Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document and Entity [Abstract] | ||
Entity Registrant Name | FLIR SYSTEMS INC | |
Entity Central Index Key | 354,908 | |
Trading Symbol | FLIR | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 136,129,920 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 405,228 | $ 381,928 | $ 1,187,429 | $ 1,119,420 |
Cost of goods sold | 213,852 | 201,189 | 635,041 | 573,169 |
Gross profit | 191,376 | 180,739 | 552,388 | 546,251 |
Operating expenses: | ||||
Research and development | 32,664 | 31,200 | 106,020 | 101,100 |
Selling, general and administrative | 77,863 | 73,557 | 242,930 | 232,884 |
Total operating expenses | 110,527 | 104,757 | 348,950 | 333,984 |
Earnings from operations | 80,849 | 75,982 | 203,438 | 212,267 |
Interest expense | 5,736 | 3,670 | 13,543 | 10,689 |
Interest income | (336) | (319) | (924) | (861) |
Other expense, net | 241 | 1,455 | 138 | 1,775 |
Earnings before income taxes | 75,208 | 71,176 | 190,681 | 200,664 |
Income tax provision (benefit) | 16,575 | (1,896) | 85,555 | 29,182 |
Net earnings | $ 58,633 | $ 73,072 | $ 105,126 | $ 171,482 |
Earnings per share: | ||||
Basic | $ 0.43 | $ 0.52 | $ 0.76 | $ 1.23 |
Diluted | $ 0.43 | $ 0.52 | $ 0.76 | $ 1.21 |
Weighted average shares outstanding: | ||||
Basic | 136,963 | 139,596 | 137,438 | 139,808 |
Diluted | 137,938 | 140,525 | 138,594 | 141,262 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 58,633 | $ 73,072 | $ 105,126 | $ 171,482 |
Other comprehensive income (loss), net of tax: | ||||
Cash flow hedges | 292 | (599) | (573) | (1,009) |
Foreign currency translation adjustments | (7,724) | (16,672) | (9,250) | (52,138) |
Total other comprehensive loss | (7,432) | (17,271) | (9,823) | (53,147) |
Comprehensive income | $ 51,201 | $ 55,801 | $ 95,303 | $ 118,335 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 677,688 | $ 472,785 |
Accounts receivable, net | 309,602 | 326,098 |
Inventories | 380,225 | 393,092 |
Prepaid expenses and other current assets | 88,625 | 95,539 |
Total current assets | 1,456,140 | 1,287,514 |
Property and equipment, net | 267,149 | 272,629 |
Deferred income taxes, net | 55,194 | 55,429 |
Goodwill | 626,243 | 596,316 |
Intangible assets, net | 135,878 | 141,302 |
Other assets | 47,290 | 53,210 |
Total assets | 2,587,894 | 2,406,400 |
Current liabilities: | ||
Accounts payable | 109,663 | 139,540 |
Deferred revenue | 36,553 | 31,933 |
Accrued payroll and related liabilities | 54,277 | 54,806 |
Accrued product warranties | 16,759 | 13,406 |
Advance payments from customers | 28,680 | 33,848 |
Accrued expenses | 35,449 | 40,930 |
Accrued income taxes | 6,133 | 201 |
Other current liabilities | 8,134 | 5,987 |
Current portion, long term debt | 15,000 | 264,694 |
Total current liabilities | 310,648 | 585,345 |
Long-term debt | 501,606 | 93,750 |
Deferred income taxes | 3,711 | 3,623 |
Accrued income taxes | 53,397 | 10,457 |
Other long-term liabilities | 65,126 | 63,710 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at September 30, 2016, and December 31, 2015 | 0 | 0 |
Common stock, $0.01 par value, 500,000 shares authorized, 136,127 and 137,350 shares issued at September 30, 2016, and December 31, 2015, respectively, and additional paid-in capital | 1,361 | 1,374 |
Retained earnings | 1,786,994 | 1,773,267 |
Accumulated other comprehensive loss | (134,949) | (125,126) |
Total shareholders’ equity | 1,653,406 | 1,649,515 |
Total liabilities and shareholders' equity | $ 2,587,894 | $ 2,406,400 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000 | 10,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000 | 500,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 105,126 | $ 171,482 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 41,857 | 36,465 |
Deferred income taxes | (200) | (17,238) |
Stock-based compensation arrangements | 21,253 | 19,449 |
Other, net | 19,830 | 4,346 |
Increase (decrease) in cash, net of acquisitions, resulting from changes in: | ||
Accounts receivable | 19,951 | 43,295 |
Inventories | 20,211 | (72,531) |
Prepaid expenses | (3,129) | 1,784 |
Other assets | (18,861) | (1,775) |
Accounts payable | (35,507) | 29,011 |
Deferred revenue | 4,859 | (106) |
Accrued payroll and other liabilities | (13,614) | (21,055) |
Accrued income taxes | 51,856 | (957) |
Pension & other long term liabilities | 1,595 | 5,309 |
Net cash provided by operating activities | 215,227 | 197,479 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (27,682) | (50,146) |
Proceeds on sale of property and equipment | 6,986 | 30 |
Business acquisitions, net of cash acquired | 42,445 | 0 |
Net cash used by investing activities | (63,141) | (50,116) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from credit agreement and long-term debt | 524,826 | 0 |
Repayments of credit agreements and long-term debt | (367,435) | (11,250) |
Dividends paid | (66,057) | (93,381) |
Proceeds from employee stock based compensation plans | (49,564) | (46,193) |
Excess tax benefits from share-based payment arrangements | 7,347 | 21,188 |
Other financing activities | 1,605 | 4,216 |
Proceeds from (Payments for) Other Financing Activities | 10 | (10) |
Net cash provided (used) by financing activities | 50,732 | (125,430) |
Effect of exchange rates on cash and cash equivalents | 2,085 | (27,931) |
Net increase (decrease) in cash and cash equivalents | 204,903 | (5,998) |
Cash and cash equivalents, beginning of period | 472,785 | 531,374 |
Cash and cash equivalents, end of period | $ 677,688 | $ 525,376 |
Basis of Presenation
Basis of Presenation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the “Company”) are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . The accompanying consolidated financial statements include the accounts of FLIR Systems, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the year ending December 31, 2016 . Reclassifications The Company made certain reclassifications to the prior year's financial statements to conform them to the presentation as of September 30, 2016 . Restructuring expenses of $0.3 million and $1.1 million have been reclassified to research and development expenses and selling, general and administrative expenses, for the three and nine months ended September 30, 2015 , respectively. These reclassifications had no effect on consolidated financial position, shareholders' equity or net cash flows for any of the periods presented. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock Incentive Plans The Company has a stock-based compensation program that provides equity incentives for employees, consultants and directors. This program includes incentive and non-statutory stock options and nonvested stock awards (referred to as restricted stock unit awards) administered by the Compensation Committee of the Company's Board of Directors. Under the stock-based compensation program, the Company has granted time-based options, time-based restricted stock unit awards, performance-based restricted stock unit awards and market-based restricted stock unit awards. Options generally expire ten years from their grant dates. Time-based options and restricted stock unit awards generally vest over a three year period. Shares issuable under the performance-based restricted stock unit awards are earned based upon the Company's return on invested capital over a three year period. Shares issuable under market-based restricted stock unit awards are earned based upon the Company's total shareholder return compared to the total shareholder return over a three year period of the component company at the 60th percentile level in the Standard & Poor's 500 Index. Shares vested under the performance-based restricted stock unit awards and the market-based restricted stock unit awards must be held by the participant for a period of one year from the vest date. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (the “ESPP”) which allows employees to purchase shares of the Company’s common stock at 85 percent of the lower of the fair market value at the date of enrollment or the fair market value at the purchase date. The ESPP provides for six-month offerings commencing on May 1 and November 1 of each year with purchases on April 30 and October 31 of each year. Shares purchased under the ESPP must be held by employees for a period of at least 18 months after the date of purchase. Note 2. Stock-based Compensation - (Continued) Stock-based Compensation Expense Stock-based compensation expense recognized in the Consolidated Statements of Income are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of goods sold $ 881 $ 799 $ 2,351 $ 2,283 Research and development 1,225 1,259 3,639 3,584 Selling, general and administrative 4,766 4,454 15,263 13,582 Stock-based compensation expense $ 6,872 $ 6,512 $ 21,253 $ 19,449 Stock-based compensation costs capitalized in inventory are as follows (in thousands): September 30, 2016 2015 Capitalized in inventory $ 585 $ 667 As of September 30, 2016 , the Company had $46.5 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 2.1 years. |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 58,633 $ 73,072 $ 105,126 $ 171,482 Denominator for earnings per share: Weighted average number of common shares outstanding 136,963 139,596 137,438 139,808 Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 975 929 1,156 1,454 Weighted average diluted shares outstanding 137,938 140,525 138,594 141,262 The effect of outstanding stock-based compensation awards for the three and nine months ended September 30, 2016 , which in the aggregate consisted of 322,000 and 317,000 shares, respectively; and for the three and nine months ended September 30, 2015 , which in the aggregate consisted of 457,000 and 316,000 shares, respectively, have been excluded for purposes of calculating diluted earnings per share since their inclusion would have an anti-dilutive effect. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories in accordance with FASB ASC Topic 820, “Fair Value Measurement”: Level 1 – quoted prices in active markets for identical securities as of the reporting date; Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors and methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The Company had $147.3 million and $29.0 million of cash equivalents at September 30, 2016 and December 31, 2015 , respectively, which were primarily investments in money market funds. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets. The fair values of the Company’s foreign currency forward contracts and interest rate swap contracts as of September 30, 2016 and December 31, 2015 are disclosed in Note 5, "Derivative Financial Instruments," of the Notes to the Consolidated Financial Statements below and are based on Level 2 inputs. The fair value of the Company’s senior unsecured notes as described in Note 13, "Long-Term Debt," of the Notes to the Consolidated Financial Statements is approximately $440.1 million and $254.1 million based upon Level 2 inputs at September 30, 2016 and December 31, 2015 , respectively. The fair value of the Company's borrowings under the revolving credit facility, also described in Note 13, approximates the carrying value due to the variable market rate used to calculate interest payments. The Company does not have any other significant financial assets or liabilities that are measured at fair value. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments Foreign Currency Exchange Rate Contracts In general, the gains and losses related to the Company's foreign currency exchange rate contracts recorded in other expense, net are offset by the reciprocal gains and losses generated from foreign currency changes on the settlement of underlying assets or liabilities which originally gave rise to the exposure. The net losses for the three and nine months ended September 30, 2016 were $3.1 million and $5.2 million , respectively. The net losses for the three and nine months ended September 30, 2015 were $8.9 million and $7.0 million , respectively. The following table provides volume information about the Company's foreign currency exchange rate contracts. The table below presents the net notional amounts of the Company's outstanding foreign currency forward contracts in United States dollar equivalent amounts (in thousands): September 30, December 31, Swedish kronor $ 89,433 $ 59,198 Euro 52,277 281 Canadian dollar 12,978 10,799 British pound sterling 7,484 10,203 Brazilian real 7,478 6,440 Australian dollar 4,967 2,342 Japanese yen 1,011 2,124 Other — 526 $ 175,628 $ 91,913 At September 30, 2016 , the Company’s foreign currency forward contracts, in general, had maturities of one month or less. Note 5. Derivative Financial Instruments - (Continued) Foreign Currency Exchange Rate Contracts - (Continued) The carrying amount of the foreign currency forward contracts included in the Consolidated Balance Sheets are as follows (in thousands): September 30, 2016 December 31, 2015 Other current assets Other current liabilities Other current assets Other current liabilities Foreign currency forward contracts $ 61 $ 1,811 $ 767 $ 1,314 Interest Rate Swap Contracts At September 30, 2016 , the effective interest rate on the Company's revolving credit facility was 2.37 percent . As of September 30, 2016 , the following interest rate swaps were outstanding: Contract Date Notional Amount (in millions) Fixed Rate Effective Date Maturity Date March 15, 2013 $ 48.8 1.02 % April 5, 2013 March 31, 2019 March 29, 2013 $ 48.8 0.97 % April 5, 2013 March 31, 2019 The net fair value carrying amount of the Company's interest rate swaps was a liability of $0.4 million of which $0.3 million has been recorded in other current liabilities and $0.1 million has been recorded to other long-term liabilities in the Consolidated Balance Sheet as of September 30, 2016 . |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable are net of an allowance for doubtful accounts of $7.0 million at September 30, 2016 and $6.9 million at December 31, 2015 . |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): September 30, December 31, Raw material and subassemblies $ 192,057 $ 216,107 Work-in-progress 55,007 38,639 Finished goods 133,161 138,346 $ 380,225 $ 393,092 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are net of accumulated depreciation of $273.2 million and $253.4 million at September 30, 2016 and December 31, 2015 , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure - Goodwill - Additional Information [Abstract] | |
Goodwill | Goodwill The carrying value of goodwill and the activity for the nine months ended September 30, 2016 are as follows (in thousands): Balance, December 31, 2015 $ 596,316 Goodwill from acquisitions 35,203 Currency translation adjustments and other (5,276 ) Balance, September 30, 2016 $ 626,243 See Note 17, "Operating Segments and Related Information - Operating Segments, " of the Notes to the Consolidated Financial Statements for additional information on the carrying value of goodwill by operating segment at September 30, 2016 . See Note 18, "Business Acquisitions," of the Notes to the Consolidated Financial Statements for additional information on the addition of goodwill from acquisitions. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets are net of accumulated amortization of $73.3 million and $61.3 million at September 30, 2016 and December 31, 2015 , respectively. |
Credit Agreements
Credit Agreements | 9 Months Ended |
Sep. 30, 2016 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | Credit Agreement At September 30, 2016 , the Company had $97.5 million borrowings outstanding under its revolving credit facility pursuant to the Credit Agreement, dated February 8, 2011, by and among the Company, with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other lenders, as amended on April 5, 2013, October 27, 2015 and May 31, 2016 (the "Credit Agreement"), and had $21.6 million of letters of credit outstanding, which reduced the available credit under the revolving credit facility to $380.9 million . |
Accrued Product Warranties
Accrued Product Warranties | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Accrued Product Warranties | Accrued Product Warranties The following table summarizes the Company’s accrued product warranties and activity (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Accrued product warranties, beginning of period $ 17,492 $ 16,023 $ 16,514 $ 16,175 Amounts paid for warranty services (3,624 ) (3,731 ) (13,221 ) (10,701 ) Warranty provisions for products sold 5,099 3,567 15,658 10,551 Currency translation and acquisition adjustments 1,025 (23 ) 1,041 (189 ) Accrued product warranties, end of period $ 19,992 $ 15,836 $ 19,992 $ 15,836 Current accrued product warranties, end of period $ 16,759 $ 13,213 Long-term accrued product warranties, end of period $ 3,233 $ 2,623 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): September 30, December 31, Unsecured notes $ 425,000 $ 250,000 Term loan — 108,750 Credit Agreement 97,500 — Unamortized discounts and issuance costs (5,894 ) (306 ) $ 516,606 $ 358,444 Current portion, long-term debt $ 15,000 $ 264,694 Long-term debt $ 501,606 $ 93,750 In August 2011, the Company issued $250 million aggregate principal amount of its 3.75 percent senior unsecured notes due September 1, 2016 (the “2011 Notes”). The 2011 Notes were repaid on July 5, 2016. The Company recorded a $1.3 million loss on the extinguishment of the 2011 Notes in Interest expense during the three months ended September 30, 2016. In June 2016, the Company issued $425 million aggregate principal amount of its 3.125 percent senior unsecured notes due June 15, 2021 (the “2016 Notes”). The net proceeds from the issuance of the 2016 Notes were approximately $421.0 million , after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years. Interest on the 2016 Notes is payable semiannually in arrears on December 15 and June 15 . The proceeds from the 2016 Notes were used to repay the principal amount of the 2011 Notes outstanding in July 2016 and are being used for other general corporate purposes, including working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock. The Credit Agreement discussed in Note 11, "Credit Agreement," of the Notes to the Consolidated Financial Statements above, consisted of a $150 million term loan facility and a revolving credit facility. On May 31, 2016, the Company repaid its term loan and drew down $105.0 million under the revolving credit facility. Interest on amounts outstanding under the revolving credit facility accrues at the one-month LIBOR rate plus the applicable scheduled spread for the amount outstanding and is paid monthly in arrears. See Note 5, "Derivative Financial Instruments - Interest Rate Swap Contracts ," of the Notes to the Consolidated Financial Statements for additional information on the effective interest rate on the revolving credit facility at September 30, 2016 . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following table summarizes the common stock and additional paid-in capital activity during the nine months ended September 30, 2016 (in thousands): Common stock and additional paid-in capital, December 31, 2015 $ 1,374 Income tax benefit of common stock options exercised 1,477 Common stock issued pursuant to stock-based compensation plans, net 1,585 Stock-based compensation expense 21,147 Repurchase of common stock (24,222 ) Common stock and additional paid-in capital, September 30, 2016 $ 1,361 On February 5, 2015, the Company's Board of Directors authorized the repurchase in the open market or through privately negotiated transactions of up to 15.0 million shares of the Company's outstanding common stock. The authorization will expire on February 5, 2017. During the nine months ended September 30, 2016 , the Company repurchased 2.1 million shares for an aggregate purchase price of $66.1 million , of which $24.2 million reduced common stock and additional paid in capital and $41.9 million reduced retained earnings. Note 14. Shareholders’ Equity - (Continued) On September 2, 2016 , the Company paid a dividend of $0.12 per share on its outstanding common stock to the shareholders of record as of the close of business on August 19, 2016 . The total cash payments for dividends during the nine months ended September 30, 2016 were $49.6 million . |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies FLIR Systems, Inc. and its subsidiary, FLIR Commercial Systems, Inc. (formerly known as Indigo Systems Corporation) (together, the “FLIR Parties”), were named in a lawsuit filed by Raytheon Company (“Raytheon”) on March 2, 2007 in the United States District Court for the Eastern District of Texas. Raytheon's complaint, as amended, asserted claims for tortious interference, patent infringement, trade secret misappropriation, unfair competition, breach of contract and fraudulent concealment. The FLIR Parties filed an answer to the complaint on September 2, 2008, in which they denied all material allegations. On October 27, 2010, the FLIR Parties and Raytheon entered into a settlement agreement that resolved the patent infringement claims (the "Patent Claims") pursuant to which the FLIR Parties paid $3 million to Raytheon and entitles the FLIR Parties to certain license rights in the patents that were the subject of the Patent Claims. On October 28, 2014, a four-week trial began with respect to Raytheon's remaining claims of misappropriations of trade secrets and claims related to 31 alleged trade secrets. On November 24, 2014, a jury in the United States District Court for the Eastern District of Texas rejected Raytheon’s claims and determined that 27 of the alleged trade secrets were not in fact trade secrets and that neither of the FLIR Parties infringed any of the trade secrets claimed and awarded Raytheon no damages. On March 31, 2016 the United States District Court for the Eastern District of Texas issued a Final Judgment denying Raytheon’s claims and awarding FLIR court costs and denying each of Raytheon’s and FLIR’s Renewed Motions for Judgment as a Matter of Law and denying FLIR’s Amended Rule 54(d) Motion for Attorneys’ Fees and Costs Under the Texas Theft Liability Act. On April 29, 2016, Raytheon filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit of the denial by the United States District Court for the Eastern District of Texas of Raytheon’s Renewed Motion for Judgment as a Matter of Law, or in the Alternative, Motion for New Trial. On May 11, 2016, the FLIR Parties filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit of the Order of the United States District Court for the Eastern District of Texas Denying the FLIR Parties’ Amended Rule 54(d) Motion for Attorneys’ Fees and Costs under the Texas Theft Liability Act, the Order Denying the FLIR Parties’ Renewed Motion For Judgment as a Matter Of Law, and the Final Judgment to the extent it denied the FLIR Parties Attorneys’ Fees and Costs under the Texas Theft Liability Act. The matter remains ongoing and is subject to appeal and the Company is unable to estimate the amount or range of potential loss or recovery, if any, which might result if the final determination of this matter is favorable or unfavorable, but an adverse ruling on the merits of the original claims against the FLIR Parties, while remote, could be material. On October 22, 2014, the Company initially contacted the United States Department of State Office of Defense Trade Controls Compliance (“DDTC”), pursuant to International Traffic in Arms Regulation (“ITAR”) § 127.12(c), regarding the unauthorized export of technical data and defense services to dual and third country nationals in at least four facilities of the Company. On April 27, 2015, the Company submitted its initial report to DDTC regarding the details of the issues raised in the October 22, 2014 submission. DDTC subsequently notified the Company that it was considering administrative proceedings under Part 128 of ITAR and requested a tolling agreement, which the Company executed on June 16, 2015. On June 6, 2016, the Company executed a subsequent tolling agreement extending the tolling period for matters to be potentially included in an administrative proceeding for an additional 18 months until December 2017. DDTC continues its review and the Company is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with this matter. However, an unfavorable outcome could result in fines and penalties or loss or modification of exporting privileges that could potentially be material to the financial condition and results of operations of the Company in and following the period in which such an outcome becomes estimable or known. Note 15. Contingencies - (Continued) In March 2016, the Company learned of potential quality concerns with respect to as many as 312 Level III and Level IV SkyWatch Surveillance Towers sold by FLIR and companies acquired by FLIR from 2002 through 2014. During the quarter ended September 30, 2016, the Company identified the cause of these quality issues and tested certain remedial solutions which may be required to repair the affected SkyWatch Towers. Testing of the remedial solution is ongoing. The Company has notified customers who purchased the affected SkyWatch Towers of the potential concerns and, as a precautionary measure, has also temporarily suspended production of all Level III and Level IV SkyWatch Towers pending the completion of its review and the implementation of any necessary remedial measures. While there still remains uncertainty related to estimating the costs associated with a potential remedy and number of units which may require such remedy, the Company currently estimates the range of potential loss to be between $2 million and $20 million. As no single amount within the range is a better estimate than any other amount within the range, the Company has recorded a liability of $2 million as of September 30, 2016. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate The Company is also subject to other legal and administrative proceedings, investigations, claims and litigation arising in the ordinary course of business not specifically identified above. In these identified matters and others not specifically identified, the Company makes a provision for a liability with respect to a matter when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated for such matter. The Company believes it has recorded adequate provisions for any probable and estimable losses for matters in existence on the date hereof. While the outcome of each of these matters is currently not determinable, the Company does not expect that the ultimate resolution of any such matter will individually have a material adverse effect on the Company’s financial position, results of operations or cash flows. The costs to resolve all such matters may in the aggregate have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Income tax provision (benefit) $ 16,575 $ (1,896 ) $ 85,555 $ 29,182 Effective tax rate 22.0 % (2.7 )% 44.9 % 14.5 % The effective tax rate for the three months ended September 30, 2016 is lower than the US Federal tax rate of 35 percent because of the mix of lower foreign jurisdiction tax rates, the effect of federal, foreign and state tax credits and discrete adjustments. During the first quarter of 2016, the Company recorded discrete tax expenses of $40.0 million primarily related to the European Commission’s decision regarding certain tax legislation in Belgium impacting one of the Company’s international subsidiaries. The Belgian Government announced that they have appealed this decision and filed an action for annulment with the General Court of the European Union. In July 2016, the Company filed a separate appeal with the General Court of the European Union. The outcome of an appeal, new information received from the Belgian Government, or other future events may cause the income tax provision associated with the decision to be entirely or partially reversed. As of September 30, 2016 , the Company had approximately $53.4 million of unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. The Company anticipates an immaterial portion of its net unrecognized tax benefits will be recognized within 12 months as the result of settlements or effective settlements with various tax authorities, the closure of certain audits and the lapse of the applicable statute of limitations. The Company classifies interest and penalties related to uncertain tax positions as income tax expense. As of September 30, 2016 , the Company had approximately $2.2 million of net accrued interest and penalties related to uncertain tax positions. Note 16. Income Taxes - (Continued) The Company currently has the following tax years open to examination by major taxing jurisdictions: Tax Years: US Federal 2013 – 2015 State of Oregon 2012 – 2014 State of Massachusetts 2011 – 2014 State of California 2012 – 2014 Sweden 2011 – 2014 United Kingdom 2011 – 2014 Belgium 2011 - 2014 |
Operating Segments and Related
Operating Segments and Related Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | Operating Segments and Related Information Operating Segments The operating segments of the Company are as follows: Surveillance The Surveillance segment develops and manufactures enhanced imaging and recognition solutions for a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, hand-held and weapon-mounted thermal and image intensified imaging systems for use by consumers and services related to these systems. Instruments The Instruments segment develops and manufactures devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices. Security The Security segment develops and manufactures cameras and video recording systems for use in commercial, critical infrastructure, and home security applications. Products include thermal and visible-spectrum cameras, digital and networked video recorders, and related software and accessories that enable the efficient and effective safeguarding of assets at all hours of the day and through adverse weather conditions. OEM & Emerging Markets The OEM & Emerging Markets segment develops and manufactures thermal imaging camera cores and components that are utilized by third parties to create thermal and other types of imaging systems. The segment also develops and manufactures intelligent traffic monitoring and signal control systems, imaging solutions for the smartphone and mobile devices market, and provides thermal cameras and cores for use or integration into unmanned aerial systems. Maritime The Maritime segment develops and manufactures electronics and imaging instruments for the recreational and commercial maritime market. The segment provides a full suite of networked electronic systems including multi-function helm displays, navigational instruments, autopilots, radars, sonar systems, thermal and visible imaging systems, and communications equipment for boats of all sizes. Note 17. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Detection The Detection segment develops and manufactures sensor instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear, and explosives ("CBRNE") threats for military force protection, homeland security, and commercial applications. Operating segment information is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue – External Customers: Surveillance $ 136,402 $ 131,598 $ 373,993 $ 352,312 Instruments 82,673 74,796 240,160 248,877 Security 56,431 59,331 166,872 158,185 OEM & Emerging Markets 62,719 51,448 167,544 137,568 Maritime 40,586 38,920 147,469 141,922 Detection 26,417 25,835 91,391 80,556 $ 405,228 $ 381,928 $ 1,187,429 $ 1,119,420 Revenue – Intersegments: Surveillance $ 5,001 $ 2,653 $ 13,980 $ 8,400 Instruments 709 777 3,498 2,687 Security 4,267 2,386 10,575 10,393 OEM & Emerging Markets 7,518 8,020 24,528 25,778 Maritime 656 85 2,728 1,667 Detection — — 31 — Elimination (18,151 ) (13,921 ) (55,340 ) (48,925 ) $ — $ — $ — $ — Earnings (loss) from operations: Surveillance $ 38,427 $ 39,918 $ 99,801 $ 96,464 Instruments 27,010 21,555 65,640 77,959 Security 2,958 7,222 2,527 18,911 OEM & Emerging Markets 19,936 14,233 46,063 33,507 Maritime 2,391 1,848 14,110 13,058 Detection 6,641 5,290 24,484 17,349 Other (16,514 ) (14,084 ) (49,187 ) (44,981 ) $ 80,849 $ 75,982 $ 203,438 $ 212,267 Note 17. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) September 30, December 31, Segment assets (accounts receivable, net and inventories): Surveillance $ 275,705 $ 285,602 Instruments 110,048 130,363 Security 93,646 105,737 OEM & Emerging Markets 118,408 93,925 Maritime 62,290 73,506 Detection 29,730 30,057 $ 689,827 $ 719,190 September 30, December 31, Segment goodwill: Surveillance $ 151,123 $ 120,145 Instruments 150,638 149,582 Security 105,630 101,955 OEM & Emerging Markets 70,380 69,973 Maritime 100,489 106,549 Detection 47,983 48,112 $ 626,243 $ 596,316 Revenue and Long-Lived Assets by Geographic Area Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States 229,350 216,237 647,938 587,637 Canada/Latin America 19,401 23,825 66,727 60,224 Europe 71,949 66,207 240,656 255,331 Middle East/Africa 41,889 37,253 98,231 89,830 Asia 42,639 38,406 133,877 126,398 $ 405,228 $ 381,928 $ 1,187,429 $ 1,119,420 Long-lived assets by significant geographic locations are as follows (in thousands): September 30, December 31, United States $ 692,391 $ 666,759 Europe 369,906 383,501 Other international 14,263 13,197 $ 1,076,560 $ 1,063,457 Note 17. Operating Segments and Related Information - (Continued) Major Customers Revenue derived from major customers is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 US Government $ 112,737 $ 79,297 $ 298,479 $ 208,742 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 20, 2016 , the Company’s Board of Directors declared a quarterly dividend of $0.12 per share on its common stock, payable on December 2, 2016 , to shareholders of record as of the close of business on November 18, 2016 . The total cash payment of this dividend will be approximately $16.3 million . On November 4, 2016, the Company's subsidiary, FLIR Integrated Imaging Solutions, Inc., completed its previously announced acquisition of the assets of Point Grey Research Inc., for approximately $259 million in cash, which is subject to a post-closing working capital adjustment. |
Basis of Presenation Basis of P
Basis of Presenation Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | The accompanying consolidated financial statements include the accounts of FLIR Systems, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock-based compensation expense recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets | Stock-based compensation expense recognized in the Consolidated Statements of Income are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of goods sold $ 881 $ 799 $ 2,351 $ 2,283 Research and development 1,225 1,259 3,639 3,584 Selling, general and administrative 4,766 4,454 15,263 13,582 Stock-based compensation expense $ 6,872 $ 6,512 $ 21,253 $ 19,449 Stock-based compensation costs capitalized in inventory are as follows (in thousands): September 30, 2016 2015 Capitalized in inventory $ 585 $ 667 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share | The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 58,633 $ 73,072 $ 105,126 $ 171,482 Denominator for earnings per share: Weighted average number of common shares outstanding 136,963 139,596 137,438 139,808 Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 975 929 1,156 1,454 Weighted average diluted shares outstanding 137,938 140,525 138,594 141,262 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of outstanding foreign currency forward contracts by currency | in United States dollar equivalent amounts (in thousands): September 30, December 31, Swedish kronor $ 89,433 $ 59,198 Euro 52,277 281 Canadian dollar 12,978 10,799 British pound sterling 7,484 10,203 Brazilian real 7,478 6,440 Australian dollar 4,967 2,342 Japanese yen 1,011 2,124 Other — 526 $ 175,628 $ 91,913 |
Fair value carrying amount of derivative instruments included in consolidated balance sheets | The carrying amount of the foreign currency forward contracts included in the Consolidated Balance Sheets are as follows (in thousands): September 30, 2016 December 31, 2015 Other current assets Other current liabilities Other current assets Other current liabilities Foreign currency forward contracts $ 61 $ 1,811 $ 767 $ 1,314 |
Interest rate swaps outstanding | As of September 30, 2016 , the following interest rate swaps were outstanding: Contract Date Notional Amount (in millions) Fixed Rate Effective Date Maturity Date March 15, 2013 $ 48.8 1.02 % April 5, 2013 March 31, 2019 March 29, 2013 $ 48.8 0.97 % April 5, 2013 March 31, 2019 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): September 30, December 31, Raw material and subassemblies $ 192,057 $ 216,107 Work-in-progress 55,007 38,639 Finished goods 133,161 138,346 $ 380,225 $ 393,092 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure - Goodwill - Additional Information [Abstract] | |
Carrying value of goodwill by reporting segment and the activity | The carrying value of goodwill and the activity for the nine months ended September 30, 2016 are as follows (in thousands): Balance, December 31, 2015 $ 596,316 Goodwill from acquisitions 35,203 Currency translation adjustments and other (5,276 ) Balance, September 30, 2016 $ 626,243 |
Accrued Product Warrenties (Tab
Accrued Product Warrenties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Summay of warranty liability and activity | The following table summarizes the Company’s accrued product warranties and activity (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Accrued product warranties, beginning of period $ 17,492 $ 16,023 $ 16,514 $ 16,175 Amounts paid for warranty services (3,624 ) (3,731 ) (13,221 ) (10,701 ) Warranty provisions for products sold 5,099 3,567 15,658 10,551 Currency translation and acquisition adjustments 1,025 (23 ) 1,041 (189 ) Accrued product warranties, end of period $ 19,992 $ 15,836 $ 19,992 $ 15,836 Current accrued product warranties, end of period $ 16,759 $ 13,213 Long-term accrued product warranties, end of period $ 3,233 $ 2,623 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following (in thousands): September 30, December 31, Unsecured notes $ 425,000 $ 250,000 Term loan — 108,750 Credit Agreement 97,500 — Unamortized discounts and issuance costs (5,894 ) (306 ) $ 516,606 $ 358,444 Current portion, long-term debt $ 15,000 $ 264,694 Long-term debt $ 501,606 $ 93,750 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common stock and additional paid-in capital activity | The following table summarizes the common stock and additional paid-in capital activity during the nine months ended September 30, 2016 (in thousands): Common stock and additional paid-in capital, December 31, 2015 $ 1,374 Income tax benefit of common stock options exercised 1,477 Common stock issued pursuant to stock-based compensation plans, net 1,585 Stock-based compensation expense 21,147 Repurchase of common stock (24,222 ) Common stock and additional paid-in capital, September 30, 2016 $ 1,361 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Tax years open to examination by major taxing jurisdictions | The Company currently has the following tax years open to examination by major taxing jurisdictions: Tax Years: US Federal 2013 – 2015 State of Oregon 2012 – 2014 State of Massachusetts 2011 – 2014 State of California 2012 – 2014 Sweden 2011 – 2014 United Kingdom 2011 – 2014 Belgium 2011 - 2014 |
Operating Segments and Relate35
Operating Segments and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating segment information is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue – External Customers: Surveillance $ 136,402 $ 131,598 $ 373,993 $ 352,312 Instruments 82,673 74,796 240,160 248,877 Security 56,431 59,331 166,872 158,185 OEM & Emerging Markets 62,719 51,448 167,544 137,568 Maritime 40,586 38,920 147,469 141,922 Detection 26,417 25,835 91,391 80,556 $ 405,228 $ 381,928 $ 1,187,429 $ 1,119,420 Revenue – Intersegments: Surveillance $ 5,001 $ 2,653 $ 13,980 $ 8,400 Instruments 709 777 3,498 2,687 Security 4,267 2,386 10,575 10,393 OEM & Emerging Markets 7,518 8,020 24,528 25,778 Maritime 656 85 2,728 1,667 Detection — — 31 — Elimination (18,151 ) (13,921 ) (55,340 ) (48,925 ) $ — $ — $ — $ — Earnings (loss) from operations: Surveillance $ 38,427 $ 39,918 $ 99,801 $ 96,464 Instruments 27,010 21,555 65,640 77,959 Security 2,958 7,222 2,527 18,911 OEM & Emerging Markets 19,936 14,233 46,063 33,507 Maritime 2,391 1,848 14,110 13,058 Detection 6,641 5,290 24,484 17,349 Other (16,514 ) (14,084 ) (49,187 ) (44,981 ) $ 80,849 $ 75,982 $ 203,438 $ 212,267 |
Segment Assets | September 30, December 31, Segment assets (accounts receivable, net and inventories): Surveillance $ 275,705 $ 285,602 Instruments 110,048 130,363 Security 93,646 105,737 OEM & Emerging Markets 118,408 93,925 Maritime 62,290 73,506 Detection 29,730 30,057 $ 689,827 $ 719,190 September 30, December 31, Segment goodwill: Surveillance $ 151,123 $ 120,145 Instruments 150,638 149,582 Security 105,630 101,955 OEM & Emerging Markets 70,380 69,973 Maritime 100,489 106,549 Detection 47,983 48,112 $ 626,243 $ 596,316 |
By Significant Geographical Area | Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States 229,350 216,237 647,938 587,637 Canada/Latin America 19,401 23,825 66,727 60,224 Europe 71,949 66,207 240,656 255,331 Middle East/Africa 41,889 37,253 98,231 89,830 Asia 42,639 38,406 133,877 126,398 $ 405,228 $ 381,928 $ 1,187,429 $ 1,119,420 Long-lived assets by significant geographic locations are as follows (in thousands): September 30, December 31, United States $ 692,391 $ 666,759 Europe 369,906 383,501 Other international 14,263 13,197 $ 1,076,560 $ 1,063,457 |
Revenue Derived from Major Customers | Revenue derived from major customers is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 US Government $ 112,737 $ 79,297 $ 298,479 $ 208,742 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 6,872 | $ 6,512 | $ 21,253 | $ 19,449 |
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 881 | 799 | 2,351 | 2,283 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,225 | 1,259 | 3,639 | 3,584 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 4,766 | $ 4,454 | $ 15,263 | $ 13,582 |
Stock-based Compensation (Det37
Stock-based Compensation (Details textual) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Share-based Compensation [Abstract] | |
Unrecognized stock-based compensation costs, net of estimated forfeitures | $ 46.5 |
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeitures | 2 years 1 month 6 days |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator for earnings per share: | ||||
Net earnings for basic and diluted earnings per share | $ 58,633 | $ 73,072 | $ 105,126 | $ 171,482 |
Denominator for earnings per share: | ||||
Weighted average number of common shares outstanding | 136,963 | 139,596 | 137,438 | 139,808 |
Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 975 | 929 | 1,156 | 1,454 |
Weighted average diluted shares outstanding | 137,938 | 140,525 | 138,594 | 141,262 |
Net Earnings Per Share (Detai39
Net Earnings Per Share (Details textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Effect of stock-based compensation awards, shares excluded for purposes of diluted earnings per share | 322,000 | 457,000 | 317,000 | 316,000 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Level 1 | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cash equivalents | $ 147.3 | $ 29 |
Three Point Seven Five Percent Senior Unsecured Notes Due September First, Twenty Sixteen [Member] | Level 2 | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value of long-term debt | $ 440.1 | $ 254.1 |
Derivative Financial Instrume41
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative, Notional Amount | $ 175,628 | $ 91,913 |
Swedish kronor | ||
Derivative, Notional Amount | 89,433 | 59,198 |
Canadian dollar | ||
Derivative, Notional Amount | 52,277 | 281 |
Canada, Dollars | ||
Derivative, Notional Amount | 12,978 | 10,799 |
Brazil, Brazil Real | ||
Derivative, Notional Amount | 7,484 | 10,203 |
Australian dollar | ||
Derivative, Notional Amount | 7,478 | 6,440 |
Japan, Yen | ||
Derivative, Notional Amount | 4,967 | 2,342 |
British pound sterling | ||
Derivative, Notional Amount | 1,011 | 2,124 |
Other | ||
Derivative, Notional Amount | $ 0 | $ 526 |
Derivative Financial Instrume42
Derivative Financial Instruments (Details 2) - Level 2 - Foreign currency forward contracts - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 61 | $ 767 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 1,811 | $ 1,314 |
Derivative Financial Instrume43
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 175,628 | $ 91,913 |
Interest Rate Swap [Member] | March 15, 2013 Interest rate swap [Member] | ||
Derivative [Line Items] | ||
Contract date | Mar. 15, 2013 | |
Derivative, Notional Amount | $ 48,800 | |
Fixed rate | 1.02% | |
Effective date | Apr. 5, 2013 | |
Maturity date | Mar. 31, 2019 | |
Interest Rate Swap [Member] | March 29, 2013 Interest rate swap [Member] | ||
Derivative [Line Items] | ||
Contract date | Mar. 29, 2013 | |
Derivative, Notional Amount | $ 48,800 | |
Fixed rate | 0.97% | |
Effective date | Apr. 5, 2013 | |
Maturity date | Mar. 31, 2019 |
Derivative Financial Instrume44
Derivative Financial Instruments (Details textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | ||||
Net gain (loss) | $ (3.1) | $ (8.9) | $ (5.2) | $ (7) |
Maturities of foreign currency forward contracts | 1 month | |||
Level 2 | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Net | (0.4) | $ (0.4) | ||
Level 2 | Interest Rate Swap [Member] | Other Current Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Liability | 0.3 | 0.3 | ||
Level 2 | Interest Rate Swap [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Liability | $ 0.1 | $ 0.1 | ||
Term loan facility [Member] | ||||
Derivative [Line Items] | ||||
Effective interest rate | 2.37% | 2.37% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Allowance for doubtful accounts receivable | $ 7 | $ 6.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw material and subassemblies | $ 192,057 | $ 216,107 |
Work-in-progress | 55,007 | 38,639 |
Finished goods | 133,161 | 138,346 |
Total inventories | $ 380,225 | $ 393,092 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Accumulated depreciation | $ 273.2 | $ 253.4 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | $ 35,203 |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 596,316 |
Currency translation adjustments and other | (5,276) |
Goodwill, end of period | $ 626,243 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated amortization | $ 73.3 | $ 61.3 |
Credit Agreements (Details)
Credit Agreements (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Line of Credit Facility [Abstract] | |
Line of Credit Assumed | $ 105 |
Letters of credit outstanding | 21.6 |
Total available credit | $ 380.9 |
Accrued Product Warrenties (Det
Accrued Product Warrenties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Accrued product warranties, beginning of period | $ 17,492 | $ 16,023 | $ 16,514 | $ 16,175 | |
Amounts paid for warranty services | (3,624) | (3,731) | (13,221) | (10,701) | |
Warranty provisions for products sold | 5,099 | 3,567 | 15,658 | 10,551 | |
Currency translation and acquisition adjustments | 1,025 | (23) | 1,041 | (189) | |
Accrued product warranties, end of period | 19,992 | 15,836 | 19,992 | 15,836 | |
Current accrued product warranties, end of period | 16,759 | 13,213 | 16,759 | 13,213 | $ 13,406 |
Long-term accrued product warranties, end of period | $ 3,233 | $ 2,623 | $ 3,233 | $ 2,623 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Unsecured notes | $ 425,000 | $ 250,000 |
Term loan | 0 | 108,750 |
Line of Credit, Current | 97,500 | |
Unamortized discounts and issuance costs | (5,894) | (306) |
Long-term Debt | 516,606 | 358,444 |
Current portion, long term debt | 15,000 | 264,694 |
Long-term debt | $ 501,606 | $ 93,750 |
Long Term Debt (Details textual
Long Term Debt (Details textual) - USD ($) $ in Millions | Jun. 15, 2021 | Sep. 01, 2016 | Apr. 30, 2013 | Sep. 30, 2016 | Jun. 01, 2016 | Apr. 05, 2013 | Aug. 31, 2011 |
Three Point Seven Five Percent Senior Unsecured Notes Due September First, Twenty Sixteen [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 250 | ||||||
Debt instrument, interest rate, stated percentage | 3.75% | ||||||
Debt instrument, maturity date | Sep. 1, 2016 | ||||||
Three Point One Two Five Percent Senior Unsecured Notes Due June Fifteenth Twenty Twenty Five [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 425 | ||||||
Debt instrument, interest rate, stated percentage | 3.125% | ||||||
Senior unsecured notes, proceeds | $ 421 | ||||||
Debt instrument, frequency of periodic payment | semiannually | ||||||
Senior unsecured notes, interest payment dates | December 15 and June 15 | ||||||
Term loan facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 150 | ||||||
Debt instrument, maturity date | Jun. 15, 2021 | ||||||
Debt instrument, frequency of periodic payment | monthly | ||||||
Debt Instrument, Description of Variable Rate Basis | Interest on amounts outstanding under the revolving credit facility accrues at the one-month LIBOR rate plus the applicable scheduled spread |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Stockholders Equity Note [Line Items] | |
Common stock and additional paid-in capital, beginning of period | $ 1,374 |
Income tax benefit of common stock options exercised | 1,477 |
Common stock issued pursuant to stock-based compensation plans, net | 1,585 |
Stock-based compensation expense | 21,147 |
Stock Repurchased During Period, Value | 66,057 |
Common stock and additional paid-in capital, end of period | 1,361 |
Common Stock [Member] | |
Stockholders Equity Note [Line Items] | |
Stock Repurchased During Period, Value | $ 24,222 |
Shareholders' Equity (Details t
Shareholders' Equity (Details textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jun. 03, 2016 | Sep. 30, 2016 | Feb. 05, 2015 |
Stockholders Equity Note [Line Items] | |||
Common stock authorized to be repurchased, number of shares (in shares) | 15 | ||
Common stock repurchased, shares | 2.1 | ||
Stock Repurchased During Period, Value | $ 66,057 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | ||
Common Stock [Member] | |||
Stockholders Equity Note [Line Items] | |||
Stock Repurchased During Period, Value | 24,222 | ||
Retained Earnings | |||
Stockholders Equity Note [Line Items] | |||
Stock Repurchased During Period, Value | 41,900 | ||
Dividends, Common Stock, Cash | $ 49,600 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Loss Contingency [Abstract] | |
Litigation settlement payment | $ (3) |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 16,575 | $ (1,896) | $ 85,555 | $ 29,182 |
Federal Statutory Income Tax Rate | 35.00% | |||
Unrecognized tax benefits | $ 53,400 | 53,400 | ||
Accrued interest and penalties | $ 2,200 | $ 2,200 |
Operating Segments and Relate58
Operating Segments and Related Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | $ 405,228 | $ 381,928 | $ 1,187,429 | $ 1,119,420 |
Intersegment revenue | 0 | 0 | 0 | 0 |
Earnings (loss) from operations | 80,849 | 75,982 | 203,438 | 212,267 |
Surveillance | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 136,402 | 131,598 | 373,993 | 352,312 |
Intersegment revenue | 5,001 | 2,653 | 13,980 | 8,400 |
Earnings (loss) from operations | 38,427 | 39,918 | 99,801 | 96,464 |
Instruments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 82,673 | 74,796 | 240,160 | 248,877 |
Intersegment revenue | 709 | 777 | 3,498 | 2,687 |
Earnings (loss) from operations | 27,010 | 21,555 | 65,640 | 77,959 |
Security [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 56,431 | 59,331 | 166,872 | 158,185 |
Intersegment revenue | 4,267 | 2,386 | 10,575 | 10,393 |
Earnings (loss) from operations | 2,958 | 7,222 | 2,527 | 18,911 |
OEM & Emerging Markets | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 62,719 | 51,448 | 167,544 | 137,568 |
Intersegment revenue | 7,518 | 8,020 | 24,528 | 25,778 |
Earnings (loss) from operations | 19,936 | 14,233 | 46,063 | 33,507 |
Maritime | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 40,586 | 38,920 | 147,469 | 141,922 |
Intersegment revenue | 656 | 85 | 2,728 | 1,667 |
Earnings (loss) from operations | 2,391 | 1,848 | 14,110 | 13,058 |
Detection | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue - External Customers | 26,417 | 25,835 | 91,391 | 80,556 |
Intersegment revenue | 0 | 0 | 31 | 0 |
Earnings (loss) from operations | 6,641 | 5,290 | 24,484 | 17,349 |
Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Intersegment revenue | (18,151) | (13,921) | (55,340) | (48,925) |
Earnings (loss) from operations | $ (16,514) | $ (14,084) | $ (49,187) | $ (44,981) |
Operating Segments and Relate59
Operating Segments and Related Information (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | $ 689,827 | $ 719,190 |
Surveillance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 275,705 | 285,602 |
Instruments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 110,048 | 130,363 |
OEM & Emerging Markets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 118,408 | 93,925 |
Maritime | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 62,290 | 73,506 |
Detection | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | $ 29,730 | $ 30,057 |
Operating Segments and Relate60
Operating Segments and Related Information (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | $ 626,243 | $ 596,316 |
Surveillance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | 151,123 | 120,145 |
Instruments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | 150,638 | 149,582 |
OEM & Emerging Markets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | 70,380 | 69,973 |
Maritime | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | 100,489 | 106,549 |
Detection | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment Reporting Information Goodwill | $ 47,983 | $ 48,112 |
Operating Segments and Relate61
Operating Segments and Related Information (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 405,228 | $ 381,928 | $ 1,187,429 | $ 1,119,420 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 229,400 | 216,200 | 647,900 | 587,600 |
Canada/Latin_America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 19,401 | 23,825 | 66,727 | 60,224 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 71,949 | 66,207 | 240,656 | 255,331 |
Mid_East/Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 41,889 | 37,253 | 98,231 | 89,830 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 42,639 | $ 38,406 | $ 133,877 | $ 126,398 |
Operating Segments and Relate62
Operating Segments and Related Information (Details 6) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,076,560 | $ 1,063,457 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 692,391 | 666,759 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 369,906 | 383,501 |
Other International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 14,263 | $ 13,197 |
Operating Segments and Relate63
Operating Segments and Related Information (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 405,228 | $ 381,928 | $ 1,187,429 | $ 1,119,420 |
US Government | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 112,737 | $ 79,297 | $ 298,479 | $ 208,742 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 02, 2016 | Nov. 18, 2016 | Oct. 20, 2016 | Jul. 21, 2016 |
Subsequent Event [Line Items] | ||||
Quarterly dividend, date declared | Oct. 20, 2016 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.12 | |||
Quarterly dividend, date to be paid | Dec. 2, 2016 | |||
Quarterly dividend, date of record | Nov. 18, 2016 | |||
Quarterly dividend, amount declared | $ 16.3 |