Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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, $0.001 par value | |
Trading Symbol | AEIS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,672,536 | |
Entity Central Index Key | 0000927003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 986,148 | $ 1,044,556 |
Accounts receivable, net | 262,419 | 282,430 |
Inventories | 383,141 | 336,137 |
Other current assets | 46,131 | 48,771 |
Total current assets | 1,677,839 | 1,711,894 |
Property and equipment, net | 180,624 | 167,665 |
Operating lease right-of-use assets | 103,522 | 95,432 |
Other assets | 130,782 | 136,448 |
Intangible assets, net | 151,763 | 161,478 |
Goodwill | 297,329 | 283,840 |
TOTAL ASSETS | 2,541,859 | 2,556,757 |
Current liabilities: | ||
Accounts payable | 157,523 | 141,850 |
Accrued payroll and employee benefits | 53,559 | 73,595 |
Other accrued expenses | 46,977 | 66,662 |
Customer deposits and other | 12,479 | 15,997 |
Current portion of long-term debt | 20,000 | 20,000 |
Current portion of operating lease liabilities | 16,299 | 17,744 |
Total current liabilities | 306,837 | 335,848 |
Long-term debt, net | 887,309 | 895,679 |
Operating lease liabilities | 97,251 | 89,330 |
Pension benefits | 47,843 | 49,135 |
Other long-term liabilities | 37,543 | 42,583 |
Total liabilities | 1,376,783 | 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; 37,671 and 37,318 issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 38 | 37 |
Additional paid-in capital | 169,686 | 148,300 |
Accumulated other comprehensive income (loss) | (6,823) | 6,114 |
Retained earnings | 1,002,175 | 989,731 |
Total stockholders' equity | 1,165,076 | 1,144,182 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,541,859 | $ 2,556,757 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 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) | 37,671 | 37,318 |
Common stock, shares outstanding (in shares) | 37,671 | 37,318 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unaudited Consolidated Statements of Operations | ||||
Revenue, net | $ 364,947 | $ 415,508 | $ 692,422 | $ 840,548 |
Cost of revenue | 237,206 | 268,428 | 451,852 | 538,357 |
Gross profit | 127,741 | 147,080 | 240,570 | 302,191 |
Operating expenses: | ||||
Research and development | 52,335 | 51,413 | 102,171 | 103,023 |
Selling, general, and administrative | 55,013 | 55,613 | 110,137 | 110,971 |
Amortization of intangible assets | 6,800 | 7,075 | 13,747 | 14,137 |
Restructuring, asset impairments, and other charges | 625 | 3,154 | 870 | 4,197 |
Total operating expenses | 114,773 | 117,255 | 226,925 | 232,328 |
Operating income | 12,968 | 29,825 | 13,645 | 69,863 |
Interest income | 12,119 | 4,301 | 24,764 | 7,886 |
Interest expense | (6,956) | (2,858) | (14,083) | (5,588) |
Other income (expense), net | 638 | 982 | 2,017 | (423) |
Income from continuing operations, before income tax | 18,769 | 32,250 | 26,343 | 71,738 |
Income tax provision | 3,165 | 4,795 | 4,952 | 12,531 |
Income from continuing operations | 15,604 | 27,455 | 21,391 | 59,207 |
Loss from discontinued operations, net of income tax | (575) | (315) | (1,146) | (1,146) |
Net income | $ 15,029 | $ 27,140 | $ 20,245 | $ 58,061 |
Basic weighted-average common shares outstanding | 37,474 | 37,573 | 37,417 | 37,524 |
Diluted weighted-average common shares outstanding | 37,777 | 37,803 | 37,733 | 37,804 |
Earnings per share: | ||||
Basic earnings per share | $ 0.42 | $ 0.73 | $ 0.57 | $ 1.58 |
Diluted earnings per share | 0.41 | 0.73 | 0.57 | 1.57 |
Basic loss per share | (0.02) | (0.01) | (0.03) | (0.03) |
Diluted loss per share | (0.02) | (0.01) | (0.03) | (0.03) |
Net income: | ||||
Basic earnings per share | 0.40 | 0.72 | 0.54 | 1.55 |
Diluted earnings per share | $ 0.40 | $ 0.72 | $ 0.54 | $ 1.54 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unaudited Consolidated Statements of Comprehensive Income | ||||
Net income | $ 15,029 | $ 27,140 | $ 20,245 | $ 58,061 |
Other comprehensive loss, net of income tax | ||||
Foreign currency translation | (2,561) | (1,533) | (9,150) | (1,729) |
Change in fair value of cash flow hedges | (2,356) | (201) | (3,736) | (2,018) |
Defined employee benefit plan items | (51) | (292) | (51) | (292) |
Comprehensive income | $ 10,061 | $ 25,114 | $ 7,308 | $ 54,022 |
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, 2022 | $ 37 | 134,640 | 16,320 | 915,270 | 1,066,267 |
Beginning Balance (in shares) at Dec. 31, 2022 | 37,429 | ||||
Net income | 58,061 | ||||
Ending Balance at Jun. 30, 2023 | $ 38 | 147,221 | 12,281 | 965,739 | 1,125,279 |
Ending Balance (in shares) at Jun. 30, 2023 | 37,650 | ||||
Beginning Balance at Mar. 31, 2023 | $ 37 | 139,192 | 14,307 | 942,377 | 1,095,913 |
Beginning Balance (in shares) at Mar. 31, 2023 | 37,529 | ||||
Stock issued from equity plans | $ 1 | 606 | 607 | ||
Stock issued from equity plans (in shares) | 121 | ||||
Stock-based compensation | 7,423 | 7,423 | |||
Dividends declared ($0.10 per share) | (3,778) | (3,778) | |||
Other comprehensive loss | (2,026) | (2,026) | |||
Net income | 27,140 | 27,140 | |||
Ending Balance at Jun. 30, 2023 | $ 38 | 147,221 | 12,281 | 965,739 | 1,125,279 |
Ending Balance (in shares) at Jun. 30, 2023 | 37,650 | ||||
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 | ||||
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 | |||
Net income | $ 20,245 | ||||
Ending Balance at Jun. 30, 2024 | $ 38 | 169,686 | (6,823) | 1,002,175 | $ 1,165,076 |
Ending Balance (in shares) at Jun. 30, 2024 | 37,671 | 37,671 | |||
Beginning Balance at Mar. 31, 2024 | $ 37 | 153,643 | (1,855) | 991,058 | $ 1,142,883 |
Beginning Balance (in shares) at Mar. 31, 2024 | 37,434 | ||||
Stock issued from equity plans | (173) | (173) | |||
Stock issued from equity plans (in shares) | 93 | ||||
Stock issuance (Note 2 Acquisition) | $ 1 | 4,463 | 4,464 | ||
Stock issuance (Note 2 Acquisition) (in shares) | 144 | ||||
Stock-based compensation | 10,720 | 10,720 | |||
Dividends declared ($0.10 per share) | (3,848) | (3,848) | |||
Other comprehensive loss | (4,968) | (4,968) | |||
Deferred compensation | 1,033 | (64) | 969 | ||
Net income | 15,029 | 15,029 | |||
Ending Balance at Jun. 30, 2024 | $ 38 | $ 169,686 | $ (6,823) | $ 1,002,175 | $ 1,165,076 |
Ending Balance (in shares) at Jun. 30, 2024 | 37,671 | 37,671 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Unaudited Consolidated Statements of Stockholders' Equity | ||||
Dividends declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 20,245 | $ 58,061 |
Less: loss from discontinued operations, net of income tax | (1,146) | (1,146) |
Income from continuing operations, net of income tax | 21,391 | 59,207 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 33,918 | 32,966 |
Stock-based compensation | 22,389 | 14,738 |
Amortization of debt issuance costs and debt discount | 1,630 | 254 |
Deferred income tax benefit | (42) | (786) |
Loss (gain) on disposal and sale of assets | (16) | 192 |
Unrealized gain on investment | (567) | |
Changes in operating assets and liabilities, net of assets acquired | ||
Accounts receivable, net | 18,390 | 46,044 |
Inventories | (49,255) | (17,688) |
Other assets | 5,008 | 2,859 |
Accounts payable | 14,331 | (17,448) |
Other liabilities and accrued expenses | (52,304) | (64,834) |
Net cash from operating activities from continuing operations | 14,873 | 55,504 |
Net cash from operating activities from discontinued operations | (876) | (3,090) |
Net cash from operating activities | 13,997 | 52,414 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of long-term investments | (2,401) | (3,128) |
Purchases of property and equipment | (31,406) | (33,623) |
Acquisitions, net of cash acquired | (13,762) | |
Net cash from investing activities | (47,569) | (36,751) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on long-term borrowings | (10,000) | (10,000) |
Dividend payments | (7,658) | (7,592) |
Net payments related to stock-based awards | (5,500) | (1,384) |
Net cash from financing activities | (23,158) | (18,976) |
EFFECT OF CURRENCY TRANSLATION ON CASH AND CASH EQUIVALENTS | (1,678) | (253) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (58,408) | (3,566) |
CASH AND CASH EQUIVALENTS, beginning of period | 1,044,556 | 458,818 |
CASH AND CASH EQUIVALENTS, end of period | $ 986,148 | $ 455,252 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 June 30, 2024, and the results of our operations and cash flows for the three and six months ended June 30, 2024 and 2023. The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the U.S. 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. Summary of Operations and Significant Accounting Policies and Estimates 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 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. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2. ACQUISITIONS On June 20, 2024, we acquired 100% of the issued and outstanding shares of capital stock of Airity Technologies, Inc. (“Airity”), which is based in Redwood City, California. We accounted for this transaction as a business combination. This acquisition adds high voltage power conversion technologies and products, which broadens our range of targeted applications within our Semiconductor Equipment and Industrial and Medical markets. The following table summarizes the consideration paid: Consideration Cash paid at closing $ 14,301 Advanced Energy common stock 4,463 Settlement of payables (654) Indemnity holdback payable on the one-year anniversary 1,500 Total fair value of purchase consideration $ 19,610 We are still evaluating the fair value of the assets acquired and liabilities assumed, inclusive of the acquired intangible assets, including their estimated useful lives, related tax impacts, and resulting goodwill. Our preliminary allocation of the fair value of purchase consideration was as follows: Fair Value Cash $ 539 Current assets and liabilities, net 372 Property and equipment 42 Deferred tax and other liabilities (2,144) Intangible assets 4,200 Goodwill (not deductible for tax purposes) 16,601 Total fair value of net assets acquired $ 19,610 We included Airity’s results of operations in our consolidated financial statements from the date of acquisition. In connection with the acquisition, we entered into agreements |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE | |
REVENUE | NOTE 3. REVENUE Disaggregation of revenue The following tables present additional information regarding our revenue: Revenue by Market Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Semiconductor Equipment $ 188,321 $ 173,177 $ 368,224 $ 367,386 Industrial and Medical 79,104 127,603 162,522 250,623 Data Center Computing 72,964 59,076 114,866 118,735 Telecom and Networking 24,558 55,652 46,810 103,804 Total $ 364,947 $ 415,508 $ 692,422 $ 840,548 Revenue by Region Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 North America $ 172,794 47.4 % $ 171,516 41.3 % $ 306,873 44.3 % $ 352,458 42.0 % Asia 151,955 41.6 186,498 44.9 303,898 43.9 365,681 43.5 Europe 39,813 10.9 56,213 13.5 80,366 11.6 118,779 14.1 Other 385 0.1 1,281 0.3 1,285 0.2 3,630 0.4 Total $ 364,947 100.0 % $ 415,508 100.0 % $ 692,422 100.0 % $ 840,548 100.0 % Revenue by Significant Countries Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 United States $ 129,495 35.5 % $ 147,109 35.4 % $ 237,311 34.4 % $ 300,615 35.8 % Mexico 42,934 11.8 23,617 5.7 68,815 9.9 50,489 6.0 Taiwan 39,108 10.7 29,345 7.1 78,581 11.3 65,706 7.8 China 22,682 6.2 53,192 12.8 41,573 6.0 90,648 10.8 All others 130,728 35.8 162,245 39.0 266,142 38.4 333,090 39.6 Total $ 364,947 100.0 % $ 415,508 100.0 % $ 692,422 100.0 % $ 840,548 100.0 % We attribute revenue to individual countries and regions based on the customer’s ship to location. Apart from the specific countries listed above, no individual country exceeded 10% of our total consolidated revenues during the periods presented. Revenue by Category Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Product $ 325,368 $ 369,881 $ 611,632 $ 749,155 Services and other 39,579 45,627 80,790 91,393 Total $ 364,947 $ 415,508 $ 692,422 $ 840,548 Other revenue includes certain spare parts and products sold by our service group. Significant Customers During the three months ended June 30, 2024, Applied Materials, Inc. and Lam Research Corporation accounted for 26% and 10%, respectively, of our total revenue. During the six months ended June 30, 2024, Applied Materials, Inc. and Lam Research Corporation accounted for 28% and 10%, respectively, of our total revenue. During the three and six months ended June 30, 2023, Applied Materials Inc. accounted for 19% and 20%, respectively, of our total revenue. No other customer’s revenue exceeded 10% of our total revenue in the periods presented. As of June 30, 2024, the account receivable balance from Applied Materials, Inc. and Lam Research Corporation accounted for 31% 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 | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAX | |
INCOME TAX | NOTE 4. INCOME TAX The following table summarizes tax expense and the effective tax rate for our income from continuing operations: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income from continuing operations, before income tax $ 18,769 $ 32,250 $ 26,343 $ 71,738 Income tax provision $ 3,165 $ 4,795 $ 4,952 $ 12,531 Effective tax rate 16.9 % 14.9 % 18.8 % 17.5 % Our effective tax rates differ from the U.S. federal statutory rate of 21% 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. For both the three and six months ended June 30, 2024, our effective tax rate for 2024 was higher than the same period in the prior year primarily due to the impact of smaller beneficial discrete items in the current period relative to the larger beneficial discrete items in the prior period. 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 | 6 Months Ended |
Jun. 30, 2024 | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | NOTE 5. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE Accumulated Other Comprehensive Income (Loss) 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 Defined Employee Benefit Plan Total Balance at December 31, 2022 $ (12,823) $ 11,848 $ 17,295 $ 16,320 Other comprehensive income (loss) prior to reclassifications (196) 595 — 399 Amounts reclassified from accumulated other comprehensive income (loss) — (2,412) — (2,412) Balance at March 31, 2023 (13,019) 10,031 17,295 14,307 Other comprehensive income (loss) prior to reclassifications (1,533) 2,555 — 1,022 Amounts reclassified from accumulated other comprehensive income (loss) — (2,756) (292) (3,048) Balance at June 30, 2023 $ (14,552) $ 9,830 $ 17,003 $ 12,281 Foreign Currency Translation Change in Fair Value of Cash Flow Hedges Defined Employee Benefit Plan Total Balance at December 31, 2023 $ (10,796) $ 5,474 $ 11,436 $ 6,114 Other comprehensive income (loss) prior to reclassifications (6,589) 1,405 — (5,184) Amounts reclassified from accumulated other comprehensive income (loss) — (2,785) — (2,785) Balance at March 31, 2024 (17,385) 4,094 11,436 (1,855) Other comprehensive income (loss) prior to reclassifications (2,561) 395 — (2,166) Amounts reclassified from accumulated other comprehensive income (loss) — (2,751) (51) (2,802) Balance at June 30, 2024 $ (19,946) $ 1,738 $ 11,385 $ (6,823) Amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Three Months Ended June 30, Six Months Ended June 30, To Caption on Consolidated 2024 2023 2024 2023 Statements of Operations Cash flow hedges $ (2,751) $ (2,756) $ (5,536) $ (5,168) Interest expense Defined employee benefit plan (51) (292) (51) (292) Other income (expense), net Total reclassifications $ (2,802) $ (3,048) $ (5,587) $ (5,460) Earnings Per Share The following table summarizes our earnings per share (“EPS”): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income from continuing operations $ 15,604 $ 27,455 $ 21,391 $ 59,207 Basic weighted-average common shares outstanding 37,474 37,573 37,417 37,524 Dilutive effect of stock awards 303 230 316 280 Diluted weighted-average common shares outstanding 37,777 37,803 37,733 37,804 EPS from continuing operations Basic EPS $ 0.42 $ 0.73 $ 0.57 $ 1.58 Diluted EPS $ 0.41 $ 0.73 $ 0.57 $ 1.57 Anti-dilutive shares not included above Stock awards — 144 55 121 Warrants 3,166 — 3,183 — Total anti-dilutive shares 3,166 144 3,238 121 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 18. Long-Term Debt ● 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; ● 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 ; 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 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 | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 6. FAIR VALUE MEASUREMENTS The following tables present information about our assets and liabilities measured at fair value on a recurring basis: June 30, 2024 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — 184 — $ 184 Foreign currency forward contracts Other accrued expenses $ — 28 — $ 28 Interest rate swaps Other current assets $ — 2,163 — $ 2,163 Investments Other assets $ — 8,895 — $ 8,895 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 | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 7. 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. At June 30, 2024 we have $172.0 million foreign currency forward contracts outstanding. There were no foreign currency forward contracts outstanding at December 31, 2023. 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: June 30, December 31, 2024 2023 Interest rate swap contracts $ 211,969 $ 220,719 The following table summarizes the amounts, net of tax, recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets for qualifying hedges. June 30, December 31, 2024 2023 Interest rate swap contract gains $ 1,738 $ 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 | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | NOTE 8. ACCOUNTS RECEIVABLE, NET We record accounts receivable at net realizable value. Our accounts receivable, net balance on the Consolidated Balance Sheets was $262.4 million at June 30, 2024. The following table summarizes the changes in expected credit losses related to receivables: December 31, 2023 $ 1,762 Additions 94 Deductions - write-offs, net of recoveries (160) June 30, 2024 $ 1,696 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
INVENTORIES | NOTE 9. 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: June 30, December 31, 2024 2023 Parts and raw materials $ 278,269 $ 249,698 Work in process 17,710 14,595 Finished goods 87,162 71,844 Total $ 383,141 $ 336,137 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 6 Months Ended |
Jun. 30, 2024 | |
INTANGIBLE ASSETS AND GOODWILL | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 10. INTANGIBLE ASSETS AND GOODWILL Intangible assets consisted of the following: June 30, 2024 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 100,257 $ (66,005) $ 34,252 7.3 Customer relationships 169,327 (64,606) 104,721 9.0 Trademarks and other 27,102 (14,312) 12,790 5.1 Total $ 296,686 $ (144,923) $ 151,763 8.3 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense $ 6,800 $ 7,075 $ 13,747 $ 14,137 Estimated future amortization expense related to intangibles is as follows: Year Ending December 31, 2024 (remaining) $ 11,735 2025 21,541 2026 19,826 2027 17,923 2028 16,690 Thereafter 64,048 Total $ 151,763 The following table summarizes the changes in goodwill: December 31, 2023 $ 283,840 Additions from acquisition 16,601 Foreign currency translation and other (3,112) June 30, 2024 $ 297,329 |
RESTRUCTURING, ASSET IMPAIRMENT
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restructuring $ 84 $ 3,154 $ 53 $ 4,197 Other charges 541 — 817 — Total restructuring, asset impairments, and other charges $ 625 $ 3,154 $ 870 $ 4,197 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 of 2025. On July 29, 2024, we approved actions in furtherance of our previously announced manufacturing consolidation initiatives intended to optimize our manufacturing network and cost structure. In connection with these actions, we estimate we will incur $25.0 million to $30.0 million primarily associated with employment-related charges for, among other things, one-time cash payments for severance, benefits expenses, payroll taxes, facility exit costs, and other ancillary costs. We expect to recognize the majority of these charges during calendar year 2024 with any remaining charges to be recognized in the first half of 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 (4) 57 — 53 Costs paid or otherwise settled (6,994) (2,987) (188) (10,169) June 30, 2024 $ 7,226 $ — $ — $ 7,226 Charges related to our restructuring plans are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Severance and related charges $ 84 $ 3,154 $ 53 $ 4,197 Cumulative Cost Through June 30, 2024 2023 Plan 2022 Plan Total Severance and related charges $ 17,099 $ 14,044 $ 31,143 Other Charges Other charges relate to vacating and relocating facilities. |
WARRANTIES
WARRANTIES | 6 Months Ended |
Jun. 30, 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. We include warranty obligation 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 1,295 Warranty expenditures (1,265) Effect of changes in exchange rates 137 June 30, 2024 $ 4,174 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
LEASES | |
LEASES | NOTE 13. LEASES Components of total operating lease cost were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 5,856 $ 5,656 $ 11,717 $ 11,336 Short-term and variable lease cost 910 987 1,577 2,070 Total operating lease cost $ 6,766 $ 6,643 $ 13,294 $ 13,406 Estimated future payments on our operating lease liabilities are as follows: Year Ending December 31, 2024 (remaining) $ 11,473 2025 20,492 2026 17,902 2027 15,494 2028 15,102 Thereafter 62,966 Total lease payments 143,429 Less: Interest (29,879) Present value of lease liabilities $ 113,550 In addition to the above, we have lease agreements with total payments of $36.0 million that commence on various dates in 2024 and 2025 and extend through 2040. The following tables present additional information about our lease agreements: June 30, December 31, 2024 2023 Weighted average remaining lease term (in years) 8.5 8.3 Weighted average discount rate 5.3 % 5.0 % Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cash paid for operating leases $ 5,844 $ 5,824 $ 11,564 $ 11,668 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,579 $ 2,420 $ 18,417 $ 2,628 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 14. STOCK-BASED COMPENSATION The Compensation Committee of our Board of Directors administers our stock plans. As of June 30, 2024, we had two active stock-based incentive compensation plans: the Amended and Restated 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 now 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: June 30, 2024 Shares available for future issuance under the 2023 Incentive Plan 1,817 Shares available for future issuance under the ESPP 556 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 six months ended June 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Stock-based compensation expense $ 11,384 $ 7,937 $ 22,389 $ 14,738 See Note 2. Acquisitions for information regarding future stock-based compensation expense related to the Airity acquisition. 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: Six Months Ended June 30, 2024 Weighted- Average Number of Grant Date RSUs Fair Value RSUs outstanding at beginning of period 917 $ 85.96 RSUs granted 529 $ 104.71 RSUs vested (256) $ 87.78 RSUs forfeited (78) $ 76.18 RSUs outstanding at end of period 1,112 $ 95.14 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: Six Months Ended June 30, 2024 Weighted- Average Number of Exercise Price Options per Share Options outstanding at beginning of period 89 $ 76.69 Options exercised (10) $ 26.32 Options outstanding at end of period 79 $ 83.05 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 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 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 United Kingdom’s High Court ruling in the case of Virgin Media Ltd v. NTL Pension Trustees II Ltd & Ors, which was recently upheld on appeal, 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 | 6 Months Ended |
Jun. 30, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 16. LONG-TERM DEBT Long-term debt on our Consolidated Balance Sheets consists of the following: June 30, December 31, 2024 2023 Convertible Notes due 2028 $ 575,000 $ 575,000 Term Loan Facility due 2026 345,000 355,000 Gross long-term debt, including current maturities 920,000 930,000 Less: debt discount (12,691) (14,321) Net long-term debt, including current maturities 907,309 915,679 Less: current maturities (20,000) (20,000) Net long-term debt $ 887,309 $ 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) $ 10,000 2025 20,000 2026 315,000 2027 — 2028 575,000 Total $ 920,000 The following table summarizes our borrowings: June 30, 2024 Balance Interest Rate Convertible Notes due 2028 $ 575,000 2.50% Term Loan Facility due 2026 at fixed interest rate due to interest rate swap 211,969 1.17% Term Loan Facility due 2026 at variable interest rate 133,031 6.19% Total borrowings $ 920,000 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 7. Derivative Financial Instruments The following table summarizes interest expense related to our debt: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest expense $ 6,365 $ 2,701 $ 12,667 $ 5,290 Amortization of debt issuance costs 855 131 1,675 263 Capitalized interest (271) — (271) — Total interest expense related to debt $ 6,949 $ 2,832 $ 14,071 $ 5,553 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 due 2028 (“Convertible Notes”). The $563.3 million remaining outstanding principal amount of the Convertible Notes, net of unamortized issuance costs, continues to be classified as long-term debt as none of the conversion triggers occurred as of June 30, 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 an amendment 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: June 30, 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 June 30, 2024, we estimate the fair value of our Convertible Notes to be $597.8 million, and the par value of the Term Loan Facility approximates its fair value. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES | |
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES | NOTE 17. SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES Certain of our cash and non-cash activities were as follows: Six Months Ended June 30, 2024 2023 Non-cash investing activities: Capital expenditures in accounts payable and other accrued expenses $ 8,065 $ 7,808 Common stock used as consideration in business combination $ 4,463 $ — Cash paid for: Interest expense $ 12,397 $ 5,291 Income taxes $ 23,568 $ 38,008 Cash received from income taxes $ 742 $ 225 Depreciation expense $ 20,171 $ 18,829 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 15,029 | $ 27,140 | $ 20,245 | $ 58,061 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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. Summary of Operations and Significant Accounting Policies and Estimates |
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 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. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS | |
Schedule of consideration paid | Consideration Cash paid at closing $ 14,301 Advanced Energy common stock 4,463 Settlement of payables (654) Indemnity holdback payable on the one-year anniversary 1,500 Total fair value of purchase consideration $ 19,610 |
Schedule of fair value of assets acquired and liabilities assumed | Fair Value Cash $ 539 Current assets and liabilities, net 372 Property and equipment 42 Deferred tax and other liabilities (2,144) Intangible assets 4,200 Goodwill (not deductible for tax purposes) 16,601 Total fair value of net assets acquired $ 19,610 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE | |
Schedule of disaggregation of revenue | Revenue by Market Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Semiconductor Equipment $ 188,321 $ 173,177 $ 368,224 $ 367,386 Industrial and Medical 79,104 127,603 162,522 250,623 Data Center Computing 72,964 59,076 114,866 118,735 Telecom and Networking 24,558 55,652 46,810 103,804 Total $ 364,947 $ 415,508 $ 692,422 $ 840,548 Revenue by Region Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 North America $ 172,794 47.4 % $ 171,516 41.3 % $ 306,873 44.3 % $ 352,458 42.0 % Asia 151,955 41.6 186,498 44.9 303,898 43.9 365,681 43.5 Europe 39,813 10.9 56,213 13.5 80,366 11.6 118,779 14.1 Other 385 0.1 1,281 0.3 1,285 0.2 3,630 0.4 Total $ 364,947 100.0 % $ 415,508 100.0 % $ 692,422 100.0 % $ 840,548 100.0 % Revenue by Significant Countries Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 United States $ 129,495 35.5 % $ 147,109 35.4 % $ 237,311 34.4 % $ 300,615 35.8 % Mexico 42,934 11.8 23,617 5.7 68,815 9.9 50,489 6.0 Taiwan 39,108 10.7 29,345 7.1 78,581 11.3 65,706 7.8 China 22,682 6.2 53,192 12.8 41,573 6.0 90,648 10.8 All others 130,728 35.8 162,245 39.0 266,142 38.4 333,090 39.6 Total $ 364,947 100.0 % $ 415,508 100.0 % $ 692,422 100.0 % $ 840,548 100.0 % Revenue by Category Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Product $ 325,368 $ 369,881 $ 611,632 $ 749,155 Services and other 39,579 45,627 80,790 91,393 Total $ 364,947 $ 415,508 $ 692,422 $ 840,548 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAX | |
Schedule of tax expense and the effective tax rate for income from continuing operations | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income from continuing operations, before income tax $ 18,769 $ 32,250 $ 26,343 $ 71,738 Income tax provision $ 3,165 $ 4,795 $ 4,952 $ 12,531 Effective tax rate 16.9 % 14.9 % 18.8 % 17.5 % |
STOCKHOLDERS' EQUITY AND EARN_2
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 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 Defined Employee Benefit Plan Total Balance at December 31, 2022 $ (12,823) $ 11,848 $ 17,295 $ 16,320 Other comprehensive income (loss) prior to reclassifications (196) 595 — 399 Amounts reclassified from accumulated other comprehensive income (loss) — (2,412) — (2,412) Balance at March 31, 2023 (13,019) 10,031 17,295 14,307 Other comprehensive income (loss) prior to reclassifications (1,533) 2,555 — 1,022 Amounts reclassified from accumulated other comprehensive income (loss) — (2,756) (292) (3,048) Balance at June 30, 2023 $ (14,552) $ 9,830 $ 17,003 $ 12,281 Foreign Currency Translation Change in Fair Value of Cash Flow Hedges Defined Employee Benefit Plan Total Balance at December 31, 2023 $ (10,796) $ 5,474 $ 11,436 $ 6,114 Other comprehensive income (loss) prior to reclassifications (6,589) 1,405 — (5,184) Amounts reclassified from accumulated other comprehensive income (loss) — (2,785) — (2,785) Balance at March 31, 2024 (17,385) 4,094 11,436 (1,855) Other comprehensive income (loss) prior to reclassifications (2,561) 395 — (2,166) Amounts reclassified from accumulated other comprehensive income (loss) — (2,751) (51) (2,802) Balance at June 30, 2024 $ (19,946) $ 1,738 $ 11,385 $ (6,823) |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) to the specific caption within the Consolidated Statements of Operations | Three Months Ended June 30, Six Months Ended June 30, To Caption on Consolidated 2024 2023 2024 2023 Statements of Operations Cash flow hedges $ (2,751) $ (2,756) $ (5,536) $ (5,168) Interest expense Defined employee benefit plan (51) (292) (51) (292) Other income (expense), net Total reclassifications $ (2,802) $ (3,048) $ (5,587) $ (5,460) |
Summary of earnings per share ("EPS") | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Income from continuing operations $ 15,604 $ 27,455 $ 21,391 $ 59,207 Basic weighted-average common shares outstanding 37,474 37,573 37,417 37,524 Dilutive effect of stock awards 303 230 316 280 Diluted weighted-average common shares outstanding 37,777 37,803 37,733 37,804 EPS from continuing operations Basic EPS $ 0.42 $ 0.73 $ 0.57 $ 1.58 Diluted EPS $ 0.41 $ 0.73 $ 0.57 $ 1.57 Anti-dilutive shares not included above Stock awards — 144 55 121 Warrants 3,166 — 3,183 — Total anti-dilutive shares 3,166 144 3,238 121 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities measured at fair value on a recurring basis | June 30, 2024 Description Balance Sheet Classification Level 1 Level 2 Level 3 Total Fair Value Certificates of deposit Other current assets $ — 184 — $ 184 Foreign currency forward contracts Other accrued expenses $ — 28 — $ 28 Interest rate swaps Other current assets $ — 2,163 — $ 2,163 Investments Other assets $ — 8,895 — $ 8,895 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) | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of notional amount of qualified hedging instruments | June 30, December 31, 2024 2023 Interest rate swap contracts $ 211,969 $ 220,719 |
Schedule of amounts, net of tax, recorded in accumulated other comprehensive income (loss) | June 30, December 31, 2024 2023 Interest rate swap contract gains $ 1,738 $ 5,350 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts and other receivable | December 31, 2023 $ 1,762 Additions 94 Deductions - write-offs, net of recoveries (160) June 30, 2024 $ 1,696 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVENTORIES | |
Schedule of components of inventories | June 30, December 31, 2024 2023 Parts and raw materials $ 278,269 $ 249,698 Work in process 17,710 14,595 Finished goods 87,162 71,844 Total $ 383,141 $ 336,137 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INTANGIBLE ASSETS AND GOODWILL | |
Schedule of intangible assets | June 30, 2024 Gross Carrying Accumulated Net Carrying Weighted Average Remaining Amount Amortization Amount Useful Life (in years) Technology $ 100,257 $ (66,005) $ 34,252 7.3 Customer relationships 169,327 (64,606) 104,721 9.0 Trademarks and other 27,102 (14,312) 12,790 5.1 Total $ 296,686 $ (144,923) $ 151,763 8.3 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization expense $ 6,800 $ 7,075 $ 13,747 $ 14,137 |
Schedule of estimated future amortization expense related to intangible assets | Year Ending December 31, 2024 (remaining) $ 11,735 2025 21,541 2026 19,826 2027 17,923 2028 16,690 Thereafter 64,048 Total $ 151,763 |
Schedule of changes in goodwill | December 31, 2023 $ 283,840 Additions from acquisition 16,601 Foreign currency translation and other (3,112) June 30, 2024 $ 297,329 |
RESTRUCTURING, ASSET IMPAIRME_2
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | |
Schedule of restructuring, asset impairments, and other charges | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restructuring $ 84 $ 3,154 $ 53 $ 4,197 Other charges 541 — 817 — Total restructuring, asset impairments, and other charges $ 625 $ 3,154 $ 870 $ 4,197 |
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 (4) 57 — 53 Costs paid or otherwise settled (6,994) (2,987) (188) (10,169) June 30, 2024 $ 7,226 $ — $ — $ 7,226 |
Schedule of charges related to restructuring plans | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Severance and related charges $ 84 $ 3,154 $ 53 $ 4,197 Cumulative Cost Through June 30, 2024 2023 Plan 2022 Plan Total Severance and related charges $ 17,099 $ 14,044 $ 31,143 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
WARRANTIES | |
Schedule of changes in product warranty obligation | December 31, 2023 $ 4,007 Net increases to accruals 1,295 Warranty expenditures (1,265) Effect of changes in exchange rates 137 June 30, 2024 $ 4,174 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASES | |
Components of operating lease cost | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 5,856 $ 5,656 $ 11,717 $ 11,336 Short-term and variable lease cost 910 987 1,577 2,070 Total operating lease cost $ 6,766 $ 6,643 $ 13,294 $ 13,406 |
Schedule of estimated future payments on operating lease liabilities | Year Ending December 31, 2024 (remaining) $ 11,473 2025 20,492 2026 17,902 2027 15,494 2028 15,102 Thereafter 62,966 Total lease payments 143,429 Less: Interest (29,879) Present value of lease liabilities $ 113,550 |
Schedule of additional information about lease agreements | June 30, December 31, 2024 2023 Weighted average remaining lease term (in years) 8.5 8.3 Weighted average discount rate 5.3 % 5.0 % Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cash paid for operating leases $ 5,844 $ 5,824 $ 11,564 $ 11,668 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,579 $ 2,420 $ 18,417 $ 2,628 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
STOCK-BASED COMPENSATION | |
Summary of information related to stock-based incentive compensation plans | June 30, 2024 Shares available for future issuance under the 2023 Incentive Plan 1,817 Shares available for future issuance under the ESPP 556 |
Schedule of stock-based compensation | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Stock-based compensation expense $ 11,384 $ 7,937 $ 22,389 $ 14,738 |
Summary of changes in RSUs | Six Months Ended June 30, 2024 Weighted- Average Number of Grant Date RSUs Fair Value RSUs outstanding at beginning of period 917 $ 85.96 RSUs granted 529 $ 104.71 RSUs vested (256) $ 87.78 RSUs forfeited (78) $ 76.18 RSUs outstanding at end of period 1,112 $ 95.14 |
Summary of changes in stock options | Six Months Ended June 30, 2024 Weighted- Average Number of Exercise Price Options per Share Options outstanding at beginning of period 89 $ 76.69 Options exercised (10) $ 26.32 Options outstanding at end of period 79 $ 83.05 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LONG-TERM DEBT | |
Schedule of long-term debt | June 30, December 31, 2024 2023 Convertible Notes due 2028 $ 575,000 $ 575,000 Term Loan Facility due 2026 345,000 355,000 Gross long-term debt, including current maturities 920,000 930,000 Less: debt discount (12,691) (14,321) Net long-term debt, including current maturities 907,309 915,679 Less: current maturities (20,000) (20,000) Net long-term debt $ 887,309 $ 895,679 |
Schedule of contractual maturities of gross long-term debt | Year Ending December 31, 2024 (remaining) $ 10,000 2025 20,000 2026 315,000 2027 — 2028 575,000 Total $ 920,000 |
Schedule of borrowings | June 30, 2024 Balance Interest Rate Convertible Notes due 2028 $ 575,000 2.50% Term Loan Facility due 2026 at fixed interest rate due to interest rate swap 211,969 1.17% Term Loan Facility due 2026 at variable interest rate 133,031 6.19% Total borrowings $ 920,000 |
Schedule of interest expense and unused line of credit fees | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest expense $ 6,365 $ 2,701 $ 12,667 $ 5,290 Amortization of debt issuance costs 855 131 1,675 263 Capitalized interest (271) — (271) — Total interest expense related to debt $ 6,949 $ 2,832 $ 14,071 $ 5,553 |
Schedule of availability to withdraw on Revolving Facility | June 30, December 31, 2024 2023 Available capacity on Revolving Facility $ 200,000 $ 200,000 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES | |
Schedule of supplemental cash flow information | Certain of our cash and non-cash activities were as follows: Six Months Ended June 30, 2024 2023 Non-cash investing activities: Capital expenditures in accounts payable and other accrued expenses $ 8,065 $ 7,808 Common stock used as consideration in business combination $ 4,463 $ — Cash paid for: Interest expense $ 12,397 $ 5,291 Income taxes $ 23,568 $ 38,008 Cash received from income taxes $ 742 $ 225 Depreciation expense $ 20,171 $ 18,829 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2034 | Jun. 30, 2024 | Jun. 20, 2024 | |
Business Acquisition [Line Items] | |||||||
Fair value of shares | $ (173) | $ (5,327) | $ 607 | $ (1,991) | |||
Airity Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Acquired percentage | 100% | ||||||
Shares issued | 0.1 | ||||||
Share-Based Payment Arrangement, Grantee Status [Extensible Enumeration] | us-gaap:ShareBasedPaymentArrangementEmployeeMember | ||||||
Fair value of shares | $ 15,600 | ||||||
Vesting period | 3 years | ||||||
Airity Technologies | Shares allocated to consideration paid at closing | |||||||
Business Acquisition [Line Items] | |||||||
Shares issued | 4.5 | ||||||
Airity Technologies | Shares considered future compensation | |||||||
Business Acquisition [Line Items] | |||||||
Shares issued | 11.1 | 11.1 |
ACQUISITIONS - Consideration Pa
ACQUISITIONS - Consideration Paid (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Business Acquisition [Line Items] | |
Advanced Energy common stock | $ 4,463 |
Airity Technologies | |
Business Acquisition [Line Items] | |
Cash paid at closing | 14,301 |
Advanced Energy common stock | 4,463 |
Settlement of payables | (654) |
Indemnity holdback payable on the one-year anniversary | 1,500 |
Total fair value of consideration transferred | $ 19,610 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill (not deductible for tax purposes) | $ 297,329 | $ 283,840 |
Estimated useful lives (Years) | 8 years 3 months 18 days | 8 years 6 months |
Airity Technologies | ||
Business Acquisition [Line Items] | ||
Cash | $ 539 | |
Current assets and liabilities, net | 372 | |
Property and equipment | 42 | |
Deferred tax and other liabilities | (2,144) | |
Intangible assets (3 to 10 year estimated useful lives) | 4,200 | |
Goodwill (not deductible for tax purposes) | 16,601 | |
Total fair value of net assets acquired | $ 19,610 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 364,947 | $ 415,508 | $ 692,422 | $ 840,548 |
Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 100% | 100% | 100% | 100% |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 172,794 | $ 171,516 | $ 306,873 | $ 352,458 |
North America | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 47.40% | 41.30% | 44.30% | 42% |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 151,955 | $ 186,498 | $ 303,898 | $ 365,681 |
Asia | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 41.60% | 44.90% | 43.90% | 43.50% |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,813 | $ 56,213 | $ 80,366 | $ 118,779 |
Europe | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 10.90% | 13.50% | 11.60% | 14.10% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 385 | $ 1,281 | $ 1,285 | $ 3,630 |
Other | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 0.10% | 0.30% | 0.20% | 0.40% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 129,495 | $ 147,109 | $ 237,311 | $ 300,615 |
United States | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 35.50% | 35.40% | 34.40% | 35.80% |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 42,934 | $ 23,617 | $ 68,815 | $ 50,489 |
Mexico | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 11.80% | 5.70% | 9.90% | 6% |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,108 | $ 29,345 | $ 78,581 | $ 65,706 |
Taiwan | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 10.70% | 7.10% | 11.30% | 7.80% |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 22,682 | $ 53,192 | $ 41,573 | $ 90,648 |
China | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 6.20% | 12.80% | 6% | 10.80% |
All others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 130,728 | $ 162,245 | $ 266,142 | $ 333,090 |
All others | Revenue benchmark | Geographic concentration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (as a percent) | 35.80% | 39% | 38.40% | 39.60% |
Semiconductor Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 188,321 | $ 173,177 | $ 368,224 | $ 367,386 |
Industrial and Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 79,104 | 127,603 | 162,522 | 250,623 |
Data Center Computing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 72,964 | 59,076 | 114,866 | 118,735 |
Telecom and Networking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,558 | 55,652 | 46,810 | 103,804 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 325,368 | 369,881 | 611,632 | 749,155 |
Services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,579 | $ 45,627 | $ 80,790 | $ 91,393 |
REVENUE - Significant Customers
REVENUE - Significant Customers (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue benchmark | Applied Materials, Inc | |||||
Revenue, Major Customer [Line Items] | |||||
Significant concentration risk | 26% | 19% | 28% | 20% | |
Revenue benchmark | Lam Research Corporation | |||||
Revenue, Major Customer [Line Items] | |||||
Significant concentration risk | 10% | 10% | |||
Accounts Receivable Benchmark | Applied Materials, Inc | |||||
Revenue, Major Customer [Line Items] | |||||
Significant concentration risk | 31% | 26% | |||
Accounts Receivable Benchmark | Lam Research Corporation | |||||
Revenue, Major Customer [Line Items] | |||||
Significant concentration risk | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAX | ||||
Income from continuing operations, before income tax | $ 18,769 | $ 32,250 | $ 26,343 | $ 71,738 |
Income tax provision | $ 3,165 | $ 4,795 | $ 4,952 | $ 12,531 |
Effective tax rate | 16.90% | 14.90% | 18.80% | 17.50% |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAX | ||||
Federal statutory tax rate | 21% | 21% | 21% | 21% |
STOCKHOLDERS' EQUITY AND EARN_3
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Components of and changes in AOCIL, net of income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning Balance | $ 1,142,883 | $ 1,144,182 | $ 1,095,913 | $ 1,066,267 |
Ending Balance | 1,165,076 | 1,142,883 | 1,125,279 | 1,095,913 |
Accumulated Other Comprehensive Income (Loss) | ||||
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning Balance | (1,855) | 6,114 | 14,307 | 16,320 |
Other comprehensive income (loss) prior to reclassifications | (2,166) | (5,184) | 1,022 | 399 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,802) | (2,785) | (3,048) | (2,412) |
Ending Balance | (6,823) | (1,855) | 12,281 | 14,307 |
Foreign Currency Translation | ||||
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning Balance | (17,385) | (10,796) | (13,019) | (12,823) |
Other comprehensive income (loss) prior to reclassifications | (2,561) | (6,589) | (1,533) | (196) |
Ending Balance | (19,946) | (17,385) | (14,552) | (13,019) |
Change in fair value of cash flow hedges | ||||
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning Balance | 4,094 | 5,474 | 10,031 | 11,848 |
Other comprehensive income (loss) prior to reclassifications | 395 | 1,405 | 2,555 | 595 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,751) | (2,785) | (2,756) | (2,412) |
Ending Balance | 1,738 | 4,094 | 9,830 | 10,031 |
Defined Employee Benefit Plan | ||||
Components of and changes in accumulated other comprehensive income (loss), net of income taxes | ||||
Beginning Balance | 11,436 | 11,436 | 17,295 | 17,295 |
Amounts reclassified from accumulated other comprehensive income (loss) | (51) | (292) | ||
Ending Balance | $ 11,385 | $ 11,436 | $ 17,003 | $ 17,295 |
STOCKHOLDERS' EQUITY AND EARN_4
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Amounts Reclassified from AOCIL to Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ (6,956) | $ (2,858) | $ (14,083) | $ (5,588) | ||
Other income (expense), net | 638 | 982 | 2,017 | (423) | ||
Total reclassifications | 15,029 | $ 5,216 | 27,140 | $ 30,921 | 20,245 | 58,061 |
Accumulated Other Comprehensive Income (Loss) | Reclassified from accumulated other comprehensive income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications | (2,802) | (3,048) | (5,587) | (5,460) | ||
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 | (2,751) | (2,756) | (5,536) | (5,168) | ||
Defined Employee Benefit Plan | Reclassified from accumulated other comprehensive income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income (expense), net | $ (51) | $ (292) | $ (51) | $ (292) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Income from continuing operations | $ 15,604 | $ 27,455 | $ 21,391 | $ 59,207 |
Basic weighted-average common shares outstanding | 37,474 | 37,573 | 37,417 | 37,524 |
Dilutive effect of stock awards | 303 | 230 | 316 | 280 |
Diluted weighted-average common shares outstanding | 37,777 | 37,803 | 37,733 | 37,804 |
EPS from continuing operations | ||||
Basic EPS (in dollars per share) | $ 0.42 | $ 0.73 | $ 0.57 | $ 1.58 |
Diluted EPS (in dollars per share) | $ 0.41 | $ 0.73 | $ 0.57 | $ 1.57 |
Anti-dilutive shares | 3,166 | 144 | 3,238 | 121 |
Stock awards | ||||
EPS from continuing operations | ||||
Anti-dilutive shares | 144 | 55 | 121 | |
Warrants | ||||
EPS from continuing operations | ||||
Anti-dilutive shares | 3,166 | 3,183 |
STOCKHOLDERS' EQUITY AND EARN_6
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE - Narrative (Details) | Jun. 30, 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) shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) shares | |
STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE | |
Remaining amount authorized by Board of Directors for future share repurchases | $ | $ 199.2 |
Share repurchases (in shares) | shares | 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 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 | $ 184 | $ 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 | 28 | |
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 | 2,163 | |
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 | 8,895 | 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 | 184 | 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 | 28 | |
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 | 2,163 | |
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 | $ 8,895 | $ 5,952 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
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 | $ 172 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Qualified Hedging Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 211,969 | $ 220,719 |
Balances recorded in accumulated other comprehensive income (loss) | $ 1,738 | $ 5,350 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | ||
Accounts receivable, net | $ 262,419 | $ 282,430 |
Balance at beginning of period | 1,762 | |
Additions | 94 | |
Deductions - write-offs, net of recoveries | (160) | |
Balance at end of period | $ 1,696 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Parts and raw materials | $ 278,269 | $ 249,698 |
Work in process | 17,710 | 14,595 |
Finished goods | 87,162 | 71,844 |
Total | $ 383,141 | $ 336,137 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 296,686 | $ 293,787 |
Accumulated Amortization | (144,923) | (132,309) |
Total | $ 151,763 | $ 161,478 |
Weighted Average Remaining Useful Life (in years) | 8 years 3 months 18 days | 8 years 6 months |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 100,257 | $ 97,961 |
Accumulated Amortization | (66,005) | (60,412) |
Total | $ 34,252 | $ 37,549 |
Weighted Average Remaining Useful Life (in years) | 7 years 3 months 18 days | 6 years 9 months 18 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 169,327 | $ 168,685 |
Accumulated Amortization | (64,606) | (58,835) |
Total | $ 104,721 | $ 109,850 |
Weighted Average Remaining Useful Life (in years) | 9 years | 9 years 6 months |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 27,102 | $ 27,141 |
Accumulated Amortization | (14,312) | (13,062) |
Total | $ 12,790 | $ 14,079 |
Weighted Average Remaining Useful Life (in years) | 5 years 1 month 6 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INTANGIBLE ASSETS AND GOODWILL | ||||
Amortization of intangible assets | $ 6,800 | $ 7,075 | $ 13,747 | $ 14,137 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
INTANGIBLE ASSETS AND GOODWILL | ||
2024 (remaining) | $ 11,735 | |
2025 | 21,541 | |
2026 | 19,826 | |
2027 | 17,923 | |
2028 | 16,690 | |
Thereafter | 64,048 | |
Total | $ 151,763 | $ 161,478 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Change in Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
INTANGIBLE ASSETS AND GOODWILL | |
Balance at beginning of period | $ 283,840 |
Additions from acquisition | 16,601 |
Foreign currency translation and other | (3,112) |
Balance at end of period | $ 297,329 |
RESTRUCTURING, ASSET IMPAIRME_3
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Restructuring, asset impairments, and other charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | ||||
Restructuring | $ 84 | $ 3,154 | $ 53 | $ 4,197 |
Other charges | 541 | 817 | ||
Total restructuring, asset impairments, and other charges | $ 625 | $ 3,154 | $ 870 | $ 4,197 |
RESTRUCTURING, ASSET IMPAIRME_4
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) plan | Jun. 30, 2023 USD ($) | Jul. 29, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of restructuring plans in process | plan | 2 | ||||
Cost incurred and charged to expense | $ 84 | $ 3,154 | $ 53 | $ 4,197 | |
2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cost incurred and charged to expense | (4) | ||||
Minimum | 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional charges | 1,000 | 1,000 | |||
Minimum | 2023 Plan | Subsequent Events | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional charges | $ 25,000 | ||||
Maximum | 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional charges | $ 2,000 | $ 2,000 | |||
Maximum | 2023 Plan | Subsequent Events | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected additional charges | $ 30,000 |
RESTRUCTURING, ASSET IMPAIRME_5
RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES - Changes in Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 17,342 | |||
Cost incurred and charged to expense | $ 84 | $ 3,154 | 53 | $ 4,197 |
Cost paid or otherwise settled | (10,169) | |||
Ending balance | 7,226 | 7,226 | ||
2023 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 14,224 | |||
Cost incurred and charged to expense | (4) | |||
Cost paid or otherwise settled | (6,994) | |||
Ending balance | 7,226 | 7,226 | ||
2022 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 2,930 | |||
Cost incurred and charged to expense | 57 | |||
Cost paid or otherwise settled | (2,987) | |||
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 | 6 Months Ended | 30 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charges | $ 84 | $ 3,154 | $ 53 | $ 4,197 | |
2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charges | (4) | ||||
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 | $ 84 | $ 3,154 | $ 53 | $ 4,197 | $ 31,143 |
Severance and related charges | 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charges | 17,099 | ||||
Severance and related charges | 2022 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charges | $ 14,044 |
WARRANTIES - Narrative (Details
WARRANTIES - Narrative (Details) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at beginning of period | $ 4,007 |
Net increases to accruals | 1,295 |
Warranty expenditures | (1,265) |
Effect of changes in exchange rates | 137 |
Balance at end of period | $ 4,174 |
LEASES - Components of Operatin
LEASES - Components of Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
LEASES | ||||
Operating lease cost | $ 5,856 | $ 5,656 | $ 11,717 | $ 11,336 |
Short-term and variable lease cost | 910 | 987 | 1,577 | 2,070 |
Total operating lease cost | $ 6,766 | $ 6,643 | $ 13,294 | $ 13,406 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
LEASES | |
2024 (remaining) | $ 11,473 |
2025 | 20,492 |
2026 | 17,902 |
2027 | 15,494 |
2028 | 15,102 |
Thereafter | 62,966 |
Total lease payments | 143,429 |
Less: Interest | (29,879) |
Present value of lease liabilities | 113,550 |
Payments for lease agreements that commence in the future | $ 36,000 |
LEASES - Other Lease Cost Infor
LEASES - Other Lease Cost Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
LEASES | |||||
Weighted average remaining lease term (in years) | 8 years 6 months | 8 years 6 months | 8 years 3 months 18 days | ||
Weighted average discount rate | 5.30% | 5.30% | 5% | ||
Cash paid for operating leases | $ 5,844 | $ 5,824 | $ 11,564 | $ 11,668 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,579 | $ 2,420 | $ 18,417 | $ 2,628 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 plan shares | |
Stock-based incentive compensation plans | plan | 2 |
Awards term | 10 years |
The 2023 Incentive Plan | |
Shares available for future issuance | 1,817 |
Restricted Stock Units (RSUs) | Minimum | |
Vesting period | 3 years |
Employee Stock | |
Shares available for future issuance | 556 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
STOCK-BASED COMPENSATION | ||||
Stock-based compensation expense | $ 11,384 | $ 7,937 | $ 22,389 | $ 14,738 |
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 | 6 Months Ended |
Jun. 30, 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 | 529 |
RSUs vested | shares | (256) |
RSUs forfeited | shares | (78) |
RSUs outstanding at end of period | shares | 1,112 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 85.96 |
Weighted Average Grant Date Fair Value, granted | $ / shares | 104.71 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 87.78 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 76.18 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 95.14 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - Time Based shares in Thousands | 6 Months Ended |
Jun. 30, 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 | (10) |
Options outstanding at ending of period | shares | 79 |
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 | $ 83.05 |
LONG-TERM DEBT - Debt Obligatio
LONG-TERM DEBT - Debt Obligation (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt: | ||
Gross long-term debt, including current maturities | $ 920,000 | $ 930,000 |
Less: debt discount | (12,691) | (14,321) |
Net long-term debt, including current maturities | 907,309 | 915,679 |
Less: current maturities | (20,000) | (20,000) |
Net long-term debt | 887,309 | 895,679 |
Term Loan Facility | ||
Debt: | ||
Gross long-term debt, including current maturities | 345,000 | 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 | $ 563,300 |
LONG-TERM DEBT - Contractual Ma
LONG-TERM DEBT - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
LONG-TERM DEBT | ||
2024 (remaining) | $ 10,000 | |
2025 | 20,000 | |
2026 | 315,000 | |
2028 | 575,000 | |
Total | $ 920,000 | $ 930,000 |
LONG-TERM DEBT - Borrowings (De
LONG-TERM DEBT - Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Balance | $ 920,000 | $ 930,000 |
Term Loan Facility due 2026 at fixed interest rate due to interest rate swap | ||
Line of Credit Facility [Line Items] | ||
Balance | $ 211,969 | |
Interest Rate | 1.17% | |
Term Loan Facility due 2026 at variable interest rate | ||
Line of Credit Facility [Line Items] | ||
Balance | $ 133,031 | |
Interest Rate | 6.19% | |
Convertible Notes due 2028 | ||
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
LONG-TERM DEBT | ||||
Interest expense | $ 6,365 | $ 2,701 | $ 12,667 | $ 5,290 |
Amortization of debt issuance costs | 855 | 131 | 1,675 | 263 |
Capitalized interest | (271) | (271) | ||
Total interest expense related to debt | $ 6,949 | $ 2,832 | $ 14,071 | $ 5,553 |
LONG-TERM DEBT - Convertible Se
LONG-TERM DEBT - Convertible Senior Notes (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 12, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 13, 2023 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 907,309 | $ 915,679 | ||
2.50% Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 575,000 | |||
Interest rate | 2.50% | |||
Long-term Debt | $ 563,300 | |||
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 | Jun. 30, 2024 | Dec. 31, 2023 |
2.50% Convertible Notes | ||
Line of Credit Facility [Line Items] | ||
Debt fair value | $ 597,800 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Available capacity on Revolving Facility | 200,000 | $ 200,000 |
Increase in borrowing capacity | $ 115,000 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SUPPLEMENTAL CASH FLOW INFORMATION AND OTHER DISCLOSURES | ||
Capital expenditures in accounts payable and other accrued expenses (non-cash investing activity) | $ 8,065 | $ 7,808 |
Common stock used as consideration in business combination | 4,463 | |
Cash paid for: | ||
Interest expense | 12,397 | 5,291 |
Income taxes | 23,568 | 38,008 |
Cash received from income taxes | 742 | 225 |
Depreciation expense | $ 20,171 | $ 18,829 |