Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-25426 | |
Entity Registrant Name | NATIONAL INSTRUMENTS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1871327 | |
Entity Address, Address Line One | 11500 North MoPac Expressway | |
Entity Address, City or Town | Austin, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78759 | |
City Area Code | 512 | |
Local Phone Number | 683-0100 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | NATI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 132,980,932 | |
Entity Central Index Key | 0000935494 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 250,421 | $ 260,232 |
Short-term investments | 14,110 | 59,923 |
Accounts receivable, net | 258,641 | 266,869 |
Inventories, net | 211,023 | 194,012 |
Prepaid expenses and other current assets | 80,121 | 68,470 |
Total current assets | 814,316 | 849,506 |
Property and equipment, net | 250,761 | 254,399 |
Goodwill | 483,136 | 467,547 |
Intangible assets, net | 149,126 | 172,719 |
Operating lease right-of-use assets | 57,812 | 67,674 |
Other long-term assets | 76,878 | 72,643 |
Total assets | 1,832,029 | 1,884,488 |
Liabilities and stockholders' equity | ||
Accounts payable and accrued expenses | 56,477 | 51,124 |
Accrued compensation | 68,932 | 87,068 |
Deferred revenue - current | 125,986 | 132,151 |
Operating lease liabilities - current | 13,389 | 15,801 |
Other taxes payable | 39,339 | 48,129 |
Debt, current | 0 | 5,000 |
Other current liabilities | 26,854 | 42,578 |
Total current liabilities | 330,977 | 381,851 |
Deferred income taxes | 28,359 | 25,288 |
Income tax payable - non-current | 54,195 | 61,623 |
Deferred revenue - non-current | 34,624 | 36,335 |
Operating lease liabilities - non-current | 29,512 | 35,854 |
Debt, non-current | 100,000 | 92,036 |
Other long-term liabilities | 18,710 | 26,630 |
Total liabilities | 596,377 | 659,617 |
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; 132,980,932 shares and 131,246,615 shares issued and outstanding, respectively | 1,330 | 1,312 |
Additional paid-in capital | 1,087,622 | 1,033,284 |
Retained earnings | 161,475 | 211,101 |
Accumulated other comprehensive loss | (14,775) | (20,826) |
Total stockholders’ equity | 1,235,652 | 1,224,871 |
Total liabilities and stockholders’ equity | $ 1,832,029 | $ 1,884,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 132,980,932 | 131,246,615 |
Common stock, outstanding (in shares) | 132,980,932 | 131,246,615 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales: | ||||
Total net sales | $ 346,696 | $ 301,329 | $ 681,878 | $ 610,709 |
Cost of sales: | ||||
Total cost of sales | 99,238 | 85,901 | 194,652 | 169,662 |
Gross profit | 247,458 | 215,428 | 487,226 | 441,047 |
Operating expenses: | ||||
Sales and marketing | 111,199 | 105,419 | 227,983 | 221,165 |
Research and development | 81,434 | 64,225 | 161,520 | 135,846 |
General and administrative | 30,277 | 29,369 | 63,636 | 55,549 |
Total operating expenses | 222,910 | 199,013 | 453,139 | 412,560 |
Gain on sale of business/assets | 0 | 0 | 0 | 159,753 |
Operating income | 24,548 | 16,415 | 34,087 | 188,240 |
Other expense | (2,963) | (1,143) | (8,031) | (583) |
Income before income taxes | 21,585 | 15,272 | 26,056 | 187,657 |
Provision for income taxes | 4,279 | 4,383 | 4,254 | 44,113 |
Net income | $ 17,306 | $ 10,889 | $ 21,802 | $ 143,544 |
Basic earnings per share (in usd per share) | $ 0.13 | $ 0.08 | $ 0.17 | $ 1.10 |
Weighted average shares outstanding - basic (in shares) | 132,498 | 131,014 | 131,996 | 130,813 |
Diluted earnings per share (in usd per share) | $ 0.13 | $ 0.08 | $ 0.16 | $ 1.09 |
Weighted average shares outstanding - diluted (in shares) | 133,539 | 131,602 | 133,157 | 131,499 |
Dividends declared per share (in usd per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 |
Product | ||||
Net sales: | ||||
Total net sales | $ 306,490 | $ 266,261 | $ 601,583 | $ 540,239 |
Cost of sales: | ||||
Total cost of sales | 95,722 | 83,795 | 187,379 | 165,866 |
Software maintenance | ||||
Net sales: | ||||
Total net sales | 40,206 | 35,068 | 80,295 | 70,470 |
Cost of sales: | ||||
Total cost of sales | $ 3,516 | $ 2,106 | $ 7,273 | $ 3,796 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 17,306 | $ 10,889 | $ 21,802 | $ 143,544 |
Other comprehensive income (loss), before tax and net of reclassification adjustments: | ||||
Foreign currency translation adjustment | 2,284 | 3,938 | (4,911) | (1,975) |
Unrealized (loss) gain on securities available-for-sale | (54) | 2,634 | (141) | (154) |
Unrealized gain (loss) on derivative instruments | 2,381 | (74) | 14,362 | (598) |
Other comprehensive income (loss), before tax | 4,611 | 6,498 | 9,310 | (2,727) |
Tax expense (benefit) related to items of other comprehensive income | 498 | (56) | 3,259 | 68 |
Other comprehensive income (loss), net of tax | 4,113 | 6,554 | 6,051 | (2,795) |
Comprehensive income | $ 21,419 | $ 17,443 | $ 27,853 | $ 140,749 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flow from operating activities: | ||
Net income | $ 21,802 | $ 143,544 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Disposal gain on sale of business/assets | 0 | (159,753) |
Depreciation and amortization | 50,024 | 38,341 |
Stock-based compensation | 37,208 | 27,335 |
Loss from equity-method investees | 5,360 | 1,932 |
Deferred income taxes | 1,301 | 2,711 |
Changes in operating assets and liabilities | (63,372) | 47,388 |
Net cash provided by operating activities | 52,323 | 101,498 |
Cash flow from investing activities: | ||
Acquisitions, net of cash received | (19,784) | 0 |
Capital expenditures | (17,411) | (25,362) |
Proceeds from sale of assets/business, net of cash divested | 0 | 160,266 |
Capitalization of internally developed software | (721) | (3,108) |
Additions to other intangibles | (1,519) | (630) |
Payments to acquire equity-method investments | (12,551) | 0 |
Purchases of short-term investments | 0 | (206,330) |
Sales and maturities of short-term investments | 45,671 | 306,955 |
Net cash (used in) provided by investing activities | (6,315) | 231,791 |
Cash flow from financing activities: | ||
Proceeds from revolving line of credit | 100,000 | 20,000 |
Proceeds from term loan | 0 | 70,000 |
Payments on term loan | (98,750) | 0 |
Debt issuance costs | (1,993) | (1,480) |
Proceeds from issuance of common stock | 17,239 | 17,252 |
Repurchase of common stock | 0 | (23,680) |
Dividends paid | (71,428) | (68,156) |
Net cash (used in) provided by financing activities | (54,932) | 13,936 |
Effect of exchange rate changes on cash | (887) | (636) |
Net change in cash and cash equivalents | (9,811) | 346,589 |
Cash and cash equivalents at beginning of period | 260,232 | 194,616 |
Cash and cash equivalents at end of period | $ 250,421 | $ 541,205 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional-Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | |
Beginning Balance (in shares) at Dec. 31, 2019 | 130,504,535 | |||||
Beginning Balance at Dec. 31, 2019 | $ 1,176,350 | $ 1,305 | $ 953,578 | $ 242,537 | $ (21,070) | |
Net income | 143,544 | 143,544 | ||||
Other comprehensive income (loss), net of tax | (2,795) | (2,795) | ||||
Issuance of common stock under employee plans (in shares) | 1,599,772 | |||||
Issuance of common stock under employee plans | 17,252 | $ 16 | 17,236 | |||
Stock-based compensation | 27,124 | 27,124 | ||||
Repurchase of common stock (in shares) | (668,199) | |||||
Repurchase of common stock | (23,680) | $ (7) | (4,880) | (18,793) | ||
Dividends paid | [1] | (68,156) | (68,156) | |||
Ending Balance (in shares) at Jun. 30, 2020 | 131,436,108 | |||||
Ending Balance at Jun. 30, 2020 | 1,269,639 | $ 1,314 | 993,058 | 299,132 | (23,865) | |
Beginning Balance (in shares) at Mar. 31, 2020 | 130,595,203 | |||||
Beginning Balance at Mar. 31, 2020 | 1,280,117 | $ 1,306 | 973,354 | 335,876 | (30,419) | |
Net income | 10,889 | 10,889 | ||||
Other comprehensive income (loss), net of tax | 6,554 | 6,554 | ||||
Issuance of common stock under employee plans (in shares) | 1,344,231 | |||||
Issuance of common stock under employee plans | 8,261 | $ 13 | 8,248 | |||
Stock-based compensation | 15,130 | 15,130 | ||||
Repurchase of common stock (in shares) | (503,326) | |||||
Repurchase of common stock | (17,153) | $ (5) | (3,674) | (13,474) | ||
Dividends paid | [1] | (34,159) | (34,159) | |||
Ending Balance (in shares) at Jun. 30, 2020 | 131,436,108 | |||||
Ending Balance at Jun. 30, 2020 | $ 1,269,639 | $ 1,314 | 993,058 | 299,132 | (23,865) | |
Beginning Balance (in shares) at Dec. 31, 2020 | 131,246,615 | 131,246,615 | ||||
Beginning Balance at Dec. 31, 2020 | $ 1,224,871 | $ 1,312 | 1,033,284 | 211,101 | (20,826) | |
Net income | 21,802 | 21,802 | ||||
Other comprehensive income (loss), net of tax | 6,051 | 6,051 | ||||
Issuance of common stock under employee plans (in shares) | 1,734,317 | |||||
Issuance of common stock under employee plans | 17,239 | $ 18 | 17,221 | |||
Stock-based compensation | 37,117 | 37,117 | ||||
Dividends paid | [2] | $ (71,428) | (71,428) | |||
Ending Balance (in shares) at Jun. 30, 2021 | 132,980,932 | 132,980,932 | ||||
Ending Balance at Jun. 30, 2021 | $ 1,235,652 | $ 1,330 | 1,087,622 | 161,475 | (14,775) | |
Beginning Balance (in shares) at Mar. 31, 2021 | 131,607,036 | |||||
Beginning Balance at Mar. 31, 2021 | 1,221,509 | $ 1,316 | 1,059,018 | 180,063 | (18,888) | |
Net income | 17,306 | 17,306 | ||||
Other comprehensive income (loss), net of tax | 4,113 | 4,113 | ||||
Issuance of common stock under employee plans (in shares) | 1,373,896 | |||||
Issuance of common stock under employee plans | 8,674 | $ 14 | 8,660 | |||
Stock-based compensation | 19,944 | 19,944 | ||||
Dividends paid | [2] | $ (35,894) | (35,894) | |||
Ending Balance (in shares) at Jun. 30, 2021 | 132,980,932 | 132,980,932 | ||||
Ending Balance at Jun. 30, 2021 | $ 1,235,652 | $ 1,330 | $ 1,087,622 | $ 161,475 | $ (14,775) | |
[1] | Cash dividends declared per share of common stock were $0.26 for the three months ended June 30, 2020, and $0.52 for the six months ended June 30, 2020. | |||||
[2] | Cash dividends declared per share of common stock were $0.27 for the three months ended June 30, 2021, and $0.54 for the six months ended June 30, 2021. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in usd per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2021 | |
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 fiscal year ended December 31, 2020, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 23, 2021 (the "Form 10-K"). 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 June 30, 2021 and December 31, 2020, the results of our operations and comprehensive income for three and six months ended June 30, 2021 and 2020, our cash flows for the six months ended June 30, 2021 and 2020 and our statement of stockholders' equity for the three and six months ended June 30, 2021 and 2020. Our operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Recently Adopted Accounting Pronouncements Clarification of Equity Method Transition In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815,” which clarifies the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted ASU 2020-01 on January 1, 2021, and the new standard did not have a material impact on our consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Although there are several other accounting pronouncements recently issued by the FASB, we do not expect the adoption of any of these accounting pronouncements had or will have a material impact on our consolidated financial statements. Summary of Significant Accounting Policies There were no changes in our significant accounting policies during the three and six months ended June 30, 2021 compared to the significant accounting policies described in our Form 10-K. Divestitures AWR On January 15, 2020, we completed the sale of our AWR Corporation subsidiary ("AWR") for approximately $161 million. We recognized a gain of approximately $160 million on the sale. The gain is included within "Gain on sale of business/assets" in the consolidated statements of income, which also included approximately $1 million of transaction costs. The divestiture of AWR resulted in the derecognition of the following assets and liabilities (in thousands): Cash $ 1,027 Accounts receivable, net 7,233 Prepaid and other current assets 283 Goodwill 7,221 Other non-current assets 556 Total Assets 16,320 Deferred revenue 15,296 Other current liabilities 940 Cumulative translation adjustment (660) Total liabilities and stockholders' equity 15,576 Total assets divested, net (including cash) $ 744 Other (Expense) Income Other expense, net consisted of the following amounts (in thousands): Three Months Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) 2021 2020 2021 2020 Interest income $ 113 $ 1,011 $ 274 $ 3,310 Interest expense (1,224) (66) (1,927) (142) Loss from equity-method investments (867) (907) (5,360) (1,932) Net foreign exchange loss (896) (838) (1,455) (1,343) Other (89) (343) 437 (476) Other expense, net $ (2,963) $ (1,143) $ (8,031) $ (583) 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 six months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) 2021 2020 2021 2020 Weighted average shares outstanding-basic 132,498 131,014 131,996 130,813 Plus: Common share equivalents RSUs 1,041 588 1,161 686 Weighted average shares outstanding-diluted 133,539 131,602 133,157 131,499 Shares issuable upon vesting of RSU awards of 1,369,000 shares and 1,206,000 shares for the three months ended June 30, 2021 and 2020, respectively, and 166,000 shares and 249,000 shares for the six months ended June 30, 2021 and 2020, respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive. Other Current Liabilities Other current liabilities on our consolidated balance sheet includes the following amounts (in thousands): As of June 30, 2021 As of December 31, (unaudited) 2020 Income taxes payable - current $ — $ 13,720 Hedge payable - current 7,671 13,031 Other 19,183 15,827 Total $ 26,854 $ 42,578 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Revenue is recognized upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of our products or services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Disaggregation of Revenues We disaggregate revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time) and geographic region based on the billing location of the customer. We sell our products in the following three geographic regions: the Americas; Europe, Middle East and Africa region ("EMEA"); and Asia-Pacific region ("APAC"). Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Net sales: Point-in-Time (1) Over Time Total Point-in-Time (1) Over Time Total Americas $ 112,215 $ 22,455 $ 134,670 $ 103,113 $ 18,595 $ 121,708 EMEA 67,252 21,917 89,169 56,203 18,453 74,656 APAC 111,894 10,963 122,857 94,419 10,546 104,965 Total net sales (1) $ 291,361 $ 55,335 $ 346,696 $ 253,735 $ 47,594 $ 301,329 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. Six Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Net sales: Point-in-Time (1) Over Time Total Point-in-Time (1) Over Time Total Americas $ 216,801 $ 44,602 $ 261,403 $ 208,412 $ 38,313 $ 246,725 EMEA 132,355 42,336 174,691 123,896 37,489 161,385 APAC 224,524 21,260 245,784 181,607 20,992 202,599 Total net sales (1) $ 573,680 $ 108,198 $ 681,878 $ 513,915 $ 96,794 $ 610,709 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers, such as invoicing at the beginning of a subscription term with a portion of the revenue recognized ratably over the contract period, or to provide customers with financing, such as multi-year on-premises licenses that are invoiced annually with revenue recognized upfront. Changes in deferred revenue, current and non-current, during the six months ended June 30, 2021 were as follows: Amount (In thousands) Balance as of December 31, 2020 $ 168,486 Deferral of revenue billed in current period, net of recognition 78,324 Recognition of revenue deferred in prior periods (83,991) Foreign currency translation impact (2,209) Balance as of June 30, 2021 (unaudited) $ 160,610 For the six months ended June 30, 2021, revenue recognized from performance obligations satisfied in prior periods (for example, due to changes in transaction price) was not material. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in "Other current assets" on the consolidated balance sheet. Based on the nature of our contracts with customers, we do not typically recognize unbilled receivables related to revenues recognized in excess of amounts billed. For the six months ended June 30, 2021, the amounts recorded that were related to unbilled receivables were not material. Unsatisfied Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less and contracts where revenue is recognized as invoiced, was approximately $62 million as of June 30, 2021. Since we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances. As of June 30, 2021, we expect to recognize approximately 27% of the revenue related to these unsatisfied performance obligations during the remainder of 2021, 40% during 2022, and 33% thereafter. |
Short-term investments
Short-term investments | 6 Months Ended |
Jun. 30, 2021 | |
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 debt securities: As of June 30, 2021 (In thousands) (Unaudited) Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 14,089 $ 21 $ — $ 14,110 Total short-term investments $ 14,089 $ 21 $ — $ 14,110 (In thousands) As of December 31, 2020 Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 59,761 $ 163 $ (1) $ 59,923 Total short-term investments $ 59,761 $ 163 $ (1) $ 59,923 The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale debt securities: As of June 30, 2021 (In thousands) (Unaudited) Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 14,089 $ 14,110 Total available-for-sale debt securities $ 14,089 $ 14,110 Equity-Method Investments |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 133,432 $ 133,432 $ — $ — Short-term investments available for sale: Corporate bonds 14,110 — 14,110 — Derivatives 8,164 — 8,164 — Total Assets $ 155,706 $ 133,432 $ 22,274 $ — Liabilities Derivatives $ (9,467) $ — $ (9,467) $ — Total Liabilities $ (9,467) $ — $ (9,467) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2020 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 145,466 $ 145,466 $ — $ — Short-term investments available for sale: Corporate bonds 59,923 — 59,923 — Derivatives 6,124 — 6,124 — Total Assets $ 211,513 $ 145,466 $ 66,047 $ — Liabilities Derivatives $ (19,359) $ — $ (19,359) $ — Total Liabilities $ (19,359) $ — $ (19,359) $ — 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 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. 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 six months ended June 30, 2021. There were no transfers in or out of Level 1 or Level 2 during the six months ended June 30, 2021. As of June 30, 2021, our short-term investments did not include sovereign debt from any country other than the United States. The majority of our short-term investments that are located outside of the U.S. are denominated in the U.S. dollar. We did not have any items that were measured at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 direct operations in approximately 40 countries. Sales outside of the Americas accounted for approximately 61% and 60% of our net sales during the three months ended June 30, 2021 and 2020, respectively, and approximately 62% and 60% during the six months ended June 30, 2021 and 2020, 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 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 use foreign currency forward 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 use 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 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 For derivative instruments that are designated and qualify as a cash flow hedge, 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. Hedge effectiveness of foreign currency forwards designated as cash flow hedges is 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 June 30, 2021 As of December 31, (Unaudited) 2020 British pound $ 35,446 $ 25,133 Chinese yuan 86,142 45,553 Euro 205,346 219,115 Hungarian forint 69,193 82,429 Japanese yen 57,666 73,399 Korean won 22,889 22,301 Malaysian ringgit 35,257 36,249 Total forward contracts notional amount $ 511,939 $ 504,179 The contracts in the foregoing table had contractual maturities of 30 months or less at June 30, 2021 and December 31, 2020. At June 30, 2021, we expect to reclassify $1.4 million of losses on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $0.1 million of losses on derivative instruments from accumulated OCI to cost of sales during the next twelve months when the hedged cost of sales are incurred and less than $0.1 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 June 30, 2021. Actual results may vary materially as a result of changes in the corresponding exchange rates subsequent to this date. 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 “Other expense.” As of June 30, 2021 and December 31, 2020, we held foreign currency forward contracts that were not designated as hedging instruments with a notional amount of $116 million and $89 million, respectively. The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at June 30, 2021 and December 31, 2020, respectively. Asset Derivatives June 30, 2021 December 31, 2020 (In thousands) (Unaudited) Balance Sheet Location Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 4,213 $ 1,564 Foreign exchange contracts - LT forwards Other long-term assets 3,222 3,117 Total derivatives designated as hedging instruments $ 7,435 $ 4,681 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 729 $ 1,443 Total derivatives not designated as hedging instruments $ 729 $ 1,443 Total derivatives $ 8,164 $ 6,124 Liability Derivatives June 30, 2021 December 31, 2020 (In thousands) (Unaudited) Balance Sheet Location Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (5,506) $ (12,549) Foreign exchange contracts - LT forwards Other long-term liabilities (1,796) (6,328) Total derivatives designated as hedging instruments $ (7,302) $ (18,877) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (2,165) $ (482) Total derivatives not designated as hedging instruments $ (2,165) $ (482) Total derivatives $ (9,467) $ (19,359) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three months ended June 30, 2021 and 2020, respectively: June 30, 2021 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ (558) Net sales $ (2,408) Foreign exchange contracts - forwards 1,692 Cost of sales 20 Foreign exchange contracts - forwards 1,247 Operating expenses 27 Total $ 2,381 $ (2,361) June 30, 2020 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ (5,132) Net sales $ 2,726 Foreign exchange contracts - forwards 2,962 Cost of sales (850) Foreign exchange contracts - forwards 2,096 Operating expenses (637) Total $ (74) $ 1,239 (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 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Other expense $ (662) (193) Total $ (662) $ (193) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the six months ended June 30, 2021 and 2020, respectively: June 30, 2021 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 15,728 Net sales $ (4,434) Foreign exchange contracts - forwards (837) Cost of sales (1) Foreign exchange contracts - forwards (529) Operating expenses 18 Total $ 14,362 $ (4,417) June 30, 2020 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 5,724 Net sales $ 5,260 Foreign exchange contracts - forwards (3,798) Cost of sales (1,369) Foreign exchange contracts - forwards (2,524) Operating expenses (1,082) Total $ (598) $ 2,809 (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 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Other expense $ (2,263) $ 105 Total $ (2,263) $ 105 |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net consist of the following: June 30, 2021 December 31, (In thousands) (Unaudited) 2020 Raw materials $ 115,838 $ 99,942 Work-in-process 9,884 11,307 Finished goods 85,301 82,763 Total $ 211,023 $ 194,012 |
Intangible assets, net and good
Intangible assets, net and goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net and goodwill | Intangible assets, net and goodwill Intangible assets at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 (In thousands) (Unaudited) December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 85,064 $ (65,991) $ 19,073 $ 115,251 $ (83,706) $ 31,545 Acquired technology 109,345 (25,454) 83,891 105,486 (17,913) 87,573 Customer relationships 39,984 (13,588) 26,396 40,273 (10,026) 30,247 Patents 35,625 (28,042) 7,583 35,803 (25,578) 10,225 Other 27,270 (15,087) 12,183 27,440 (14,311) 13,129 Total $ 297,288 $ (148,162) $ 149,126 $ 324,253 $ (151,534) $ 172,719 Software development costs capitalized for the three months ended June 30, 2021 and 2020 were $0.5 million and $1.3 million, respectively, and related amortization expense was $6.3 million and $7.4 million, respectively. For the six months ended June 30, 2021 and 2020, capitalized software development costs were $0.8 million and $3.3 million, respectively, and related amortization expense was $13.3 million and $14.7 million, respectively. Capitalized software development costs for the three months ended June 30, 2021 and 2020 included costs related to stock-based compensation of less than $0.1 million and $0.1 million, respectively. For the six months ended June 30, 2021 and 2020, capitalized software development costs included costs related to stock-based compensation of $0.1 million and $0.2 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, which generally range from three five ten Goodwill The carrying amount of goodwill as of June 30, 2021, was as follows: Amount (In thousands) Balance as of December 31, 2020 $ 467,547 Acquisitions 16,893 Measurement period adjustments 1,973 Foreign currency translation impact (3,277) Balance as of June 30, 2021 (unaudited) $ 483,136 The excess purchase price over the fair value of assets acquired is recorded as goodwill. As businesses are acquired, we assign assets acquired (including goodwill) and liabilities assumed to either our existing reporting unit or a newly identified reporting unit as of the date of the acquisition. In the event a disposal group meets the definition of a business, goodwill is allocated to the disposal group based on the relative fair value of the disposal group to the related reporting unit. 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 is performed in the fourth quarter of each year. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for corporate offices, automobiles, and certain equipment. Our leases have remaining terms of 1 year to 93 years, some of which may include options to extend the leases for up to 9 years, and some of which may include options to terminate the leases within 1 year. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Amounts related to finance lease activities and income from leasing activities were not material for the periods presented. The components of operating lease expense were as follows (unaudited): Three Months Ended Six Months Ended (In thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease Cost (1) $ 5,208 $ 5,389 $ 10,538 $ 11,071 (1) Includes variable and short-term lease costs Maturities of lease liabilities as of June 30, 2021 were as follows (unaudited): (In thousands) Years ending December 31, Operating Leases 2021 (Excluding the six months ended June 30, 2021) $ 8,506 2022 11,611 2023 7,946 2024 6,978 2025 4,958 Thereafter 7,095 Total future minimum lease payments 47,094 Less imputed interest (4,193) Total lease liabilities $ 42,901 As of June 30, 2021, we have additional operating leases that have not commenced during the six months ended June 30, 2021, which were not material. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2021 | |
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 $94 million and $93 million at June 30, 2021 and December 31, 2020, respectively. A majority of the valuation allowance is related to the deferred tax assets of National Instruments Hungary Kft. 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 $10.7 million and $10.5 million of gross unrecognized tax benefits at June 30, 2021 and December 31, 2020, respectively, all of which would affect our effective income tax rate if recognized. We recorded a gross increase in unrecognized tax benefits of $0.2 million for the three months ended June 30, 2021, as a result of the tax positions taken during prior periods. As of June 30, 2021, it is reasonably possible that we will recognize gross tax benefits in the amount of $1.4 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. During the three months ended June 30, 2021, we recognized interest expense related to uncertain tax positions of approximately less than $0.1 million. As of June 30, 2021, we had approximately $0.5 million accrued for interest related to uncertain tax positions. The tax years 2014 through 2021 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 20% and 29% for the three months ended June 30, 2021 and 2020, respectively, and 16% and 24% for the six months ended June 30, 2021 and 2020, respectively. For the three months ended June 30, 2021, our effective tax rate was lower than the U.S. federal statutory rate of 21% primarily as a result of the research and development tax credit, an enhanced deduction for certain research and development expenses and the deduction for foreign-derived intangible income, offset by the U.S. tax on global intangible low-taxed income, foreign taxes greater than the statutory rate, state income taxes net of federal benefit and nondeductible officer compensation. For the six months ended June 30, 2021, our effective tax rate was lower than the U.S. federal statutory rate of 21% primarily as a result of excess tax benefits from share-based compensation and other discrete items, the research and development tax credit, an enhanced deduction for certain research and development expenses and the deduction for foreign-derived intangible income, offset by the U.S. tax on global intangible low-taxed income, foreign taxes greater than the statutory rate, state income taxes net of federal benefit and nondeductible officer compensation. For the three and six months ended June 30, 2020, our effective tax rate was higher than the U.S. federal statutory rate of 21% primarily as a result of the gain on the sale of our AWR business, foreign taxes greater than the statutory rate, nondeductible officer compensation, and state income taxes net of the federal benefit, offset by the research and development tax credit, the deduction for foreign-derived intangible income, and an enhanced deduction for certain research and development expenses. Our earnings from our operations 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 $0.2 million and $0.3 million for the three and six months ended June 30, 2021, respectively, and income tax expense of $0.3 million and $0.1 million for the three and six months ended June 30, 2020, respectively. Earnings from our operations in Malaysia are free of tax under a tax holiday effective January 1, 2013. This tax holiday expires in 2037. 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 six months ended June 30, 2021 were approximately $0.2 million and $0.3 million, respectively. The income tax benefits of the tax holiday for the three and six months ended June 30, 2020 were approximately $0.1 million and $0.3 million, respectively. The impact of the tax holiday on a per share basis for each of the three and six months ended June 30, 2021 and June 30, 2020 was less than $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 Internal Revenue Service ("IRS") with regard to any foreign jurisdictions. |
Comprehensive income
Comprehensive income | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive income | Comprehensive income Our OCI is comprised of net income, foreign currency translation adjustments, and unrealized gains and losses on forward contracts and securities classified as available-for-sale. The accumulated OCI, net of tax, for the six months ended June 30, 2021 and 2020, consisted of the following: June 30, 2021 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2020 $ (10,066) $ (426) (10,334) $ (20,826) Current-period other comprehensive income (loss) (4,911) (141) 9,945 4,893 Reclassified from accumulated OCI into income — — 4,417 4,417 Income tax (benefit) expense — (3) 3,262 3,259 Balance as of June 30, 2021 $ (14,977) $ (564) $ 766 $ (14,775) June 30, 2020 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2019 $ (25,831) $ (85) 4,846 $ (21,070) Current-period other comprehensive (loss) income (1,975) (154) 2,211 82 Reclassified from accumulated OCI into income — — (2,809) (2,809) Income tax (benefit) expense — (56) 124 68 Balance as of June 30, 2020 $ (27,806) $ (183) $ 4,124 $ (23,865) |
Authorized shares of common and
Authorized shares of common and preferred stock and stock-based compensation plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [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 The total number of shares which we are authorized to issue is 365,000,000 shares, consisting of (i) 5,000,000 shares of preferred stock, par value $0.01 per share, and (ii) 360,000,000 shares of common stock, par value $0.01 per share. Stock-Based Compensation Plan Our stockholders approved our 2005 Incentive Plan (the “2005 Plan”) on May 10, 2005. At the time of approval, 4,050,000 shares of our common stock were reserved for issuance under the 2005 Plan, as well as the number of shares which had been reserved but not issued under our 1994 Incentive Stock Options Plan (the “1994 Plan”) which terminated in May 2005, 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 provided for the 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 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 the 2010 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 those plans. The 2010 Plan provided 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 five 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 the 2015 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 Plan, 2005 Plan, and the 2010 Plan as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under those plans. The 2015 Plan 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 and such awards may be subject to performance-based vesting conditions. Awards generally vest over a three four five five Our stockholders approved our 2020 Equity Incentive Plan (the “2020 Plan”) on May 5, 2020. At the time of approval, 4,500,000 shares of our common stock were reserved for issuance under the 2020 Plan, as well as the 567,142 shares of common stock that were reserved but not issued under the 2015 Plan as of May 5, 2020, and any shares that were returned to the 1994 Plan, 2005 Plan, 2010 Plan, and 2015 Plan as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under those plans. The 2020 Plan 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 generally vest over a one two three Performance-based stock units During the six months ended June 30, 2021 and 2020, we granted 130,006 and 144,647 performance-based restricted stock units (“PRSUs”), respectively, to executive officers pursuant to the 2020 Plan and 2015 Plan. The PRSUs may be earned based on our total shareholder return ("TSR") compared to the TSR of the Russell 2000 Index (the “Index”) over a three-year performance period. For the PRSUs granted during the six months ended June 30, 2021, the three-year performance period commenced on January 1, 2021 and will end on December 31, 2023, and for the PRSUs granted during the six months ended June 30, 2020, the three year performance commenced on January 1, 2020 and will end on December 31, 2022, using the average daily closing price over a 30-day lookback in each case. The number of awards earned could range from zero to two times the target number of shares granted. The fair values of PRSUs are estimated using a Monte Carlo simulation. The determination of fair value of the PRSUs is based on our stock price and a number of assumptions including the expected volatility, expected dividend yield and the risk-free interest rate. The expected volatility at the date of grant was based on the historical volatilities of our stock and the companies included in the Index over the performance period. The Monte Carlo model is based on random projections of stock-price paths and must be repeated numerous times to achieve a probabilistic assessment. The key assumptions used in valuing these market-based awards are as follows: Six Months Ended (unaudited) June 30, 2021 June 30, 2020 Number of simulations 100,000 100,000 Expected volatility 40.60% 27.41% Expected life in years 2.95 years 2.92 years Risk-free interest rate 0.21% 1.38% Dividend yield 2.66% 2.32% The weighted average grant date fair value of the market-based awards, as determined by the Monte Carlo valuation model, was $66.97 per share and $61.00 per share in 2021 and 2020, respectively. Employee stock purchase plan Our employee stock purchase plan (“ESPP”) 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 the ESPP. On May 14, 2019, our stockholders approved an additional 3,000,000 shares for issuance under our ESPP. At June 30, 2021, we had 2,490,594 shares of common stock reserved for future issuance under the ESPP. We issued 568,598 shares under this plan in the six months ended June 30, 2021 and the weighted average purchase price was $30.32 per share. During the six months ended June 30, 2021, we did not make any changes in accounting principles or methods of estimates with respect to our ESPP. Authorized Preferred Stock and Preferred Stock Purchase Rights Plan We have 5,000,000 authorized shares of preferred stock. There were no shares of preferred stock issued and outstanding at June 30, 2021. Stock repurchases and retirements |
Segment and geographic informat
Segment and geographic information | 6 Months Ended |
Jun. 30, 2021 | |
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 as one operating segment, all required financial segment information can be found in the condensed consolidated financial statements and the notes thereto. We sell our products in three geographic regions which consist of Americas, EMEA and APAC. Our sales to these regions share similar economic characteristics including the nature of products and services we sell, the type and class of customers, and the methods used to distribute our products and services. 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. (See Note 2 - Revenue of Notes to Consolidated Financial Statements for total net sales by the major geographic areas in which we operate). The following tables present summarized information for net sales by country. Revenues from external customers are generally attributed to countries based upon the customer's location. Net sales attributable to each individual foreign country outside the U.S. and China were not material. United States China (1) Rest of the World Total (in millions) Net sales: Three months ended June 30, 2021 $ 127 $ 59 $ 161 $ 347 Three months ended June 30, 2020 $ 116 $ 52 $ 133 $ 301 Six months ended June 30, 2021 $ 247 $ 113 $ 322 $ 682 Six months ended June 30, 2020 $ 234 $ 87 $ 290 $ 611 (1): Includes Mainland China and the Hong Kong Special Administrative Region The following tables present summarized information for long-lived assets by country. Long-lived assets attributable to each individual country outside the U.S., Hungary and Malaysia were not material. Long-lived assets consist of property, plant, and equipment, operating lease right-of-use assets and other long-term assets excluding intangible assets. United States Hungary Malaysia Rest of the World Total (in millions) Long-lived Assets: June 30, 2021 $ 127 $ 51 $ 75 $ 56 $ 309 December 31, 2020 $ 127 $ 52 $ 75 $ 68 $ 322 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt On June 18, 2021, we entered into a Second Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, National Association, as the administrative agent, swingline lender and issuing lender (the “Administrative Agent”), Wells Fargo Securities, LLC, as sole lead arranger and bookrunner, and the lenders party thereto. The Credit Agreement amends and restates in its entirety and refinances our existing Amended and Restated Credit Agreement, dated as of June 12, 2020, by and among us, the lenders from time-to-time party thereto and Administrative Agent, as amended on October 30, 2020. The Credit Agreement provides for a secured revolving loan facility in an aggregate principal amount of up to $500 million at any time outstanding, with a sublimit of $25 million for the issuance of letters of credit. Subject to the terms and conditions of the Credit Agreement, including obtaining commitments from existing lenders or new lenders, we may request term loans or additional revolving commitments. Pursuant the Credit Agreement, the revolving line of credit terminates, and all revolving loans under the Credit Agreement will be due and payable, on June 18, 2026. The revolving loans accrue interest, at our option, at a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, and (c) a LIBOR loan interest rate of LIBOR for an interest period of one month plus 1.00%, plus a margin of 0.25% to 0.75%, or LIBOR plus a margin of 1.25% to 1.75%, with the margin being determined based upon our consolidated total net leverage ratio. The Credit Agreement contains financial covenants requiring us to maintain a maximum total net leverage ratio of less than or equal to 3.50 to 1.00, which increases to 4.00 to 1.00 for a specified period following material acquisitions, and a minimum interest coverage ratio of greater than or equal to 3.00 to 1.00, in each case determined in accordance with the Credit Agreement. The Credit Agreement provides for a commitment fee of 0.150% to 0.250% per annum, determined based upon our consolidated total net leverage ratio, on the average daily unused amount of the revolving committed amount, payable quarterly in arrears. Under the circumstances described in the Credit Agreement, certain of our wholly-owned domestic subsidiaries (the "Subsidiary Guarantors") are required to enter into a guaranty agreement ("Guaranty") in favor of the Administrative Agent guarantying the obligations of the Company under the Credit Agreement, among other things. There is no Subsidiary Guarantor, and no Guaranty has been executed in connection with the Credit Agreement, at this time. In connection with the Credit Agreement, we, our Subsidiary Guarantors from time-to-time party thereto and the Administrative Agent have entered (or will enter in the case of the future Subsidiary Guarantors) into an Amended and Restated Collateral Agreement ("Collateral Agreement") pursuant to which we and each of our Subsidiary Guarantor from time-to-time have granted (or will grant) a lien on substantially all of their assets to secure their obligations under the Credit Agreement and the Guaranty. The Credit 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, maintenance of books and records, 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 Credit 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 Administrative Agent and the lenders 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 Credit Agreement. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Credit Agreement at a per annum rate of interest equal to 2.00% above the otherwise applicable interest rate. Proceeds of revolving loans of the Credit Agreement may be used for working capital and other general corporate purposes. We may prepay the loans under the Credit Agreement in whole or in part at any time without premium or penalty. The following table presents the amounts outstanding related to our borrowing arrangements discussed above as of June 30, 2021 (unaudited) and December 31, 2020, respectively (in thousands): June 30, December 31, 2021 2020 Secured 2020 Term loan (effective interest rate of 1.7%) $ — $ 98,750 2021 Revolving line of credit (effective interest rate of 1.3%) 100,000 — Total Debt 100,000 98,750 Less: Unamortized debt issuance costs — (1,714) Less: Current portion of total debt — (5,000) Total Debt, non-current $ 100,000 $ 92,036 As of June 30, 2021, debt issuance costs of approximately $2.7 million attributable to the revolving line of credit are presented within "Other long-term assets" in our Consolidated Balance Sheet. These amounts are amortized to interest expense ratably over the life of the revolving line of credit. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 and 2020 was as follows: Six Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Balance at the beginning of the period $ 2,872 $ 2,561 Accruals for warranties issued during the period 1,375 1,165 Accruals related to pre-existing warranties 95 298 Settlements made (in cash or in kind) during the period (1,456) (1,322) Balance at the end of the period $ 2,886 $ 2,702 As of June 30, 2021, we had certain off-balance sheet commitments that require the future purchase of goods or services ("unconditional purchase obligations"). Our unconditional purchase obligations primarily consist of payments to various suppliers for customized inventory and inventory components. As of June 30, 2021, our total future payments under noncancellable unconditional purchase obligations having a remaining term in excess of one year were approximately $3.5 million.. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring On October 29, 2020, we announced a workforce reduction plan (the “Plan”) intended to accelerate our growth strategy and further optimize our operations and cost structure. The majority of charges related to this plan were recognized during the three months ended December 31, 2020. We implemented a majority of the actions under this Plan as of June 30, 2021. A summary of the charges in our consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended June 30, Six Months Ended June 30, (In thousands) (Unaudited) (Unaudited) 2021 2020 2021 2020 Cost of sales $ (118) — $ (43) 20 Research and development 223 79 379 4,679 Sales and marketing 61 1,227 4,147 7,542 General and administrative 147 247 2,105 562 Total restructuring and other related costs $ 313 1,553 $ 6,588 12,803 A summary of balance sheet activity related to our restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2020 $ 28,993 Income statement expense 6,588 Cash payments (27,578) Balance as of June 30, 2021 $ 8,003 The restructuring liability of $8.0 million at June 30, 2021 relating primarily to severance payments associated with the restructuring activity is recorded in the “accrued compensation” line item of our consolidated balance sheet. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation We are not currently a party to any material litigation. However, in the ordinary course of our business, we have in the past, are currently and will likely become involved in various legal proceedings, claims, and regulatory, tax or government inquiries and investigations, 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 investigation, litigation or dispute. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Acquisition of OptimalPlus On July 2, 2020, we completed the acquisition of OptimalPlus Ltd. (“OptimalPlus”), a global leader in data analytics software for the semiconductor, automotive and electronics industries that is based in Israel. As a result of acquiring 100% of the outstanding share capital of OptimalPlus, OptimalPlus became our wholly-owned subsidiary. This transaction is being accounted for as a business combination using the acquisition method of accounting. All of the acquired assets and liabilities of OptimalPlus have been recorded at their respective fair values as of the acquisition date. Transaction costs have been expensed as incurred. The acquisition was funded primarily by cash on hand in addition to $70 million drawn under our prior term loan facility on June 30, 2020. See Note 13 – Debt of Notes to Consolidated Financial Statements for further information on our outstanding borrowings. During the twelve months ended December 31, 2020, we expensed $7 million of transaction costs in connection with the acquisition of OptimalPlus, which are included in selling, general and administrative expenses. At the acquisition date, total consideration transferred was approximately $353 million, inclusive of $18 million in cash acquired. Additionally, unvested in-the-money share options of certain OptimalPlus employees were exchanged into the right to receive deferred cash consideration in accordance with the terms of the share purchase agreement. Approximately $12 million of deferred cash consideration was allocated to post-combination expense and is not included in the total consideration transferred. The deferred cash consideration is subject to the original vesting schedule of the corresponding unvested options that were replaced and the amounts will be recognized as compensation expense over the remaining service period. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill generated from the acquisition is primarily attributable to expected growth in the scope of and market opportunities for our software-defined automated test and measurement platform. As a result of the structure of the transaction, the balance of goodwill is deductible in the U.S. over 15 years for income tax purposes. Fair value of net assets acquired and liabilities assumed The information below represents the purchase price allocation of OptimalPlus (in thousands): July 2, 2020 Consideration Transferred $ 352,642 Cash 17,661 Intangible assets 129,000 Goodwill 205,038 Contract assets 15,454 Deferred revenue (7,341) Accounts receivable 4,927 Other assets and liabilities (4,516) Deferred tax liabilities (7,581) Net assets acquired $ 352,642 We finalized the purchase price allocation for our acquisition of OptimalPlus during the second quarter of 2021. Since the preliminary estimates reported in the third quarter of 2020, we updated certain amounts related to current and deferred income taxes, reflected in the final purchase price allocation, as summarized in the fair values of assets acquired and liabilities assumed in the table above. Measurement period adjustments were recognized in the reporting period in which the adjustments were determined and calculated as if the accounting had been completed at the acquisition date. Acquired intangible assets will be amortized over their estimated useful lives on a straight-line basis. The following table summarizes the purchase price allocation, and the average remaining useful lives, for identifiable intangible assets acquired (dollars in thousands): Estimated Fair Value Estimated Useful Lives (in years) Customer relationships $ 30,100 5 Developed technology 82,400 6 In-process research and development (IPR&D) 10,400 6 Other intangibles 6,100 3-5 Total $ 129,000 Developed technology and IPR&D relate to software platforms for data analytics in the semiconductor, automotive, and electronic industries that combine machine-learning with a global data infrastructure to provide real-time product analytics and extract insights from data across the entire supply chain. We valued the developed technology and IPR&D using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the technology less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the technology cycle related to each technology, as well as the cash flows over the forecast period. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When a project underlying reported IPR&D is completed, the corresponding amount of IPR&D is amortized over the asset’s estimated useful life. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers. Customer relationships were valued using the with-and-without-method under the income approach. In the with-and-without method, the fair value was measured by the difference between the present values of the cash flows with and without the existing customers in place over the period of time necessary to reacquire the customers. The economic useful life was determined by evaluating many factors, including the useful life of other intangible assets, the length of time remaining on the acquired contracts and the historical customer turnover rates. Unaudited Pro Forma Information The results of OptimalPlus have been included in our consolidated statements of income for the period subsequent to the acquisition date. The following unaudited pro forma financial information presents combined results of operations for the periods presented, as if the OptimalPlus acquisition had occurred on January 1, 2019, with adjustments to give effect to pro forma events that are directly attributable to the acquisition. These pro forma adjustments include additional amortization expense for the identifiable intangible assets, a reduction in revenue related to deferred revenue purchase accounting adjustments, an increase in interest expense related to the term loan entered into in connection with the acquisition, and adjustments to compensation expense for the replacement of unvested share options discussed above, net of tax effects. For the pro forma presentation, given the assumed acquisition date of January 1, 2019, transaction and integration costs that were incurred at or subsequent to the actual acquisition date have been included in the calculation of pro forma net income for the three and six months ended June 30, 2020, whereas transaction and integration costs that were incurred prior to the acquisition date have been excluded from the calculation of pro forma net income. The unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what actual results of operations would have been if the acquisition had occurred as the beginning of the period presented, nor are they indicative of future results of operations. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the unaudited pro forma results. Three Months Ended June 30, Six Months Ended June 30, 2020 (in thousands) Net sales $ 305,069 $ 620,239 Net (loss) income $ (2,222) $ 118,769 Other Acquisitions During the second quarter of 2021, we also completed the acquisition of a software company that specializes in signal processing and hi-fi simulation software for validation of autonomous vehicles and advanced driver assistance systems (ADAS), for approximately $20 million in total cash consideration, subject to certain post-closing adjustments. This transaction is being accounted for as a business combination using the acquisition method of accounting. All of the acquired assets and liabilities of the software company have been recorded at their respective fair values as of the acquisition date. We recognized approximately $17 million of goodwill and $4 million of other intangible assets as part of our preliminary purchase price allocation. Transaction costs have been expensed as incurred and were not material to the periods presented. The preliminary purchase price allocation related to the acquisition was not finalized as of June 30, 2021, and is based upon a preliminary valuation which is subject to change as we obtain additional information with respect to certain intangible assets and income taxes. Pro-forma results of operations have not been presented because the effects of the acquired operations were not material. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events Dividends On July 21, 2021, our Board of Directors declared a quarterly cash dividend of $0.27 per common share, payable on August 30, 2021, to stockholders of record on August 9, 2021. |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 fiscal year ended December 31, 2020, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 23, 2021 (the "Form 10-K"). 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 June 30, 2021 and December 31, 2020, the results of our operations and comprehensive income for three and six months ended June 30, 2021 and 2020, our cash flows for the six months ended June 30, 2021 and 2020 and our statement of stockholders' equity for the three and six months ended June 30, 2021 and 2020. Our operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Reclassifications Certain reclassifications have been made to prior period amounts to conform to the current period presentation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Clarification of Equity Method Transition In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815,” which clarifies the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted ASU 2020-01 on January 1, 2021, and the new standard did not have a material impact on our consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Although there are several other accounting pronouncements recently issued by the FASB, we do not expect the adoption of any of these accounting pronouncements had or will have a material impact on our consolidated financial statements. Summary of Significant Accounting Policies There were no changes in our significant accounting policies during the three and six months ended June 30, 2021 compared to the significant accounting policies described in our Form 10-K. |
Earnings Per Share | Earnings Per ShareBasic 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. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Derecognition of Assets and Liabilities | The divestiture of AWR resulted in the derecognition of the following assets and liabilities (in thousands): Cash $ 1,027 Accounts receivable, net 7,233 Prepaid and other current assets 283 Goodwill 7,221 Other non-current assets 556 Total Assets 16,320 Deferred revenue 15,296 Other current liabilities 940 Cumulative translation adjustment (660) Total liabilities and stockholders' equity 15,576 Total assets divested, net (including cash) $ 744 |
Other (Expense) Income | Other expense, net consisted of the following amounts (in thousands): Three Months Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) 2021 2020 2021 2020 Interest income $ 113 $ 1,011 $ 274 $ 3,310 Interest expense (1,224) (66) (1,927) (142) Loss from equity-method investments (867) (907) (5,360) (1,932) Net foreign exchange loss (896) (838) (1,455) (1,343) Other (89) (343) 437 (476) Other expense, net $ (2,963) $ (1,143) $ (8,031) $ (583) |
Schedule of Reconciliation of the Denominators used to Calculate Basic and Diluted EPS | The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, (Unaudited) (Unaudited) 2021 2020 2021 2020 Weighted average shares outstanding-basic 132,498 131,014 131,996 130,813 Plus: Common share equivalents RSUs 1,041 588 1,161 686 Weighted average shares outstanding-diluted 133,539 131,602 133,157 131,499 |
Schedule of Other Current Liabilities | Other current liabilities on our consolidated balance sheet includes the following amounts (in thousands): As of June 30, 2021 As of December 31, (unaudited) 2020 Income taxes payable - current $ — $ 13,720 Hedge payable - current 7,671 13,031 Other 19,183 15,827 Total $ 26,854 $ 42,578 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Net sales: Point-in-Time (1) Over Time Total Point-in-Time (1) Over Time Total Americas $ 112,215 $ 22,455 $ 134,670 $ 103,113 $ 18,595 $ 121,708 EMEA 67,252 21,917 89,169 56,203 18,453 74,656 APAC 111,894 10,963 122,857 94,419 10,546 104,965 Total net sales (1) $ 291,361 $ 55,335 $ 346,696 $ 253,735 $ 47,594 $ 301,329 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. Six Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Net sales: Point-in-Time (1) Over Time Total Point-in-Time (1) Over Time Total Americas $ 216,801 $ 44,602 $ 261,403 $ 208,412 $ 38,313 $ 246,725 EMEA 132,355 42,336 174,691 123,896 37,489 161,385 APAC 224,524 21,260 245,784 181,607 20,992 202,599 Total net sales (1) $ 573,680 $ 108,198 $ 681,878 $ 513,915 $ 96,794 $ 610,709 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. |
Schedule of Changes in Unearned Revenue | Changes in deferred revenue, current and non-current, during the six months ended June 30, 2021 were as follows: Amount (In thousands) Balance as of December 31, 2020 $ 168,486 Deferral of revenue billed in current period, net of recognition 78,324 Recognition of revenue deferred in prior periods (83,991) Foreign currency translation impact (2,209) Balance as of June 30, 2021 (unaudited) $ 160,610 |
Short-term investments (Tables)
Short-term investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 debt securities: As of June 30, 2021 (In thousands) (Unaudited) Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 14,089 $ 21 $ — $ 14,110 Total short-term investments $ 14,089 $ 21 $ — $ 14,110 (In thousands) As of December 31, 2020 Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 59,761 $ 163 $ (1) $ 59,923 Total short-term investments $ 59,761 $ 163 $ (1) $ 59,923 |
Schedule of Investments Classified by Contractual Maturity Date | The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale debt securities: As of June 30, 2021 (In thousands) (Unaudited) Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 14,089 $ 14,110 Total available-for-sale debt securities $ 14,089 $ 14,110 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 133,432 $ 133,432 $ — $ — Short-term investments available for sale: Corporate bonds 14,110 — 14,110 — Derivatives 8,164 — 8,164 — Total Assets $ 155,706 $ 133,432 $ 22,274 $ — Liabilities Derivatives $ (9,467) $ — $ (9,467) $ — Total Liabilities $ (9,467) $ — $ (9,467) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2020 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 145,466 $ 145,466 $ — $ — Short-term investments available for sale: Corporate bonds 59,923 — 59,923 — Derivatives 6,124 — 6,124 — Total Assets $ 211,513 $ 145,466 $ 66,047 $ — Liabilities Derivatives $ (19,359) $ — $ (19,359) $ — Total Liabilities $ (19,359) $ — $ (19,359) $ — |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Forward Contracts Notional Amount | We held forward contracts designated as cash flow hedges with the following notional amounts: (In thousands) US Dollar Equivalent As of June 30, 2021 As of December 31, (Unaudited) 2020 British pound $ 35,446 $ 25,133 Chinese yuan 86,142 45,553 Euro 205,346 219,115 Hungarian forint 69,193 82,429 Japanese yen 57,666 73,399 Korean won 22,889 22,301 Malaysian ringgit 35,257 36,249 Total forward contracts notional amount $ 511,939 $ 504,179 |
Summary of Fair Value of Derivative Instruments | The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at June 30, 2021 and December 31, 2020, respectively. Asset Derivatives June 30, 2021 December 31, 2020 (In thousands) (Unaudited) Balance Sheet Location Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 4,213 $ 1,564 Foreign exchange contracts - LT forwards Other long-term assets 3,222 3,117 Total derivatives designated as hedging instruments $ 7,435 $ 4,681 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 729 $ 1,443 Total derivatives not designated as hedging instruments $ 729 $ 1,443 Total derivatives $ 8,164 $ 6,124 Liability Derivatives June 30, 2021 December 31, 2020 (In thousands) (Unaudited) Balance Sheet Location Fair Value Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (5,506) $ (12,549) Foreign exchange contracts - LT forwards Other long-term liabilities (1,796) (6,328) Total derivatives designated as hedging instruments $ (7,302) $ (18,877) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (2,165) $ (482) Total derivatives not designated as hedging instruments $ (2,165) $ (482) Total derivatives $ (9,467) $ (19,359) |
Schedule of Effect of Derivative Instruments | The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three months ended June 30, 2021 and 2020, respectively: June 30, 2021 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ (558) Net sales $ (2,408) Foreign exchange contracts - forwards 1,692 Cost of sales 20 Foreign exchange contracts - forwards 1,247 Operating expenses 27 Total $ 2,381 $ (2,361) June 30, 2020 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ (5,132) Net sales $ 2,726 Foreign exchange contracts - forwards 2,962 Cost of sales (850) Foreign exchange contracts - forwards 2,096 Operating expenses (637) Total $ (74) $ 1,239 (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 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Other expense $ (662) (193) Total $ (662) $ (193) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the six months ended June 30, 2021 and 2020, respectively: June 30, 2021 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 15,728 Net sales $ (4,434) Foreign exchange contracts - forwards (837) Cost of sales (1) Foreign exchange contracts - forwards (529) Operating expenses 18 Total $ 14,362 $ (4,417) June 30, 2020 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 5,724 Net sales $ 5,260 Foreign exchange contracts - forwards (3,798) Cost of sales (1,369) Foreign exchange contracts - forwards (2,524) Operating expenses (1,082) Total $ (598) $ 2,809 (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 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Other expense $ (2,263) $ 105 Total $ (2,263) $ 105 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventories, net consist of the following: June 30, 2021 December 31, (In thousands) (Unaudited) 2020 Raw materials $ 115,838 $ 99,942 Work-in-process 9,884 11,307 Finished goods 85,301 82,763 Total $ 211,023 $ 194,012 |
Intangible assets, net and go_2
Intangible assets, net and goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 (In thousands) (Unaudited) December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 85,064 $ (65,991) $ 19,073 $ 115,251 $ (83,706) $ 31,545 Acquired technology 109,345 (25,454) 83,891 105,486 (17,913) 87,573 Customer relationships 39,984 (13,588) 26,396 40,273 (10,026) 30,247 Patents 35,625 (28,042) 7,583 35,803 (25,578) 10,225 Other 27,270 (15,087) 12,183 27,440 (14,311) 13,129 Total $ 297,288 $ (148,162) $ 149,126 $ 324,253 $ (151,534) $ 172,719 |
Schedule of Goodwill | The carrying amount of goodwill as of June 30, 2021, was as follows: Amount (In thousands) Balance as of December 31, 2020 $ 467,547 Acquisitions 16,893 Measurement period adjustments 1,973 Foreign currency translation impact (3,277) Balance as of June 30, 2021 (unaudited) $ 483,136 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of operating lease expense were as follows (unaudited): Three Months Ended Six Months Ended (In thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease Cost (1) $ 5,208 $ 5,389 $ 10,538 $ 11,071 (1) Includes variable and short-term lease costs |
Schedule of Future Minimum Lease Payments | Maturities of lease liabilities as of June 30, 2021 were as follows (unaudited): (In thousands) Years ending December 31, Operating Leases 2021 (Excluding the six months ended June 30, 2021) $ 8,506 2022 11,611 2023 7,946 2024 6,978 2025 4,958 Thereafter 7,095 Total future minimum lease payments 47,094 Less imputed interest (4,193) Total lease liabilities $ 42,901 |
Comprehensive income (Tables)
Comprehensive income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Comprehensive Income (Loss) | The accumulated OCI, net of tax, for the six months ended June 30, 2021 and 2020, consisted of the following: June 30, 2021 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2020 $ (10,066) $ (426) (10,334) $ (20,826) Current-period other comprehensive income (loss) (4,911) (141) 9,945 4,893 Reclassified from accumulated OCI into income — — 4,417 4,417 Income tax (benefit) expense — (3) 3,262 3,259 Balance as of June 30, 2021 $ (14,977) $ (564) $ 766 $ (14,775) June 30, 2020 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2019 $ (25,831) $ (85) 4,846 $ (21,070) Current-period other comprehensive (loss) income (1,975) (154) 2,211 82 Reclassified from accumulated OCI into income — — (2,809) (2,809) Income tax (benefit) expense — (56) 124 68 Balance as of June 30, 2020 $ (27,806) $ (183) $ 4,124 $ (23,865) |
Authorized shares of common a_2
Authorized shares of common and preferred stock and stock-based compensation plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Key Assumptions to Value Market-based Awards | The key assumptions used in valuing these market-based awards are as follows: Six Months Ended (unaudited) June 30, 2021 June 30, 2020 Number of simulations 100,000 100,000 Expected volatility 40.60% 27.41% Expected life in years 2.95 years 2.92 years Risk-free interest rate 0.21% 1.38% Dividend yield 2.66% 2.32% |
Segment and geographic inform_2
Segment and geographic information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Country | The following tables present summarized information for net sales by country. Revenues from external customers are generally attributed to countries based upon the customer's location. Net sales attributable to each individual foreign country outside the U.S. and China were not material. United States China (1) Rest of the World Total (in millions) Net sales: Three months ended June 30, 2021 $ 127 $ 59 $ 161 $ 347 Three months ended June 30, 2020 $ 116 $ 52 $ 133 $ 301 Six months ended June 30, 2021 $ 247 $ 113 $ 322 $ 682 Six months ended June 30, 2020 $ 234 $ 87 $ 290 $ 611 (1): Includes Mainland China and the Hong Kong Special Administrative Region The following tables present summarized information for long-lived assets by country. Long-lived assets attributable to each individual country outside the U.S., Hungary and Malaysia were not material. Long-lived assets consist of property, plant, and equipment, operating lease right-of-use assets and other long-term assets excluding intangible assets. United States Hungary Malaysia Rest of the World Total (in millions) Long-lived Assets: June 30, 2021 $ 127 $ 51 $ 75 $ 56 $ 309 December 31, 2020 $ 127 $ 52 $ 75 $ 68 $ 322 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Amounts Outstanding related to Borrowing Arrangements | The following table presents the amounts outstanding related to our borrowing arrangements discussed above as of June 30, 2021 (unaudited) and December 31, 2020, respectively (in thousands): June 30, December 31, 2021 2020 Secured 2020 Term loan (effective interest rate of 1.7%) $ — $ 98,750 2021 Revolving line of credit (effective interest rate of 1.3%) 100,000 — Total Debt 100,000 98,750 Less: Unamortized debt issuance costs — (1,714) Less: Current portion of total debt — (5,000) Total Debt, non-current $ 100,000 $ 92,036 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The warranty reserve for the six months ended June 30, 2021 and 2020 was as follows: Six Months Ended June 30, (In thousands) (Unaudited) 2021 2020 Balance at the beginning of the period $ 2,872 $ 2,561 Accruals for warranties issued during the period 1,375 1,165 Accruals related to pre-existing warranties 95 298 Settlements made (in cash or in kind) during the period (1,456) (1,322) Balance at the end of the period $ 2,886 $ 2,702 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Resulting From Restructuring Activities | A summary of the charges in our consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended June 30, Six Months Ended June 30, (In thousands) (Unaudited) (Unaudited) 2021 2020 2021 2020 Cost of sales $ (118) — $ (43) 20 Research and development 223 79 379 4,679 Sales and marketing 61 1,227 4,147 7,542 General and administrative 147 247 2,105 562 Total restructuring and other related costs $ 313 1,553 $ 6,588 12,803 |
Schedule of Restructuring Reserve by Type of Cost | A summary of balance sheet activity related to our restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2020 $ 28,993 Income statement expense 6,588 Cash payments (27,578) Balance as of June 30, 2021 $ 8,003 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Purchase Price Allocation | The information below represents the purchase price allocation of OptimalPlus (in thousands): July 2, 2020 Consideration Transferred $ 352,642 Cash 17,661 Intangible assets 129,000 Goodwill 205,038 Contract assets 15,454 Deferred revenue (7,341) Accounts receivable 4,927 Other assets and liabilities (4,516) Deferred tax liabilities (7,581) Net assets acquired $ 352,642 |
Summary of Preliminary Purchase Price Allocation and Useful Lives | The following table summarizes the purchase price allocation, and the average remaining useful lives, for identifiable intangible assets acquired (dollars in thousands): Estimated Fair Value Estimated Useful Lives (in years) Customer relationships $ 30,100 5 Developed technology 82,400 6 In-process research and development (IPR&D) 10,400 6 Other intangibles 6,100 3-5 Total $ 129,000 |
Schedule of Pro Forma Information | Three Months Ended June 30, Six Months Ended June 30, 2020 (in thousands) Net sales $ 305,069 $ 620,239 Net (loss) income $ (2,222) $ 118,769 |
Basis of presentation - Narrati
Basis of presentation - Narrative (Details) - USD ($) $ in Thousands | Jan. 15, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Disposal gain on sale of business/assets | $ 0 | $ 159,753 | |
AWR Corporation | Divestiture by sale | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Proceeds from sale of business | $ 161,000 | ||
Disposal gain on sale of business/assets | 160,000 | ||
Transaction costs | $ 1,000 |
Basis of Presentation - Disposa
Basis of Presentation - Disposal Groups, Including Discontinued Operations (Details) - Divestiture by sale - AWR Corporation $ in Thousands | Jan. 15, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | $ 1,027 |
Accounts receivable, net | 7,233 |
Prepaid and other current assets | 283 |
Goodwill | 7,221 |
Other non-current assets | 556 |
Total Assets | 16,320 |
Deferred revenue | 15,296 |
Other current liabilities | 940 |
Cumulative translation adjustment | (660) |
Total liabilities and stockholders' equity | 15,576 |
Total assets divested, net (including cash) | $ 744 |
Basis of presentation - Other (
Basis of presentation - Other (Expense) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 113 | $ 1,011 | $ 274 | $ 3,310 |
Interest expense | (1,224) | (66) | (1,927) | (142) |
Loss from equity-method investments | (867) | (907) | (5,360) | (1,932) |
Net foreign exchange loss | (896) | (838) | (1,455) | (1,343) |
Other | (89) | (343) | 437 | (476) |
Other expense, net | $ (2,963) | $ (1,143) | $ (8,031) | $ (583) |
Basis of presentation - Schedul
Basis of presentation - Schedule of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Weighted average shares outstanding - basic (in shares) | 132,498,000 | 131,014,000 | 131,996,000 | 130,813,000 |
Plus: Common share equivalents | ||||
RSUs (in shares) | 1,041,000 | 588,000 | 1,161,000 | 686,000 |
Weighted average shares outstanding-diluted (in shares) | 133,539,000 | 131,602,000 | 133,157,000 | 131,499,000 |
RSU | ||||
Plus: Common share equivalents | ||||
Anti-dilutive securities excluded from the computation of diluted EPS (in shares) | 1,369,000 | 1,206,000 | 166,000 | 249,000 |
Basis of presentation - Sched_2
Basis of presentation - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income taxes payable - current | $ 0 | $ 13,720 |
Hedge payable - current | 7,671 | 13,031 |
Other | 19,183 | 15,827 |
Other current liabilities | $ 26,854 | $ 42,578 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. |
Undelivered performance obligation | $ 62 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 27.00% |
Performance obligation, term | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 40.00% |
Performance obligation, term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 33.00% |
Performance obligation, term |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 346,696 | $ 301,329 | $ 681,878 | $ 610,709 |
Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 291,361 | 253,735 | 573,680 | 513,915 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 55,335 | 47,594 | 108,198 | 96,794 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 134,670 | 121,708 | 261,403 | 246,725 |
Americas | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 112,215 | 103,113 | 216,801 | 208,412 |
Americas | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 22,455 | 18,595 | 44,602 | 38,313 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 89,169 | 74,656 | 174,691 | 161,385 |
EMEA | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 67,252 | 56,203 | 132,355 | 123,896 |
EMEA | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 21,917 | 18,453 | 42,336 | 37,489 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 122,857 | 104,965 | 245,784 | 202,599 |
APAC | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 111,894 | 94,419 | 224,524 | 181,607 |
APAC | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 10,963 | $ 10,546 | $ 21,260 | $ 20,992 |
Revenue - Change in Unearned Re
Revenue - Change in Unearned Revenue (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Deferred revenue, beginning balance | $ 168,486 |
Deferral of revenue billed in current period, net of recognition | 78,324 |
Recognition of revenue deferred in prior periods | (83,991) |
Foreign currency translation impact | (2,209) |
Deferred revenue, ending balance | $ 160,610 |
Short-term investments - Unreal
Short-term investments - Unrealized Gains And Losses Related To Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 14,089 | $ 59,761 |
Gross Unrealized Gain | 21 | 163 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | 14,110 | 59,923 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 14,089 | 59,761 |
Gross Unrealized Gain | 21 | 163 |
Gross Unrealized Loss | 0 | (1) |
Fair Value | $ 14,110 | $ 59,923 |
Short-term investments - Contra
Short-term investments - Contractual Maturities Of Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Adjusted Cost | |||
Due in less than 1 year | $ 14,089 | ||
Fair Value | |||
Due in less than 1 year | 14,110 | ||
Carrying value of equity method investments | 33,000 | $ 25,000 | |
Impairment loss | $ 3,500 | ||
Corporate bonds | |||
Adjusted Cost | |||
Due in less than 1 year | 14,089 | ||
Fair Value | |||
Due in less than 1 year | $ 14,110 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term investments available for sale: | ||
Available-for-sale | $ 14,110 | $ 59,923 |
Derivatives | 8,164 | 6,124 |
Total Assets | 155,706 | 211,513 |
Derivatives | (9,467) | (19,359) |
Total Liabilities | $ (9,467) | (19,359) |
Available-for-sale contractual maturity (in months) | 60 months | |
Level 1 | ||
Short-term investments available for sale: | ||
Derivatives | $ 0 | 0 |
Total Assets | 133,432 | 145,466 |
Derivatives | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | ||
Short-term investments available for sale: | ||
Derivatives | 8,164 | 6,124 |
Total Assets | 22,274 | 66,047 |
Derivatives | (9,467) | (19,359) |
Total Liabilities | (9,467) | (19,359) |
Level 3 | ||
Short-term investments available for sale: | ||
Derivatives | 0 | 0 |
Total Assets | 0 | 0 |
Derivatives | 0 | 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 | 133,432 | 145,466 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 133,432 | 145,466 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Corporate bonds | ||
Short-term investments available for sale: | ||
Available-for-sale | 14,110 | 59,923 |
Corporate bonds | Level 1 | ||
Short-term investments available for sale: | ||
Available-for-sale | 0 | 0 |
Corporate bonds | Level 2 | ||
Short-term investments available for sale: | ||
Available-for-sale | 14,110 | 59,923 |
Corporate bonds | Level 3 | ||
Short-term investments available for sale: | ||
Available-for-sale | $ 0 | $ 0 |
Derivative instruments and he_3
Derivative instruments and hedging activities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)country | Jun. 30, 2020 | Jun. 30, 2021USD ($)country | Jun. 30, 2020 | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||
Number of countries for which entity has direct operations | country | 40 | 40 | |||
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 | ||||
Duration of foreign currency forward contracts | 30 months | 30 months | |||
Foreign currency forward contracts notional amount | $ 511,939 | $ 511,939 | $ 504,179 | ||
Non-Americas | Net sales | Outside of the Americas | |||||
Derivative [Line Items] | |||||
Concentration risk | 61.00% | 60.00% | 62.00% | 60.00% | |
Forward Contracts | |||||
Derivative [Line Items] | |||||
Duration of time, foreign currency cash flow hedge | 40 months | ||||
Forward Contracts | Net sales | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings (less than for Operating expenses) | $ (1,400) | ||||
Forward Contracts | Cost of sales | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings (less than for Operating expenses) | (100) | ||||
Forward Contracts | Operating expenses | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings (less than for Operating expenses) | 100 | ||||
Other Derivatives | |||||
Derivative [Line Items] | |||||
Foreign currency forward contracts notional amount | $ 116,000 | $ 116,000 | $ 89,000 | ||
Maximum | Forward Contracts | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 100.00% | 100.00% | |||
Maximum | Other Derivatives | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 90.00% | 90.00% | |||
Duration of foreign currency forward contracts | 90 days |
Derivative instruments and he_4
Derivative instruments and hedging activities - Summary Of Notional Amounts Of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 511,939 | $ 504,179 |
British pound | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 35,446 | 25,133 |
Chinese yuan | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 86,142 | 45,553 |
Euro | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 205,346 | 219,115 |
Hungarian forint | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 69,193 | 82,429 |
Japanese yen | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 57,666 | 73,399 |
Korean won | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 22,889 | 22,301 |
Malaysian ringgit | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 35,257 | $ 36,249 |
Derivative instruments and he_5
Derivative instruments and hedging activities - Fair Value Of Derivative Instruments On Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 8,164 | $ 6,124 |
Derivative liability | (9,467) | (19,359) |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7,435 | 4,681 |
Derivative liability | (7,302) | (18,877) |
Derivatives designated as hedging instruments | Foreign exchange contracts - ST forwards | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4,213 | 1,564 |
Derivatives designated as hedging instruments | Foreign exchange contracts - ST forwards | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (5,506) | (12,549) |
Derivatives designated as hedging instruments | Foreign exchange contracts - LT forwards | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 3,222 | 3,117 |
Derivatives designated as hedging instruments | Foreign exchange contracts - LT forwards | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (1,796) | (6,328) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 729 | 1,443 |
Derivative liability | (2,165) | (482) |
Derivatives not designated as hedging instruments | Foreign exchange contracts - ST forwards | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 729 | 1,443 |
Derivatives not designated as hedging instruments | Foreign exchange contracts - ST forwards | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (2,165) | $ (482) |
Derivative instruments and he_6
Derivative instruments and hedging activities - Effect Of Derivative Instruments On Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivatives designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | $ 2,381 | $ (74) | $ 14,362 | $ (598) |
Gain or (Loss) Reclassified from Accumulated OCI into Income | (2,361) | 1,239 | (4,417) | 2,809 |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | 15,728 | 5,724 | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | (2,408) | 2,726 | (4,434) | 5,260 |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | (837) | (3,798) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 20 | (850) | (1) | (1,369) |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Operating expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | (529) | (2,524) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 27 | (637) | 18 | (1,082) |
Derivatives designated as hedging instruments | Foreign Exchange Forward A | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | (558) | (5,132) | ||
Derivatives designated as hedging instruments | Foreign Exchange Forward B | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | 1,692 | 2,962 | ||
Derivatives designated as hedging instruments | Foreign Exchange Forward C | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | 1,247 | 2,096 | ||
Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (662) | (193) | (2,263) | 105 |
Derivatives not designated as hedging instruments | Foreign exchange contracts - forwards | Other expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (662) | $ (193) | $ (2,263) | $ 105 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 115,838 | $ 99,942 |
Work-in-process | 9,884 | 11,307 |
Finished goods | 85,301 | 82,763 |
Total | $ 211,023 | $ 194,012 |
Intangible assets, net and go_3
Intangible assets, net and goodwill - Schedule Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 297,288 | $ 324,253 |
Accumulated Amortization | (148,162) | (151,534) |
Net Carrying Amount | 149,126 | 172,719 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 85,064 | 115,251 |
Accumulated Amortization | (65,991) | (83,706) |
Net Carrying Amount | 19,073 | 31,545 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 109,345 | 105,486 |
Accumulated Amortization | (25,454) | (17,913) |
Net Carrying Amount | 83,891 | 87,573 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 39,984 | 40,273 |
Accumulated Amortization | (13,588) | (10,026) |
Net Carrying Amount | 26,396 | 30,247 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,625 | 35,803 |
Accumulated Amortization | (28,042) | (25,578) |
Net Carrying Amount | 7,583 | 10,225 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,270 | 27,440 |
Accumulated Amortization | (15,087) | (14,311) |
Net Carrying Amount | $ 12,183 | $ 13,129 |
Intangible assets, net and go_4
Intangible assets, net and goodwill - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 15,900,000 | $ 9,300,000 | $ 29,900,000 | $ 18,700,000 | |
Number of operating segments | segment | 1 | ||||
Goodwill impairment | $ 0 | $ 0 | |||
Capitalized software development costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs capitalized | 500,000 | 1,300,000 | 800,000 | 3,300,000 | |
Amortization expense of capitalized software development costs | 6,300,000 | 7,400,000 | 13,300,000 | 14,700,000 | |
Costs related to stock based compensation (less than for three months ended June 30, 2021) | $ 100,000 | $ 100,000 | $ 100,000 | $ 200,000 | |
Capitalized software development costs | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 3 years | ||||
Capitalized software development costs | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 6 years | ||||
Acquired technology | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 5 years | ||||
Acquired technology | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 10 years | ||||
Patents | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 10 years | ||||
Patents | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 17 years |
Intangible assets, net and go_5
Intangible assets, net and goodwill - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 467,547 |
Acquisitions | 16,893 |
Measurement period adjustments | 1,973 |
Foreign currency translation impact | (3,277) |
Balance at end of period | $ 483,136 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease, termination period | 1 year | |||
Operating lease cost | $ 5,208 | $ 5,389 | $ 10,538 | $ 11,071 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, remaining lease term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, remaining lease term | 93 years | 93 years | ||
Operating lease, option to extend, term | 9 years | 9 years |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (Excluding the six months ended June 30, 2021) | $ 8,506 |
2022 | 11,611 |
2022 | 7,946 |
2023 | 6,978 |
2024 | 4,958 |
Thereafter | 7,095 |
Total future minimum lease payments | 47,094 |
Less imputed interest | (4,193) |
Total lease liabilities | $ 42,901 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | $ 94,000 | $ 94,000 | $ 93,000 | ||
Unrecognized tax benefits | 10,700 | 10,700 | $ 10,500 | ||
Unrecognized tax benefits, period increase (decrease) | 200 | ||||
Reasonable possibility of future tax benefits | 1,400 | 1,400 | |||
Interest expense related to uncertain tax positions (less than) | 100 | ||||
Accrued interest related to uncertain tax positions | $ 500 | $ 500 | |||
Effective income tax rate | 20.00% | 29.00% | 16.00% | 24.00% | |
Hungary | |||||
Operating Loss Carryforwards [Line Items] | |||||
Hungary statutory tax rate | 9.00% | ||||
Foreign income tax benefit | $ 200 | $ 300 | $ 300 | $ 100 | |
Malaysia | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit of tax holiday, amount | $ 200 | $ 100 | $ 300 | $ 300 | |
Income tax benefit of tax holiday (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Comprehensive income (Details)
Comprehensive income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,224,871 | $ 1,176,350 |
Current-period other comprehensive income (loss) | 4,893 | 82 |
Reclassified from accumulated OCI into income | 4,417 | (2,809) |
Income tax (benefit) expense | 3,259 | 68 |
Ending Balance | 1,235,652 | 1,269,639 |
Currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (10,066) | (25,831) |
Current-period other comprehensive income (loss) | (4,911) | (1,975) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax (benefit) expense | 0 | 0 |
Ending Balance | (14,977) | (27,806) |
Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (426) | (85) |
Current-period other comprehensive income (loss) | (141) | (154) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax (benefit) expense | (3) | (56) |
Ending Balance | (564) | (183) |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (10,334) | 4,846 |
Current-period other comprehensive income (loss) | 9,945 | 2,211 |
Reclassified from accumulated OCI into income | 4,417 | (2,809) |
Income tax (benefit) expense | 3,262 | 124 |
Ending Balance | 766 | 4,124 |
Accumulated other comprehensive income/(loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (20,826) | (21,070) |
Ending Balance | $ (14,775) | $ (23,865) |
Authorized shares of common a_3
Authorized shares of common and preferred stock and stock-based compensation plans - Narrative (Details) - $ / shares | Jan. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | May 05, 2020 | Oct. 23, 2019 | May 14, 2019 | May 12, 2015 | May 14, 2013 | May 11, 2010 | May 31, 2005 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common and preferred stock shares authorized (in shares) | 365,000,000 | |||||||||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, authorized (in shares) | 360,000,000 | 360,000,000 | 360,000,000 | |||||||||
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||||||
Authorized common stock available for repurchase (in shares) | 1,609,943 | 3,000,000 | ||||||||||
Common stock repurchased (in shares) | 503,326 | 668,199 | ||||||||||
Common stock repurchased, average cost per share (in usd per share) | $ 34.08 | $ 35.44 | ||||||||||
Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of target shares granted | 0.00% | |||||||||||
Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of target shares granted | 200.00% | |||||||||||
Performance Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance-based stock units, vested in period (in shares) | 130,006 | 144,647 | ||||||||||
Performance period | 3 years | 3 years | ||||||||||
Performance-based stock units, weighted average grant date fair value (in usd per share) | $ 61 | $ 66.97 | $ 61 | |||||||||
2005 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for issuance (in shares) | 3,362,304 | 4,050,000 | ||||||||||
Award vesting period (in years) | 10 years | |||||||||||
2005 Plan | Vesting period one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 3 years | |||||||||||
2005 Plan | Vesting period two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 5 years | |||||||||||
2005 Plan | Vesting period three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 10 years | |||||||||||
2010 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 3,000,000 | |||||||||||
Number of shares reserved for issuance (in shares) | 2,518,416 | |||||||||||
2010 Plan | Vesting period one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 3 years | |||||||||||
2010 Plan | Vesting period two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 5 years | |||||||||||
2010 Plan | Vesting period three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 10 years | |||||||||||
1994 and 2005 Plans | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for issuance (in shares) | 3,362,304 | |||||||||||
2015 Plans | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for issuance (in shares) | 567,142 | 3,000,000 | ||||||||||
Shares available for grant under 2015 restricted stock plan (in shares) | 567,142 | |||||||||||
2015 Plans | Vesting period one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 3 years | |||||||||||
2015 Plans | Vesting period two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 4 years | |||||||||||
2015 Plans | Vesting period three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 5 years | |||||||||||
2015 Plans | Vesting period four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 10 years | |||||||||||
2020 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares reserved for issuance (in shares) | 4,500,000 | |||||||||||
Shares available for grant under 2015 restricted stock plan (in shares) | 3,292,288 | |||||||||||
2020 Plan | Vesting period one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 1 year | |||||||||||
2020 Plan | Vesting period two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 2 years | |||||||||||
2020 Plan | Vesting period three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 3 years | |||||||||||
2020 Plan | Vesting period four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period (in years) | 4 years | |||||||||||
ESPP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 3,000,000 | |||||||||||
Percentage of the lower of the market related to purchase of common stock | 85.00% | |||||||||||
Maximum employee subscription rate | 15.00% | |||||||||||
Common stock reserved for future issuance under employee stock purchase plan (in shares) | 2,490,594 | |||||||||||
Shares issued under employee stock purchase plan (in shares) | 568,598 | |||||||||||
Weighted average purchase price of employees' purchase rights (in usd per share) | $ 30.32 |
Authorized shares of common a_4
Authorized shares of common and preferred stock and stock-based compensation plans - Schedule of Key Assumptions to Value Market-based Awards (Details) - Performance Shares - simulation simulation in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of simulations | 100 | 100 |
Expected volatility | 40.60% | 27.41% |
Expected life in years | 2 years 11 months 12 days | 2 years 11 months 1 day |
Risk-free interest rate | 0.21% | 1.38% |
Dividend yield | 2.66% | 2.32% |
Segment and geographic inform_3
Segment and geographic information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segmentregion | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 1 |
Number of geographic regions company operates in | region | 3 |
Segment and geographic inform_4
Segment and geographic information - Schedule of Net Sales by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 346,696 | $ 301,329 | $ 681,878 | $ 610,709 | |
Long-lived assets | 309,000 | 309,000 | $ 322,000 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 127,000 | 116,000 | 247,000 | 234,000 | |
Long-lived assets | 127,000 | 127,000 | 127,000 | ||
China | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 59,000 | 52,000 | 113,000 | 87,000 | |
Hungary | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 51,000 | 51,000 | 52,000 | ||
Malaysia | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | 75,000 | 75,000 | 75,000 | ||
Rest of the World | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 161,000 | $ 133,000 | 322,000 | $ 290,000 | |
Long-lived assets | $ 56,000 | $ 56,000 | $ 68,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 18, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Term Loan | |||
Line of Credit Facility [Line Items] | |||
Effective interest rate | 1.70% | 1.70% | |
Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Total leverage ratio | 3.50 | ||
Leverage ratio for material acquisitions | 4 | ||
Debt instrument, covenant, liquidity ratio leverage, minimum | 3 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs | $ 2,700,000 | ||
Secured Revolving Loan Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unsecured revolving line of credit | $ 500,000,000 | ||
Revolving Credit Facility | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Effective interest rate | 0.50% | ||
Revolving Credit Facility | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Effective interest rate | 1.00% | ||
Revolving Credit Facility | Term Loan | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Unsecured revolving line of credit | $ 25,000,000 | ||
Revolving Credit Facility | Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee | 0.15% | ||
Revolving Credit Facility | Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee | 0.25% | ||
Revolving Credit Facility | Credit Agreement | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate spread | 0.25% | ||
Revolving Credit Facility | Credit Agreement | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate spread | 0.75% | ||
Revolving Credit Facility | Credit Agreement | LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate spread | 1.25% | ||
Revolving Credit Facility | Credit Agreement | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate spread | 1.75% | ||
Revolving Credit Facility | Line of Credit | LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, default interest rate | 2.00% |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Debt | $ 100,000 | $ 98,750 |
Less: Unamortized debt issuance costs | 0 | (1,714) |
Less: Current portion of total debt | 0 | (5,000) |
Total Debt, non-current | $ 100,000 | $ 92,036 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 1.70% | 1.70% |
Total Debt | $ 0 | $ 98,750 |
Wells Fargo Revolving Credit Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 1.30% | |
Total Debt | $ 100,000 | $ 0 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Limited warranty on most hardware products (in number of years) | 1 year |
Non-cancelable purchase commitments | $ 3.5 |
Commitments and contingencies_2
Commitments and contingencies - Schedule Of Warranty Reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 2,872 | $ 2,561 |
Accruals for warranties issued during the period | 1,375 | 1,165 |
Accruals related to pre-existing warranties | 95 | 298 |
Settlements made (in cash or in kind) during the period | (1,456) | (1,322) |
Balance at the end of the period | $ 2,886 | $ 2,702 |
Restructuring - Summary of Char
Restructuring - Summary of Charges in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | $ 313 | $ 1,553 | $ 6,588 | $ 12,803 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | (118) | 0 | (43) | 20 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | 223 | 79 | 379 | 4,679 |
Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | 61 | 1,227 | 4,147 | 7,542 |
General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | $ 147 | $ 247 | $ 2,105 | $ 562 |
Restructuring - Summary of Bala
Restructuring - Summary of Balance Sheet Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 28,993 | |||
Income statement expense | $ 313 | $ 1,553 | 6,588 | $ 12,803 |
Cash payments | (27,578) | |||
Restructuring reserve, ending balance | $ 8,003 | $ 8,003 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 8,003 | $ 28,993 |
Severance payments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 8,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Jul. 02, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Proceeds from term loan | $ 0 | $ 70,000 | ||||
Goodwill | $ 483,136 | 483,136 | $ 467,547 | |||
Term loan facility | Wells Fargo Securities, LLC | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from term loan | $ 70,000 | |||||
OptimalPlus | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 100.00% | |||||
Transaction costs | $ 7,000 | |||||
Total cash consideration | $ 352,642 | |||||
Cash acquired from acquisition | 18,000 | |||||
Deferred cash consideration | 12,000 | |||||
Goodwill | $ 205,038 | |||||
Other Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Total cash consideration | 20,000 | |||||
Goodwill | 17,000 | 17,000 | ||||
Other intangible assets | $ 4,000 | $ 4,000 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 02, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 483,136 | $ 467,547 | |
OptimalPlus | |||
Business Acquisition [Line Items] | |||
Consideration Transferred | $ 352,642 | ||
Cash | 17,661 | ||
Intangible assets | 129,000 | ||
Goodwill | 205,038 | ||
Contract assets | 15,454 | ||
Deferred revenue | (7,341) | ||
Accounts receivable | 4,927 | ||
Other assets and liabilities | (4,516) | ||
Deferred tax liabilities | (7,581) | ||
Net assets acquired | $ 352,642 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Purchase Price Allocation and Useful Lives (Details) - OptimalPlus $ in Thousands | Jul. 02, 2020USD ($) |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 129,000 |
Customer relationships | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 30,100 |
Estimated Useful Lives (in years) | 5 years |
Developed technology | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 82,400 |
Estimated Useful Lives (in years) | 6 years |
In-process research and development (IPR&D) | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 10,400 |
Estimated Useful Lives (in years) | 6 years |
Other intangibles | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 6,100 |
Other intangibles | Minimum | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (in years) | 3 years |
Other intangibles | Maximum | |
Business Acquisition [Line Items] | |
Estimated Useful Lives (in years) | 5 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - OptimalPlus - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||
Net sales | $ 305,069 | $ 620,239 |
Net (loss) income | $ (2,222) | $ 118,769 |
Subsequent events (Details)
Subsequent events (Details) - $ / shares | Jul. 21, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Event [Line Items] | |||||
Dividends declared per share (in usd per share) | $ 0.27 | $ 0.26 | $ 0.54 | $ 0.52 | |
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (in usd per share) | $ 0.27 |