Cray (CRAY) 10-Q 30 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 26, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CRAY INC
Entity Central Index Key	949,158
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		40,836,694

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 166,848	$ 137,326
Restricted cash	1,303	1,964
Short-term investments	0	6,997
Accounts and other receivables, net	74,961	162,034
Inventory	141,561	186,307
Prepaid expenses and other current assets	21,231	25,015
Total current assets	405,904	519,643
Assets, Noncurrent [Abstract]
Long-term restricted cash	16,030	1,030
Long-term investment in sales-type lease, net	13,024	23,367
Property and equipment, net	36,325	36,623
Goodwill	14,182	14,182
Intangible assets other than goodwill, net	3,471	4,345
Other non-current assets	17,433	19,567
TOTAL ASSETS	506,369	618,757
Current liabilities:
Accounts payable	28,956	57,207
Accrued payroll and related expenses	17,768	18,546
Other accrued liabilities	7,717	9,471
Customer contract liabilities	57,290	80,119
Total current liabilities	111,731	165,343
Liabilities, Noncurrent [Abstract]
Long-term customer contract liabilities	31,661	38,622
Other non-current liabilities	12,725	14,495
TOTAL LIABILITIES	156,117	218,460
Shareholders’ equity:
Preferred stock — Authorized and undesignated, 5,000,000 shares; no shares issued or outstanding	0	0
Common stock and additional paid-in capital, par value $.01 per share — Authorized, 75,000,000 shares; issued and outstanding 40,825,905 and 40,464,963 shares, respectively	643,059	633,408
Accumulated other comprehensive income	707	915
Accumulated deficit	(293,514)	(234,026)
TOTAL SHAREHOLDERS’ EQUITY	350,252	400,297
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 506,369	$ 618,757

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock and additional paid-in capital, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock and additional paid-in capital, shares authorized	75,000,000	75,000,000
Common stock and additional paid-in capital, shares issued	40,825,905	40,464,963
Common stock and additional paid-in capital, shares outstanding	40,825,905	40,464,963

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Product	$ 57,990	$ 45,280	$ 185,823	$ 117,939
Service	34,806	34,420	106,770	107,927
Total revenue	92,796	79,700	292,593	225,866
Cost of revenue:
Cost of product revenue	49,053	35,090	148,372	89,356
Cost of service revenue	18,932	16,118	54,651	55,866
Total cost of revenue	67,985	51,208	203,023	145,222
Gross profit	24,811	28,492	89,570	80,644
Operating expenses:
Research and development, net	26,162	26,626	85,436	76,591
Sales and marketing	15,282	13,392	46,165	43,292
General and administrative	6,580	7,022	17,983	23,024
Restructuring	0	7,653	476	7,653
Total operating expenses	48,024	54,693	150,060	150,560
Loss from operations	(23,213)	(26,201)	(60,490)	(69,916)
Other income, net	151	4,161	199	5,358
Interest income, net	908	880	2,288	2,655
Gain on strategic transaction	0	4,389	0	4,389
Loss before income taxes	(22,154)	(16,771)	(58,003)	(57,514)
Income tax benefit (expense)	(239)	6,539	(348)	21,227
Net loss	$ (22,393)	$ (10,232)	$ (58,351)	$ (36,287)
Basic net loss per common share (in dollars per share)	$ (0.55)	$ (0.25)	$ (1.44)	$ (0.91)
Diluted net loss per common share (in dollars per share)	$ (0.55)	$ (0.25)	$ (1.44)	$ (0.91)
Basic weighted average shares outstanding (in shares)	40,778	40,199	40,611	40,082
Diluted weighted average shares outstanding (in shares)	40,778	40,199	40,611	40,082

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (22,393)	$ (10,232)	$ (58,351)	$ (36,287)
Other comprehensive loss, net of tax:
Unrealized gain (loss) on available-for-sale investments	0	(98)	7	(4)
Foreign currency translation adjustments	(126)	(118)	(1,285)	322
Unrealized gain (loss) on cash flow hedges	(651)	(1,004)	423	(2,178)
Reclassification adjustments on cash flow hedges included in net loss	(462)	56	647	94
Other comprehensive loss	(1,239)	(1,164)	(208)	(1,766)
Comprehensive loss	$ (23,632)	$ (11,396)	$ (58,559)	$ (38,053)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net loss	$ (58,351)	$ (36,287)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	12,158	12,134
Share-based compensation expense	9,648	7,643
Deferred income taxes	(115)	(21,419)
Gain on strategic transaction	0	(4,389)
Gain on sale of equity investment	(429)	(3,350)
Other	232	741
Cash provided (used) due to changes in operating assets and liabilities:
Accounts and other receivables	84,583	137,559
Long-term investment in sales-type lease, net	9,888	7,065
Inventory	38,124	(107,621)
Prepaid expenses and other assets	516	1,939
Accounts payable	(28,029)	(3,512)
Accrued payroll and related expenses and other liabilities	1,511	(3,982)
Customer contract liabilities	(29,315)	(25,205)
Net cash provided by (used in) operating activities	40,421	(38,684)
Investing activities:
Sales/maturities of available-for-sale investments	7,000	66,610
Purchases of available-for-sale investments	0	(94,902)
Cash received in strategic transaction	1,584	8,000
Proceeds from sale of equity investment	429	4,481
Purchases of property and equipment	(3,813)	(15,647)
Net cash provided by (used in) investing activities	5,200	(31,458)
Financing activities:
Proceeds from issuance of common stock through employee stock purchase plan	0	365
Purchase of employee restricted shares to fund related statutory tax withholding	(2,934)	(1,869)
Proceeds from exercises of stock options	1,801	693
Net cash used in financing activities	(1,133)	(811)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	(627)	1,152
Net increase (decrease) in cash, cash equivalents and restricted cash	43,861	(69,801)
Cash, cash equivalents and restricted cash:
Beginning of period	140,320	224,617
End of period	184,181	154,816
Supplemental disclosure of cash flow information:
Cash paid for income taxes	741	1,202
Non-cash investing and financing activities:
Inventory transfers to fixed assets and service spares	6,572	1,248
Receivable from Seagate			$ 0	$ 1,404
Inventory			0	4,170
Property and equipment			0	2,684
Intangible assets			0	3,350
Deferred revenue			0	11,700
Deferred tax liabilities			0	3,019
Other liabilities			0	500
Cash, cash equivalents and restricted cash [Abstract]
Cash and cash equivalents			166,848
Restricted cash			1,303
Long-term restricted cash			16,030
Total cash, cash equivalents and restricted cash	$ 140,320	$ 224,617	$ 184,181	$ 154,816

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Note 1— Basis of Presentation In these notes, the Company and its wholly-owned subsidiaries are collectively referred to as the “Company.” In the opinion of management, the accompanying Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Loss, and Statements of Cash Flows have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Management believes that all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. Interim results are not necessarily indicative of results for a full year. The information included in this quarterly report on Form 10-Q should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2017 . The Company’s revenue, results of operations and cash balances are likely to fluctuate significantly from quarter to quarter. These fluctuations are due to such factors as the high average sales prices and limited number of sales of the Company’s products, the timing of purchase orders and product deliveries, the revenue recognition accounting policy of generally not recognizing product revenue until customer acceptance and other contractual provisions have been fulfilled and the timing of payments for product sales, maintenance services, government research and development funding and purchases of inventory. Given the nature of the Company’s business, its revenue, receivables and other related accounts are likely to be concentrated among a relatively small number of customers. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, which superseded nearly all existing revenue recognition guidance under GAAP, to all contracts using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new standard did not have a material impact on the Company’s net loss during the first nine months of 2018. The Company expects the impact of the adoption of the new standard to be immaterial to its net income on an ongoing basis. The Company’s performance obligations are satisfied over time as work is performed or at a point in time. The majority of the Company’s revenue is recognized at a point in time when products are accepted, installed or delivered. Most of the Company’s revenue is derived from long-term contracts that can span several years. Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the Company’s systems or services. In general, this does not occur until the products have been shipped or services provided to the customer, risk of loss has transferred to the customer, and, where applicable, a customer acceptance has been obtained. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. To determine the proper revenue recognition method for contracts, the Company evaluates whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. Contracts are often modified to account for changes in contract specifications and requirements. To determine the proper revenue recognition method for contract modifications, the Company evaluates whether the contract modification should be accounted for as a separate contract, part of an existing contract, or termination of an existing contract and the creation of a new contract. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the Company’s estimate of the standalone selling price of each distinct good or service in the contract. The Company determines the transaction price by reviewing the established contractual terms and other relevant information. Contracts can include penalty clauses and contracts with government customers may not be fully funded, both of which represent variable consideration. Generally, the Company includes both the funded and unfunded portions of a contract with a government customer in the transaction price, as most often it is deemed the contract will become fully funded. The Company also assesses the likelihood of certain penalties that would result in contract price reductions and, if deemed probable, the transaction price is adjusted. The majority of the Company’s contracts include multiple promised goods and services, which are assessed at contract inception. Each distinct good or service is identified as a performance obligation, which may be an individual good or service or a bundle of goods or services. In order to determine whether the promises are distinct, the Company assesses the use of its products and services by its customers to determine whether the customer can benefit from the good or service on its own or from other readily available resources, and whether the promised transfer of goods or services is separately identifiable from other promises in the contract. The majority of the Company’s revenues are from product solutions which include supercomputers, storage, and data analytics systems, each of which are usually separate performance obligations. Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Product revenue is typically recognized upon customer acceptance, or upon installation or delivery if formal acceptance is not required. Service revenue is typically recognized over time and consists mainly of system maintenance, analyst services, and engineering services, each of which are usually separate performance obligations. System maintenance commences upon customer acceptance or installation, depending on the contract terms, and revenue is recognized ratably over the remaining term of the maintenance contract. On-site analysts provide specialized services to customers, the revenue for which is recognized ratably over the contract period. Service revenue is recognized on a straight-line basis over the service period as the services are available continuously to the customer. Revenue from engineering services can be recognized as services are performed or as milestones are achieved, depending on the terms of the contract and nature of services performed. If, in a contract, the customer has an option to acquire additional goods or services, that option gives rise to a performance obligation if the option provides a material right to the customer that it would not receive without entering into that contract. Revenue from purchase options can be recognized as those future goods or services are transferred or when the option expires. The Company performs an assessment to determine whether a significant financing component is present in a contract. If a contract is determined to include a significant financing component, the interest rate used in the calculation is based on the prevailing interest rates at contract inception and the entity’s creditworthiness. When the period between providing a good or service to the customer is expected to be less than one year from payment, the Company applies the practical expedient and does not adjust the consideration for the effects of a significant financing component. Occasionally, the Company’s contracts include noncash consideration. This typically consists of returned parts when a system is upgraded or de-installed. Noncash consideration is measured at contract inception at estimated fair value. The total transaction price is allocated to each performance obligation identified in the contract based on its relative standalone selling price. The Company does not have directly observable standalone selling prices for the majority of its performance obligations due to a relatively small number of customer contracts that differ in system size and contract terms which can be due to infrequently selling each performance obligation separately, not pricing products within a narrow range, or only having a limited sales history, such as in the case of certain advanced and emerging technologies. When a directly observable standalone selling price is not available, the Company estimates the standalone selling price. In determining the estimated standalone selling price, the Company uses the cost to provide the product or service plus a margin, or considers other factors. When using cost plus a margin, the Company considers the total cost of the product or service, including customer-specific and geographic factors as appropriate. The Company also considers the historical margins of the product or service on previous contracts and several other factors including any changes to pricing methodologies, competitiveness of products and services, and cost drivers that would cause future margins to differ from historical margins. The Company sometimes offers discounts to its customers. As these discounts are offered on bundles of goods and services, the discounts are applied to all performance obligations in the contract on a pro-rata basis. The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers (in thousands) and includes both short-term and long-term portions: September 30, December 31, 2017 Change Contract receivables $ 70,927 $ 167,346 $ (96,419 ) Contract assets 3,801 9,321 (5,520 ) Contract liabilities 88,951 118,741 (29,790 ) Contract receivables consist of amounts billed to customers and include the Company's investment in a sales type lease, a portion of which is due beyond one year. Generally, billing occurs subsequent to product revenue recognition and payment is expected within 30 days. Contract assets primarily relate to the Company's rights to consideration for work completed but not billed where right to payment is not just subject to the passage of time. Contract assets become contract receivables when the rights become unconditional. The Company sometimes receives advances or deposits from customers before revenue is recognized, resulting in customer contract liabilities (formerly deferred revenue). These assets and liabilities are reported on the Condensed Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period. The Company’s payment terms vary from contract to contract. Contracts may require payment before, at or after the Company’s performance obligations have been satisfied. The decrease in the Company's contract asset balance for the nine months ended September 30, 2018 is primarily due to the transfer from contract assets to contract receivables that were included in the contract asset balance at the beginning of the period, partially offset by the addition of new contract assets. For the nine month period ended September 30, 2018 , the Company recognized $64.1 million in revenues from the contract liability balance at the beginning of the period. The Company’s incremental direct costs of obtaining a contract come primarily from sales commissions, a portion of which are paid upon contract signing. These commissions are generally capitalized upon payment and expensed at the time of revenue recognition. These deferred commissions are included in prepaid expenses in the Condensed Consolidated Balance Sheet. As of September 30, 2018 and December 31, 2017 , the Company had $2.5 million and $1.3 million , respectively, of deferred commissions. For the three and nine months ended September 30, 2018 , the Company recognized $1.1 million and $3.7 million , respectively, in commissions expense. For the three and nine months ended September 30, 2017 , the Company recognized $0.6 million and $2.2 million , respectively, in commissions expense. The following data presents the Company's operating segment revenues disaggregated by primary geographic market, which is determined based on a customer's geographic location (in thousands). Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific and Japan; and the United States, Canada, and Latin America (Americas). Revenues were increased by $0.5 million for the three months ended September 30, 2018 and reduced by $0.6 million for the nine months ended September 30, 2018 related to hedging gains and losses which do not represent revenues recognized from contracts with customers. Americas EMEA Asia Pacific & Japan Total Three Months Ended September 30, 2018 Supercomputing $ 45,263 $ 16,251 $ 11,101 $ 72,615 Storage and Data Management 8,897 2,368 998 12,263 Maintenance and Support 20,567 7,329 5,453 33,349 Engineering Services and Other 3,832 494 3,592 7,918 Elimination of inter-segment revenue (20,567 ) (7,329 ) (5,453 ) (33,349 ) Total revenue $ 57,992 $ 19,113 $ 15,691 $ 92,796 Americas EMEA Asia Pacific & Japan Total Nine Months Ended September 30, 2018 Supercomputing $ 110,189 $ 39,057 $ 81,006 $ 230,252 Storage and Data Management 23,810 9,813 12,354 45,977 Maintenance and Support 62,229 22,571 15,677 100,477 Engineering Services and Other 11,742 612 4,010 16,364 Elimination of inter-segment revenue (62,229 ) (22,571 ) (15,677 ) (100,477 ) Total revenue $ 145,741 $ 49,482 $ 97,370 $ 292,593 The Company’s remaining performance obligations reflect the deliverables within contracts with customers that will have revenue recognized in a future period (this may also be referred to as backlog). Due to the nature of the Company’s business and the size of individual transactions, forecasting the timing and total amount of revenue recognition is subject to significant uncertainties. As of September 30, 2018 , the Company has an aggregate of $615 million in remaining performance obligations stemming from a mixture of system contracts with their related service obligations and other service obligations. Included in this balance are $0.6 million in losses resulting from hedged foreign currency transactions, which offset the related increase in revenue from currency fluctuations. These gains will be reclassified from accumulated other comprehensive income to revenue in the period the related transactions are recognized as revenue. These obligations are anticipated to be recognized as revenue over approximately the next six years . The Company estimates that about 60% of these obligations are expected to be recognized as revenue in the next 18 months , with the remainder thereafter.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	Note 2— New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09) to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under prior GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new guidance also requires additional disclosures and several terminology changes, such as amounts previously referred to as deferred revenue now being referred to as customer contract liabilities. The Company adopted ASU 2014-09 at the beginning of the first quarter of 2018 using the modified retrospective method. No cumulative effect adjustment was required to be recorded for this change in accounting as the Company determined the impact of the change to not be material. The comparative information for the three and nine months ended September 30, 2017 , and as of December 31, 2017 has not been restated and continues to be reported under the accounting standards in effect for those periods. The effect of initially applying the new revenue standard had an immaterial effect on the Company’s financial statements. Adoption of the new standard did not have a material impact on the Company’s net loss during the first nine months of 2018. The Company expects the impact of the adoption of the new standard to be immaterial to its net income on an ongoing basis. In January 2016, FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities: Topic 825 (ASU 2016-01). The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The Company adopted ASU 2016-01 at the beginning of the first quarter of 2018. Adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated financial statements. In February 2016, FASB issued Accounting Standards Update No. 2016-02, Leases: Topic 842 (ASU 2016-02), that replaces existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Under the new guidance, leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of Operations. Lessor accounting is largely unchanged under ASU 2016-02. Adoption of ASU 2016-02 is required for fiscal reporting periods beginning after December 15, 2018, including interim reporting periods within those fiscal years with early adoption being permitted. The new standard initially required application with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. In July 2018, this requirement was amended with the issuance of Accounting Standards Update No. 2018-11, Leases: Topic 842: Targeted Improvements (ASU 2018-11), which permits an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840. While the Company expects adoption of ASU 2016-02 to lead to a material increase in the assets and liabilities recorded on its Consolidated Balance Sheet, the Company is still evaluating the overall impact on its consolidated financial statements. In August 2016, FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The updated guidance clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company adopted ASU 2016-15 at the beginning of the first quarter of 2018. Adoption of ASU 2016-15 did not have a material impact on the Company’s consolidated financial statements. In November 2016, FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The amended guidance requires that amounts that are deemed to be restricted cash and restricted cash equivalents be included in the cash and cash-equivalent balances in the statement of cash flows. A reconciliation between the consolidated balance sheet and the statement of cash flows must be disclosed when the consolidated balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. The guidance also requires that changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows. An entity with a material balance of amounts generally described as restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The Company adopted ASU 2016-18 at the beginning of the first quarter of 2018. Restricted cash amounts have been combined with the cash and cash equivalent balances in the Condensed Consolidated Statement of Cash Flows for each period presented. Adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. In August 2017, FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). The new standard simplifies and expands the eligible hedging strategies for financial and nonfinancial risks. It also enhances the transparency of how hedging results are presented and disclosed. Further, the new standard provides partial relief on the timing of certain aspects of hedge documentation and eliminates the requirement to recognize hedge ineffectiveness separately in earnings. Adoption of ASU 2017-12 is required for fiscal reporting periods beginning after December 15, 2018, including interim reporting periods within those fiscal years with early adoption being permitted. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. In February 2018, FASB issued Accounting Standards Update No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). The new standard amends ASC 220 to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the “Tax Cuts and Jobs Act” and requires entities to provide certain disclosures regarding stranded tax effects. Adoption of ASU 2018-02 is required for fiscal reporting periods beginning after December 15, 2018, including interim reporting periods within those fiscal years with early adoption being permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its consolidated financial statements. In August 2018, FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The new standard makes various modifications to the disclosure requirements on fair value measurement in Topic 820. Adoption of ASU 2018-13 is required for fiscal reporting periods beginning after December 15, 2019, including interim reporting periods within those fiscal years with early adoption being permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurement	Note 3— Fair Value Measurement Based on the observability of the inputs used in the valuation techniques used to determine the fair value of certain financial assets and liabilities, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value as of September 30, 2018 , and indicates the level within the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Cash, cash equivalents and restricted cash $ 184,181 $ 184,181 $ — Foreign currency exchange contracts (1) 2,876 — 2,876 Assets measured at fair value at September 30, 2018 $ 187,057 $ 184,181 $ 2,876 Liabilities: Foreign currency exchange contracts (2) 789 — 789 Liabilities measured at fair value at September 30, 2018 $ 789 $ — $ 789 (1) Included in “Prepaid expenses and other current assets” and “Other non-current assets” on the Company’s Condensed Consolidated Balance Sheets. (2) Included in “Other accrued liabilities” and “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets. Foreign Currency Derivatives The Company may enter into foreign currency derivatives to hedge future cash receipts on certain sales transactions that are payable in foreign currencies. As of September 30, 2018 and December 31, 2017 , the Company had outstanding foreign currency exchange contracts that were designated and accounted for as cash flow hedges of anticipated future cash receipts on sales contracts payable in foreign currencies. The outstanding notional amounts were approximately (in millions): September 30, December 31, 2017 Canadian Dollars (CAD) 54.4 56.0 Singapore Dollars (SGD) 2.0 — Euros (EUR) — 2.1 Japanese Yen (JPY) — 4,345.6 New Zealand Dollars (NZD) — 16.2 The Company had hedged foreign currency exposure related to these designated cash flow hedges of approximately $43.1 million and $96.3 million as of September 30, 2018 and December 31, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had outstanding foreign currency exchange contracts that had been dedesignated for the purposes of hedge accounting treatment. The Company dedesignates cash flow hedges when the receivable related to the hedged cash flow is recorded. The outstanding notional amounts were approximately (in millions): September 30, December 31, 2017 British Pounds (GBP) 20.2 26.1 Euros (EUR) 0.8 4.7 Swiss Francs (CHF) — 2.6 Canadian Dollars (CAD) — 0.3 The foreign currency exposure related to these contracts was approximately $30.7 million as of September 30, 2018 and $46.9 million as of December 31, 2017 . Unrealized gains or losses related to these dedesignated contracts are recorded in other income (loss) in the Condensed Consolidated Statements of Operations and are generally offset by foreign currency adjustments on related receivables. These foreign currency exchange contracts are considered to be economic hedges. Cash receipts associated with the foreign currency exchange contracts are expected to be received from 2018 through 2022, during which time the revenue on the associated sales contracts is expected to be recognized, or in the case of receivables denominated in a foreign currency, the receivables balances will be collected. Any gain or loss on hedged foreign currency will be recognized at the time of customer acceptance, or in the case of receivables denominated in a foreign currency, over the period during which hedged receivables denominated in a foreign currency are outstanding. Fair values of derivative instruments designated as cash flow hedges (in thousands): Balance Sheet Location Fair Value Fair Value Prepaid expenses and other current assets $ — $ 546 Other accrued liabilities (672 ) (129 ) Other non-current liabilities (117 ) (1,907 ) Total fair value of derivative instruments designated as cash flow hedges $ (789 ) $ (1,490 ) Fair values of derivative instruments not designated as cash flow hedges (in thousands): Balance Sheet Location Fair Value Fair Value Prepaid expenses and other current assets $ 1,591 $ 1,252 Other non-current assets 1,285 1,453 Other accrued liabilities — (395 ) Total fair value of derivative instruments not designated as cash flow hedges $ 2,876 $ 2,310

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2018
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income	Note 4— Accumulated Other Comprehensive Income The following table shows the impact on product revenue of reclassification adjustments from accumulated other comprehensive income resulting from hedged foreign currency transactions recorded by the Company for the three and nine months ended September 30, 2018 and 2017 (in thousands). The reclassification adjustments increased product revenue for the three months ended September 30, 2018 and decreased product revenue for the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017 . Three Months Ended Nine Months Ended 2018 2017 2018 2017 Gross of tax reclassifications $ 462 $ (93 ) $ (647 ) $ (157 ) Net of tax reclassifications $ 462 $ (56 ) $ (647 ) $ (94 ) The following tables show the changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 Unrealized Gain on Investments Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ — $ 452 $ 1,494 $ 1,946 Current-period change, net of tax — (126 ) (1,113 ) (1,239 ) Ending balance $ — $ 326 $ 381 $ 707 Income tax expense (benefit) associated with current-period change $ — $ — $ — $ — Three Months Ended September 30, 2017 Unrealized Gain (Loss) on Investments Foreign Currency Translation Adjustments Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ 94 $ 2,541 $ (455 ) $ 2,180 Current-period change, net of tax (98 ) (118 ) (948 ) (1,164 ) Ending balance $ (4 ) $ 2,423 $ (1,403 ) $ 1,016 Income tax expense (benefit) associated with current-period change $ (66 ) $ 148 $ (632 ) $ (550 ) Nine Months Ended September 30, 2018 Unrealized Loss on Investments Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ (7 ) $ 1,611 $ (689 ) $ 915 Current-period change, net of tax 7 (1,285 ) 1,070 (208 ) Ending balance $ — $ 326 $ 381 $ 707 Income tax expense (benefit) associated with current-period change $ — $ — $ — $ — Nine Months Ended September 30, 2017 Unrealized Loss on Investments Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ — $ 2,101 $ 681 $ 2,782 Current-period change, net of tax (4 ) 322 (2,084 ) (1,766 ) Ending balance $ (4 ) $ 2,423 $ (1,403 ) $ 1,016 Income tax expense (benefit) associated with current-period change $ (3 ) $ 343 $ (1,389 ) $ (1,049 )

Loss Per Share (EPS)

Loss Per Share (EPS)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Loss Per Share (EPS)	Note 5— Loss Per Share ("EPS") Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares, excluding unvested restricted stock, outstanding during the period. Diluted EPS is computed by dividing net loss available to common shareholders by the weighted average number of common and potential common shares outstanding during the period, which includes the additional dilution related to conversion of stock options, unvested restricted stock and unvested restricted stock units as computed under the treasury stock method. For the three and nine months ended September 30, 2018 and 2017 , outstanding stock options, unvested restricted stock and unvested restricted stock units were antidilutive because of the net losses and, as such, their effect has not been included in the calculation of basic or diluted net loss per share. For the three and nine months ended September 30, 2018 and 2017 , potential gross common shares of 3.2 million were antidilutive and not included in computing diluted EPS. An additional 0.5 million and 0.6 million performance vesting restricted stock and performance vesting restricted stock units were excluded from the computation of potential common shares for the three and nine months ended September 30, 2018 and 2017 , respectively, because the conditions for vesting had not been met as of the balance sheet date.

Investments

Investments	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Investments	Note 6— Investments The Company’s investments in debt securities with maturities at purchase greater than three months are classified as “available-for-sale.” Changes in fair value are reflected in other comprehensive loss. The Company had no investments in available-for-sale securities as of September 30, 2018. The carrying amounts of the Company’s investments in available-for-sale securities as of December 31, 2017 are shown in the table below (in thousands): Unrealized Loss Cost Fair Value Short-term available-for-sale securities $ 7,007 $ (10 ) $ 6,997

Accounts and Other Receivables,

Accounts and Other Receivables, Net	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Accounts and Other Receivables, Net	Note 7— Accounts and Other Receivables, Net Net accounts and other receivables consisted of the following (in thousands): September 30, December 31, 2017 Trade accounts receivable $ 46,132 $ 131,151 Current contract assets 3,801 9,321 Advance billings 5,208 3,569 Short-term investment in sales-type lease 12,642 10,684 Other receivables 7,203 7,337 74,986 162,062 Allowance for doubtful accounts (25 ) (28 ) Accounts and other receivables, net $ 74,961 $ 162,034 Contract assets represent amounts where the Company has recognized revenue in advance of the contractual billing terms. Advance billings represent billings made based on contractual terms for which revenue has not been recognized. As of September 30, 2018 and December 31, 2017 , accounts receivable included $24.6 million and $45.3 million , respectively, that resulted from sales to the U.S. government and system acquisitions primarily funded by the U.S. government (“U.S. Government”). Of these amounts, $1.1 million and $2.1 million were unbilled and included in contract assets as of September 30, 2018 and December 31, 2017 , respectively, based upon contractual billing arrangements with these customers. As of September 30, 2018 , one non-U.S. Government customer accounted for 17% of total accounts and other receivables. As of December 31, 2017 , two non-U.S. Government customers accounted for 38% of total accounts and other receivables.

Sales-type Lease

Sales-type Lease	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Sales-type Lease	Note 8— Sales-type Lease The Company has a sales-type lease with one non-U.S. Government customer, under which it will receive quarterly payments over the term of the lease, which expires in September 2020. The lease is denominated in British Pounds and the Company has entered into certain foreign currency exchange contracts that act as an economic hedge for the foreign currency exposure associated with this arrangement. The following table shows the components of the net investment in the sales-type lease as of September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2017 Total minimum lease payments to be received $ 29,849 $ 42,268 Less: executory costs (3,487 ) (6,831 ) Net minimum lease payments receivable 26,362 35,437 Less: unearned income (696 ) (1,386 ) Net investment in sales-type lease 25,666 34,051 Less: long-term investment in sales-type lease (13,024 ) (23,367 ) Investment in sales-type lease included in accounts and other receivables $ 12,642 $ 10,684 As of September 30, 2018 , minimum lease payments for each of the succeeding three fiscal years are as follows (in thousands): 2018 (less than 1 year) $ 3,733 2019 14,932 2020 11,184 Total minimum lease payments to be received $ 29,849

Inventory

Inventory	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventory	Note 9— Inventory Inventory consisted of the following (in thousands): September 30, December 31, 2017 Components and subassemblies $ 47,384 $ 37,219 Work in process 47,908 59,456 Finished goods 46,269 89,632 Total $ 141,561 $ 186,307 Finished goods inventory of $45.7 million and $48.1 million was located at customer sites pending acceptance as of September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 , one customer accounted for $38.3 million of finished goods inventory, and at December 31, 2017 , two customers accounted for $67.7 million of finished goods inventory. The Company wrote off $0.3 million of excess and obsolete inventory during the three and nine months ended September 30, 2018 . The Company did not write off any inventory during the three and nine months ended September 30, 2017 .

Contract Liabilities

Contract Liabilities	9 Months Ended
	Sep. 30, 2018
Deferred Revenue Disclosure [Abstract]
Contract Liabilities	Note 10— Customer Contract Liabilities Liabilities from contracts with customers consisted of the following (in thousands): September 30, December 31, 2017 Contract liability - product $ 9,315 $ 22,245 Contract liability - service 79,636 96,496 Total contract liabilities 88,951 118,741 Less: long-term contract liabilities (31,661 ) (38,622 ) Current contract liabilities $ 57,290 $ 80,119 As of September 30, 2018 and December 31, 2017 , the U.S. Government accounted for $30.1 million and $32.5 million , respectively, of total customer contract liabilities. As of September 30, 2018 , one non-U.S. Government customer accounted for 10% of total customer contract liabilities. As of December 31, 2017 , no non-U.S. Government customers accounted for more than 10% of total customer contract liabilities.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 11— Contingencies The Company is subject to patent lawsuits brought by Raytheon Company, or Raytheon. The first suit was brought by Raytheon on September 25, 2015 in the Eastern District of Texas (Civil Action No. 2:15-cv-1554) asserting infringement of four patents owned by Raytheon. Two of the originally asserted patents relate to computer hardware alleged to be encompassed by Cray’s current and past products (the “Hardware Patents”), and the two remaining asserted patents relate to features alleged to be performed by certain third-party software that Cray optionally includes as part of its product offerings (the “Software Patents”). A second suit was brought by Raytheon on April 22, 2016 in the Eastern District of Texas (Civil Action No. 2:16-cv-423) asserting infringement of five patents owned by Raytheon. In this second suit, all five asserted patents relate to features alleged to be performed by certain third-party software that Cray optionally includes as part of its product offerings. On September 21, 2017, the United States Court of Appeals for the Federal Circuit granted Cray’s petition for writ of mandamus and overturned the trial court’s determination that venue in the first action was proper in the Eastern District of Texas, and accordingly on April 5, 2018, the trial court ordered that the first action should be transferred to the Western District of Wisconsin as had been requested by Cray, which was effective on April 30, 2018 (Civil Action No. 3:18-cv-00318-wmc). After transfer, Raytheon indicated its desire to withdraw its claims for infringement of the Hardware Patents. Accordingly, the Wisconsin court, upon joint motion of the parties, has dismissed with prejudice the counts related to the Hardware Patents, and Raytheon has served on the Company and filed with the court covenants not to sue for infringement of the Hardware Patents. The Wisconsin court has also scheduled summary judgment proceedings on the remaining two counts, relating to the Software Patents, and trial has been set for June 3, 2019. The Texas court, upon joint motion of the parties, has also transferred the second action to the Northern District of California (Civil Action No. 3:18-cv-03388-RS). Per joint motion of the parties, the California court has stayed the second action pending resolution of the first action. The Company is vigorously defending these actions. The probable outcome of either litigation cannot be determined, nor can the Company estimate a range of potential loss. Based on its review of the matters to date, the Company believes that it has valid defenses and claims in each of the two lawsuits. As a result, the Company considers the likelihood of a material loss related to these matters to be remote.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note 12— Share-Based Compensation The Company accounts for its share-based compensation based on an estimate of fair value of the grant on the date of grant. In determining the fair value of stock options, the Company uses the Black-Scholes option pricing model. The following key weighted average assumptions were employed in the calculation for the three month period ended September 30, 2018 and the nine month periods ended September 30, 2018 and September 30, 2017 . There were no option grants during the three month period ended September 30, 2017 : Three Months Ended Nine Months Ended 2018 2018 2017 Risk-free interest rate 2.68% 2.84% 1.61% Expected dividend yield —% —% —% Volatility 48.67% 48.92% 54.20% Expected life 4.0 years 4.0 years 4.0 years Weighted average Black-Scholes value of options granted $10.31 $11.12 $7.75 The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company does not anticipate declaring dividends in the foreseeable future. Volatility is based on historical data. The expected life of an option is based on the assumption that options will be exercised, on average, about two years after vesting occurs. The Company recognizes compensation expense for only the portion of options that are expected to vest. Therefore, management applies an estimated forfeiture rate that is derived from historical employee termination data and adjusted for expected future employee turnover rates. The estimated forfeiture rate applied to the Company’s stock option grants during the three and nine months ended September 30, 2018 and 2017 was 8.0% . If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. The Company’s stock price volatility, option lives and expected forfeiture rates involve management’s best estimates at the time of such determination, which impact the fair value of the option calculated under the Black-Scholes methodology and, ultimately, the expense that will be recognized over the vesting period or requisite service period of the option. The Company typically issues stock options with a four year vesting period (the requisite service period) and amortizes the fair value of stock options (stock compensation cost) ratably over the requisite service period. A summary of the Company’s year-to-date stock option activity and related information follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2017 2,034,474 $ 17.26 Grants 170,053 $ 27.09 Exercises (194,954 ) $ 9.24 Canceled and forfeited (69,952 ) $ 26.76 Outstanding at September 30, 2018 1,939,621 $ 18.58 5.4 Exercisable at September 30, 2018 1,467,362 $ 16.79 4.4 Available for grant at September 30, 2018 2,329,513 As of September 30, 2018 , there was $11.2 million of aggregate intrinsic value of outstanding stock options, including $10.5 million of aggregate intrinsic value of exercisable stock options. Intrinsic value represents the total pretax intrinsic value for all “in-the-money” options ( i.e. , the difference between the Company’s closing stock price on the last trading day of its third quarter of 2018 and the exercise price, multiplied by the number of shares of common stock underlying the stock options) that would have been received by the option holders had all option holders exercised their options on September 30, 2018 . During the three and nine months ended September 30, 2018 , stock options covering 2,140 and 194,954 shares of common stock, respectively, with a total intrinsic value of $37 thousand and $2.7 million , respectively, were exercised. During the three and nine months ended September 30, 2017 , stock options covering 67,234 and 80,757 shares of common stock, respectively, with a total intrinsic value of $0.7 million and $0.9 million , respectively, were exercised. The fair value of unvested restricted stock and unvested restricted stock units is based on the market price of a share of the Company’s common stock on the date of grant and is amortized over the vesting period. A summary of the Company’s unvested restricted stock grants and changes during the nine months ended September 30, 2018 is as follows: Service Vesting Restricted Shares Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 112,325 $ 24.09 Granted 28,469 $ 27.10 Forfeited (680 ) $ 26.26 Vested (105,595 ) $ 23.58 Outstanding at September 30, 2018 34,519 $ 27.68 The estimated forfeiture rate applied to the Company’s restricted stock grants during the three and nine months ended September 30, 2018 and 2017 , was 8.0% . The aggregate fair value of restricted stock vested during the three and nine months ended September 30, 2018 , was $0.5 million and $2.5 million , respectively. The aggregate fair value of restricted stock vested during the three and nine months ended September 30, 2017 , was $0.5 million and $2.8 million , respectively. A summary of the Company’s unvested restricted stock unit grants and changes during the nine months ended September 30, 2018 is as follows: Service Vesting Restricted Stock Units Performance Vesting Restricted Stock Units Total Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 988,023 $ 21.29 482,485 $ 30.13 1,470,508 $ 24.19 Granted 499,681 $ 26.00 — $ — 499,681 $ 26.00 Forfeited (57,412 ) $ 21.44 — $ — (57,412 ) $ 21.44 Vested (252,813 ) $ 22.57 — $ — (252,813 ) $ 22.57 Outstanding at September 30, 2018 1,177,479 $ 23.00 482,485 $ 30.13 1,659,964 $ 25.07 The estimated forfeiture rate applied to the Company’s service vesting restricted stock unit grants during the three and nine months ended September 30, 2018 and 2017 , was 8.0% . The aggregate fair value of restricted stock units vested during the three and nine months ended September 30, 2018 , was $0.6 million and $5.7 million , respectively. The aggregate fair value of restricted stock units vested during the three and nine months ended September 30, 2017 , was $0.6 million and $2.2 million , respectively. Restricted stock units are not outstanding shares and do not have any voting or dividend rights. At the time of vesting, a share of common stock representing each restricted stock unit vested will be issued by the Company. The performance vesting restricted stock units are subject to performance measures that are currently not considered “probable” of attainment and as such, no compensation cost has been recorded for these units. The performance measures are based on Company performance for fiscal years 2018 and 2019. Including performance-based equity awards, the Company had $37.6 million of total unrecognized compensation cost related to unvested stock options, unvested restricted stock and unvested restricted stock units as of September 30, 2018 . Excluding the $14.5 million of unrecognized compensation cost related to unvested restricted stock units that are subject to performance measures that are currently not considered “probable” of attainment, unrecognized compensation cost is $23.1 million . No compensation expense is recognized for unvested restricted stock units subject to performance measures that are not considered “probable” of attainment. Unrecognized compensation cost related to unvested stock options and unvested non-performance-based restricted stock is expected to be recognized over a weighted average period of 3.0 years. The following table sets forth the gross share-based compensation cost resulting from stock options, unvested restricted stock and unvested restricted stock units that were recorded in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Cost of product revenue $ 88 $ 73 $ 304 $ 189 Cost of service revenue 112 59 312 194 Research and development, net 1,139 798 3,100 2,596 Sales and marketing 937 650 2,415 1,850 General and administrative 1,238 1,005 3,517 2,814 Total $ 3,514 $ 2,585 $ 9,648 $ 7,643

Taxes

Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Taxes	Note 13— Taxes The Company’s effective tax rates for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Effective tax rates (1)% 39% (1)% 37% The difference between the expected statutory tax rate of 21% and the actual tax rate of (1)% for the three and nine months ended September 30, 2018 was attributable to the Company’s decision to continue to provide a full valuation allowance against the Company’s U.S. federal deferred tax assets offset, in part, by foreign taxes. The primary reason for the difference between the expected statutory tax rate of 35% and the actual tax rates of 39% and 37% for the three and nine months ended September 30, 2017 , respectively, was the Company’s research and development tax credit and other permanent items. One of the permanent items for the three and nine months ended September 30, 2017 was the $4.4 million gain from the strategic transaction which was not taxable under Federal income tax law. On December 22, 2017, the President of the United States signed into law H.R. 1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Cuts and Jobs Act”). ASC Topic 740, Accounting for Income Taxes, requires companies to recognize the effect of tax law changes in the period of enactment. The Tax Cuts and Jobs Act made significant changes to existing U.S. tax law, including, but not limited to, a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21% and the imposition of a one-time tax on deferred foreign income (“Repatriation Transition Tax”). Given the significance of the Tax Cuts and Jobs Act, the FASB issued Accounting Standards Update No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 that recognized that a company’s review of the income tax effects attributable to the enactment of the Tax Cuts and Jobs Act may be incomplete at the time financial statements were issued for the reporting period that included the date of enactment and allowed a company to record provisional amounts during a one year measurement period. During the measurement period, income tax effects attributable to the enactment of the Tax Cuts and Jobs Act can be adjusted and recognized, as a discreet item in the applicable reporting period, as information becomes available, prepared or analyzed. The measurement period is deemed to have ended when the company has obtained, prepared and analyzed the information necessary to finalize its accounting. During the year ended December 31, 2017 the Company recorded provisional tax expense, in the amount of $0.3 million , attributable to the Repatriation Transition Tax and provisional tax expense, in the amount of $0.3 million , as a result of the Company’s decision to no longer consider the undistributed earnings of its foreign subsidiaries to be permanently reinvested outside of the U.S. During the third quarter of 2018, the Company finalized its accounting with respect to the items for which provisional tax expense was recorded. No significant adjustments were made to the provisional amounts recorded by the Company. As of September 30, 2018 , the Company continued to provide a full valuation allowance against its U.S. federal deferred tax assets and against the majority of its deferred tax assets arising in state and foreign jurisdictions as the realization of such assets is not considered to be more likely than not at this time. In a future period, the Company’s assessment of the realizability of its deferred tax assets and therefore the appropriateness of the valuation allowance could change based on an assessment of all available evidence, both positive and negative in that future period. If the Company’s conclusion about the realizability of its deferred tax assets and therefore the appropriateness of the valuation allowance changes in a future period, the Company could record a substantial tax benefit in its Condensed Consolidated Statements of Operations when that occurs.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	Note 14— Segment Information The Company has the following reportable segments: Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, who is the Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. The segments are determined based on several factors, including the Company’s internal operating structure, the manner in which the Company’s operations are managed, client base, similar economic characteristics and the availability of separate financial information. Supercomputing Supercomputing includes a suite of highly advanced, tightly integrated and cluster supercomputer systems which are used by large research and engineering centers in universities, government laboratories, and commercial institutions. Supercomputing also includes the ongoing maintenance of these systems as well as system analysts. Storage and Data Management Storage and Data Management offers Cray DataWarp and ClusterStor (formerly branded Sonexion), as well as other third-party storage products and their ongoing maintenance as well as system analysts. Maintenance and Support Maintenance and Support provides ongoing maintenance of Cray supercomputers, big data storage and analytics systems, as well as system analysts. Engineering Services and Other Included within Engineering Services and Other are the Company’s analytics and artificial intelligence businesses and Custom Engineering. The following table presents revenues and gross margins for the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenue: Supercomputing $ 72,615 $ 47,918 $ 230,252 $ 142,933 Storage and Data Management 12,263 11,046 45,977 42,335 Maintenance and Support 33,349 31,701 100,477 92,483 Engineering Services and Other 7,918 20,736 16,364 40,598 Elimination of inter-segment revenue (33,349 ) (31,701 ) (100,477 ) (92,483 ) Total revenue $ 92,796 $ 79,700 $ 292,593 $ 225,866 Gross Profit: Supercomputing $ 18,163 $ 18,807 $ 65,335 $ 50,630 Storage and Data Management 5,192 3,345 17,541 15,564 Maintenance and Support 15,024 16,501 47,970 45,078 Engineering Services and Other 1,456 6,340 6,694 14,450 Elimination of inter-segment gross profit (15,024 ) (16,501 ) (47,970 ) (45,078 ) Total gross profit $ 24,811 $ 28,492 $ 89,570 $ 80,644 Revenue and cost of revenue is the only discrete financial information the Company prepares for its segments. Other financial results or assets are not separated by segment. The Company’s geographic operations outside the United States include sales and service offices in Europe and the Middle East, South America, Asia Pacific and Canada. Service revenue includes engineering services which can vary significantly from period to period. The following data represents the Company’s revenue for the United States and all other countries, which is determined based upon a customer’s geographic location (in thousands): United States Other Countries Total 2018 2017 2018 2017 2018 2017 Three months ended September 30, Product revenue $ 35,968 $ 38,007 $ 22,022 $ 7,273 $ 57,990 $ 45,280 Service revenue 20,936 23,298 13,870 11,122 34,806 34,420 Total revenue $ 56,904 $ 61,305 $ 35,892 $ 18,395 $ 92,796 $ 79,700 United States Other Countries Total 2018 2017 2018 2017 2018 2017 Nine months ended September 30, Product revenue $ 74,140 $ 90,148 $ 111,683 $ 27,791 $ 185,823 $ 117,939 Service revenue 65,166 74,500 41,604 33,427 106,770 107,927 Total revenue $ 139,306 $ 164,648 $ 153,287 $ 61,218 $ 292,593 $ 225,866 Sales to the U.S. Government totaled approximately $38.5 million and $99.9 million for the three and nine months ended September 30, 2018 , respectively, compared to approximately $53.7 million and $145.3 million for the three and nine months ended September 30, 2017 , respectively. For the nine months ended September 30, 2018 , one non-U.S. Government customer in Japan accounted for 12% of total revenue. For the nine months ended September 30, 2018 , total revenue in Japan accounted for 21% of total revenue. For the nine months ended September 30, 2017 , no non-U.S. Government or international customer accounted for more than 10% of total revenue.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, which superseded nearly all existing revenue recognition guidance under GAAP, to all contracts using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Adoption of the new standard did not have a material impact on the Company’s net loss during the first nine months of 2018. The Company expects the impact of the adoption of the new standard to be immaterial to its net income on an ongoing basis. The Company’s performance obligations are satisfied over time as work is performed or at a point in time. The majority of the Company’s revenue is recognized at a point in time when products are accepted, installed or delivered. Most of the Company’s revenue is derived from long-term contracts that can span several years. Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the Company’s systems or services. In general, this does not occur until the products have been shipped or services provided to the customer, risk of loss has transferred to the customer, and, where applicable, a customer acceptance has been obtained. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Sales, value add, and other taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. To determine the proper revenue recognition method for contracts, the Company evaluates whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. Contracts are often modified to account for changes in contract specifications and requirements. To determine the proper revenue recognition method for contract modifications, the Company evaluates whether the contract modification should be accounted for as a separate contract, part of an existing contract, or termination of an existing contract and the creation of a new contract. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the Company’s estimate of the standalone selling price of each distinct good or service in the contract. The Company determines the transaction price by reviewing the established contractual terms and other relevant information. Contracts can include penalty clauses and contracts with government customers may not be fully funded, both of which represent variable consideration. Generally, the Company includes both the funded and unfunded portions of a contract with a government customer in the transaction price, as most often it is deemed the contract will become fully funded. The Company also assesses the likelihood of certain penalties that would result in contract price reductions and, if deemed probable, the transaction price is adjusted. The majority of the Company’s contracts include multiple promised goods and services, which are assessed at contract inception. Each distinct good or service is identified as a performance obligation, which may be an individual good or service or a bundle of goods or services. In order to determine whether the promises are distinct, the Company assesses the use of its products and services by its customers to determine whether the customer can benefit from the good or service on its own or from other readily available resources, and whether the promised transfer of goods or services is separately identifiable from other promises in the contract. The majority of the Company’s revenues are from product solutions which include supercomputers, storage, and data analytics systems, each of which are usually separate performance obligations. Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Product revenue is typically recognized upon customer acceptance, or upon installation or delivery if formal acceptance is not required. Service revenue is typically recognized over time and consists mainly of system maintenance, analyst services, and engineering services, each of which are usually separate performance obligations. System maintenance commences upon customer acceptance or installation, depending on the contract terms, and revenue is recognized ratably over the remaining term of the maintenance contract. On-site analysts provide specialized services to customers, the revenue for which is recognized ratably over the contract period. Service revenue is recognized on a straight-line basis over the service period as the services are available continuously to the customer. Revenue from engineering services can be recognized as services are performed or as milestones are achieved, depending on the terms of the contract and nature of services performed. If, in a contract, the customer has an option to acquire additional goods or services, that option gives rise to a performance obligation if the option provides a material right to the customer that it would not receive without entering into that contract. Revenue from purchase options can be recognized as those future goods or services are transferred or when the option expires. The Company performs an assessment to determine whether a significant financing component is present in a contract. If a contract is determined to include a significant financing component, the interest rate used in the calculation is based on the prevailing interest rates at contract inception and the entity’s creditworthiness. When the period between providing a good or service to the customer is expected to be less than one year from payment, the Company applies the practical expedient and does not adjust the consideration for the effects of a significant financing component. Occasionally, the Company’s contracts include noncash consideration. This typically consists of returned parts when a system is upgraded or de-installed. Noncash consideration is measured at contract inception at estimated fair value. The total transaction price is allocated to each performance obligation identified in the contract based on its relative standalone selling price. The Company does not have directly observable standalone selling prices for the majority of its performance obligations due to a relatively small number of customer contracts that differ in system size and contract terms which can be due to infrequently selling each performance obligation separately, not pricing products within a narrow range, or only having a limited sales history, such as in the case of certain advanced and emerging technologies. When a directly observable standalone selling price is not available, the Company estimates the standalone selling price. In determining the estimated standalone selling price, the Company uses the cost to provide the product or service plus a margin, or considers other factors. When using cost plus a margin, the Company considers the total cost of the product or service, including customer-specific and geographic factors as appropriate. The Company also considers the historical margins of the product or service on previous contracts and several other factors including any changes to pricing methodologies, competitiveness of products and services, and cost drivers that would cause future margins to differ from historical margins. The Company sometimes offers discounts to its customers. As these discounts are offered on bundles of goods and services, the discounts are applied to all performance obligations in the contract on a pro-rata basis. The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers (in thousands) and includes both short-term and long-term portions: September 30, December 31, 2017 Change Contract receivables $ 70,927 $ 167,346 $ (96,419 ) Contract assets 3,801 9,321 (5,520 ) Contract liabilities 88,951 118,741 (29,790 ) Contract receivables consist of amounts billed to customers and include the Company's investment in a sales type lease, a portion of which is due beyond one year. Generally, billing occurs subsequent to product revenue recognition and payment is expected within 30 days. Contract assets primarily relate to the Company's rights to consideration for work completed but not billed where right to payment is not just subject to the passage of time. Contract assets become contract receivables when the rights become unconditional. The Company sometimes receives advances or deposits from customers before revenue is recognized, resulting in customer contract liabilities (formerly deferred revenue). These assets and liabilities are reported on the Condensed Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period. The Company’s payment terms vary from contract to contract. Contracts may require payment before, at or after the Company’s performance obligations have been satisfied. The decrease in the Company's contract asset balance for the nine months ended September 30, 2018 is primarily due to the transfer from contract assets to contract receivables that were included in the contract asset balance at the beginning of the period, partially offset by the addition of new contract assets. For the nine month period ended September 30, 2018 , the Company recognized $64.1 million in revenues from the contract liability balance at the beginning of the period. The Company’s incremental direct costs of obtaining a contract come primarily from sales commissions, a portion of which are paid upon contract signing. These commissions are generally capitalized upon payment and expensed at the time of revenue recognition. These deferred commissions are included in prepaid expenses in the Condensed Consolidated Balance Sheet. As of September 30, 2018 and December 31, 2017 , the Company had $2.5 million and $1.3 million , respectively, of deferred commissions. For the three and nine months ended September 30, 2018 , the Company recognized $1.1 million and $3.7 million , respectively, in commissions expense. For the three and nine months ended September 30, 2017 , the Company recognized $0.6 million and $2.2 million , respectively, in commissions expense. The following data presents the Company's operating segment revenues disaggregated by primary geographic market, which is determined based on a customer's geographic location (in thousands). Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific and Japan; and the United States, Canada, and Latin America (Americas). Revenues were increased by $0.5 million for the three months ended September 30, 2018 and reduced by $0.6 million for the nine months ended September 30, 2018 related to hedging gains and losses which do not represent revenues recognized from contracts with customers. Americas EMEA Asia Pacific & Japan Total Three Months Ended September 30, 2018 Supercomputing $ 45,263 $ 16,251 $ 11,101 $ 72,615 Storage and Data Management 8,897 2,368 998 12,263 Maintenance and Support 20,567 7,329 5,453 33,349 Engineering Services and Other 3,832 494 3,592 7,918 Elimination of inter-segment revenue (20,567 ) (7,329 ) (5,453 ) (33,349 ) Total revenue $ 57,992 $ 19,113 $ 15,691 $ 92,796 Americas EMEA Asia Pacific & Japan Total Nine Months Ended September 30, 2018 Supercomputing $ 110,189 $ 39,057 $ 81,006 $ 230,252 Storage and Data Management 23,810 9,813 12,354 45,977 Maintenance and Support 62,229 22,571 15,677 100,477 Engineering Services and Other 11,742 612 4,010 16,364 Elimination of inter-segment revenue (62,229 ) (22,571 ) (15,677 ) (100,477 ) Total revenue $ 145,741 $ 49,482 $ 97,370 $ 292,593 The Company’s remaining performance obligations reflect the deliverables within contracts with customers that will have revenue recognized in a future period (this may also be referred to as backlog). Due to the nature of the Company’s business and the size of individual transactions, forecasting the timing and total amount of revenue recognition is subject to significant uncertainties. As of September 30, 2018 , the Company has an aggregate of $615 million in remaining performance obligations stemming from a mixture of system contracts with their related service obligations and other service obligations. Included in this balance are $0.6 million in losses resulting from hedged foreign currency transactions, which offset the related increase in revenue from currency fluctuations. These gains will be reclassified from accumulated other comprehensive income to revenue in the period the related transactions are recognized as revenue. These obligations are anticipated to be recognized as revenue over approximately the next six years . The Company estimates that about 60% of these obligations are expected to be recognized as revenue in the next 18 months , with the remainder thereafter.

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Contract Receivables, Contract Assets, and Contract Liabilities from Contracts with Customers	The following table provides information about contract receivables, contract assets, and contract liabilities from contracts with customers (in thousands) and includes both short-term and long-term portions: September 30, December 31, 2017 Change Contract receivables $ 70,927 $ 167,346 $ (96,419 ) Contract assets 3,801 9,321 (5,520 ) Contract liabilities 88,951 118,741 (29,790 )
Operating Segment Revenues Disaggregated by Primary Geographic Market	The following data presents the Company's operating segment revenues disaggregated by primary geographic market, which is determined based on a customer's geographic location (in thousands). Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific and Japan; and the United States, Canada, and Latin America (Americas). Revenues were increased by $0.5 million for the three months ended September 30, 2018 and reduced by $0.6 million for the nine months ended September 30, 2018 related to hedging gains and losses which do not represent revenues recognized from contracts with customers. Americas EMEA Asia Pacific & Japan Total Three Months Ended September 30, 2018 Supercomputing $ 45,263 $ 16,251 $ 11,101 $ 72,615 Storage and Data Management 8,897 2,368 998 12,263 Maintenance and Support 20,567 7,329 5,453 33,349 Engineering Services and Other 3,832 494 3,592 7,918 Elimination of inter-segment revenue (20,567 ) (7,329 ) (5,453 ) (33,349 ) Total revenue $ 57,992 $ 19,113 $ 15,691 $ 92,796 Americas EMEA Asia Pacific & Japan Total Nine Months Ended September 30, 2018 Supercomputing $ 110,189 $ 39,057 $ 81,006 $ 230,252 Storage and Data Management 23,810 9,813 12,354 45,977 Maintenance and Support 62,229 22,571 15,677 100,477 Engineering Services and Other 11,742 612 4,010 16,364 Elimination of inter-segment revenue (62,229 ) (22,571 ) (15,677 ) (100,477 ) Total revenue $ 145,741 $ 49,482 $ 97,370 $ 292,593

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Company's Financial Assets and Liabilities Measured at Fair Value and the Hierarchy of the Valuation Inputs	The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value as of September 30, 2018 , and indicates the level within the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Cash, cash equivalents and restricted cash $ 184,181 $ 184,181 $ — Foreign currency exchange contracts (1) 2,876 — 2,876 Assets measured at fair value at September 30, 2018 $ 187,057 $ 184,181 $ 2,876 Liabilities: Foreign currency exchange contracts (2) 789 — 789 Liabilities measured at fair value at September 30, 2018 $ 789 $ — $ 789 (1) Included in “Prepaid expenses and other current assets” and “Other non-current assets” on the Company’s Condensed Consolidated Balance Sheets. (2) Included in “Other accrued liabilities” and “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets.
Schedule of Notional Amounts of Outstanding Derivative Positions	As of September 30, 2018 and December 31, 2017 , the Company had outstanding foreign currency exchange contracts that had been dedesignated for the purposes of hedge accounting treatment. The Company dedesignates cash flow hedges when the receivable related to the hedged cash flow is recorded. The outstanding notional amounts were approximately (in millions): September 30, December 31, 2017 British Pounds (GBP) 20.2 26.1 Euros (EUR) 0.8 4.7 Swiss Francs (CHF) — 2.6 Canadian Dollars (CAD) — 0.3 As of September 30, 2018 and December 31, 2017 , the Company had outstanding foreign currency exchange contracts that were designated and accounted for as cash flow hedges of anticipated future cash receipts on sales contracts payable in foreign currencies. The outstanding notional amounts were approximately (in millions): September 30, December 31, 2017 Canadian Dollars (CAD) 54.4 56.0 Singapore Dollars (SGD) 2.0 — Euros (EUR) — 2.1 Japanese Yen (JPY) — 4,345.6 New Zealand Dollars (NZD) — 16.2
Fair Values of Derivative Instruments and Balance Sheet Location	Fair values of derivative instruments designated as cash flow hedges (in thousands): Balance Sheet Location Fair Value Fair Value Prepaid expenses and other current assets $ — $ 546 Other accrued liabilities (672 ) (129 ) Other non-current liabilities (117 ) (1,907 ) Total fair value of derivative instruments designated as cash flow hedges $ (789 ) $ (1,490 ) Fair values of derivative instruments not designated as cash flow hedges (in thousands): Balance Sheet Location Fair Value Fair Value Prepaid expenses and other current assets $ 1,591 $ 1,252 Other non-current assets 1,285 1,453 Other accrued liabilities — (395 ) Total fair value of derivative instruments not designated as cash flow hedges $ 2,876 $ 2,310

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2018
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Reclassification from Accumulated Other Comprehensive Income (Loss)	The following table shows the impact on product revenue of reclassification adjustments from accumulated other comprehensive income resulting from hedged foreign currency transactions recorded by the Company for the three and nine months ended September 30, 2018 and 2017 (in thousands). The reclassification adjustments increased product revenue for the three months ended September 30, 2018 and decreased product revenue for the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017 . Three Months Ended Nine Months Ended 2018 2017 2018 2017 Gross of tax reclassifications $ 462 $ (93 ) $ (647 ) $ (157 ) Net of tax reclassifications $ 462 $ (56 ) $ (647 ) $ (94 )
Schedule of Accumulated Other Comprehensive Income (Loss)	The following tables show the changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 Unrealized Gain on Investments Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ — $ 452 $ 1,494 $ 1,946 Current-period change, net of tax — (126 ) (1,113 ) (1,239 ) Ending balance $ — $ 326 $ 381 $ 707 Income tax expense (benefit) associated with current-period change $ — $ — $ — $ — Three Months Ended September 30, 2017 Unrealized Gain (Loss) on Investments Foreign Currency Translation Adjustments Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ 94 $ 2,541 $ (455 ) $ 2,180 Current-period change, net of tax (98 ) (118 ) (948 ) (1,164 ) Ending balance $ (4 ) $ 2,423 $ (1,403 ) $ 1,016 Income tax expense (benefit) associated with current-period change $ (66 ) $ 148 $ (632 ) $ (550 ) Nine Months Ended September 30, 2018 Unrealized Loss on Investments Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ (7 ) $ 1,611 $ (689 ) $ 915 Current-period change, net of tax 7 (1,285 ) 1,070 (208 ) Ending balance $ — $ 326 $ 381 $ 707 Income tax expense (benefit) associated with current-period change $ — $ — $ — $ — Nine Months Ended September 30, 2017 Unrealized Loss on Investments Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive Income Beginning balance $ — $ 2,101 $ 681 $ 2,782 Current-period change, net of tax (4 ) 322 (2,084 ) (1,766 ) Ending balance $ (4 ) $ 2,423 $ (1,403 ) $ 1,016 Income tax expense (benefit) associated with current-period change $ (3 ) $ 343 $ (1,389 ) $ (1,049 )

Investments Investments (Tables

Investments Investments (Tables)	9 Months Ended
	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Investments	The carrying amounts of the Company’s investments in available-for-sale securities as of December 31, 2017 are shown in the table below (in thousands): Unrealized Loss Cost Fair Value Short-term available-for-sale securities $ 7,007 $ (10 ) $ 6,997

Accounts and Other Receivable_2

Accounts and Other Receivables, Net (Tables)	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Accounts and Other Receivables, Net	Net accounts and other receivables consisted of the following (in thousands): September 30, December 31, 2017 Trade accounts receivable $ 46,132 $ 131,151 Current contract assets 3,801 9,321 Advance billings 5,208 3,569 Short-term investment in sales-type lease 12,642 10,684 Other receivables 7,203 7,337 74,986 162,062 Allowance for doubtful accounts (25 ) (28 ) Accounts and other receivables, net $ 74,961 $ 162,034

Sales-type Lease Sales-type Lea

Sales-type Lease Sales-type Lease (Tables)	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Components of the Net Investment in the Sales-type Lease	The following table shows the components of the net investment in the sales-type lease as of September 30, 2018 and December 31, 2017 (in thousands): September 30, December 31, 2017 Total minimum lease payments to be received $ 29,849 $ 42,268 Less: executory costs (3,487 ) (6,831 ) Net minimum lease payments receivable 26,362 35,437 Less: unearned income (696 ) (1,386 ) Net investment in sales-type lease 25,666 34,051 Less: long-term investment in sales-type lease (13,024 ) (23,367 ) Investment in sales-type lease included in accounts and other receivables $ 12,642 $ 10,684
Minimum Lease Payments to be Received for Each of the Next Five Fiscal Years	As of September 30, 2018 , minimum lease payments for each of the succeeding three fiscal years are as follows (in thousands): 2018 (less than 1 year) $ 3,733 2019 14,932 2020 11,184 Total minimum lease payments to be received $ 29,849

Inventory Inventory (Tables)

Inventory Inventory (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventory	Inventory consisted of the following (in thousands): September 30, December 31, 2017 Components and subassemblies $ 47,384 $ 37,219 Work in process 47,908 59,456 Finished goods 46,269 89,632 Total $ 141,561 $ 186,307

Contract Liabilities Contract L

Contract Liabilities Contract Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Deferred Revenue Disclosure [Abstract]
Contract Liabilities	Liabilities from contracts with customers consisted of the following (in thousands): September 30, December 31, 2017 Contract liability - product $ 9,315 $ 22,245 Contract liability - service 79,636 96,496 Total contract liabilities 88,951 118,741 Less: long-term contract liabilities (31,661 ) (38,622 ) Current contract liabilities $ 57,290 $ 80,119

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Fair Value Assumptions	The following key weighted average assumptions were employed in the calculation for the three month period ended September 30, 2018 and the nine month periods ended September 30, 2018 and September 30, 2017 . There were no option grants during the three month period ended September 30, 2017 : Three Months Ended Nine Months Ended 2018 2018 2017 Risk-free interest rate 2.68% 2.84% 1.61% Expected dividend yield —% —% —% Volatility 48.67% 48.92% 54.20% Expected life 4.0 years 4.0 years 4.0 years Weighted average Black-Scholes value of options granted $10.31 $11.12 $7.75
Stock Option Activity	A summary of the Company’s year-to-date stock option activity and related information follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding at December 31, 2017 2,034,474 $ 17.26 Grants 170,053 $ 27.09 Exercises (194,954 ) $ 9.24 Canceled and forfeited (69,952 ) $ 26.76 Outstanding at September 30, 2018 1,939,621 $ 18.58 5.4 Exercisable at September 30, 2018 1,467,362 $ 16.79 4.4 Available for grant at September 30, 2018 2,329,513
Restricted Stock Activity	A summary of the Company’s unvested restricted stock grants and changes during the nine months ended September 30, 2018 is as follows: Service Vesting Restricted Shares Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 112,325 $ 24.09 Granted 28,469 $ 27.10 Forfeited (680 ) $ 26.26 Vested (105,595 ) $ 23.58 Outstanding at September 30, 2018 34,519 $ 27.68 A summary of the Company’s unvested restricted stock unit grants and changes during the nine months ended September 30, 2018 is as follows: Service Vesting Restricted Stock Units Performance Vesting Restricted Stock Units Total Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 988,023 $ 21.29 482,485 $ 30.13 1,470,508 $ 24.19 Granted 499,681 $ 26.00 — $ — 499,681 $ 26.00 Forfeited (57,412 ) $ 21.44 — $ — (57,412 ) $ 21.44 Vested (252,813 ) $ 22.57 — $ — (252,813 ) $ 22.57 Outstanding at September 30, 2018 1,177,479 $ 23.00 482,485 $ 30.13 1,659,964 $ 25.07
Allocation of Share-Based Compensation	The following table sets forth the gross share-based compensation cost resulting from stock options, unvested restricted stock and unvested restricted stock units that were recorded in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Cost of product revenue $ 88 $ 73 $ 304 $ 189 Cost of service revenue 112 59 312 194 Research and development, net 1,139 798 3,100 2,596 Sales and marketing 937 650 2,415 1,850 General and administrative 1,238 1,005 3,517 2,814 Total $ 3,514 $ 2,585 $ 9,648 $ 7,643

Taxes Taxes (Tables)

Taxes Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective Tax Rates	The Company’s effective tax rates for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Effective tax rates (1)% 39% (1)% 37%

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Information on Operating Segments	The following table presents revenues and gross margins for the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenue: Supercomputing $ 72,615 $ 47,918 $ 230,252 $ 142,933 Storage and Data Management 12,263 11,046 45,977 42,335 Maintenance and Support 33,349 31,701 100,477 92,483 Engineering Services and Other 7,918 20,736 16,364 40,598 Elimination of inter-segment revenue (33,349 ) (31,701 ) (100,477 ) (92,483 ) Total revenue $ 92,796 $ 79,700 $ 292,593 $ 225,866 Gross Profit: Supercomputing $ 18,163 $ 18,807 $ 65,335 $ 50,630 Storage and Data Management 5,192 3,345 17,541 15,564 Maintenance and Support 15,024 16,501 47,970 45,078 Engineering Services and Other 1,456 6,340 6,694 14,450 Elimination of inter-segment gross profit (15,024 ) (16,501 ) (47,970 ) (45,078 ) Total gross profit $ 24,811 $ 28,492 $ 89,570 $ 80,644
Revenue by Geographic Location	The following data represents the Company’s revenue for the United States and all other countries, which is determined based upon a customer’s geographic location (in thousands): United States Other Countries Total 2018 2017 2018 2017 2018 2017 Three months ended September 30, Product revenue $ 35,968 $ 38,007 $ 22,022 $ 7,273 $ 57,990 $ 45,280 Service revenue 20,936 23,298 13,870 11,122 34,806 34,420 Total revenue $ 56,904 $ 61,305 $ 35,892 $ 18,395 $ 92,796 $ 79,700 United States Other Countries Total 2018 2017 2018 2017 2018 2017 Nine months ended September 30, Product revenue $ 74,140 $ 90,148 $ 111,683 $ 27,791 $ 185,823 $ 117,939 Service revenue 65,166 74,500 41,604 33,427 106,770 107,927 Total revenue $ 139,306 $ 164,648 $ 153,287 $ 61,218 $ 292,593 $ 225,866

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Accounting Policies [Abstract]
Revenues from contract liability balance at the beginning of the period			$ 64,100
Deferred commissions	$ 2,500		2,500		$ 1,300
Recognized commissions expense	1,100	$ 600	3,700	$ 2,200
Reclassification adjustments on cash flow hedges included in net loss	462	$ (56)	(647)	$ (94)
Revenues with remaining performance obligations	$ 615,000		615,000
Losses resulting from hedged foreign currency transactions			$ (600)

Basis of Presentation - Contrac

Basis of Presentation - Contract Receivables, Contract Assets, and Contract Liabilities from Contracts with Customers (Details) - ASU 2014-09 - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract receivables	$ 70,927
Contract assets	3,801
Contract liabilities	88,951
December 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract receivables		$ 167,346
Contract assets		9,321
Contract liabilities		$ 118,741
Change
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract receivables	(96,419)
Contract assets	(5,520)
Contract liabilities	$ (29,790)

Basis of Presentation - Operati

Basis of Presentation - Operating Segment Revenues Disaggregated by Primary Geographic Market (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 92,796	$ 292,593
Elimination of inter-segment revenue
Disaggregation of Revenue [Line Items]
Total revenue	(33,349)	(100,477)
Americas
Disaggregation of Revenue [Line Items]
Total revenue	57,992	145,741
Americas | Elimination of inter-segment revenue
Disaggregation of Revenue [Line Items]
Total revenue	(20,567)	(62,229)
EMEA
Disaggregation of Revenue [Line Items]
Total revenue	19,113	49,482
EMEA | Elimination of inter-segment revenue
Disaggregation of Revenue [Line Items]
Total revenue	(7,329)	(22,571)
Asia Pacific & Japan
Disaggregation of Revenue [Line Items]
Total revenue	15,691	97,370
Asia Pacific & Japan | Elimination of inter-segment revenue
Disaggregation of Revenue [Line Items]
Total revenue	(5,453)	(15,677)
Supercomputing
Disaggregation of Revenue [Line Items]
Total revenue	72,615	230,252
Supercomputing | Americas
Disaggregation of Revenue [Line Items]
Total revenue	45,263	110,189
Supercomputing | EMEA
Disaggregation of Revenue [Line Items]
Total revenue	16,251	39,057
Supercomputing | Asia Pacific & Japan
Disaggregation of Revenue [Line Items]
Total revenue	11,101	81,006
Storage and Data Management
Disaggregation of Revenue [Line Items]
Total revenue	12,263	45,977
Storage and Data Management | Americas
Disaggregation of Revenue [Line Items]
Total revenue	8,897	23,810
Storage and Data Management | EMEA
Disaggregation of Revenue [Line Items]
Total revenue	2,368	9,813
Storage and Data Management | Asia Pacific & Japan
Disaggregation of Revenue [Line Items]
Total revenue	998	12,354
Maintenance and Support
Disaggregation of Revenue [Line Items]
Total revenue	33,349	100,477
Maintenance and Support | Americas
Disaggregation of Revenue [Line Items]
Total revenue	20,567	62,229
Maintenance and Support | EMEA
Disaggregation of Revenue [Line Items]
Total revenue	7,329	22,571
Maintenance and Support | Asia Pacific & Japan
Disaggregation of Revenue [Line Items]
Total revenue	5,453	15,677
Engineering Services and Other
Disaggregation of Revenue [Line Items]
Total revenue	7,918	16,364
Engineering Services and Other | Americas
Disaggregation of Revenue [Line Items]
Total revenue	3,832	11,742
Engineering Services and Other | EMEA
Disaggregation of Revenue [Line Items]
Total revenue	494	612
Engineering Services and Other | Asia Pacific & Japan
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,592	$ 4,010

Basis of Presentation - Remaini

Basis of Presentation - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30	9 Months Ended
	Sep. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	6 years
Expected timing of satisfaction, percent	60.00%

Fair Value Measurement (Details

Fair Value Measurement (Details) $ in Thousands	Sep. 30, 2018USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and restricted cash	$ 184,181
Foreign currency exchange contracts	2,876	[1]
Assets measured at fair value at September 30, 2018	187,057
Foreign currency exchange contracts	789	[2]
Liabilities measured at fair value at September 30, 2018	789
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and restricted cash	184,181
Foreign currency exchange contracts	0	[1]
Assets measured at fair value at September 30, 2018	184,181
Foreign currency exchange contracts	0	[2]
Liabilities measured at fair value at September 30, 2018	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash, cash equivalents and restricted cash	0
Foreign currency exchange contracts	2,876	[1]
Assets measured at fair value at September 30, 2018	2,876
Foreign currency exchange contracts	789	[2]
Liabilities measured at fair value at September 30, 2018	$ 789
[1]	Included in “Prepaid expenses and other current assets” and “Other non-current assets” on the Company’s Condensed Consolidated Balance Sheets.
[2]	Included in “Other accrued liabilities” and “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets.

Fair Value Measurement Derivati

Fair Value Measurement Derivative Instruments and Hedging Activities Disclosure (Details) $ in Thousands, € in Millions, ¥ in Millions, £ in Millions, SFr in Millions, $ in Millions, $ in Millions, $ in Millions	Sep. 30, 2018EUR (€)	Sep. 30, 2018USD ($)	Sep. 30, 2018JPY (¥)	Sep. 30, 2018SGD ($)	Sep. 30, 2018CAD ($)	Sep. 30, 2018CHF (SFr)	Sep. 30, 2018NZD ($)	Sep. 30, 2018GBP (£)	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Dec. 31, 2017JPY (¥)	Dec. 31, 2017SGD ($)	Dec. 31, 2017CAD ($)	Dec. 31, 2017CHF (SFr)	Dec. 31, 2017NZD ($)	Dec. 31, 2017GBP (£)
Derivative [Line Items]
Foreign currency exposure on hedged foreign currency contracts		$ 43,100								$ 96,300
Foreign currency exposure on dedesignated foreign currency contracts		30,700								46,900
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, notional amount	€ 0		¥ 0	$ 2	$ 54.4		$ 0		€ 2.1		¥ 4,345.6	$ 0	$ 56		$ 16.2
Derivative assets (liabilities), at fair value, net		(789)								(1,490)
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, notional amount	€ 0.8				$ 0	SFr 0		£ 20.2	€ 4.7				$ 0.3	SFr 2.6		£ 26.1
Derivative assets (liabilities), at fair value, net		2,876								2,310
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative asset, current		0								546
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative asset, current		1,591								1,252
Other Noncurrent Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative asset, noncurrent		1,285								1,453
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative liability, current		(672)								(129)
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative liability, current		0								(395)
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative liability, noncurrent		$ (117)								$ (1,907)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gross of tax reclassifications	$ 462	$ (93)	$ (647)	$ (157)
Net of tax reclassifications	462	(56)	(647)	(94)
Beginning balance	1,946	2,180	915	2,782
Current-period change, net of tax	(1,239)	(1,164)	(208)	(1,766)
Ending balance	707	1,016	707	1,016
Income tax expense (benefit) associated with current-period change	0	(550)	0	(1,049)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	0	94	(7)	0
Current-period change, net of tax	0	(98)	7	(4)
Ending balance	0	(4)	0	(4)
Income tax expense (benefit) associated with current-period change	0	(66)	0	(3)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	452	2,541	1,611	2,101
Current-period change, net of tax	(126)	(118)	(1,285)	322
Ending balance	326	2,423	326	2,423
Income tax expense (benefit) associated with current-period change	0	148	0	343
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	1,494	(455)	(689)	681
Current-period change, net of tax	(1,113)	(948)	1,070	(2,084)
Ending balance	381	(1,403)	381	(1,403)
Income tax expense (benefit) associated with current-period change	$ 0	$ (632)	$ 0	$ (1,389)

Loss Per Share (EPS) Loss Per S

Loss Per Share (EPS) Loss Per Share (EPS) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Time-vesting Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3.2	3.2	3.2
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0.5	0.6	0.5	0.6

Investments Investments (Detail

Investments Investments (Details) $ in Thousands	Dec. 31, 2017USD ($)
Investments, Debt and Equity Securities [Abstract]
Cost	$ 7,007
Unrealized Loss	(10)
Fair Value	$ 6,997

Accounts and Other Receivable_3

Accounts and Other Receivables, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	$ 74,986	$ 162,062
Allowance for doubtful accounts	(25)	(28)
Accounts and other receivables, net	74,961	162,034
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	46,132	131,151
Contract Assets [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	3,801	9,321
Advance Billings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	5,208	3,569
Short-Term Tnvestment In Sales-Type Lease [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	12,642	10,684
Other Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, gross	$ 7,203	$ 7,337
Non-US Government Customers [Member] | Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, percent	17.00%	38.00%
Government Contracts Concentration Risk [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, net	$ 24,600	$ 45,300
Government Contracts Concentration Risk [Member] | Unbilled Revenues [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts and other receivables, net	$ 1,100	$ 2,100

Sales-type Lease Sales-type L_2

Sales-type Lease Sales-type Lease (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Leases [Abstract]
Total minimum lease payments to be received	$ 29,849	$ 42,268
Less: executory costs	(3,487)	(6,831)
Net minimum lease payments receivable	26,362	35,437
Less: unearned income	(696)	(1,386)
Net investment in sales-type lease	25,666	34,051
Less: long-term investment in sales-type lease	(13,024)	(23,367)
Investment in sales-type lease included in accounts and other receivables	12,642	$ 10,684
2018 (less than 1 year)	3,733
2,019	14,932
2,020	11,184
Total minimum lease payments to be received	$ 29,849

Inventory Inventory (Details)

Inventory Inventory (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Components and subassemblies	$ 47,384	$ 47,384	$ 37,219
Work in process	47,908	47,908	59,456
Finished goods	46,269	46,269	89,632
Total	141,561	141,561	186,307
Inventory write-down	300	300
Located at Customer Sites [Member]
Inventory [Line Items]
Finished goods	45,700	45,700	48,100
Finished Goods Inventory [Member]
Inventory [Line Items]
Finished goods	$ 38,300	$ 38,300	$ 67,700

Contract Liabilities Contract_2

Contract Liabilities Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Contract Liabilities Arrangement [Line Items]
Total contract liabilities	$ 88,951	$ 118,741
Long-term customer contract liabilities	31,661	38,622
Current contract liabilities	57,290	80,119
Product [Member]
Contract Liabilities Arrangement [Line Items]
Total contract liabilities	9,315	22,245
Service [Member]
Contract Liabilities Arrangement [Line Items]
Total contract liabilities	79,636	96,496
Government Contracts Concentration Risk [Member]
Contract Liabilities Arrangement [Line Items]
Total contract liabilities	$ 30,100	$ 32,500
Contract Liabilities [Member] | Non-US Government Customers [Member]
Contract Liabilities Arrangement [Line Items]
Concentration risk, percent	10.00%	10.00%

Contingencies (Details)

Contingencies (Details)	Apr. 22, 2016patent	Sep. 25, 2015patent	Sep. 30, 2018lawsuit
Loss Contingencies [Line Items]
Loss contingency, pending lawsuit, number | lawsuit			2
Civil Action No. 3:18-cv-00318-wmc [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number		4
Civil Action No. 3:18-cv-00318-wmc [Member] | Pending Litigation [Member] | Patents Related to Company's Computer Hardware [Member]
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number		2
Civil Action No. 3:18-cv-00318-wmc [Member] | Pending Litigation [Member] | Patents Related to Third Party's Computer Software [Member]
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number		2
Civil Action No. 3:18-cv-03388-RS [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number	5
Civil Action No. 3:18-cv-03388-RS [Member] | Pending Litigation [Member] | Patents Related to Third Party's Computer Software [Member]
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number	5

Share-Based Compensation - Assu

Share-Based Compensation - Assumptions (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.68%		2.84%	1.61%
Expected dividend yield	0.00%		0.00%	0.00%
Volatility	48.67%		48.92%	54.20%
Expected life	4 years		4 years	4 years
Weighted average Black-Scholes value of options granted (in dollars per share)	$ 10.31		$ 11.12	$ 7.75
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected average period options will be exercised after vesting			2 years
Estimated forfeiture rate	8.00%	8.00%	8.00%	8.00%
Award vesting period			4 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated forfeiture rate	8.00%	8.00%	8.00%	8.00%
Fair value of restricted stock vested in period	$ 0.5	$ 0.5	$ 2.5	$ 2.8
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated forfeiture rate	8.00%	8.00%	8.00%	8.00%
Fair value of restricted stock vested in period	$ 0.6	$ 0.6	$ 5.7	$ 2.2

Share-Based Compensation - Opti

Share-Based Compensation - Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of the period (in shares)			2,034,474
Grants (in shares)			170,053
Exercises (in shares)	(2,140)	(67,234)	(194,954)	(80,757)
Canceled and forfeited (in shares)			(69,952)
Outstanding end of the period (in shares)	1,939,621		1,939,621
Exercisable end of the period (in shares)	1,467,362		1,467,362
Available for grant end of the period (in shares)	2,329,513		2,329,513
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of the period (in dollars per share)			$ 17.26
Grants (in dollars per share)			27.09
Exercises (in dollars per share)			9.24
Canceled and forfeited (in dollars per share)			26.76
Outstanding end of the period (in dollars per share)	$ 18.58		18.58
Exercisable end of the period (in dollars per share)	$ 16.79		$ 16.79
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term (in years)			5 years 4 months 24 days
Exercisable, weighted average remaining contractual term (in years)			4 years 4 months 24 days
Outstanding, aggregate intrinsic value	$ 11,200		$ 11,200
Exercisable, aggregate intrinsic value	10,500		10,500
Intrinsic value of options exercised	$ 37	$ 700	$ 2,700	$ 900

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Time-vesting Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding beginning of the period (in shares)			112,325
Granted (in shares)			28,469
Forfeited (in shares)			(680)
Vested (in shares)			(105,595)
Outstanding end of the period (in shares)	34,519		34,519
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of the period (in dollars per share)			$ 24.09
Granted (in dollars per share)			27.10
Forfeited (in dollars per share)			26.26
Vested (in dollars per share)			23.58
Outstanding end of the period (in dollars per share)	$ 27.68		$ 27.68
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated forfeiture rate	8.00%	8.00%	8.00%	8.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Fair value of restricted stock vested in period	$ 0.5	$ 0.5	$ 2.5	$ 2.8

Share-Based Compensation - Re_2

Share-Based Compensation - Restricted Stock Units (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Compensation cost	$ 3,514,000	$ 2,585,000	$ 9,648,000	$ 7,643,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding beginning of the period (in shares)			1,470,508
Granted (in shares)			499,681
Forfeited (in shares)			(57,412)
Vested (in shares)			(252,813)
Outstanding end of the period (in shares)	1,659,964		1,659,964
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of the period (in dollars per share)			$ 24.19
Granted (in dollars per share)			26
Forfeited (in dollars per share)			21.44
Vested (in dollars per share)			22.57
Outstanding end of the period (in dollars per share)	$ 25.07		$ 25.07
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Estimated forfeiture rate	8.00%	8.00%	8.00%	8.00%
Fair value of restricted stock units vested in period	$ 600,000	$ 600,000	$ 5,700,000	$ 2,200,000
Compensation cost			$ 0
Time-vesting Shares [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding beginning of the period (in shares)			988,023
Granted (in shares)			499,681
Forfeited (in shares)			(57,412)
Vested (in shares)			(252,813)
Outstanding end of the period (in shares)	1,177,479		1,177,479
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of the period (in dollars per share)			$ 21.29
Granted (in dollars per share)			26
Forfeited (in dollars per share)			21.44
Vested (in dollars per share)			22.57
Outstanding end of the period (in dollars per share)	$ 23		$ 23
Performance-based Vesting [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding beginning of the period (in shares)			482,485
Granted (in shares)			0
Forfeited (in shares)			0
Vested (in shares)			0
Outstanding end of the period (in shares)	482,485		482,485
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of the period (in dollars per share)			$ 30.13
Granted (in dollars per share)			0
Forfeited (in dollars per share)			0
Vested (in dollars per share)			0
Outstanding end of the period (in dollars per share)	$ 30.13		$ 30.13

Share-Based Compensation - Aggr

Share-Based Compensation - Aggregate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Unrecognized compensation expense	$ 37,600		$ 37,600
Unrecognized compensation expense period of recognition			3 years
Share-based compensation expense	3,514	$ 2,585	$ 9,648	$ 7,643
Performance Shares [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Unrecognized compensation expense	14,500		14,500
Time-vesting Shares [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Unrecognized compensation expense	23,100		23,100
Research and Development Expense [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Share-based compensation expense	1,139	798	3,100	2,596
Selling and Marketing Expense [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Share-based compensation expense	937	650	2,415	1,850
General and Administrative Expense [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Share-based compensation expense	1,238	1,005	3,517	2,814
Product [Member] | Cost of Sales [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Share-based compensation expense	88	73	304	189
Service [Member] | Cost of Sales [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract]
Share-based compensation expense	$ 112	$ 59	$ 312	$ 194

Taxes (Details)

Taxes (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rates, percent		(1.00%)	39.00%	(1.00%)	37.00%
Expected statutory tax rate, percent				21.00%	35.00%
Gain on strategic transaction	$ 4,400	$ 0	$ 4,389	$ 0	$ 4,389
Provisional income tax expense						$ 300
Repatriation transition tax and provisional tax expense						$ 300

Segment Information - Business

Segment Information - Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 92,796	$ 79,700	$ 292,593	$ 225,866
Total gross profit	24,811	28,492	89,570	80,644
Supercomputing
Segment Reporting Information [Line Items]
Total revenue	72,615	47,918	230,252	142,933
Total gross profit	18,163	18,807	65,335	50,630
Storage and Data Management
Segment Reporting Information [Line Items]
Total revenue	12,263	11,046	45,977	42,335
Total gross profit	5,192	3,345	17,541	15,564
Maintenance and Support
Segment Reporting Information [Line Items]
Total revenue	33,349	31,701	100,477	92,483
Total gross profit	15,024	16,501	47,970	45,078
Other Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	7,918	20,736	16,364	40,598
Total gross profit	1,456	6,340	6,694	14,450
Elimination of inter-segment revenue
Segment Reporting Information [Line Items]
Total revenue	33,349	31,701	100,477	92,483
Total gross profit	$ 15,024	$ 16,501	$ 47,970	$ 45,078

Segment Information - Geographi

Segment Information - Geographical Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)Customers	Sep. 30, 2017USD ($)Customers	Sep. 30, 2018USD ($)Customers	Sep. 30, 2017USD ($)Customers
Revenues from External Customers and Long-Lived Assets [Line Items]
Product revenue	$ 57,990	$ 45,280	$ 185,823	$ 117,939
Service revenue	34,806	34,420	106,770	107,927
Total revenue	92,796	79,700	292,593	225,866
Government Contracts Concentration Risk [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	38,500	53,700	99,900	145,300
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Product revenue	35,968	38,007	74,140	90,148
Service revenue	20,936	23,298	65,166	74,500
Total revenue	56,904	61,305	139,306	164,648
Non-US
Revenues from External Customers and Long-Lived Assets [Line Items]
Product revenue	22,022	7,273	111,683	27,791
Service revenue	13,870	11,122	41,604	33,427
Total revenue	$ 35,892	$ 18,395	$ 153,287	$ 61,218
Revenue [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, number of customers | Customers	1	0	1	0
Concentration risk, percentage				10.00%
Revenue [Member] | JAPAN
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage			21.00%
Japan Customer [Member] | Revenue [Member] | Customer Concentration Risk [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage			12.00%