2024 (remaining) $ 15,000 2025 20,000 2026 315,000 2027 — 2028 575,000 Total $ 925,000 March 31, 2024 Balance Interest Rate Convertible Notes $ 575,000 2.50% Term Loan Facility at fixed interest rate due to interest rate swap 216,344 1.17% Term Loan Facility at variable interest rate 133,656 6.18% Total borrowings $ 925,000 The interest rate swap contracts expire on September 10, 2024. After that date, this portion of our Term Loan Facility will be subject to a variable interest rate. For more information, see Note 6. Derivative Financial Instruments The following table summarizes interest expense related to our debt: Three Months Ended March 31, 2024 2023 Interest expense $ 6,302 $ 2,590 Amortization of debt issuance costs 820 133 Total interest expense related to debt $ 7,122 $ 2,723 Convertible Senior Notes due 2028 On September 12, 2023, we completed a private, unregistered offering of $575.0 million aggregate principal amount of 2.50% convertible senior notes (“Convertible Notes”). The $562.6 million remaining outstanding principal amount of the 2.50% Convertible Notes, net of unamortized issuance costs, continues to be classified as long-term debt as none of the conversion triggers occurred as of March 31, 2024. The redemption price is 100% of the principal amount plus accrued and unpaid interest. The Convertible Notes mature on September 15, 2028, unless earlier repurchased, redeemed, or converted. Interest is payable semi-annually in arrears in March and September. Concurrent with the Convertible Notes issuance, we entered into hedges and sold warrants with respect to our common stock. I Credit Agreement Our credit agreement dated as of September 10, 2019, as amended (the “Credit Agreement”) consists of a senior unsecured term loan facility (“Term Loan Facility”) and a senior unsecured revolving facility (“Revolving Facility”). Both mature on September 9, 2026. On March 31, 2023, we executed agreements pursuant to the Credit Agreement to transition the benchmark interest rate from LIBOR to SOFR. The impact of this transition was not material to our consolidated financial statements. On September 7, 2023, we entered into an additional amendment to the Credit Agreement to amend certain definitions, covenants, and events of default. The following table summarizes our availability to withdraw on the Revolving Facility: March 31, December 31, 2024 2023 Available capacity on Revolving Facility $ 200,000 $ 200,000 As part of our available capacity on the Revolving Facility, prior to the maturity date of the Credit Agreement, we may request an increase to the financing commitments in either the Term Loan Facility or Revolving Facility by an aggregate amount not to exceed $115.0 million. Any requested increase is subject to lender approval. We use level 2 measurements to estimate the fair value of our debt. As of March 31, 2024, we estimate the fair value of our Convertible Notes to be $585.9 million, and the par value of the Term Loan Facility approximates its fair value. |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Use of Estimates in the Preparation of the Consolidated Financial Statements | Use of Estimates in the Preparation of the Consolidated Financial Statements 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, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The significant estimates, assumptions, and judgments include, but are not limited to, excess and obsolete inventory, income taxes and other provisions, and acquisitions and asset valuations. |
Significant Accounting Policies | Significant Accounting Policies Our accounting policies are described in Note 1 to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023. |
New Accounting Standards | 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, will not have a material impact on the consolidated financial statements upon adoption. New Accounting Standards Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands disclosure requirements to require additional information about significant segment expenses. In addition, the ASU enhances interim disclosures, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, and provides new disclosures requirements for entities with a single reportable segment. This guidance will be effective for us in our Annual Report on Form 10-K for the year ending December 31, 2024. We do not expect the above guidance to materially impact our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 “Improvements to Income Tax Disclosures.” ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional disclosure on income taxes paid. This guidance will be effective for us on January 1, 2025. We do not expect the above guidance to materially impact our consolidated financial statements. In March 2024, the U.S. Securities and Exchange Commission (the “SEC”) issued climate-related disclosure rules. These rules do not change accounting treatment, but they significantly expand the climate-related information companies are required to disclose. Several petitions were filed challenging these climate-related disclosure rules and, in April 2024, the SEC voluntarily stayed the rules, pending completion of judicial review. We do not expect the above disclosure requirement to materially impact our consolidated financial statements. We are evaluating the disclosure requirements and changes to our business processes, systems, and controls to support the additional disclosures. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE | |
Schedule of disaggregation of revenue | Revenue by Market Three Months Ended March 31, 2024 2023 Semiconductor Equipment $ 179,903 $ 194,209 Industrial and Medical 83,418 123,020 Data Center Computing 41,902 59,659 Telecom and Networking 22,252 48,152 Total $ 327,475 $ 425,040 Revenue by Region Three Months Ended March 31, 2024 2023 North America $ 134,079 40.9 % $ 180,942 42.5 % Asia 151,943 46.4 179,183 42.2 Europe 40,553 12.4 62,566 14.7 Other 900 0.3 2,349 0.6 Total $ 327,475 100.0 % $ 425,040 100.0 % Revenue by Significant Countries Three Months Ended March 31, 2024 2023 United States $ 107,816 32.9 % $ 153,506 36.1 % Taiwan 39,473 12.1 36,361 8.6 China 18,891 5.8 37,456 8.8 All others 161,295 49.2 197,717 46.5 Total $ 327,475 100.0 % $ 425,040 100.0 % Revenue by Category Three Months Ended March 31, 2024 2023 Product $ 286,264 $ 379,274 Services and other 41,211 45,766 Total $ 327,475 $ 425,040 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAX | |
Schedule of tax expense and the effective tax rate for income from continuing operations | Three Months Ended March 31, 2024 2023 Income from continuing operations, before income tax $ 7,574 $ 39,488 Income tax provision $ 1,787 $ 7,736 Effective tax rate 23.6 % 19.6 % |
STOCKHOLDERS' EQUITY AND EARN_2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |
Summary of the components of and changes in accumulated other comprehensive income (loss), net of income taxes | Foreign Currency Translation Change in Fair Value of Cash Flow Hedges Minimum Pension Benefit Retirement Liability Total Balance at December 31, 2023 $ (10,796) $ 5,474 $ 11,436 $ 6,114 Other comprehensive income prior to reclassifications (6,589) 1,405 - (5,184) Amounts reclassified from accumulated other comprehensive income - (2,785) - (2,785) Balance at March 31, 2024 $ (17,385) $ 4,094 $ 11,436 $ (1,855) |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Consolidated Statements of Operations | Three Months Ended March 31, To Caption on 2024 Consolidated Statements of Operations Cash flow hedges $ (2,785) Interest expense |
Summary of earnings per share ("EPS") | Three Months Ended March 31, 2024 2023 Income from continuing operations $ 5,787 $ 31,752 Basic weighted-average common shares outstanding 37,359 37,475 Dilutive effect of stock awards 328 282 Diluted weighted-average common shares outstanding 37,687 37,757 EPS from continuing operations Basic EPS $ 0.15 $ 0.85 Diluted EPS $ 0.15 $ 0.84 Anti-dilutive shares not included above Stock awards 28 102 Warrants 3,194 — Total anti-dilutive shares 3,222 102 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities measured at fair value on a recurring basis | March 31, 2024 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — $ 177 $ — $ 177 Foreign currency forward contracts Other accrued expenses — 195 — 195 Interest rate swaps Other current assets — 5,211 — 5,211 Investments Other assets — 8,519 — 8,519 December 31, 2023 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — $ 163 $ — $ 163 Interest rate swaps Other assets — 6,995 — 6,995 Investments Other assets — 5,952 — 5,952 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of notional amount of outstanding foreign currency forward contracts | March 31, December 31, 2024 2023 Foreign currency forward contracts $ 86,825 $ — |
Schedule of notional amount of qualified hedging instruments | March 31, December 31, 2024 2023 Interest rate swap contracts $ 216,344 $ 220,719 |
Schedule of balances recorded in Accumulated other comprehensive income | March 31, December 31, 2024 2023 Interest rate swap contract gains $ 4,094 $ 5,350 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts and other receivable | December 31, 2023 $ 1,762 Additions 33 March 31, 2024 $ 1,795 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
Schedule of components of inventories | March 31, December 31, 2024 2023 Parts and raw materials $ 264,042 $ 249,698 Work in process 15,730 14,595 Finished goods 81,565 71,844 Total $ 361,337 $ 336,137 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | Estimated Useful March 31, December 31, Life (in years) 2024 2023 Buildings, machinery, and equipment 5 to 25 $ 196,042 $ 191,744 Software 3 to 10 29,905 24,526 Computer equipment, furniture, fixtures, and vehicles 3 to 5 19,430 19,281 Leasehold improvements 2 to 10 81,365 79,764 Capital projects in process 25,159 21,721 351,901 337,036 Less: Accumulated depreciation (176,448) (169,371) Property and equipment, net $ 175,453 $ 167,665 |
Schedule of depreciation expense recorded in continuing operations | Three Months Ended March 31, 2024 2023 Depreciation expense $ 10,005 $ 9,461 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INTANGIBLE ASSETS AND GOODWILL | |
Schedule of intangible assets | March 31, 2024 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 97,514 $ (63,086) $ 34,428 6.9 Customer relationships 167,981 (61,451) 106,530 9.3 Trademarks and other 27,104 (13,672) 13,432 5.3 Total $ 292,599 $ (138,209) $ 154,390 8.4 December 31, 2023 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 97,961 $ (60,412) $ 37,549 6.8 Customer relationships 168,685 (58,835) 109,850 9.5 Trademarks and other 27,141 (13,062) 14,079 5.6 Total $ 293,787 $ (132,309) $ 161,478 8.5 |
Schedule of amortization expense related to intangible assets | Three Months Ended March 31, 2024 2023 Amortization expense $ 6,947 $ 7,062 |
Schedule of estimated future amortization expense related to intangible assets | Year Ending December 31, 2024 (remaining) $ 18,259 2025 20,988 2026 19,272 2027 17,366 2028 16,131 Thereafter 62,374 Total $ 154,390 |
Schedule of changes in goodwill | December 31, 2023 $ 283,840 Foreign currency translation and other (3,006) March 31, 2024 $ 280,834 |
RESTRUCTURING, ASSET IMPAIRME_2
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | |
Schedule of restructuring, asset impairments, and other charges | Three Months Ended March 31, 2024 2023 Restructuring $ (31) 1,043 Other charges 276 — Total restructuring, asset impairments, and other charges $ 245 $ 1,043 |
Schedule of restructuring liabilities | 2023 Plan 2022 Plan Other Total December 31, 2023 $ 14,224 $ 2,930 $ 188 $ 17,342 Costs incurred and charged to expense (88) 57 — (31) Costs paid or otherwise settled (4,099) (2,220) (188) (6,507) March 31, 2024 $ 10,037 $ 767 $ — $ 10,804 |
Schedule of charges related to restructuring plans | Three Months Ended March 31, 2024 2023 Severance and related charges $ (31) $ 1,043 Cumulative Cost Through March 31, 2024 2023 Plan 2022 Plan Total Severance and related charges $ 17,015 $ 14,044 $ 31,059 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
WARRANTIES | |
Schedule of changes in accrued product warranties | December 31, 2023 $ 4,007 Net increases to accruals 436 Warranty expenditures (595) Effect of changes in exchange rates 139 March 31, 2024 $ 3,987 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LEASES | |
Components of operating lease cost | Three Months Ended March 31, 2024 2023 Operating lease cost $ 5,860 $ 5,680 Short-term and variable lease cost 667 1,083 Total operating lease cost $ 6,527 $ 6,763 |
Schedule of maturities of operating lease liabilities | Year Ending December 31, 2024 (remaining) $ 17,405 2025 20,576 2026 17,968 2027 15,529 2028 15,168 Thereafter 60,360 Total lease payments 147,006 Less: Interest (30,104) Present value of lease liabilities $ 116,902 |
Schedule of other information related to leases | March 31, December 31, 2024 2023 Weighted average remaining lease term (in years) 8.5 8.3 Weighted average discount rate 5.2 % 5.0 % Three Months Ended March 31, 2024 2023 Cash paid for operating leases $ 5,721 $ 5,820 Right-of-use assets obtained in exchange for operating lease liabilities $ 16,837 $ 208 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
Summary of information related to stock-based incentive compensation plans | March 31, 2024 Shares available for future issuance under the 2023 Incentive Plan 1,840 Shares available for future issuance under the ESPP 577 |
Schedule of stock-based compensation | Three Months Ended March 31, 2024 2023 Stock-based compensation expense $ 11,005 $ 6,801 |
Summary of changes in RSUs | Three Months Ended March 31, 2024 Weighted- Average Number of Grant Date RSUs Fair Value RSUs outstanding at beginning of period 917 $ 85.96 RSUs granted 502 $ 105.06 RSUs vested (171) $ 89.48 RSUs forfeited (73) $ 74.93 RSUs outstanding at end of period 1,175 $ 94.29 |
Summary of changes in stock options | Three Months Ended March 31, 2024 Weighted- Average Number of Exercise Price Options per Share Options outstanding at beginning of period 89 $ 76.69 Options exercised (2) $ 26.32 Options outstanding at end of period 87 $ 78.14 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
Schedule of long-term debt | March 31, December 31, 2024 2023 Convertible Notes due 2028 $ 575,000 $ 575,000 Term Loan Facility due 2026 350,000 355,000 Gross long-term debt, including current maturities 925,000 930,000 Less: debt discount (13,505) (14,321) Net long-term debt, including current maturities 911,495 915,679 Less: current maturities (20,000) (20,000) Net long-term debt $ 891,495 $ 895,679 |
Schedule of contractual maturities of gross long-term debt | Year Ending December 31, 2024 (remaining) $ 15,000 2025 20,000 2026 315,000 2027 — 2028 575,000 Total $ 925,000 |
Schedule of borrowings under credit facility | March 31, 2024 Balance Interest Rate Convertible Notes $ 575,000 2.50% Term Loan Facility at fixed interest rate due to interest rate swap 216,344 1.17% Term Loan Facility at variable interest rate 133,656 6.18% Total borrowings $ 925,000 |
Schedule of interest expense and unused line of credit fees | Three Months Ended March 31, 2024 2023 Interest expense $ 6,302 $ 2,590 Amortization of debt issuance costs 820 133 Total interest expense related to debt $ 7,122 $ 2,723 |
Schedule of availability to withdraw on Revolving Facility | March 31, December 31, 2024 2023 Available capacity on Revolving Facility $ 200,000 $ 200,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 327,475 | $ 425,040 |
Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 100% | 100% |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 134,079 | $ 180,942 |
North America | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 40.90% | 42.50% |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 151,943 | $ 179,183 |
Asia | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 46.40% | 42.20% |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 40,553 | $ 62,566 |
Europe | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 12.40% | 14.70% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 900 | $ 2,349 |
Other | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 0.30% | 0.60% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 107,816 | $ 153,506 |
United States | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 32.90% | 36.10% |
TAIWAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 39,473 | $ 36,361 |
TAIWAN | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 12.10% | 8.60% |
China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 18,891 | $ 37,456 |
China | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 5.80% | 8.80% |
All others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 161,295 | $ 197,717 |
All others | Revenue benchmark | Geographic concentration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue (as a percent) | 49.20% | 46.50% |
Semiconductor Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 179,903 | $ 194,209 |
Industrial and Medical | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 83,418 | 123,020 |
Data Center Computing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 41,902 | 59,659 |
Telecom and Networking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,252 | 48,152 |
Product | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 286,264 | 379,274 |
Services and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 41,211 | $ 45,766 |
REVENUE - Significant Customers
REVENUE - Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue benchmark | Applied Materials, Inc | |||
Revenue, Major Customer [Line Items] | |||
Significant concentration risk, 10% or more of total balance | 30% | 21% | |
Revenue benchmark | Lam Research Corporation | |||
Revenue, Major Customer [Line Items] | |||
Significant concentration risk, 10% or more of total balance | 10% | ||
Accounts Receivable Benchmark | Applied Materials, Inc | |||
Revenue, Major Customer [Line Items] | |||
Significant concentration risk, 10% or more of total balance | 37% | 26% | |
Accounts Receivable Benchmark | Lam Research Corporation | |||
Revenue, Major Customer [Line Items] | |||
Significant concentration risk, 10% or more of total balance | 10% |
INCOME TAX - Schedule of Tax Ex
INCOME TAX - Schedule of Tax Expense and Effective Tax Rate for Income from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAX | ||
Income from continuing operations, before income tax | $ 7,574 | $ 39,488 |
Income tax provision | $ 1,787 | $ 7,736 |
Effective tax rate | 23.60% | 19.60% |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAX | ||
Federal statutory tax rate | 21% | 21% |
STOCKHOLDERS' EQUITY AND EARN_3
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Components of and changes in AOCI, net of income taxes (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | |
Beginning Balance | $ 1,144,182 |
Ending Balance | 1,142,883 |
Accumulated Other Comprehensive Income (Loss) | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | |
Beginning Balance | 6,114 |
Other comprehensive income prior to reclassifications | (5,184) |
Amounts reclassified from accumulated other comprehensive income | (2,785) |
Ending Balance | (1,855) |
Foreign Currency Translation | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | |
Beginning Balance | (10,796) |
Other comprehensive income prior to reclassifications | (6,589) |
Ending Balance | (17,385) |
Change in fair value of cash flow hedges | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | |
Beginning Balance | 5,474 |
Other comprehensive income prior to reclassifications | 1,405 |
Amounts reclassified from accumulated other comprehensive income | (2,785) |
Ending Balance | 4,094 |
Amortization of pension actuarial gains and losses | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | |
Beginning Balance | 11,436 |
Ending Balance | $ 11,436 |
STOCKHOLDERS' EQUITY AND EARN_4
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to the Specific Caption within the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (7,127) | $ (2,730) |
Change in fair value of cash flow hedges | Reclassified from accumulated other comprehensive income (loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (2,785) |
STOCKHOLDERS' EQUITY AND EARN_5
STOCKHOLDERS' EQUITY AND 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Income from continuing operations | $ 5,787 | $ 31,752 |
Basic weighted-average common shares outstanding | 37,359 | 37,475 |
Dilutive effect of stock awards | 328 | 282 |
Diluted weighted-average common shares outstanding | 37,687 | 37,757 |
EPS from continuing operations | ||
Basic EPS (in dollars per share) | $ 0.15 | $ 0.85 |
Diluted EPS (in dollars per share) | $ 0.15 | $ 0.84 |
Anti-dilutive shares | 3,222 | 102 |
Stock awards | ||
EPS from continuing operations | ||
Anti-dilutive shares | 28 | 102 |
Warrants | ||
EPS from continuing operations | ||
Anti-dilutive shares | 3,194 |
STOCKHOLDERS' EQUITY AND EARN_6
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Narrative (Details) | Mar. 31, 2024 $ / shares |
Convertible Notes due 2028 | Minimum | |
Debt Instrument [Line Items] | |
Stock price | $ 137.46 |
Convertible Notes due 2028 | Maximum | |
Debt Instrument [Line Items] | |
Stock price | 179.76 |
Warrant | |
Debt Instrument [Line Items] | |
Exercise price | $ 179.76 |
STOCKHOLDERS' EQUITY AND EARN_7
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Share Repurchase (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | ||
Remaining amount authorized by Board of Directors for future share repurchases | $ 199.2 | |
Share repurchases (in shares) | 0 | 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Certificates of deposit | Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | $ 177 | $ 163 |
Foreign currency forward contracts | Other accrued expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair Value Disclosure | 195 | |
Interest rate swaps | Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 5,211 | |
Interest rate swaps | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 6,995 | |
Investments | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 8,519 | 5,952 |
Fair Value, Inputs, Level 2 | Certificates of deposit | Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 177 | 163 |
Fair Value, Inputs, Level 2 | Foreign currency forward contracts | Other accrued expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, Fair Value Disclosure | 195 | |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 5,211 | |
Fair Value, Inputs, Level 2 | Interest rate swaps | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | 6,995 | |
Fair Value, Inputs, Level 2 | Investments | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets measured at fair value on a recurring basis | $ 8,519 | $ 5,952 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Annual interest (as a percent) | 1.172% |
Foreign exchange forward | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, notional amount | $ 86,825 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Qualified Hedging Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 216,344 | $ 220,719 |
Balances recorded in accumulated other comprehensive income | $ 4,094 | $ 5,350 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | ||
Accounts receivable, net | $ 247,510 | $ 282,430 |
Balance at beginning of period | 1,762 | |
Additions | 33 | |
Balance at end of period | $ 1,795 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Parts and raw materials | $ 264,042 | $ 249,698 |
Work in process | 15,730 | 14,595 |
Finished goods | 81,565 | 71,844 |
Total | $ 361,337 | $ 336,137 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 351,901 | $ 337,036 |
Less: Accumulated depreciation | (176,448) | (169,371) |
Property and equipment, net | 175,453 | 167,665 |
Buildings, machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 196,042 | $ 191,744 |
Buildings, machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | 5 years |
Buildings, machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 25 years | 25 years |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 29,905 | $ 24,526 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 3 years | 3 years |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 10 years | 10 years |
Computer equipment, furniture, fixtures, and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,430 | $ 19,281 |
Computer equipment, furniture, fixtures, and vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 3 years | 3 years |
Computer equipment, furniture, fixtures, and vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 5 years | 5 years |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 81,365 | $ 79,764 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 2 years | 2 years |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in years) | 10 years | 10 years |
Capital projects in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 25,159 | $ 21,721 |
PROPERTY AND EQUIPMENT, NET - D
PROPERTY AND EQUIPMENT, NET - Depreciation Expense Recorded in Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | ||
Depreciation expense | $ 10,005 | $ 9,461 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 292,599 | $ 293,787 |
Accumulated Amortization | (138,209) | (132,309) |
Total | $ 154,390 | $ 161,478 |
Weighted Average Remaining Useful Life (in years) | 8 years 4 months 24 days | 8 years 6 months |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 97,514 | $ 97,961 |
Accumulated Amortization | (63,086) | (60,412) |
Total | $ 34,428 | $ 37,549 |
Weighted Average Remaining Useful Life (in years) | 6 years 10 months 24 days | 6 years 9 months 18 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 167,981 | $ 168,685 |
Accumulated Amortization | (61,451) | (58,835) |
Total | $ 106,530 | $ 109,850 |
Weighted Average Remaining Useful Life (in years) | 9 years 3 months 18 days | 9 years 6 months |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 27,104 | $ 27,141 |
Accumulated Amortization | (13,672) | (13,062) |
Total | $ 13,432 | $ 14,079 |
Weighted Average Remaining Useful Life (in years) | 5 years 3 months 18 days | 5 years 7 months 6 days |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INTANGIBLE ASSETS AND GOODWILL | ||
Amortization expense | $ 6,947 | $ 7,062 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INTANGIBLE ASSETS AND GOODWILL | ||
2024 (remaining) | $ 18,259 | |
2025 | 20,988 | |
2026 | 19,272 | |
2027 | 17,366 | |
2028 | 16,131 | |
Thereafter | 62,374 | |
Total | $ 154,390 | $ 161,478 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Change in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
INTANGIBLE ASSETS AND GOODWILL | |
Balance at beginning of period | $ 283,840 |
Foreign currency translation and other | (3,006) |
Balance at end of period | $ 280,834 |
RESTRUCTURING, ASSET IMPAIRME_3
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Restructuring, asset impairments, and other charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | ||
Restructuring | $ (31) | $ 1,043 |
Other charges | 276 | |
Total restructuring, asset impairments, and other charges | $ 245 | $ 1,043 |
RESTRUCTURING, ASSET IMPAIRME_4
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) plan | |
Restructuring Cost and Reserve [Line Items] | |
Number of restructuring plans in process | plan | 2 |
Minimum | 2023 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected additional charges | $ 1 |
Maximum | 2023 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected additional charges | $ 2 |
RESTRUCTURING, ASSET IMPAIRME_5
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Changes in Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 17,342 | |
Cost incurred and charged to expense | (31) | $ 1,043 |
Cost paid or otherwise settled | (6,507) | |
Ending balance | 10,804 | |
2023 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 14,224 | |
Cost incurred and charged to expense | (88) | |
Cost paid or otherwise settled | (4,099) | |
Ending balance | 10,037 | |
2022 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 2,930 | |
Cost incurred and charged to expense | 57 | |
Cost paid or otherwise settled | (2,220) | |
Ending balance | 767 | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 188 | |
Cost incurred and charged to expense | ||
Cost paid or otherwise settled | (188) | |
Ending balance |
RESTRUCTURING, ASSET IMPAIRME_6
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Changes in Restructuring Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | 27 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ (31) | $ 1,043 | ||
2023 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | (88) | |||
2022 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 57 | |||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | ||||
Severance and related charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ (31) | $ 1,043 | $ 31,059 | |
Severance and related charges | 2023 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 17,015 | |||
Severance and related charges | 2022 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $ 14,044 |
WARRANTIES - Narrative (Details
WARRANTIES - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Minimum | |
Product Liability Contingency [Line Items] | |
Product warranty term | 12 months |
Maximum | |
Product Liability Contingency [Line Items] | |
Product warranty term | 36 months |
WARRANTIES - Changes in Product
WARRANTIES - Changes in Product Warranty Obligation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at beginning of period | $ 4,007 |
Net increases to accruals | 436 |
Warranty expenditures | (595) |
Effect of changes in exchange rates | 139 |
Balance at end of period | $ 3,987 |
LEASES - Components of Operatin
LEASES - Components of Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LEASES | ||
Operating lease cost | $ 5,860 | $ 5,680 |
Short-term and variable lease cost | 667 | 1,083 |
Total operating lease cost | $ 6,527 | $ 6,763 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
LEASES | |
2024 (remaining) | $ 17,405 |
2025 | 20,576 |
2026 | 17,968 |
2027 | 15,529 |
2028 | 15,168 |
Thereafter | 60,360 |
Total lease payments | 147,006 |
Less: Interest | (30,104) |
Present value of lease liabilities | 116,902 |
Payments for lease agreements that commence in the future | $ 36,300 |
LEASES - Other Lease Cost Infor
LEASES - Other Lease Cost Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
LEASES | |||
Weighted average remaining lease term (in years) | 8 years 6 months | 8 years 3 months 18 days | |
Weighted average discount rate | 5.20% | 5% | |
Cash paid for operating leases | $ 5,721 | $ 5,820 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 16,837 | $ 208 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 plan shares | |
Stock-based incentive compensation plans | plan | 2 |
Awards term | 10 years |
The 2023 Incentive Plan | |
Shares available for future issuance | 1,840 |
Restricted Stock Units (RSUs) | Minimum | |
Vesting period | 3 years |
Employee Stock | |
Shares available for future issuance | 577 |
Employee Stock | Minimum | |
Vesting period | 3 years |
Employee Stock | Maximum | |
Vesting period | 4 years |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of share-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
STOCK-BASED COMPENSATION | ||
Stock-based compensation expense | $ 11,005 | $ 6,801 |
Modification of stock-based compensation expense | $ 1,800 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Restricted Stock Units activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs outstanding at beginning of period | shares | 917 |
RSUs granted | shares | 502 |
RSUs vested | shares | (171) |
RSUs forfeited | shares | (73) |
RSUs outstanding at end of period | shares | 1,175 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 85.96 |
Weighted Average Grant Date Fair Value, granted | $ / shares | 105.06 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 89.48 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 74.93 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 94.29 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - Time Based shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding at beginning of period | shares | 89 |
Options exercised | shares | (2) |
Options outstanding at ending of period | shares | 87 |
Weighted-Average Exercise Price per Share, Options outstanding at beginning of period | $ / shares | $ 76.69 |
Weighted-Average Exercise Price per Share, Options exercised | $ / shares | 26.32 |
Weighted-Average Exercise Price per Share, Options outstanding at end of period | $ / shares | $ 78.14 |
LONG-TERM DEBT - Debt Obligatio
LONG-TERM DEBT - Debt Obligation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt: | ||
Gross long-term debt, including current maturities | $ 925,000 | $ 930,000 |
Less: debt discount | (13,505) | (14,321) |
Net long-term debt, including current maturities | 911,495 | 915,679 |
Less: current maturities | (20,000) | (20,000) |
Net long-term debt | 891,495 | 895,679 |
Term Loan Facility | ||
Debt: | ||
Gross long-term debt, including current maturities | 350,000 | 355,000 |
Convertible Notes due 2028 | ||
Debt: | ||
Gross long-term debt, including current maturities | 575,000 | $ 575,000 |
Net long-term debt, including current maturities | $ 562,600 |
LONG-TERM DEBT - Contractual Ma
LONG-TERM DEBT - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
LONG-TERM DEBT | ||
2024 (remaining) | $ 15,000 | |
2025 | 20,000 | |
2026 | 315,000 | |
2028 | 575,000 | |
Total | $ 925,000 | $ 930,000 |
LONG-TERM DEBT - Borrowings (De
LONG-TERM DEBT - Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Balance | $ 925,000 | $ 930,000 |
Term Loan Facility at fixed interest rate due to interest rate swap | ||
Line of Credit Facility [Line Items] | ||
Balance | $ 216,344 | |
Interest Rate | 1.17% | |
Term Loan Facility at variable interest rate | ||
Line of Credit Facility [Line Items] | ||
Balance | $ 133,656 | |
Interest Rate | 6.18% | |
2.50% Convertible Notes | ||
Line of Credit Facility [Line Items] | ||
Balance | $ 575,000 | $ 575,000 |
Interest Rate | 2.50% |
LONG-TERM DEBT - Interest Expen
LONG-TERM DEBT - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LONG-TERM DEBT | ||
Interest expense | $ 6,302 | $ 2,590 |
Amortization of debt issuance costs | 820 | 133 |
Total interest expense related to debt | $ 7,122 | $ 2,723 |
LONG-TERM DEBT - Convertible Se
LONG-TERM DEBT - Convertible Senior Notes (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 12, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 13, 2023 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 911,495 | $ 915,679 | ||
2.50% Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 575,000 | |||
Interest rate | 2.50% | 2.50% | ||
Long-term Debt | $ 562,600 | |||
Conversion price | $ 137.46 | $ 179.76 | ||
Redemption price of the principal amount to be redeemed | 100% |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
2.50% Convertible Notes | ||
Line of Credit Facility [Line Items] | ||
Debt fair value | $ 585,900 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Available capacity on Revolving Facility | 200,000 | $ 200,000 |
Increase in borrowing capacity | $ 115,000 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |