Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NATIONAL INSTRUMENTS CORP /DE/ | |
Entity Central Index Key | 935,494 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 130,745,022 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 294,194 | $ 285,283 |
Short-term investments | 91,223 | 73,117 |
Accounts receivable, net | 235,177 | 228,686 |
Inventories, net | 184,641 | 193,608 |
Prepaid expenses and other current assets | 50,325 | 53,953 |
Total current assets | 855,560 | 834,647 |
Property and equipment, net | 254,918 | 260,456 |
Goodwill | 265,091 | 253,197 |
Intangible assets, net | 122,681 | 108,663 |
Other long-term assets | 32,878 | 39,601 |
Total assets | 1,531,128 | 1,496,564 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 51,274 | 48,800 |
Accrued compensation | 45,231 | 27,743 |
Deferred revenue - current | 120,271 | 115,577 |
Other current liabilities | 17,802 | 32,997 |
Other taxes payable | 30,832 | 34,958 |
Total current liabilities | 265,410 | 260,075 |
Long-term debt | 15,000 | 25,000 |
Deferred income taxes | 37,074 | 45,386 |
Liability for uncertain tax positions | 9,284 | 11,719 |
Deferred revenue - long-term | 31,405 | 29,752 |
Other long-term liabilities | 9,156 | 10,413 |
Total liabilities | 367,329 | 382,345 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock: par value $0.01; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock: par value $0.01; 360,000,000 shares authorized; 130,745,022 shares and 129,202,979 shares issued and outstanding, respectively | 1,307 | 1,292 |
Additional paid-in capital | 816,152 | 771,346 |
Retained earnings | 365,021 | 376,202 |
Accumulated other comprehensive loss | (18,681) | (34,621) |
Total stockholders’ equity | 1,163,799 | 1,114,219 |
Total liabilities and stockholders’ equity | $ 1,531,128 | $ 1,496,564 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 360,000,000 | 360,000,000 |
Common stock, issued (in shares) | 130,745,022 | 129,202,979 |
Common stock, outstanding (in shares) | 130,745,022 | 129,202,979 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales: | ||||
Product | $ 291,891 | $ 278,521 | $ 853,219 | $ 816,486 |
Software maintenance | 29,030 | 27,843 | 86,416 | 83,161 |
Total net sales | 320,921 | 306,364 | 939,635 | 899,647 |
Cost of sales: | ||||
Product | 81,641 | 74,734 | 235,989 | 225,261 |
Software maintenance | 2,110 | 1,998 | 6,744 | 5,126 |
Total cost of sales | 83,751 | 76,732 | 242,733 | 230,387 |
Gross profit | 237,170 | 229,632 | 696,902 | 669,260 |
Operating expenses: | ||||
Sales and marketing | 116,661 | 116,662 | 358,335 | 346,230 |
Research and development | 56,526 | 59,066 | 171,701 | 178,244 |
General and administrative | 26,468 | 24,537 | 78,400 | 74,308 |
Total operating expenses | 199,655 | 200,265 | 608,436 | 598,782 |
Operating income | 37,515 | 29,367 | 88,466 | 70,478 |
Other income: | ||||
Interest income | 657 | 276 | 1,509 | 787 |
Net foreign exchange gain (loss) | 1,096 | (760) | 1,624 | (1,471) |
Other (loss) gain, net | (1,153) | 301 | (957) | (2,052) |
Income before income taxes | 38,115 | 29,184 | 90,642 | 67,742 |
Provision for income taxes | 4,726 | 4,695 | 13,949 | 14,155 |
Net income | $ 33,389 | $ 24,489 | $ 76,693 | $ 53,587 |
Basic earnings per share (in dollars per share) | $ 0.26 | $ 0.19 | $ 0.59 | $ 0.42 |
Weighted average shares outstanding - basic | 130,660 | 128,815 | 130,103 | 128,233 |
Diluted earnings per share (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.59 | $ 0.42 |
Weighted average shares outstanding - diluted | 131,617 | 129,047 | 131,050 | 128,738 |
Dividends declared per share (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.63 | $ 0.60 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 33,389 | $ 24,489 | $ 76,693 | $ 53,587 |
Other comprehensive income, before tax and net of reclassification adjustments: | ||||
Foreign currency translation adjustment | 6,226 | 3,964 | 21,890 | 12,130 |
Unrealized gain (loss) on securities available-for-sale | 162 | (70) | 187 | 479 |
Unrealized (loss) gain on derivative instruments | (3,136) | 976 | (9,470) | 4,541 |
Other comprehensive gain, before tax | 3,252 | 4,870 | 12,607 | 17,150 |
Tax (benefit) expense related to items of other comprehensive income | (1,186) | 967 | (3,333) | 4,242 |
Other comprehensive gain, net of tax | 4,438 | 3,903 | 15,940 | 12,908 |
Comprehensive income | $ 37,827 | $ 28,392 | $ 92,633 | $ 66,495 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flow from operating activities: | ||
Net income | $ 76,693 | $ 53,587 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 54,794 | 55,164 |
Stock-based compensation | 21,272 | 19,635 |
Tax expense from deferred income taxes | (4,290) | (7,321) |
Changes in operating assets and liabilities | (1,013) | 28,951 |
Net cash provided by operating activities | 147,456 | 150,016 |
Cash flow from investing activities: | ||
Capital expenditures | (24,084) | (34,408) |
Capitalization of internally developed software | (34,406) | (24,048) |
Additions to other intangibles | (1,379) | (1,969) |
Acquisitions, net of cash received | 0 | (549) |
Purchases of short-term investments | (62,845) | (9,054) |
Sales and maturities of short-term investments | 45,582 | 38,566 |
Net cash used in investing activities | (77,132) | (31,462) |
Cash flow from financing activities: | ||
Proceeds from revolving line of credit | 0 | 15,000 |
Principal payments on revolving line of credit | (10,000) | (27,000) |
Proceeds from issuance of common stock | 22,870 | 22,157 |
Repurchase of common stock | 0 | (5,635) |
Dividends paid | (82,051) | (77,056) |
Net cash used in financing activities | (69,181) | (72,534) |
Effect of exchange rate changes on cash | 7,768 | 3,503 |
Net change in cash and cash equivalents | 8,911 | 49,523 |
Cash and cash equivalents at beginning of period | 285,283 | 251,129 |
Cash and cash equivalents at end of period | $ 294,194 | $ 300,652 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2016 , included in our annual report on Form 10-K, filed with the Securities and Exchange Commission. In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly our financial position at September 30, 2017 and December 31, 2016 , the results of our operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016 , and the cash flows for the nine months ended September 30, 2017 and 2016 . Our operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Starting January 1, 2017, we began separately presenting the effect of exchange rate changes on cash and cash equivalents in our condensed consolidated statements of cash flows due to growing operations in foreign currency environments. Amounts in the comparable prior period have been reclassified to conform to the current period presentation. The reclassifications resulted in the disaggregation of the amount attributable to the “Effect of exchange rate changes on cash” of $ 3.5 million , with a corresponding decrease to “Net cash provided by operating activities” for the nine months ended September 30, 2016 . We believe the reclassification is immaterial to the consolidated financial statements. Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16, Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory. The standard is intended to address diversity in practice and complexity in financial reporting, particularly for intra-entity transfers of intellectual property. We early adopted ASU 2016-16 effective January 1, 2017. Using the modified retrospective method, the impact of the adoption of the standard was to increase deferred tax assets by $0.4 million , decrease other assets, net by $6.2 million and decrease retained earnings by $5.8 million . The adoption of the amendments had the effect of increasing our diluted earnings per share by $0.01 and $0.03 for the three and nine months ended September 30, 2017 , respectively. Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU simplifies certain aspects of hedge accounting and improves disclosures of hedging arrangements through the elimination of the requirement to separately measure and report hedge ineffectiveness. The ASU generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item in order to align financial reporting of hedge relationships with economic results. Entities must apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements must be applied prospectively. Our effective date for adoption of this guidance is our fiscal year beginning January 1, 2019. We are currently evaluating the effect that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which supersedes ASC 840, Leases . The guidance requires lessees to recognize most lease liabilities on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The update states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The update is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. Based on our initial assessment, we expect that the adoption of this standard will have a material impact on our balance sheet but that it will not have a material impact on our ongoing results of operations. We do not expect to adopt the new standard prior to the required effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We intend to adopt this standard as of January 1, 2018 by applying the modified retrospective transition method. Consequently, the cumulative effect of applying the new standard to existing contracts as of January 1, 2018 will be recognized as an adjustment to the opening balance of equity in the first quarter of 2018 . We have reached initial conclusions on our key accounting matters related to the new standard and believe adoption of the new standard will generally result in revenue recognition earlier or at the same time as existing US GAAP. The most significant impact of the standard relates to our accounting for certain software arrangements. We primarily license software on a perpetual basis. However, we also license software under enterprise agreements which includes an unlimited quantity of certain software licenses for a fixed-term bundled with software maintenance, technical support, and a specified amount of training and service credits. Currently, we defer revenue for software licensed under our enterprise agreements and certain perpetual arrangements due to a lack of vendor specific objective evidence (“VSOE”) for certain elements in the contract. Under the new standard, we are no longer required to establish VSOE to recognize software license revenue separately from the other elements, and we will be able to recognize software license revenue once the customer obtains control of the license, which will generally occur at the start of each license term. Due to the complexity of our enterprise agreement contracts, the actual revenue recognition treatment required under the new standard will be dependent on contract-specific terms, and may vary in some instances from recognition at the time of billing. Additionally, we expect the new standard will impact the way we allocate the transaction price for arrangements with separately-priced extended warranty offerings. ASU 2014-09, as amended, could have a material impact on our consolidated financial statements and disclosures. While we are still evaluating the matter we believe the impact of the change to the timing of revenue recognition for our limited offerings mentioned above may have a material impact on our deferred revenue balance on the adoption date under the application of the modified retrospective transition method. However, it is not expected to have a material impact to our results of operations in subsequent annual periods. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes restricted stock units (“RSUs”), is computed using the treasury stock method. The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2017 and 2016 , are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Weighted average shares outstanding-basic 130,660 128,815 130,103 128,233 Plus: Common share equivalents RSUs 957 232 947 505 Weighted average shares outstanding-diluted 131,617 129,047 131,050 128,738 Stock awards to acquire 40,700 shares and 1,068,800 shares for the three months ended September 30, 2017 and 2016 , respectively, and 22,300 shares and 58,000 shares for the nine months ended September 30, 2017 and 2016 , respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive. |
Short-term investments
Short-term investments | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Short-term investments | Short-term investments The following tables summarize unrealized gains and losses related to our short-term investments designated as available-for-sale: As of September 30, 2017 (In thousands) (Unaudited) Gross Gross Cumulative Adjusted Cost Unrealized Gain Unrealized Loss Translation Adjustment Fair Value Corporate bonds $ 90,817 $ 170 $ (76 ) $ (1,448 ) $ 89,463 Time deposits 1,760 — — — 1,760 Short-term investments $ 92,577 $ 170 $ (76 ) $ (1,448 ) $ 91,223 (In thousands) As of December 31, 2016 Gross Gross Cumulative Adjusted Cost Unrealized Gain Unrealized Loss Translation Adjustment Fair Value Corporate bonds $ 72,986 $ 89 $ (182 ) $ (1,536 ) $ 71,357 Time deposits 1,760 — — — 1,760 Short-term investments $ 74,746 $ 89 $ (182 ) $ (1,536 ) $ 73,117 The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale: As of September 30, 2017 (In thousands) (Unaudited) Adjusted Cost Fair Value Due in less than 1 year $ 15,838 $ 15,833 Due in 1 to 5 years 76,739 75,390 Total available-for-sale debt securities $ 92,577 $ 91,223 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 14,078 $ 14,073 U.S. treasuries and agencies — — Time deposits 1,760 1,760 Total available-for-sale debt securities $ 15,838 $ 15,833 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds $ 76,739 $ 75,390 Total available-for-sale debt securities $ 76,739 $ 75,390 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements We define fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market that market participants may use when pricing the asset or liability. We follow a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value measurement is determined based on the lowest level input that is significant to the fair value measurement. The three values of the fair value hierarchy are the following: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 – Inputs that are not based on observable market data Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Reporting Date Using (In thousands) (Unaudited) Description September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 43,982 $ 43,982 $ — $ — U.S. treasuries and agencies 64,064 — 64,064 — Short-term investments available for sale: Corporate bonds 89,463 — 89,463 — Time deposits 1,760 1,760 — — Derivatives 6,574 — 6,574 — Total Assets $ 205,843 $ 45,742 $ 160,101 $ — Liabilities Derivatives $ (11,700 ) $ — $ (11,700 ) Total Liabilities $ (11,700 ) $ — $ (11,700 ) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 68,577 $ 68,577 $ — $ — Short-term investments available for sale: Corporate bonds 71,357 — 71,357 — Time deposits 1,760 1,760 — — Derivatives 15,113 — 15,113 — Total Assets $ 156,807 $ 70,337 $ 86,470 $ — Liabilities Derivatives $ (8,199 ) $ — $ (8,199 ) $ — Total Liabilities $ (8,199 ) $ — $ (8,199 ) $ — We value our available-for-sale short-term investments based on pricing from third party pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. We classify all of our fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. We believe all of these sources reflect the credit risk associated with each of our available-for-sale short-term investments. Short-term investments available-for-sale consists of debt securities issued by states of the U.S. and political subdivisions of the U.S., corporate debt securities and debt securities issued by U.S. government organizations and agencies. All of our short-term investments available-for-sale have contractual maturities of less than 60 months. Derivatives include foreign currency forward and option contracts. Our foreign currency forward contracts are valued using an income approach (Level 2) based on the spot rate less the contract rate multiplied by the notional amount. Our foreign currency option contracts are valued using a market approach based on the quoted market prices which are derived from observable inputs including current and future spot rates, interest rate spreads as well as quoted market prices of similar instruments. We consider counterparty credit risk in the valuation of our derivatives. However, counterparty credit risk did not impact the valuation of our derivatives during the nine months ended September 30, 2017 . There were no transfers in or out of Level 1 or Level 2 during the nine months ended September 30, 2017 . As of September 30, 2017 , our short-term investments did not include sovereign debt from any country other than the United States. We did not have any items that were measured at fair value on a nonrecurring basis at September 30, 2017 and December 31, 2016 . The carrying value of net accounts receivable, accounts payable, and long-term debt contained in the consolidated balance sheets approximates fair value. |
Derivative instruments and hedg
Derivative instruments and hedging activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | Derivative instruments and hedging activities We recognize all of our derivative instruments as either assets or liabilities in our statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. We have operations in over 50 countries. Sales outside of the Americas accounted for approximately 58% and 58% of our net sales during the three months ended September 30, 2017 and 2016 , respectively, and approximately 60% and 61% of our net sales during the nine months ended September 30, 2017 and 2016 , respectively. Our activities expose us to a variety of market risks, including the effects of changes in foreign currency exchange rates. These financial risks are monitored and managed by us as an integral part of our overall risk management program. We maintain a foreign currency risk management strategy that uses derivative instruments (foreign currency forward and purchased option contracts) to help protect our earnings and cash flows from fluctuations caused by the volatility in currency exchange rates. Movements in foreign currency exchange rates pose a risk to our operations and competitive position, in that exchange rate changes may affect our profitability and cash flow, and the business or pricing strategies of our non-U.S. based competitors. The vast majority of our foreign sales are denominated in the customers’ local currency. We purchase foreign currency forward and option contracts as hedges of forecasted sales that are denominated in foreign currencies and as hedges of foreign currency denominated financial assets or liabilities. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash inflows resulting from such sales or firm commitments will be adversely affected by changes in exchange rates. We also purchase foreign currency forward contracts as hedges of forecasted expenses that are denominated in foreign currencies. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash outflows resulting from foreign currency operating and cost of sales expenses will be adversely affected by changes in exchange rates. We designate foreign currency forward and purchased option contracts as cash flow hedges of forecasted net sales or forecasted expenses. In addition, we hedge our foreign currency denominated balance sheet exposures using foreign currency forward contracts that are not designated as hedging instruments. None of our derivative instruments contain a credit-risk-related contingent feature. Cash flow hedges To help protect against the reduction in value caused by a fluctuation in foreign currency exchange rates of forecasted foreign currency cash flows resulting from international sales over the next one to three years, we have instituted a foreign currency cash flow hedging program. We hedge portions of our forecasted net sales and forecasted expenses denominated in foreign currencies with forward and purchased option contracts. For forward contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the forward contracts designated as hedges. For option contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the option contracts net of the premium paid designated as hedges. Our foreign currency purchased option contracts are purchased “at-the-money” or “out-of-the-money.” We purchase foreign currency forward and option contracts for up to 100% of our forecasted exposures in selected currencies (primarily in Euro, Japanese yen, Hungarian forint, British pound, Malaysian ringgit and Chinese yuan) and limit the duration of these contracts to 36 months or less. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (“OCI”) and reclassified into earnings in the same line item (net sales, operating expenses, or cost of sales) associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings or expenses during the current period and are classified as a component of “net foreign exchange gain (loss).” Hedge effectiveness of foreign currency forwards and purchased option contracts designated as cash flow hedges are measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the forecasted transaction’s terminal value. We held forward contracts designated as cash flow hedges with the following notional amounts: (In thousands) US Dollar Equivalent As of September 30, 2017 As of December 31, (Unaudited) 2016 Chinese yuan $ 27,760 $ 27,414 Euro 158,490 123,522 Japanese yen 23,726 44,982 Hungarian forint 48,722 57,077 Malaysian ringgit 32,438 42,510 Total forward contracts notional amount $ 291,136 $ 295,505 The contracts in the foregoing table had contractual maturities of 36 months or less at September 30, 2017 and December 31, 2016 . At September 30, 2017 , we expect to reclassify $4.1 million of losses on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $0.6 million of gains on derivative instruments from accumulated OCI to cost of sales during the next twelve months when the cost of sales are incurred and $0.5 million of gains on derivative instruments from accumulated OCI to operating expenses during the next twelve months when the hedged operating expenses occur. Expected amounts are based on derivative valuations at September 30, 2017 . Actual results may vary materially as a result of changes in the corresponding exchange rates subsequent to this date. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for each of the nine months ended September 30, 2017 and 2016 and are included as a component of net income under the line item “net foreign exchange gain (loss).” Other Derivatives Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge our foreign denominated net receivable or net payable positions to help protect against the change in value caused by a fluctuation in foreign currency exchange rates. We typically attempt to hedge up to 90% of our outstanding foreign denominated net receivables or net payables and typically limit the duration of these foreign currency forward contracts to approximately 90 days or less. The gain or loss on the derivatives as well as the offsetting gain or loss on the hedge item attributable to the hedged risk is recognized in current earnings under the line item “net foreign exchange gain (loss).” As of September 30, 2017 and December 31, 2016 , we held foreign currency forward contracts that were not designated as hedging instruments with a notional amount of $59 million and $60 million , respectively. The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , respectively. Asset Derivatives September 30, 2017 December 31, 2016 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 3,695 Prepaid expenses and other current assets $ 9,378 Foreign exchange contracts - LT forwards Other long-term assets 2,702 Other long-term assets 3,866 Total derivatives designated as hedging instruments $ 6,397 $ 13,244 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 177 Prepaid expenses and other current assets $ 1,869 Total derivatives not designated as hedging instruments $ 177 $ 1,869 Total derivatives $ 6,574 $ 15,113 Liability Derivatives September 30, 2017 December 31, 2016 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (6,695 ) Other current liabilities $ (4,672 ) Foreign exchange contracts - LT forwards Other long-term liabilities (4,082 ) Other long-term liabilities (3,352 ) Total derivatives designated as hedging instruments $ (10,777 ) $ (8,024 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (923 ) Other current liabilities $ (175 ) Total derivatives not designated as hedging instruments $ (923 ) $ (175 ) Total derivatives $ (11,700 ) $ (8,199 ) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for three month periods ended September 30, 2017 and 2016 , respectively: September 30, 2017 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (5,804 ) Net sales $ (1,401 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 1,421 Cost of sales (105 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 1,247 Operating expenses (148 ) Net foreign exchange gain/(loss) — Total $ (3,136 ) $ (1,654 ) $ — September 30, 2016 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (1,156 ) Net sales $ (160 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 1,412 Cost of sales (414 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 720 Operating expenses (389 ) Net foreign exchange gain/(loss) — Total $ 976 $ (963 ) $ — (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2017 September 30, 2016 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (887 ) (814 ) Total $ (887 ) $ (814 ) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the nine months ended September 30, 2017 and 2016 , respectively: September 30, 2017 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (20,601 ) Net sales $ 1,348 Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 5,901 Cost of sales (1,083 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 5,230 Operating expenses (1,127 ) Net foreign exchange gain/(loss) — Total (9,470 ) $ (862 ) $ — September 30, 2016 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (1,432 ) Net sales $ (1,301 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 3,009 Cost of sales (1,367 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 2,964 Operating expenses (1,278 ) Net foreign exchange gain/(loss) — Total $ 4,541 $ (3,946 ) $ — (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2017 September 30, 2016 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (4,065 ) (1,005 ) Total $ (4,065 ) $ (1,005 ) |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net consist of the following: September 30, 2017 December 31, (In thousands) (Unaudited) 2016 Raw materials $ 93,023 $ 92,906 Work-in-process 9,095 9,125 Finished goods 82,523 91,577 $ 184,641 $ 193,608 |
Intangible assets, net
Intangible assets, net | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible assets, net | Intangible assets, net Intangible assets at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 (In thousands) (Unaudited) December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 116,760 $ (32,701 ) $ 84,059 $ 103,887 $ (39,180 ) $ 64,707 Acquired technology 95,963 (85,573 ) 10,390 94,124 (79,485 ) 14,639 Patents 32,678 (19,424 ) 13,254 31,513 (17,573 ) 13,940 Other 45,212 (30,234 ) 14,978 42,848 (27,471 ) 15,377 $ 290,613 $ (167,932 ) $ 122,681 $ 272,372 $ (163,709 ) $ 108,663 Software development costs capitalized for the three month periods ended September 30, 2017 and 2016 were $10.1 million and $9.1 million , respectively, and related amortization expense was $5.7 million and $4.9 million , respectively. For the nine months ended September 30, 2017 and 2016 , capitalized software development costs were $35.8 million and $25.0 million , respectively, and related amortization expense was $16.5 million and $14.0 million , respectively. Capitalized software development costs for the three month periods ended September 30, 2017 and 2016 included costs related to stock based compensation of $487,000 and $445,000 , respectively. For the nine months ended September 30, 2017 and 2016 , capitalized software development costs included costs related to stock based compensation of $1.4 million and $1.0 million , respectively. The related amounts in the table above are net of fully amortized assets. Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three to six years. Acquired technology and other intangible assets are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally 10 to 17 years. Total intangible assets amortization expenses were $8.7 million and $8 million for the three month periods ended September 30, 2017 and 2016 , respectively, and $25.7 million and $27 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill as of September 30, 2017 , was as follows: Amount (In thousands) Balance as of December 31, 2016 $ 253,197 Acquisitions — Foreign currency translation impact 11,894 Balance as of September 30, 2017 (unaudited) $ 265,091 The excess purchase price over the fair value of assets acquired is recorded as goodwill. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test was performed as of February 28, 2017. No impairment of goodwill was identified during 2017 or 2016 . |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. We had a valuation allowance of $62 million at September 30, 2017 and December 31, 2016 , and $102 million at December 31, 2015 . A majority of the valuation allowance is related to the deferred tax assets of National Instruments Hungary Kft. (“NI Hungary”). The decrease in the valuation allowance from 2015 to 2016 was primarily due to the revaluation of NI Hungary’s gross deferred tax assets following the reduction in the Hungarian corporate income tax rate from 19% to 9% . We account for uncertainty in income taxes recognized in our financial statements using prescribed recognition thresholds and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on our tax returns. We had $9.3 million and $11.7 million of unrecognized tax benefits at September 30, 2017 and December 31, 2016 , respectively, all of which would affect our effective income tax rate if recognized. We recorded a gross increase in unrecognized tax benefits of $0.5 million and $1 million for the three and nine month periods ended September 30, 2017 , respectively, as a result of the tax positions taken during these periods. We recorded a gross decrease in unrecognized tax benefits of $3.7 million for each of the three and nine month periods ended September 30, 2017 as a result of closing open tax years. As of September 30, 2017 , it is reasonably possible that we will recognize tax benefits in the amount of $1.5 million in the next twelve months due to the closing of open tax years. The nature of the uncertainty is related to deductions taken on returns that have not been examined by the applicable tax authority. Our continuing policy is to recognize interest and penalties related to income tax matters in income tax expense. As of September 30, 2017 , we had approximately $1 million accrued for interest related to uncertain tax positions. The tax years 2008 through 2017 remain open to examination by the major taxing jurisdictions to which we are subject. Our provision for income taxes reflected an effective tax rate of 12% and 16% for the three month periods ended September 30, 2017 and 2016 , respectively, and 15% and 21% for the nine months ended September 30, 2017 and 2016 , respectively. For the three and nine month periods ended September 30, 2017 , our effective tax rate was lower than the U.S. federal statutory rate of 35% as a result of an enhanced deduction for certain research and development expenses, profits in foreign jurisdictions with reduced income tax rates, the research and development tax credit, a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit, and excess tax benefits from share-based compensation. For the three and nine month periods ended September 30, 2016 , our effective tax rate was lower than the U.S. federal statutory rate of 35% as a result of an enhanced deduction for certain research and development expenses, profits in foreign jurisdictions with reduced income tax rates, the research and development tax credit, and a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit. Our earnings in Hungary are subject to a statutory tax rate of 9% . In addition, our research and development activities in Hungary benefit from a tax law in Hungary that provides for an enhanced deduction for qualified research and development expenses. The tax position of our Hungarian operations resulted in income tax benefits of $4.3 million and $4.5 million for the three month periods ended September 30, 2017 and 2016 , respectively, and $11.6 million and $10.3 million for the nine months ended September 30, 2017 and 2016 , respectively. Earnings from our operations in Malaysia are free of tax under a tax holiday effective January 1, 2013. This tax holiday expires in 2027. If we fail to satisfy the conditions of the tax holiday, this tax benefit may be terminated early. The income tax benefits of the tax holiday for the three and nine months ended September 30, 2017 were approximately $0.8 million and $1.9 million , respectively. The impact of the tax holiday on a per share basis for each of the three and nine months ended September 30, 2017 was a benefit of $0.01 per share. The income tax benefits of the tax holiday for the three and nine months ended September 30, 2016 were approximately $0.8 million and $1.9 million , respectively. The impact of the tax holiday on a per share basis for each of the three and nine months ended September 30, 2016 was a benefit of $0.01 per share. No other taxing jurisdictions had a significant impact on our effective tax rate. We have not entered into any advanced pricing or other agreements with the IRS with regard to any foreign jurisdictions. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive income | Comprehensive income Our comprehensive income is comprised of net income, foreign currency translation, unrealized gains and losses on forward and option contracts and securities classified as available-for-sale. The accumulated OCI, net of tax, for the nine months ended September 30, 2017 and 2016 , consisted of the following: September 30, 2017 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2016 $ (37,174 ) $ (669 ) 3,222 $ (34,621 ) Current-period other comprehensive income (loss) 21,890 187 (10,332 ) 11,745 Reclassified from accumulated OCI into income — — 862 862 Income tax (benefit) expense 13 14 (3,360 ) (3,333 ) Balance as of September 30, 2017 $ (15,297 ) $ (496 ) $ (2,888 ) $ (18,681 ) September 30, 2016 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2015 $ (31,871 ) $ (857 ) (5,362 ) $ (38,090 ) Current-period other comprehensive income 12,130 479 595 13,204 Reclassified from accumulated OCI into income — — 3,946 3,946 Income tax expense 2,582 123 1,537 4,242 Balance as of September 30, 2016 $ (22,323 ) $ (501 ) $ (2,358 ) $ (25,182 ) |
Authorized shares of common and
Authorized shares of common and preferred stock and stock-based compensation plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Authorized shares of common and preferred stock and stock-based compensation plans | Authorized shares of common and preferred stock and stock-based compensation plans Authorized shares of common and preferred stock Following approval by the Company’s Board of Directors and stockholders, on May 14, 2013, the Company’s certificate of incorporation was amended to increase the authorized shares of common stock by 180,000,000 shares to a total of 360,000,000 shares. As a result of this amendment, the total number of shares which the Company is authorized to issue is 365,000,000 shares, consisting of (i) 5,000,000 shares of preferred stock, par value $.01 per share, and (ii) 360,000,000 shares of common stock, par value $.01 per share. Restricted stock plan Our stockholders approved our 2005 Incentive Plan (the “2005 Plan”) in May 2005. At the time of approval, 4,050,000 shares of our common stock were reserved for issuance under this plan, as well as the number of shares which had been reserved but not issued under our 1994 Incentive Plan which terminated in May 2005 (the “1994 Plan”), and any shares that returned to the 1994 Plan as a result of termination of options or repurchase of shares issued under such plan. The 2005 Plan, administered by the Compensation Committee of the Board of Directors, provided for granting of incentive awards in the form of restricted stock and RSUs to directors, executive officers and employees of the Company and its subsidiaries. Awards vest over a three , five or ten -year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. The 2005 Plan terminated on May 11, 2010, except with respect to outstanding awards previously granted thereunder. There were 3,362,304 shares of common stock that were reserved but not issued under the 2005 Plan as of May 11, 2010. Our stockholders approved our 2010 Incentive Plan (the “2010 Plan”) on May 11, 2010. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 3,362,304 shares of common stock that were reserved but not issued under the 1994 Plan and the 2005 Plan as of May 11, 2010, and any shares that are returned to the 1994 Plan and the 2005 Plan as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2010 Plan, administered by the Compensation Committee of the Board of Directors, provides for granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. Awards vest over a three , five or ten -year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. The 2010 Plan terminated on May 12, 2015, except with respect to the outstanding awards previously granted thereunder. There were 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015. Our stockholders approved our 2015 Equity Incentive Plan (the “2015 Plan”) on May 12, 2015. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015, and any shares that were returned to the 1994, 2005, and the 2010 Plans as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2015 Plan, administered by the Compensation Committee of the Board of Directors, provides for the granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. Awards vest over a three , four , five or ten -year period, beginning on the date of grant. Vesting of ten year awards may accelerate based on the Company’s previous year’s earnings and growth but ten year awards cannot accelerate to vest over a period of less than five years. There were 3,848,515 shares available for grant under the 2015 Plan at September 30, 2017 . During the three month period ended September 30, 2017 , we did not make any changes in accounting principles or methods of estimates related to the 2005, 2010 and 2015 Plans. Employee stock purchase plan Our employee stock purchase plan permits substantially all domestic employees and employees of designated subsidiaries to acquire our common stock at a purchase price of 85% of the lower of the market price at the beginning or the end of the purchase period. The plan has quarterly purchase periods generally beginning on February 1, May 1, August 1 and November 1 of each year. Employees may designate up to 15% of their compensation for the purchase of common stock under this plan. On May 9, 2017, our stockholders approved an additional 3,000,000 shares for issuance under our employee stock purchase plan. At September 30, 2017 , we had 3,069,958 shares of common stock reserved for future issuance under this plan. We issued 863,093 shares under this plan in the nine months ended September 30, 2017 and the weighted average purchase price of the employees’ purchase rights was $26.5 per share. During the nine months ended September 30, 2017 , we did not make any changes in accounting principles or methods of estimates with respect to such plan. Authorized Preferred Stock and Preferred Stock Purchase Rights Plan We have 5,000,000 authorized shares of preferred stock. On January 21, 2004, our Board of Directors designated 750,000 of these shares as Series A Participating Preferred Stock in conjunction with the adoption of a Preferred Stock Rights Agreement which expired on May 10, 2014. There were no shares of preferred stock issued and outstanding at September 30, 2017 . Stock repurchases and retirements From time to time, our Board of Directors has authorized various programs for our repurchase of shares of our common stock depending on market conditions and other factors. Under the current program, we did not make any share repurchases during the nine months ended September 30, 2017 or the three months ended September 30, 2016. We repurchased a total of 206,780 shares of our common stock at a weighted average price per share of $27.25 during the nine months ended September 30, 2016 . At September 30, 2017 , there were 1,134,247 shares remaining available for repurchase under this program. This repurchase program does not have an expiration date. |
Segment and geographic informat
Segment and geographic information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and geographic information | Segment and geographic information We operate as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis. Since we operate in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements and the notes thereto. We sell our product in three geographic regions which consist of Americas; Europe, Middle East, India, and Africa (EMEIA); and Asia-Pacific (APAC). Our sales to these regions share similar economic characteristics, similar product mix, similar customers, and similar distribution methods. Revenue from the sale of our products, which are similar in nature, and software maintenance is reflected as total net sales in our Consolidated Statements of Income. Total net sales by the major geographic areas in which we operate, are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Net sales: Americas $ 133,191 $ 129,710 $ 373,277 $ 354,806 EMEIA 93,277 92,232 288,565 278,616 APAC 94,453 84,422 277,793 266,225 $ 320,921 $ 306,364 $ 939,635 $ 899,647 Based on the billing location of the customer, total sales outside the U.S. for the three months ended September 30, 2017 and 2016 were $195 million and $184 million , respectively, and $588 million and $564 million for the nine months ended September 30, 2017 and 2016 , respectively. Total property and equipment, net, outside the U.S. was $133 million as of September 30, 2017 and December 31, 2016 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 9, 2013, we entered into a Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank (the “Lender”). The Loan Agreement provided for a $50 million unsecured revolving line of credit with a scheduled maturity date of May 9, 2018 (the “Maturity Date”). On October 29, 2015, we entered into a First Amendment to Loan Agreement (the “Amendment”) with the Lender, which amended our Loan Agreement to among other things, (i) increase the unsecured revolving line of credit from $50 million to $125 million , (ii) extend the Maturity Date of the line of credit from May 9, 2018 to October 29, 2020, and (iii) provide us with an option to request increases to the line of credit of up to an additional $25 million in the aggregate, subject to consent of the Lender and terms and conditions to be mutually agreed between us and the Lender. The loans bear interest, at our option, at a base rate determined in accordance with the Loan Agreement, plus a spread of 0.0% to 0.50% , or a LIBOR rate plus a spread of 1.13% to 2.00% , in each case with such spread determined based on a ratio of consolidated indebtedness to EBITDA, determined in accordance with the Loan Agreement. Principal, together with all accrued and unpaid interest, is due and payable on the Maturity Date. We are also obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments at a rate of 0.18% to 0.30% , with such rate determined based on the ratio described above. The Loan Agreement contains customary affirmative and negative covenants. The affirmative covenants include, among other things, delivery of financial statements, compliance certificates and notices; payment of taxes and other obligations; maintenance of existence; maintenance of properties and insurance; and compliance with applicable laws and regulations. The negative covenants include, among other things, limitations on indebtedness, liens, mergers, consolidations, acquisitions and sales of assets, investments, changes in the nature of the business, affiliate transactions and certain restricted payments. The Loan Agreement also requires us to maintain a ratio of consolidated indebtedness to EBITDA equal to or less than 3.25 to 1.00 , and a ratio of consolidated EBITDA to interest expense greater than or equal to 3.00 to 1.00 , in each case determined in accordance with the Loan Agreement. As of September 30, 2017 , we were in compliance with all covenants in the Loan Agreement. The Loan Agreement contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events, judgment defaults and change in control events, subject to grace periods in certain instances. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by us to be immediately due and payable and exercise other rights and remedies provided for under the Loan Agreement. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Loan Agreement at a per annum rate of interest equal to 2.00% above the otherwise applicable interest rate. Proceeds of loans made under the Loan Agreement may be used for working capital and other general corporate purposes. We may prepay the loans under the Loan Agreement in whole or in part at any time without premium or penalty. Certain of our existing and future material domestic subsidiaries are required to guaranty our obligations under the Loan Agreement. As of September 30, 2017 , we had outstanding $15 million in borrowings under this line of credit. During the three month periods ended September 30, 2017 and September 30, 2016 , we incurred interest expense related to our outstanding borrowings of $176,000 and $167,000 , respectively. During the nine months ended September 30, 2017 and September 30, 2016 , we incurred interest expense related to our outstanding borrowings of $519,000 and $377,000 , respectively. As of September 30, 2017 and September 30, 2016 , the weighted-average interest rate on the revolving line of credit was 2.4% and 1.6% , respectively. These charges are included in “Other income (loss), net” in our Consolidated Statements of Income. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies We offer a one -year limited warranty on most hardware products which is included in the terms of sale of such products. We also offer optional extended warranties on our hardware products for which the related revenue is recognized ratably over the warranty period. Provision is made for estimated future warranty costs at the time of the sale for the estimated costs that may be incurred under the standard warranty. Our estimate is based on historical experience and product sales during the period. The warranty reserve for the nine months ended September 30, 2017 and 2016 was as follows: Nine Months Ended September 30, (In thousands) (Unaudited) 2017 2016 Balance at the beginning of the period $ 2,686 $ 1,755 Accruals for warranties issued during the period 1,929 1,764 Accruals related to pre-existing warranties 193 690 Settlements made (in cash or in kind) during the period (1,983 ) (2,088 ) Balance at the end of the period $ 2,825 $ 2,121 As of September 30, 2017 , we had non-cancelable purchase commitments with various suppliers of customized inventory and inventory components totaling approximately $7.8 million over the next twelve months. As of September 30, 2017 , we had outstanding guarantees for payment of customs and foreign grants totaling approximately $3.1 million , which are generally payable over the next twelve months. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Since the first quarter of 2017, we have been taking steps to reduce our overall employee headcount by approximately 2% by the end of 2017 in an effort to minimize job duplication or evaluate where we should shift and centralize activities, improve efficiencies, and rebalance our resources on higher return activities. The timing and scope of our headcount reductions will vary. A summary of the charges in the consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Cost of sales $ 79 — $ 986 — Research and development 86 — 1,382 — Sales and marketing 1,618 — 7,997 — General and Administration 207 — 801 — Total restructuring and other related costs $ 1,990 — $ 11,166 — A summary of balance sheet activity related to the restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2016 $ — Income statement expense 11,166 Cash payments (7,714 ) Balance as of September 30, 2017 $ 3,452 The restructuring liability of $3.5 million at September 30, 2017 relating to the restructuring activity is recorded in the “accrued compensation” line item of the consolidated balance sheet. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2017 | |
Litigation [Abstract] | |
Litigation | Litigation We are not currently a party to any material litigation. However, in the ordinary course of our business, we are involved in a limited number of legal actions, both as plaintiff and defendant, and could incur uninsured liability in any one or more of them. We also periodically receive notifications from various third parties related to alleged infringement of patents or intellectual property rights, commercial disputes or other matters. No assurances can be given with respect to the extent or outcome of any future litigation or dispute. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On October 25, 2017 , our Board of Directors declared a quarterly cash dividend of $0.21 per common share, payable on December 4, 2017 , to stockholders of record on November 13, 2017 . |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16, Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory. The standard is intended to address diversity in practice and complexity in financial reporting, particularly for intra-entity transfers of intellectual property. We early adopted ASU 2016-16 effective January 1, 2017. Using the modified retrospective method, the impact of the adoption of the standard was to increase deferred tax assets by $0.4 million , decrease other assets, net by $6.2 million and decrease retained earnings by $5.8 million . The adoption of the amendments had the effect of increasing our diluted earnings per share by $0.01 and $0.03 for the three and nine months ended September 30, 2017 , respectively. Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU simplifies certain aspects of hedge accounting and improves disclosures of hedging arrangements through the elimination of the requirement to separately measure and report hedge ineffectiveness. The ASU generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item in order to align financial reporting of hedge relationships with economic results. Entities must apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements must be applied prospectively. Our effective date for adoption of this guidance is our fiscal year beginning January 1, 2019. We are currently evaluating the effect that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , Leases (Topic 842) , which supersedes ASC 840, Leases . The guidance requires lessees to recognize most lease liabilities on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The update states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The update is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. Based on our initial assessment, we expect that the adoption of this standard will have a material impact on our balance sheet but that it will not have a material impact on our ongoing results of operations. We do not expect to adopt the new standard prior to the required effective date. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The update is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. We intend to adopt this standard as of January 1, 2018 by applying the modified retrospective transition method. Consequently, the cumulative effect of applying the new standard to existing contracts as of January 1, 2018 will be recognized as an adjustment to the opening balance of equity in the first quarter of 2018 . We have reached initial conclusions on our key accounting matters related to the new standard and believe adoption of the new standard will generally result in revenue recognition earlier or at the same time as existing US GAAP. The most significant impact of the standard relates to our accounting for certain software arrangements. We primarily license software on a perpetual basis. However, we also license software under enterprise agreements which includes an unlimited quantity of certain software licenses for a fixed-term bundled with software maintenance, technical support, and a specified amount of training and service credits. Currently, we defer revenue for software licensed under our enterprise agreements and certain perpetual arrangements due to a lack of vendor specific objective evidence (“VSOE”) for certain elements in the contract. Under the new standard, we are no longer required to establish VSOE to recognize software license revenue separately from the other elements, and we will be able to recognize software license revenue once the customer obtains control of the license, which will generally occur at the start of each license term. Due to the complexity of our enterprise agreement contracts, the actual revenue recognition treatment required under the new standard will be dependent on contract-specific terms, and may vary in some instances from recognition at the time of billing. Additionally, we expect the new standard will impact the way we allocate the transaction price for arrangements with separately-priced extended warranty offerings. ASU 2014-09, as amended, could have a material impact on our consolidated financial statements and disclosures. While we are still evaluating the matter we believe the impact of the change to the timing of revenue recognition for our limited offerings mentioned above may have a material impact on our deferred revenue balance on the adoption date under the application of the modified retrospective transition method. However, it is not expected to have a material impact to our results of operations in subsequent annual periods. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Of The Denominators Used To Calculate Basic EPS And Diluted EPS | The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2017 and 2016 , are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Weighted average shares outstanding-basic 130,660 128,815 130,103 128,233 Plus: Common share equivalents RSUs 957 232 947 505 Weighted average shares outstanding-diluted 131,617 129,047 131,050 128,738 |
Short-term investments (Tables)
Short-term investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables summarize unrealized gains and losses related to our short-term investments designated as available-for-sale: As of September 30, 2017 (In thousands) (Unaudited) Gross Gross Cumulative Adjusted Cost Unrealized Gain Unrealized Loss Translation Adjustment Fair Value Corporate bonds $ 90,817 $ 170 $ (76 ) $ (1,448 ) $ 89,463 Time deposits 1,760 — — — 1,760 Short-term investments $ 92,577 $ 170 $ (76 ) $ (1,448 ) $ 91,223 (In thousands) As of December 31, 2016 Gross Gross Cumulative Adjusted Cost Unrealized Gain Unrealized Loss Translation Adjustment Fair Value Corporate bonds $ 72,986 $ 89 $ (182 ) $ (1,536 ) $ 71,357 Time deposits 1,760 — — — 1,760 Short-term investments $ 74,746 $ 89 $ (182 ) $ (1,536 ) $ 73,117 |
Investments Classified by Contractual Maturity Date | The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale: As of September 30, 2017 (In thousands) (Unaudited) Adjusted Cost Fair Value Due in less than 1 year $ 15,838 $ 15,833 Due in 1 to 5 years 76,739 75,390 Total available-for-sale debt securities $ 92,577 $ 91,223 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 14,078 $ 14,073 U.S. treasuries and agencies — — Time deposits 1,760 1,760 Total available-for-sale debt securities $ 15,838 $ 15,833 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds $ 76,739 $ 75,390 Total available-for-sale debt securities $ 76,739 $ 75,390 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Reporting Date Using (In thousands) (Unaudited) Description September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 43,982 $ 43,982 $ — $ — U.S. treasuries and agencies 64,064 — 64,064 — Short-term investments available for sale: Corporate bonds 89,463 — 89,463 — Time deposits 1,760 1,760 — — Derivatives 6,574 — 6,574 — Total Assets $ 205,843 $ 45,742 $ 160,101 $ — Liabilities Derivatives $ (11,700 ) $ — $ (11,700 ) Total Liabilities $ (11,700 ) $ — $ (11,700 ) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 68,577 $ 68,577 $ — $ — Short-term investments available for sale: Corporate bonds 71,357 — 71,357 — Time deposits 1,760 1,760 — — Derivatives 15,113 — 15,113 — Total Assets $ 156,807 $ 70,337 $ 86,470 $ — Liabilities Derivatives $ (8,199 ) $ — $ (8,199 ) $ — Total Liabilities $ (8,199 ) $ — $ (8,199 ) $ — |
Derivative instruments and he28
Derivative instruments and hedging activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary Of Notional Amounts Of Derivative Instruments | We held forward contracts designated as cash flow hedges with the following notional amounts: (In thousands) US Dollar Equivalent As of September 30, 2017 As of December 31, (Unaudited) 2016 Chinese yuan $ 27,760 $ 27,414 Euro 158,490 123,522 Japanese yen 23,726 44,982 Hungarian forint 48,722 57,077 Malaysian ringgit 32,438 42,510 Total forward contracts notional amount $ 291,136 $ 295,505 |
Fair Value Of Derivative Instruments On Consolidated Balance Sheets | The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at September 30, 2017 and December 31, 2016 , respectively. Asset Derivatives September 30, 2017 December 31, 2016 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 3,695 Prepaid expenses and other current assets $ 9,378 Foreign exchange contracts - LT forwards Other long-term assets 2,702 Other long-term assets 3,866 Total derivatives designated as hedging instruments $ 6,397 $ 13,244 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 177 Prepaid expenses and other current assets $ 1,869 Total derivatives not designated as hedging instruments $ 177 $ 1,869 Total derivatives $ 6,574 $ 15,113 Liability Derivatives September 30, 2017 December 31, 2016 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (6,695 ) Other current liabilities $ (4,672 ) Foreign exchange contracts - LT forwards Other long-term liabilities (4,082 ) Other long-term liabilities (3,352 ) Total derivatives designated as hedging instruments $ (10,777 ) $ (8,024 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (923 ) Other current liabilities $ (175 ) Total derivatives not designated as hedging instruments $ (923 ) $ (175 ) Total derivatives $ (11,700 ) $ (8,199 ) |
Derivative Instruments, Gain (Loss) | The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the nine months ended September 30, 2017 and 2016 , respectively: September 30, 2017 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (20,601 ) Net sales $ 1,348 Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 5,901 Cost of sales (1,083 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 5,230 Operating expenses (1,127 ) Net foreign exchange gain/(loss) — Total (9,470 ) $ (862 ) $ — September 30, 2016 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (1,432 ) Net sales $ (1,301 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 3,009 Cost of sales (1,367 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 2,964 Operating expenses (1,278 ) Net foreign exchange gain/(loss) — Total $ 4,541 $ (3,946 ) $ — (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2017 September 30, 2016 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (4,065 ) (1,005 ) Total $ (4,065 ) $ (1,005 ) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for three month periods ended September 30, 2017 and 2016 , respectively: September 30, 2017 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (5,804 ) Net sales $ (1,401 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 1,421 Cost of sales (105 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 1,247 Operating expenses (148 ) Net foreign exchange gain/(loss) — Total $ (3,136 ) $ (1,654 ) $ — September 30, 2016 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Foreign exchange contracts - forwards and options $ (1,156 ) Net sales $ (160 ) Net foreign exchange gain/(loss) $ — Foreign exchange contracts - forwards and options 1,412 Cost of sales (414 ) Net foreign exchange gain/(loss) — Foreign exchange contracts - forwards and options 720 Operating expenses (389 ) Net foreign exchange gain/(loss) — Total $ 976 $ (963 ) $ — (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2017 September 30, 2016 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (887 ) (814 ) Total $ (887 ) $ (814 ) |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories, net consist of the following: September 30, 2017 December 31, (In thousands) (Unaudited) 2016 Raw materials $ 93,023 $ 92,906 Work-in-process 9,095 9,125 Finished goods 82,523 91,577 $ 184,641 $ 193,608 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 (In thousands) (Unaudited) December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 116,760 $ (32,701 ) $ 84,059 $ 103,887 $ (39,180 ) $ 64,707 Acquired technology 95,963 (85,573 ) 10,390 94,124 (79,485 ) 14,639 Patents 32,678 (19,424 ) 13,254 31,513 (17,573 ) 13,940 Other 45,212 (30,234 ) 14,978 42,848 (27,471 ) 15,377 $ 290,613 $ (167,932 ) $ 122,681 $ 272,372 $ (163,709 ) $ 108,663 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill as of September 30, 2017 , was as follows: Amount (In thousands) Balance as of December 31, 2016 $ 253,197 Acquisitions — Foreign currency translation impact 11,894 Balance as of September 30, 2017 (unaudited) $ 265,091 |
Comprehensive income (Tables)
Comprehensive income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The accumulated OCI, net of tax, for the nine months ended September 30, 2017 and 2016 , consisted of the following: September 30, 2017 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2016 $ (37,174 ) $ (669 ) 3,222 $ (34,621 ) Current-period other comprehensive income (loss) 21,890 187 (10,332 ) 11,745 Reclassified from accumulated OCI into income — — 862 862 Income tax (benefit) expense 13 14 (3,360 ) (3,333 ) Balance as of September 30, 2017 $ (15,297 ) $ (496 ) $ (2,888 ) $ (18,681 ) September 30, 2016 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2015 $ (31,871 ) $ (857 ) (5,362 ) $ (38,090 ) Current-period other comprehensive income 12,130 479 595 13,204 Reclassified from accumulated OCI into income — — 3,946 3,946 Income tax expense 2,582 123 1,537 4,242 Balance as of September 30, 2016 $ (22,323 ) $ (501 ) $ (2,358 ) $ (25,182 ) |
Segment and geographic inform33
Segment and geographic information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Net Sales By Major Geographical Areas | Total net sales by the major geographic areas in which we operate, are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Net sales: Americas $ 133,191 $ 129,710 $ 373,277 $ 354,806 EMEIA 93,277 92,232 288,565 278,616 APAC 94,453 84,422 277,793 266,225 $ 320,921 $ 306,364 $ 939,635 $ 899,647 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The warranty reserve for the nine months ended September 30, 2017 and 2016 was as follows: Nine Months Ended September 30, (In thousands) (Unaudited) 2017 2016 Balance at the beginning of the period $ 2,686 $ 1,755 Accruals for warranties issued during the period 1,929 1,764 Accruals related to pre-existing warranties 193 690 Settlements made (in cash or in kind) during the period (1,983 ) (2,088 ) Balance at the end of the period $ 2,825 $ 2,121 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related Costs | A summary of the charges in the consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2017 2016 2017 2016 Cost of sales $ 79 — $ 986 — Research and development 86 — 1,382 — Sales and marketing 1,618 — 7,997 — General and Administration 207 — 801 — Total restructuring and other related costs $ 1,990 — $ 11,166 — |
Restructuring Reserve | A summary of balance sheet activity related to the restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2016 $ — Income statement expense 11,166 Cash payments (7,714 ) Balance as of September 30, 2017 $ 3,452 |
Basis of presentation (Details)
Basis of presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effect of exchange rate changes on cash | $ 7,768 | $ 3,503 | |||
Decrease in other assets | $ (32,878) | (32,878) | $ (39,601) | ||
Decrease in retained earnings | $ (365,021) | $ (365,021) | $ (376,202) | ||
Increase in diluted earnings per share (in dollars per share) | $ 0.25 | $ 0.19 | $ 0.59 | $ 0.42 | |
Accounting Standards Update 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in deferred tax assets | $ 400 | $ 400 | |||
Decrease in other assets | 6,200 | 6,200 | |||
Decrease in retained earnings | $ 5,800 | $ 5,800 | |||
Increase in diluted earnings per share (in dollars per share) | $ 0.01 | $ 0.03 | |||
Restatement Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effect of exchange rate changes on cash | $ 3,500 | ||||
Decrease to net cash provided by operating activities | $ 3,500 |
Earnings per share (Reconciliat
Earnings per share (Reconciliation Of The Denominators Used To Calculate Basic EPS And Diluted EPS) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding-basic | 130,660,000 | 128,815,000 | 130,103,000 | 128,233,000 |
RSUs (in shares) | 957,000 | 232,000 | 947,000 | 505,000 |
Weighted average shares outstanding-diluted | 131,617,000 | 129,047,000 | 131,050,000 | 128,738,000 |
Anti-dilutive securities excluded from the computation of diluted EPS (in shares) | 40,700 | 1,068,800 | 22,300 | 58,000 |
Short-term investments (Unreali
Short-term investments (Unrealized Gains And Losses Related To Cash, Cash Equivalents, And Short-Term Investments Designated As Available-For-Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | $ 92,577 | $ 74,746 |
Gross Unrealized Gain | 170 | 89 |
Gross Unrealized Loss | (76) | (182) |
Cumulative Translation Adjustment | (1,448) | (1,536) |
Fair Value | 91,223 | 73,117 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 90,817 | 72,986 |
Gross Unrealized Gain | 170 | 89 |
Gross Unrealized Loss | (76) | (182) |
Cumulative Translation Adjustment | (1,448) | (1,536) |
Fair Value | 89,463 | 71,357 |
Time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted Cost | 1,760 | 1,760 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Cumulative Translation Adjustment | 0 | 0 |
Fair Value | $ 1,760 | $ 1,760 |
Short-term investments (Contrac
Short-term investments (Contractual Maturities Of Short-Term Investments Designated As Available-For-Sale) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Total adjusted cost of available-for-sale securities due in less than 1 year | $ 15,838 |
Total adjusted cost of available-for-sale securities due in 1 to 5 years | 76,739 |
Total adjusted cost of available-for-sale securities | 92,577 |
Total fair value of available-for-sale securities due in less than 1 year | 15,833 |
Total fair value of available-for-sale securities due in 1 to 5 years | 75,390 |
Total fair value of available-for-sale securities | 91,223 |
Corporate bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Total adjusted cost of available-for-sale securities due in less than 1 year | 14,078 |
Total adjusted cost of available-for-sale securities due in 1 to 5 years | 76,739 |
Total fair value of available-for-sale securities due in less than 1 year | 14,073 |
Total fair value of available-for-sale securities due in 1 to 5 years | 75,390 |
U.S. treasuries and agencies | |
Schedule of Available-for-sale Securities [Line Items] | |
Total adjusted cost of available-for-sale securities due in less than 1 year | 0 |
Total fair value of available-for-sale securities due in less than 1 year | 0 |
Time deposits | |
Schedule of Available-for-sale Securities [Line Items] | |
Total adjusted cost of available-for-sale securities due in less than 1 year | 1,760 |
Total fair value of available-for-sale securities due in less than 1 year | $ 1,760 |
Fair value measurements (Assets
Fair value measurements (Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | $ 91,223,000 | $ 73,117,000 |
Derivatives | 6,574,000 | 15,113,000 |
Total Assets | 205,843,000 | 156,807,000 |
Derivatives | (11,700,000) | (8,199,000) |
Total Liabilities | (11,700,000) | (8,199,000) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Total Assets | 45,742,000 | 70,337,000 |
Derivatives | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 6,574,000 | 15,113,000 |
Total Assets | 160,101,000 | 86,470,000 |
Derivatives | (11,700,000) | (8,199,000) |
Total Liabilities | (11,700,000) | (8,199,000) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Total Assets | 0 | 0 |
Derivatives | 0 | |
Total Liabilities | 0 | 0 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 43,982,000 | 68,577,000 |
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 43,982,000 | 68,577,000 |
Money Market Funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 0 | 0 |
Money Market Funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 0 | 0 |
U.S. treasuries and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 64,064,000 | |
U.S. treasuries and agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 0 | |
U.S. treasuries and agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 64,064,000 | |
U.S. treasuries and agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents available for sale: | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 89,463,000 | 71,357,000 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 0 | 0 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 89,463,000 | 71,357,000 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 0 | 0 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 1,760,000 | 1,760,000 |
Time deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 1,760,000 | 1,760,000 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | 0 | 0 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments available for sale: | $ 0 | $ 0 |
Derivative instruments and he41
Derivative instruments and hedging activities (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)country | Sep. 30, 2016 | Sep. 30, 2017USD ($)country | Sep. 30, 2016 | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||||
Number of countries for which entity has operations (over) | country | 50 | 50 | |||
Percentage of sales outside of the Americas during the period | 58.00% | 58.00% | 60.00% | 61.00% | |
Period of protection against the reduction in value caused by a fluctuation, minimum (in number of years) | 1 year | ||||
Period of protection against the reduction in value caused by a fluctuation, maximum (in number of years) | 3 years | ||||
Foreign currency forward contracts notional amount | $ 291,136,000 | $ 291,136,000 | $ 295,505,000 | ||
Cost of Sales | |||||
Derivative [Line Items] | |||||
Losses expected to be reclassified from AOCI to earnings | 500,000 | ||||
Forward Contracts | Net Sales | |||||
Derivative [Line Items] | |||||
Losses expected to be reclassified from AOCI to earnings | 4,100,000 | ||||
Forward Contracts | Operating Expenses | |||||
Derivative [Line Items] | |||||
Losses expected to be reclassified from AOCI to earnings | 600,000 | ||||
Other Derivatives | |||||
Derivative [Line Items] | |||||
Foreign currency forward contracts notional amount | $ 59,000,000 | $ 59,000,000 | $ 60,000,000 | ||
Maximum | Forward Contracts | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 100.00% | 100.00% | |||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 36 months | ||||
Maximum | Other Derivatives | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 90.00% | 90.00% | |||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 90 days |
Derivative instruments and he42
Derivative instruments and hedging activities (Summary Of Notional Amounts Of Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 291,136 | $ 295,505 |
Chinese yuan | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 27,760 | 27,414 |
Euro | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 158,490 | 123,522 |
Japanese yen | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 23,726 | 44,982 |
Hungarian forint | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 48,722 | 57,077 |
Malaysian ringgit | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 32,438 | $ 42,510 |
Derivative instruments and he43
Derivative instruments and hedging activities (Fair Value Of Derivative Instruments On Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 6,574 | $ 15,113 |
Derivative liability | (11,700) | (8,199) |
Derivatives Designated As Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 6,397 | 13,244 |
Derivative liability | (10,777) | (8,024) |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 3,695 | 9,378 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (6,695) | (4,672) |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Long-Term | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2,702 | 3,866 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Long-Term | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (4,082) | (3,352) |
Derivatives Not Designated As Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 177 | 1,869 |
Derivative liability | (923) | (175) |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 177 | 1,869 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (923) | $ (175) |
Derivative instruments and he44
Derivative instruments and hedging activities (Effect Of Derivative Instruments On Consolidated Statements Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivatives Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (3,136) | $ 976 | $ (9,470) | $ 4,541 |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1,654) | (963) | (862) | (3,946) |
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Forwards And Options | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | (5,804) | (1,156) | (20,601) | (1,432) |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1,401) | (160) | 1,348 | (1,301) |
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Forwards And Options | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 1,421 | 1,412 | 5,901 | 3,009 |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (105) | (414) | (1,083) | (1,367) |
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Forwards And Options | Operating Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 1,247 | 720 | 5,230 | 2,964 |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (148) | (389) | (1,127) | (1,278) |
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (887) | (814) | (4,065) | (1,005) |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contracts - Forwards And Options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (887) | $ (814) | $ (4,065) | $ (1,005) |
Inventories, net (Summary Of In
Inventories, net (Summary Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 93,023 | $ 92,906 |
Work-in-process | 9,095 | 9,125 |
Finished goods | 82,523 | 91,577 |
Inventory, Net | $ 184,641 | $ 193,608 |
Intangible assets, net (Schedul
Intangible assets, net (Schedule Of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 290,613 | $ 272,372 |
Accumulated Amortization | (167,932) | (163,709) |
Net Carrying Amount | 122,681 | 108,663 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 116,760 | 103,887 |
Accumulated Amortization | (32,701) | (39,180) |
Net Carrying Amount | 84,059 | 64,707 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 95,963 | 94,124 |
Accumulated Amortization | (85,573) | (79,485) |
Net Carrying Amount | 10,390 | 14,639 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 32,678 | 31,513 |
Accumulated Amortization | (19,424) | (17,573) |
Net Carrying Amount | 13,254 | 13,940 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,212 | 42,848 |
Accumulated Amortization | (30,234) | (27,471) |
Net Carrying Amount | $ 14,978 | $ 15,377 |
Intangible assets, net (Narrati
Intangible assets, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 8,700 | $ 8,000 | $ 25,700 | $ 27,000 |
Capitalized Software Development Costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Software development costs capitalized | 10,100 | 9,100 | 35,800 | 25,000 |
Amortization expense of capitalized software development costs | 5,700 | 4,900 | 16,500 | 14,000 |
Costs related to stock based compensation | $ 487 | $ 445 | $ 1,400 | $ 1,000 |
Minimum | Capitalized Software Development Costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 3 years | |||
Minimum | Acquired Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 3 years | |||
Minimum | Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 10 years | |||
Maximum | Capitalized Software Development Costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 6 years | |||
Maximum | Acquired Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 8 years | |||
Maximum | Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period (in years) | 17 years |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 253,197 |
Acquisitions | 0 |
Foreign currency translation impact | 11,894 |
Balance at end of period | $ 265,091 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)segmentreporting_unit | Dec. 31, 2016USD ($) | |
Goodwill [Abstract] | ||
Number of operating segments | segment | 1 | |
Number of reporting units | reporting_unit | 1 | |
Goodwill impairment | $ | $ 0 | $ 0 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||||
Valuation allowance | $ 62 | $ 62 | $ 62 | $ 102 | ||
Effective income tax rate | 12.00% | 16.00% | 15.00% | 21.00% | ||
Unrecognized tax benefits | $ 9.3 | $ 9.3 | $ 11.7 | |||
Gross increase in unrecognized tax benefits, current period | 0.5 | 1 | ||||
Gross decrease in unrecognized tax benefits from closing open tax years | 3.7 | 3.7 | ||||
Reasonable possibility of future tax benefits | 1.5 | 1.5 | ||||
Accrued interest related to uncertain tax positions | $ 1 | $ 1 | ||||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | ||
Hungary statutory tax rate | 9.00% | |||||
Hungary | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Foreign income tax benefit | $ 4.3 | $ 4.5 | $ 11.6 | $ 10.3 | ||
Malaysia | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax benefit of tax holiday, amount | $ 0.8 | $ 0.8 | $ 1.9 | $ 1.9 | ||
Income tax benefit of tax holiday (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Maximum | Hungary | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 19.00% | |||||
Minimum | Hungary | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 9.00% |
Comprehensive income (Schedule
Comprehensive income (Schedule Of Comprehensive Income) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,114,219 | |
Current-period other comprehensive income (loss) | 11,745 | $ 13,204 |
Reclassified from accumulated OCI into income | 862 | 3,946 |
Income tax (benefit) expense | (3,333) | 4,242 |
Ending Balance | 1,163,799 | |
Currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (37,174) | (31,871) |
Current-period other comprehensive income (loss) | 21,890 | 12,130 |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax (benefit) expense | 13 | 2,582 |
Ending Balance | (15,297) | (22,323) |
Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (669) | (857) |
Current-period other comprehensive income (loss) | 187 | 479 |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax (benefit) expense | 14 | 123 |
Ending Balance | (496) | (501) |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 3,222 | (5,362) |
Current-period other comprehensive income (loss) | (10,332) | 595 |
Reclassified from accumulated OCI into income | 862 | 3,946 |
Income tax (benefit) expense | (3,360) | 1,537 |
Ending Balance | (2,888) | (2,358) |
Accumulated other comprehensive income/(loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (34,621) | (38,090) |
Ending Balance | $ (18,681) | $ (25,182) |
Authorized shares of common a52
Authorized shares of common and preferred stock and stock-based compensation plans (Narrative) (Details) | May 14, 2013shares | Sep. 30, 2016shares | Sep. 30, 2017$ / sharesshares | Sep. 30, 2016$ / sharesshares | May 09, 2017shares | Dec. 31, 2016$ / sharesshares | May 12, 2015shares | May 11, 2010shares | May 31, 2005shares | Jan. 21, 2004shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional number of shares reserved for issuance | 180,000,000 | |||||||||
Common stock, authorized (in shares) | 360,000,000 | 360,000,000 | 3,000,000 | 360,000,000 | ||||||
Common and preferred stock shares authorized | 365,000,000 | |||||||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | ||||||||
Preferred stock, par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Common stock, par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Number of shares reserved for issuance | 2,518,416 | 3,362,304 | ||||||||
Maximum employee subscription rate | 15.00% | |||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||||
Common stock repurchased (in shares) | 0 | 0 | 206,780 | |||||||
Weighted average prices of common stock repurchased (in dollars per share) | $ / shares | 27.25 | |||||||||
Authorized common stock available for repurchase (in shares) | 1,134,247 | |||||||||
Vesting Period Four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 4 years | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 4,050,000 | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Vesting Period One | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Vesting Period Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 5 years | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Vesting Period Three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 10 years | |||||||||
Incentive Plan (2010) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 2,518,416 | |||||||||
Incentive Plan (2010) | Restricted Stock Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | 3,000,000 | |||||||||
Incentive Plan (2015) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 3,000,000 | |||||||||
Shares available for grant under 2015 restricted stock plan | 3,848,515 | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of the lower of the market related to purchase of common stock | 85.00% | |||||||||
Common stock reserved for future issuance under employee stock purchase plan (in shares) | 3,069,958 | |||||||||
Shares issued under employee stock purchase plan | 863,093 | |||||||||
Weighted average purchase price of employees' purchase rights (in usd per share) | $ / shares | $ 26.5 | |||||||||
Series A Preferred Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Preferred stock, authorized (in shares) | 750,000 |
Segment and geographic inform53
Segment and geographic information (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Number of geographic regions company operates in | 3 | ||||
Total sales | $ 320,921 | $ 306,364 | $ 939,635 | $ 899,647 | |
Property and equipment, net | 254,918 | 254,918 | $ 260,456 | ||
Outside The United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total sales | 195,000 | $ 184,000 | 588,000 | $ 564,000 | |
Property and equipment, net | $ 133,000 | $ 133,000 | $ 133,000 |
Segment and geographic inform54
Segment and geographic information (Net Sales By Major Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, Net | $ 320,921 | $ 306,364 | $ 939,635 | $ 899,647 |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, Net | 133,191 | 129,710 | 373,277 | 354,806 |
EMEIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, Net | 93,277 | 92,232 | 288,565 | 278,616 |
APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, Net | $ 94,453 | $ 84,422 | $ 277,793 | $ 266,225 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Oct. 29, 2015 | May 09, 2013 | |
Line of Credit Facility [Line Items] | |||||||
Unsecured revolving line of credit | $ 50,000,000 | ||||||
Ratio of consolidated indebtedness to earnings before interest, taxes, depreciation and amortization, maximum allowed | 3.25 | ||||||
Ratio of consolidated earnings before interest, taxes, depreciation and amortization expense, minimum allowed | 3 | ||||||
Interest rate in event of default | 2.00% | ||||||
Outstanding borrowing on line of credit | $ 15,000,000 | $ 15,000,000 | $ 25,000,000 | ||||
Interest expense | $ 176,000 | $ 167,000 | $ 519,000 | $ 377,000 | |||
Weighted average interest rate | 2.40% | 1.60% | 2.40% | 1.60% | |||
First Amendment | |||||||
Line of Credit Facility [Line Items] | |||||||
Unsecured revolving line of credit | $ 125,000,000 | ||||||
Optional credit line increase | $ 25,000,000 | ||||||
Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Quarterly commitment fee | 0.175% | ||||||
Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Quarterly commitment fee | 0.30% | ||||||
Base Rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Variable interest rate spread | 0.00% | ||||||
Base Rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Variable interest rate spread | 0.50% | ||||||
London Interbank Offered Rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Variable interest rate spread | 1.125% | ||||||
London Interbank Offered Rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Variable interest rate spread | 2.00% |
Commitments and contingencies56
Commitments and contingencies (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Limited warranty on most hardware products (in number of years) | 1 year |
Non-cancelable purchase commitments | $ 7.8 |
Outstanding guarantees for payment of customs and foreign grants | $ 3.1 |
Commitments and contingencies57
Commitments and contingencies (Schedule Of Warranty Reserve) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 2,686 | $ 1,755 |
Accruals for warranties issued during the period | 1,929 | 1,764 |
Accruals related to pre-existing warranties | 193 | 690 |
Settlements made (in cash or in kind) during the period | (1,983) | (2,088) |
Balance at the end of the period | $ 2,825 | $ 2,121 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Estimated restructuring reduction, percent | 2.00% | |
Restructuring accrual | $ 3,452 | $ 0 |
Restructuring (Restructuring Re
Restructuring (Restructuring Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total restructuring and other related costs | $ 1,990 | $ 0 | $ 11,166 | $ 0 |
Cost of sales | ||||
Total restructuring and other related costs | 79 | 0 | 986 | 0 |
Research and development | ||||
Total restructuring and other related costs | 86 | 0 | 1,382 | 0 |
Sales and marketing | ||||
Total restructuring and other related costs | 1,618 | 0 | 7,997 | 0 |
General and Administration | ||||
Total restructuring and other related costs | $ 207 | $ 0 | $ 801 | $ 0 |
Restructuring (Restructuring 60
Restructuring (Restructuring Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
December 31, 2016 | $ 0 | |||
Income statement expense | $ 1,990 | $ 0 | 11,166 | $ 0 |
Cash payments | (7,714) | |||
September 30, 2017 | $ 3,452 | $ 3,452 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 25, 2017 | |
Subsequent Event [Line Items] | ||
Dividend payable, date declared | Oct. 25, 2017 | |
Dividend payable, date payable | Dec. 4, 2017 | |
Dividend payable, date of record | Nov. 13, 2017 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividend payable (in dollars per share) | $ 0.21 |