Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document And Entity Information [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 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 135,467,254 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7,125,061,781 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 1,775,686 | $ 1,800,434 | $ 1,662,167 |
Cost of Goods Sold | 875,368 | 941,658 | 895,046 |
Gross profit | 900,318 | 858,776 | 767,121 |
Operating expenses: | |||
Research and development | (176,281) | (170,735) | (147,537) |
Selling, general and administrative | (386,869) | (373,867) | (322,435) |
Restructuring expenses | (4,854) | (625) | (1,431) |
Loss on assets held for sale | 0 | 23,588 | 0 |
Loss on sale of business | 13,708 | 0 | |
Total operating expenses | 581,712 | 568,815 | 471,403 |
Earnings from operations | 318,606 | 289,961 | 295,718 |
Interest expense | 16,147 | 16,804 | 18,071 |
Interest income | (3,901) | (1,764) | (1,402) |
Other (income) expense, net | (743) | (4,144) | 3,092 |
Earnings before income taxes | 307,103 | 279,065 | 275,957 |
Income tax provision | 24,678 | 171,842 | 109,331 |
Net earnings | $ 282,425 | $ 107,223 | $ 166,626 |
Net earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 2.05 | $ 0.78 | $ 1.22 |
Diluted earnings per share (in dollars per share) | $ 2.01 | $ 0.77 | $ 1.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 282,425 | $ 107,223 | $ 166,626 |
Other comprehensive (loss) income, net of tax: | |||
Change in minimum liability for pension plans, net of tax effects of ($138), $477 and $48, respectively | (338) | 1,271 | 102 |
Fair value adjustment on interest rate swap contracts | 0 | 187 | (16) |
Realized gain reclassified to earnings | 0 | (494) | 0 |
Gain/Loss on held-for-sale securities | 0 | (4) | 0 |
Foreign currency translation adjustments | (35,394) | 51,631 | (40,911) |
Total other comprehensive (loss) income | (35,732) | 52,591 | (40,825) |
Comprehensive income | $ 246,693 | $ 159,814 | $ 125,801 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ 4 | $ 477 | $ 48 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and Cash Equivalents, at Carrying Value | $ 512,144 | $ 519,090 |
Accounts receivable, net | 323,746 | 346,687 |
Inventories | 352,107 | 372,183 |
Disposal Group, Including Discontinued Operation, Assets, Current | 2,032 | 67,344 |
Prepaid expenses and other current assets | 102,618 | 81,915 |
Total current assets | 1,292,647 | 1,387,219 |
Property and equipment, net | 247,407 | 263,996 |
Deferred income taxes, net | 100,620 | 21,001 |
Goodwill | 904,571 | 909,811 |
Intangible assets, net | 146,845 | 168,130 |
Other assets | 89,152 | 59,869 |
Total assets | 2,781,242 | 2,810,026 |
Current liabilities: | ||
Accounts payable | 95,496 | 106,389 |
Deferred revenue | 32,703 | 25,614 |
Accrued payroll and related liabilities | 81,118 | 71,310 |
Accrued product warranties | 15,204 | 15,024 |
Advance payments from customers | 19,691 | 20,672 |
Accrued expenses | 41,761 | 37,089 |
Accrued income taxes | 13,855 | 64,136 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 39,544 |
Other current liabilities | 16,186 | 15,155 |
Total current liabilities | 316,014 | 394,933 |
Long-term debt | 421,948 | 420,684 |
Deferred income taxes | 22,927 | 12,496 |
Accrued income taxes | 76,435 | 87,483 |
Pension and other long-term liabilities | 3,417 | 3,887 |
Other Liabilities, Noncurrent | 67,132 | 59,872 |
Commitments and contingencies (Notes 13 and 14) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at December 31, 2018 or 2017 | 0 | 0 |
Common stock, $0.01 par value, 500,000 shares authorized, 135,516 and 138,869 shares issued at December 31, 2018 and 2017, respectively, and additional paid-in capital | 1,355 | 91,162 |
Retained earnings | 2,024,523 | 1,856,756 |
Accumulated other comprehensive loss | (149,092) | (113,360) |
Total shareholders’ equity | 1,876,786 | 1,834,558 |
Total liabilities and shareholders' equity | $ 2,781,242 | $ 2,810,026 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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 |
Common stock, shares issued | 135,516 | 138,869 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) |
Balance (in shares) at beginning of period at Dec. 31, 2015 | 137,350 | |||
Balance at beginning of period at Dec. 31, 2015 | $ 1,649,515 | $ 1,374 | $ 1,773,267 | $ (125,126) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings for the year | 166,626 | 166,626 | ||
Income tax benefit of common stock options exercised | 1,329 | $ 1,329 | ||
Repurchase of common stock (in shares) | (2,132) | |||
Repurchase of common stock | (66,057) | $ (24,222) | (41,835) | |
Common stock issued pursuant to stock-based compensation plans, net (in shares) | 1,116 | |||
Common stock issued pursuant to stock-based compensation plans, net | 5,985 | $ 5,985 | ||
Stock-based compensation expense | 27,673 | $ 27,673 | ||
Dividends paid | (65,920) | (65,920) | ||
Other comprehensive income (loss) | (40,825) | (40,825) | ||
Balance (in shares) at end of period at Dec. 31, 2016 | 136,334 | |||
Balance at end of period at Dec. 31, 2016 | 1,678,326 | $ 12,139 | 1,832,138 | (165,951) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings for the year | 107,223 | 107,223 | ||
Common stock issued pursuant to stock-based compensation plans, net (in shares) | 2,535 | |||
Common stock issued pursuant to stock-based compensation plans, net | 47,510 | $ 47,510 | ||
Stock-based compensation expense | 31,513 | $ 31,513 | ||
Dividends paid | (82,605) | (82,605) | ||
Other comprehensive income (loss) | 52,591 | 52,591 | ||
Balance (in shares) at end of period at Dec. 31, 2017 | 138,869 | |||
Balance at end of period at Dec. 31, 2017 | 1,834,558 | $ 91,162 | 1,856,756 | (113,360) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings for the year | $ 282,425 | 282,425 | ||
Repurchase of common stock (in shares) | (5,000) | (4,986) | ||
Repurchase of common stock | $ (243,706) | $ (136,891) | (106,815) | |
Common stock issued pursuant to stock-based compensation plans, net (in shares) | 1,633 | |||
Common stock issued pursuant to stock-based compensation plans, net | 12,896 | $ 12,896 | ||
Stock-based compensation expense | 34,188 | $ 34,188 | ||
Dividends paid | (88,123) | (88,123) | ||
Other comprehensive income (loss) | (35,732) | (35,732) | ||
Balance (in shares) at end of period at Dec. 31, 2018 | 135,516 | |||
Balance at end of period at Dec. 31, 2018 | 1,876,786 | $ 1,355 | $ 2,024,523 | $ (149,092) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Adoption of ASU 2014-09 and ASU 2016-16 | $ 80,280 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |||
Cash and Cash Equivalents | $ 512,144 | $ 519,090 | |
CASH PROVIDED BY OPERATING ACTIVITIES: | |||
Net earnings | 282,425 | 107,223 | $ 166,626 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 66,462 | 71,010 | 57,513 |
Deferred income taxes | 14,604 | 25,968 | 5,613 |
Stock-based compensation arrangements | 34,170 | 31,018 | 27,797 |
Loss on assets held for sale | 0 | 23,588 | 0 |
Other, net | (483) | (31,256) | 11,992 |
Increase (decrease) in cash, net of acquisitions, resulting from changes in: | |||
Accounts receivable | 29,057 | (7,758) | (10,704) |
Inventories | 17,425 | (32,961) | 51,170 |
Prepaid expenses | (3,427) | 1,217 | (7,706) |
Other assets | (2,663) | (12,027) | 10,750 |
Accounts payable | (22,449) | 21,558 | (33,465) |
Deferred revenue | 8,081 | (9,220) | 2,928 |
Accrued payroll and other liabilities | 6,599 | 17,076 | (10,147) |
Accrued income taxes | (74,888) | 84,352 | 66,302 |
Pension and other long-term liabilities | 13,918 | (5,590) | 2,582 |
Net cash provided by operating activities | 374,157 | 308,252 | 319,751 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to property and equipment | (30,773) | (42,109) | (35,940) |
Business acquisitions, net of cash acquired | (26,764) | 0 | (419,203) |
Proceeds from sale of assets | 3,017 | 3,686 | 7,331 |
Payments for (Proceeds from) Other Investing Activities | (15,500) | 0 | 0 |
Proceeds from Divestiture of Businesses | 25,920 | 0 | 0 |
Net cash used by investing activities | (44,100) | (38,423) | (447,812) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds of long-term debt, including current portion | 0 | 0 | 524,560 |
Repayment of long-term debt | 0 | (97,500) | (367,435) |
Repurchase of common stock | (243,706) | 0 | (66,057) |
Dividends paid | (88,123) | (82,605) | (65,920) |
Proceeds from shares issued pursuant to stock-based compensation plans | 29,124 | 58,241 | 11,966 |
Tax paid for net share exercises and issuance of vested restricted stock units | 16,228 | 10,731 | 5,991 |
Other financing activities | (11) | (17) | 13 |
Net cash (used) provided by financing activities | (318,944) | (132,612) | 31,136 |
Effect of exchange rate changes on cash | (18,059) | 20,524 | (14,511) |
Net (decrease) increase in cash and cash equivalents | (6,946) | 157,741 | (111,436) |
Cash and cash equivalents, beginning of year | 519,090 | 361,349 | 472,785 |
Cash and cash equivalents, end of year | $ 512,144 | $ 519,090 | $ 361,349 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies FLIR Systems, Inc. (the "Company") is a world leader in sensor systems that enhance perception and awareness. The Company was founded in 1978 and has since become a premier designer, manufacturer, and marketer of thermal imaging and other sensing products and systems. The Company’s advanced sensors and integrated sensor systems enable the gathering and analysis of critical information through a wide variety of applications in commercial, industrial, and government markets worldwide. The Company’s goal is to both enable its customers to benefit from the valuable information produced by advanced sensing technologies and to deliver sustained superior financial performance for its shareholders. The Company creates value for its customers by providing advanced surveillance and tactical defense capabilities, improving personal and public safety and security, facilitating air, ground, and maritime navigation, enhancing enjoyment of the outdoors, providing infrastructure inefficiency information, conveying pre-emptive structural deficiency data, displaying process irregularities, and enabling commercial business opportunities through its continual support and development of new thermal imaging data and analytics applications. The Company’s business model meets the needs of a multitude of customers—it sells off-the-shelf products to a wide variety of markets in an efficient, timely, and affordable manner as well as offers a variety of system configurations to suit specific customer requirements. Centered on the design of products for low cost manufacturing and high volume distribution, the Company’s commercial operating model has been developed over time and provides it with a unique ability to adapt to market changes and meet its customers’ needs. Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions were eliminated. Reclassification The Company made certain reclassifications to the prior years' financial statements to conform them to the presentation as of and for the year ended December 31, 2018. These reclassifications had no effect on consolidated financial position, net earnings, shareholders' equity, or net cash flows for any of the periods presented. Foreign currency translation The assets and liabilities of the Company’s subsidiaries outside the United States are translated into United States dollars at current exchange rates in effect at the balance sheet date. Revenues and expenses are translated at monthly average exchange rates. Resulting translation adjustments are reflected in accumulated other comprehensive earnings (loss) within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in currencies other than the functional currency are reflected as other (income) expense, net, in the Consolidated Statements of Income as incurred. The cumulative translation adjustment included in accumulated other comprehensive earnings (loss) is a loss of $148.4 million and $113.0 million at December 31, 2018 and 2017 , respectively. Transaction gains and losses included in other (income) expense, net, are net losses of $1.3 million , $0.2 million , and $2.2 million for the years ended December 31, 2018, 2017 and 2016 , respectively. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Revenue recognition The Company designs, markets and sells products primarily as commercial, off-the-shelf products. Certain customers request different system configurations, based on standard options or accessories that the Company offers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company regularly enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In such situations, contract values are allocated to each performance obligation based on its relative estimated standalone selling price. The vast majority of the Company's revenues are recognized at a point in time when goods are transferred to a customer. However, for certain contracts that include highly customized components, if performance does not create an asset with an alternative use and termination for convenience clauses provide an enforceable right to payment for performance completed to date, revenue is recognized over time as the performance obligation is satisfied. Revenue includes certain shipping and handling costs and is stated net of third party agency fees. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Revenue is recognized net of allowances for returns and net of taxes collected from customers which are subsequently remitted to governmental authorities. The Company’s products are sold with warranty provisions that require it to remedy deficiencies in quality or performance of the Company’s products over a specified period of time, generally twelve to twenty-four months, at no cost to its customers. Warranty liabilities are established at the time that revenue is recognized at levels that represent the Company’s estimate of the costs that will be incurred to fulfill those warranty requirements. Provisions for estimated losses on sales or related receivables are recorded when identified. Revenue includes certain shipping and handling costs and is stated net of representative commissions and sales taxes. Service revenue is deferred and recognized over the contract period, as is the case for extended warranty contracts, or recognized as services are provided. See Note 18. "Operating Segments and Related Information - Revenue and Long-Lived Assets by Geographic Area" for information related to the Company’s revenues disaggregated by significant geographical region and operating segment. Cost of goods sold Cost of goods sold includes materials, labor and overhead costs incurred in the manufacturing of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation, occupancy costs, and purchasing, receiving and inspection costs. Research and development Expenditures for research and development activities are expensed as incurred. Cash equivalents and restricted cash The Company considers short-term investments that are highly liquid, readily convertible into cash and have maturities of less than three months when purchased to be cash equivalents. Cash equivalents at December 31, 2018 and 2017 were $200.0 million and $140.7 million , respectively, which were primarily investments in money market funds and overnight deposits. Restricted cash includes cash that is subject to a legal or contractual restriction by a third party and restricted as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. The Company did not have any restricted cash balances at December 31, 2018 and 2017 , respectively. Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the amounts the Company expects to collect. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company regularly evaluates the collectability of its trade receivables balances based on a combination of factors. If it is determined that a customer will be unable to fully meet its financial obligation, the Company records a specific allowance to reduce the related receivable to the amount expected to be recovered. In addition, the Company also records an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Inventories Inventories are stated at the lower of cost or market and include materials, labor, and manufacturing overhead. Cost is determined based on a currently adjusted standard cost basis that approximates actual manufacturing cost on a first-in, first-out basis. Inventory write-downs are recorded when conditions exist to indicate that inventories are likely to be in excess of anticipated demand or are obsolete based upon the Company’s assumptions about future demand for its products and market conditions. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product end of life dates, estimated current and future market values and new product introductions. When recorded, write-downs reduce the carrying value of the Company’s inventories to their net realizable value and create a new cost-basis in the inventories. Write-downs are reflected in cost of goods sold in the Consolidated Statements of Income. Demonstration units The Company’s products which are being used as demonstration units are stated at the lower of cost or market and are included in prepaid expenses and other current assets in the Consolidated Balance Sheets. Demonstration units are available for sale and the Company periodically evaluates them as to marketability and realizable values. The carrying value of demonstration units was $35.2 million and $37.6 million at December 31, 2018 and 2017 , respectively. Property and equipment Property and equipment are stated at cost and are depreciated using a straight-line methodology over their estimated useful lives. Repairs and maintenance are charged to expense as incurred. Goodwill Goodwill is reviewed during the third quarter of each year, or more frequently if warranted, for impairment to determine if events or changes in business conditions indicate that the carrying value may not be recoverable. The Company did not recognize any impairment charges on goodwill during the years ended December 31, 2018, 2017 and 2016 . See Note 8, "Goodwill," for additional information. Intangible assets Intangible assets are amortized using a straight-line methodology over their estimated useful lives. Intangible assets with indefinite useful lives are evaluated annually for impairment, or more frequently if required. The Company did not recognize any impairment charges on intangible assets with indefinite lives during the years ended December 31, 2018, 2017 and 2016 . Impairment of long-lived assets Long-lived asset groups are reviewed for impairment when circumstances indicate that the carrying amounts may not be recoverable. Impairment exists when the carrying value is greater than the expected undiscounted future cash flows expected to be provided by the asset group. If impairment exists, the asset group is written down to its fair value. The Company did not recognize any impairment charges on long-lived assets during the years ended December 31, 2018, 2017 and 2016 . Advertising costs Advertising costs, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2018, 2017 and 2016 were $12.5 million , $19.2 million and $19.3 million , respectively. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Minority interest equity investments The Company holds certain investments in equity instruments of non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are measured at cost less impairment, if any, adjusted for changes resulting from qualifying observable price changes. Prior to 2018, all other non-marketable equity investments were accounted for using the cost method. The Company periodically reviews its equity investments for impairment. During the years ended December 31, 2018, 2017, and 2016 the Company did not recognize any impairments on its minority interest equity investments. The carrying values of the minority interest equity investments were $17.1 million and $3.1 million at December 31, 2018 and 2017 , respectively, and are included in other assets in the Consolidated Balance Sheets. Contingencies The Company is subject to the possibility of loss contingencies arising in the normal course of business. An estimated loss is accrued when the Company determines that it is probable that an asset has been impaired or a liability has been incurred and the amount can be reasonably estimated. The Company regularly evaluates current available information to determine whether such accruals and disclosures should be adjusted. Earnings per share Basic earnings per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted shares outstanding are increased to include additional shares from the assumed exercise of stock options, if dilutive, and the assumed issuance of shares upon vesting of restricted stock awards. 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): Year Ended December 31, 2018 2017 2016 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 282,425 $ 107,223 $ 166,626 Denominator for earnings per share: Weighted average number of common shares outstanding 137,815 137,456 137,138 Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 2,394 2,190 1,359 Diluted shares outstanding 140,209 139,646 138,497 The effect of stock-based compensation awards for the years ended December 31, 2018, 2017 and 2016 that aggregated 10,000 , 39,000 and 233,000 shares, respectively, have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2018 2017 2016 Cash paid for: Interest $ 14,183 $ 15,394 $ 15,815 Taxes $ 83,259 $ 72,340 $ 32,465 Stock-based compensation The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards and shares expected to be issued under the Company's employee stock purchase plan. Nonvested stock awards (referred to as restricted stock unit awards) are valued based on the fair market value of the Company's stock, discounted for expected dividends, on the date of grant. Restricted stock units containing performance-based vesting criteria are valued on the date of grant based on the fair value of the Company's stock, discounted for expected dividends and an estimate for illiquidity. The fair value of market-based restricted stock units is determined on the date of grant using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation and a discount for illiquidity. The estimated discount for illiquidity is relevant for share based awards that require the plan participant to hold the shares for a specified period of time after the award vests and is estimated using the protective put method. The Company recognizes the compensation expense for all stock-based compensation awards on a straight-line basis over the requisite service period of each award. The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Cost of goods sold $ 3,157 $ 2,665 $ 3,103 Research and development 6,697 5,068 4,815 Selling, general and administrative 24,316 23,285 19,879 Stock-based compensation expense before income taxes $ 34,170 $ 31,018 $ 27,797 Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2018, 2017 and 2016 is as follows (in thousands): December 31, 2018 2017 2016 Capitalized in inventory $ 1,080 $ 1,062 $ 567 As of December 31, 2018 , the Company had approximately $48.1 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of approximately two years. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Stock-based compensation - (Continued) The fair value of the stock-based awards granted in the years ended December 31, 2018, 2017 and 2016 was estimated with the following weighted-average assumptions: 2018 2017 2016 Stock option awards: Risk-free interest rate — 1.8 % 0.9 % Expected dividend yield — 1.6 % 1.6 % Expected term — 6.0 years 4.3 years Expected volatility — 26.6 % 25.6 % Performance-based restricted stock awards: Expected dividend yield 1.2 % 1.6 % 1.6 % Discount for illiquidity — — 9.9 % Market-based restricted stock awards: Risk-free interest rate — — 0.9 % Expected dividend yield — — 1.6 % Expected term — — 4.0 years Expected volatility — — 25.8 % Expected volatility of S&P 500 — — 25.0 % Discount for illiquidity — — 9.9 % Employee stock purchase plan: Risk-free interest rate 2.3 % 1.0 % 0.5 % Expected dividend yield 1.3 % 1.6 % 1.5 % Expected term 6 months 6 months 6 months Expected volatility 26.4 % 20.9 % 27.0 % Discount for illiquidity 10.5 % 10.5 % 10.5 % The Company uses the United States Treasury (constant maturity) interest rate on the date of grant as the risk-free interest rate and uses historical volatility as the expected volatility. The Company’s determination of expected term is based on an analysis of historical and expected exercise patterns. In 2017 and 2016, all stock options granted were time-based options. The Company uses an estimated forfeiture rate of 5 percent of the stock-compensation expense of non-executive employees based on an analysis of historical and expected forfeitures. During the years ended December 31, 2018, 2017 and 2016 , the Company granted approximately 594,000 , 773,000 and 865,000 time-vested restricted stock units, respectively. The fair value of time-vested restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested restricted stock units granted during the years ended December 31, 2018, 2017 and 2016 were $52.93 , $36.20 and $29.48 per share, respectively. During the year ended December 31, 2016, the Company granted approximately 64,000 market-based restricted stock units. These units may be 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 S&P 500 Index. Shares vested under the market-based restricted stock unit awards must be held by the participant for a period of one year from the vest date. The fair value of the market-based restricted stock units granted during the year ended December 31, 2016 was $22.89 per share, respectively. During the years ended December 31, 2018, 2017 and 2016 , the Company granted approximately 177,000 , 283,000 and 62,000 performance-based restricted stock units, respectively. These units are earned based upon the Company's return on invested capital over a three year period. The fair value of the performance-based restricted units granted during the years ended December 31, 2018, 2017 and 2016 was $52.32 , $35.08 and $26.41 per share, respectively. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Stock-based compensation - (Continued) The total fair value of the restricted stock unit awards granted during the year ended December 31, 2018 in the table below of $40.7 million includes $9.2 million of grant date fair value associated with the performance-based restricted stock units. The total fair value of the restricted stock unit awards granted during the year ended December 31, 2017 in the table below of $37.9 million includes $9.9 million of grant date fair value associated with the performance-based restricted stock units. The total fair value of the restricted stock unit awards granted during the year ended December 31, 2016 in the table below of $28.6 million includes $1.5 million of grant date fair value associated with the market-based restricted stock units and $1.6 million of grant date fair value associated with the performance-based restricted stock units. The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): Years Ended December 31, 2018 2017 2016 Stock option awards: Weighted average grant date fair value per share — $ 8.55 $ 5.68 Total fair value of awards granted — $ 2,824 $ 4,716 Total fair value of awards vested $ 2,529 $ 4,203 $ 4,407 Total intrinsic value of options exercised $ 24,652 $ 20,631 $ 6,170 Restricted stock unit awards: Weighted average grant date fair value per share $ 52.79 $ 35.90 $ 28.86 Total fair value of awards granted $ 40,675 $ 37,906 $ 28,603 Total fair value of awards vested $ 48,705 $ 27,489 $ 21,130 Employee stock purchase plan: Weighted average grant date fair value per share $ 10.01 $ 7.66 $ 6.33 Total fair value of shares estimated to be issued $ 1,330 $ 1,087 $ 923 The total amount of cash received from the exercise of stock options in the years ended December 31, 2018, 2017 and 2016 was $23.7 million , $53.5 million and $7.7 million , respectively, and the related tax benefits realized from the exercise of the stock options in the years ended December 31, 2018, 2017 and 2016 was $8.7 million , $3.0 million and $1.3 million , respectively. Concentration of risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of accounts receivable. Concentration of credit risk with respect to accounts receivable is limited because a relatively large number of geographically diverse customers make up the Company’s customer base, thus diversifying the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers and requires letters of credit, bank guarantees and advanced payments, if deemed necessary. A substantial portion of the Company’s revenue is derived from sales to United States and foreign government agencies (see Note 18, "Operating Segments and Related Information"). The Company also purchases certain key components from sole or limited source suppliers. The Company maintains cash deposits with major banks that from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and instruments in which it invests and adjusts its investment balances to mitigate the risk of principal loss. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Use of estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments made by management of the Company include matters such as collectability of accounts receivable, realizability of inventories, recoverability of deferred tax assets, impairment tests of goodwill, intangible assets and other long-lived assets, recognition and measurement of loss contingencies and adequacy of warranty accruals. Actual results could differ from those estimates. The Company believes that the estimates used are reasonable. Accumulated other comprehensive earnings (loss) Accumulated other comprehensive earnings (loss) includes cumulative translation adjustments, fair value adjustments on interest rate swap contracts, unrealized gains and losses on available-for-sale securities and changes in minimum liability for pension plans. Foreign currency translation adjustments included in comprehensive income were not tax affected as investments in international affiliates are deemed to be indefinite in duration. The following table sets forth the changes in the balances of each component of accumulated other comprehensive earnings (loss) for the year ended December 31, 2018 : Pension Plans Items Available-For-Sale Items Foreign Currency Items Total Balance, December 31, 2017 $ (344 ) $ (4 ) $ (113,012 ) $ (113,360 ) Other comprehensive income (loss) before reclassifications, net of tax (338 ) — (35,394 ) (35,732 ) Amounts reclassified from accumulated other comprehensive earnings (loss), net of tax — — — — Net current period other comprehensive income (loss), net of tax (338 ) — (35,394 ) (35,732 ) Balance, December 31, 2018 $ (682 ) $ (4 ) $ (148,406 ) $ (149,092 ) Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). Effective January 1, 2018, the Company adopted ASU 2016-18 on a retrospective basis. This update clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. The amendment requires restricted cash be included in an entity's cash and cash-equivalent balances in the statement of cash flows and also requires an entity to disclose information about the nature of the restrictions. Further, a reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company's adoption of ASU 2016-18 did not have a material impact on the consolidated financial statements. FASB ASU No. 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). Effective January 1, 2018, the Company adopted ASU 2016-01. The update requires changes to the accounting for financial instruments that primarily affect equity securities, financial liabilities measured using the fair value option, and the presentation and disclosure requirements for such instruments. The Company's adoption of ASU 2016-01 did not have an impact on the consolidated financial statements. The most significant impact is the Company's non-marketable equity securities formerly classified as cost method investments are now measured and recorded using the measurement alternative. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. No initial adoption adjustment was recorded for these instruments since the standard was required to be applied prospectively for securities measured using the measurement alternative. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Recently Adopted Accounting Pronouncements - (Continued) FASB ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"). Effective January 1, 2018, the Company adopted ASU 2017-01. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company's adoption of ASU 2017-01 did not have a material impact on the consolidated financial statements. FASB ASU No. 2014-09, "Revenue - Revenue from Contracts with Customers". Effective January 1, 2018, the Company adopted ASU 2014-09 and all the related amendments ("new revenue standard" or "ASC 606") using the modified retrospective method to those contracts not yet completed as of January 1, 2018. As a result, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings in the amount of approximately $1.0 million as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of the new standard to be immaterial to net income on an ongoing basis. FASB ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"). Effective January 1, 2018, the Company adopted ASU 2016-16, which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intra-entity asset transfers other than inventory. This new standard has been applied on a modified retrospective transition basis with an adjustment to the opening balance of retained earnings in the amount of approximately $79.3 million as of January 1, 2018. The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606, "Revenue - Revenue from Contracts with Customers" and ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" were as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASC 606 Adjustments Due to ASU 2016-16 Balance at January 1, 2018 Assets Accounts receivable, net $ 346,687 $ 981 $ — $ 347,668 Inventories 372,183 (524 ) — 371,659 Deferred income taxes, net 21,001 — 74,367 95,368 Other assets 59,869 — (1,005 ) 58,864 Liabilities Deferred revenue 25,614 (788 ) — 24,826 Deferred income taxes 12,496 290 2,067 14,853 Pension and other long-term liabilities 59,872 — (8,030 ) 51,842 Shareholders' Equity Retained earnings 1,856,756 955 79,325 1,937,036 Note 1. Basis of Presentation - (Continued) Recently Adopted Accounting Pronouncements - (Continued) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): Year Ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Income Statement Revenue $ 1,775,686 $ 1,773,938 $ 1,748 Cost of goods sold 875,368 874,993 375 Income tax provision 24,678 24,389 289 Net earnings 282,425 281,341 1,084 December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Assets Accounts receivable, net $ 323,746 $ 321,017 $ 2,729 Inventories 352,107 352,482 (375 ) Liabilities Deferred revenue 32,703 32,703 — Deferred income taxes 22,927 22,348 579 Equity Retained earnings 2,024,523 2,022,748 1,775 See Note 2, "Revenue" for additional disclosures required by the new revenue standard. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases, by issuing Accounting Standards Update ("ASU") No. 2016-02 (“ASU 2016-02”). Among other things, ASU 2016-02 requires recognition of a right-of-use asset and liability for future lease payments for contracts that meet the definition of a lease and requires disclosure of certain information about leasing arrangements. ASU 2016-02 is effective January 1, 2019. On July 30, 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements," which, among other things, allows companies to elect an optional transition method to apply the new lease standard through a cumulative-effect |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories in accordance with FASB ASC Topic 820, “Fair Value Measurements”: 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, credit risk and observable market prices for identical instruments that are traded in less active markets; and Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Note 3. Fair Value of Financial Instruments - (Continued) The Company had $200.0 million and $140.7 million of cash equivalents at December 31, 2018 and 2017 , respectively, which were primarily investments in money market funds and overnight deposits. 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. All cash equivalents are in instruments that are convertible to cash daily. The fair value of the Company’s foreign currency contracts as of December 31, 2018 and 2017 are disclosed in Note 4, "Derivative Financial Instruments," and based on Level 2 inputs. The fair value of the Company’s senior unsecured notes as described in Note 12, "Long-Term Debt," is approximately $418.8 million and $427.5 million based upon Level 2 inputs at December 31, 2018 and 2017 , respectively. The Company does not have any other significant financial assets or liabilities that are measured at fair value. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables and deferred revenue and advance payments from customers on the Consolidated Balance Sheets. Contract assets and liabilities are reported on a contract-by-contract basis. The Company had no material deferred contract costs recorded on the Consolidated Balance Sheet as of December 31, 2018 . Contract assets : The Company recognizes unbilled receivables as contract assets when the Company has rights to consideration for work completed but has not yet billed at the reporting date. Unbilled receivables are included within accounts receivable, net on the Consolidated Balance Sheets. The balance of unbilled receivables as of December 31, 2018 and at the date of adoption of ASC 606 were $10.5 million and $14.1 million , respectively. Contract Liabilities : The Company records contract liabilities when cash payments are received or due in advance of the Company's performance. Contract liabilities include deferred revenue and advance payments from customers. Contract liabilities are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of December 31, 2018 and at the date of the adoption of ASC 606, the Company's contract liability balances totaled $66.4 million and $60.1 million , respectively. These balances included amounts classified as long-term as of December 31, 2018 and at the date of the adoption of ASC 606 of $14.0 million and $13.8 million , respectively, which are included within pension and other long-term liabilities in the accompanying Consolidated Balance Sheets. Approximately $42.2 million of revenue recognized during the twelve month period ended December 31, 2018 was included in the combined opening contract liability balances adjusted for the ASC 606 adoption impacts. Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. The Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog. As of December 31, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $154.4 million . The Company expects to recognize revenue on approximately 85 percent of the remaining performance obligations over the next twelve months, and the remainder recognized thereafter. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 4. Derivative Financial Instruments Foreign Currency Exchange Rate Risk The Company enters into foreign currency forward contracts not formally designated as hedges to manage the consolidated exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities. Non-functional currency denominated monetary assets and liabilities consist primarily of cash, receivables, payables and intercompany loans. The Company manages exposure to counterparty non-performance credit risk by entering into foreign currency forward contracts only with major financial institutions that are expected to fully perform under the terms of such contracts. Changes in fair value of foreign currency forward contracts are recognized in income at the end of each reporting period based on the difference between the contract rate and the spot rate. In general, these gains and losses are offset in the Consolidated Statements of Income by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of the gains and losses related to derivative instruments recorded in other (income) expense, net for the year ended December 31, 2018, 2017 and 2016 were a loss of $9.1 million , $9.4 million and $7.9 million , respectively. Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent the Company's total exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency at December 31, 2018 and 2017 (in thousands): Year Ended December 31, 2018 2017 European euro $ 61,452 $ 34,800 Canadian dollar 19,685 7,426 Brazilian real 8,598 7,794 Swedish kroner 3,608 59,373 Australian dollar 1,131 2,817 British pound sterling 609 34,317 Japanese yen 405 3,362 Other 408 3,095 $ 95,896 $ 152,984 At December 31, 2018 , the Company’s foreign currency forward contracts, in general, had maturities of three months or less. Note 4. Derivative Financial Instruments - (Continued) Foreign Currency Exchange Rate Risk - (Continued) The carrying amounts of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands): December 31, 2018 December 31, 2017 Prepaid Expenses and Other Current Assets Other Current Liabilities Prepaid Expenses and Other Current Assets Other Current Liabilities Foreign exchange contracts $ 431 $ 951 $ 1,760 $ 579 Interest Rate Swap Contracts On May 31, 2016, the Company drew down $105 million under the revolving credit facility as described in Note 10, "Credit Agreement," and repaid the term loan originally issued under the credit agreement dated April 5, 2013. Interest was accrued and paid monthly based on the one-month LIBOR rate. To manage the interest rate risk arising from the variability in monthly interest expense attributable to the original term loan and amounts drawn under the revolver, the Company entered into two amortizing interest rate swaps with an aggregate notional amount of $105 million . The interest rate swaps were designated, and effective, as cash flow hedges. During the year ended December 31, 2017, the Company repaid all amounts outstanding under the revolving credit facility. Concurrently, the Company exited both interest rate swaps which had a combined notional amount at the time of $86.3 million and discontinued the cash flow hedge. The Company reclassified a gain of $0.5 million from accumulated other comprehensive income to interest expense because it was probable that the forecasted variable monthly LIBOR-based interest rate payments would no longer occur. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable are net of an allowance for doubtful accounts. The following table summarizes the Company’s allowance for doubtful accounts and the activity for 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Allowance for doubtful accounts, beginning of year $ 7,630 $ 6,457 $ 6,853 Charges to costs and expenses 879 2,303 1,460 Write-offs of uncollectible accounts, net of recoveries (3,985 ) (1,505 ) (1,661 ) Business disposals (593 ) — — Currency translation adjustments 353 375 (195 ) Allowance for doubtful accounts, end of year $ 4,284 $ 7,630 $ 6,457 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): December 31, 2018 2017 Raw material and subassemblies $ 214,164 $ 210,615 Work-in-progress 43,096 47,400 Finished goods 94,847 114,168 $ 352,107 $ 372,183 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are summarized as follows (in thousands): Estimated Useful Life December 31, 2018 2017 Land — $ 21,595 $ 22,765 Buildings 30 years 171,406 167,645 Machinery and equipment 3 to 7 years 287,596 275,688 Office equipment and other 3 to 10 years 100,210 104,064 580,807 570,162 Less accumulated depreciation (333,400 ) (306,166 ) $ 247,407 $ 263,996 Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $40.6 million , $42.3 million and $37.8 million , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill In August 2017, the Company announced a realignment of its business operations into three reportable operating segments effective as of January 1, 2018. Because of this realignment, the Company reassigned its reported goodwill as of January 1, 2018 to its new reportable segments based on the relative fair value of the respective reporting units at that time. Goodwill was reallocated as follows (in thousands): January 1, 2018 Industrial $ 389,575 Government and Defense 291,229 Commercial 229,007 $ 909,811 After the reassignment of goodwill, the Company performed an impairment test of the new reporting units as of January 1, 2018. As a result of this analysis, no impairment was identified. The reassignment and impairment test were completed during the three months ended June 30, 2018. See Note 18, "Operating Segments and Related Information" of the Notes to the Consolidated Financial Statements for additional information on the three new reportable operating segments. The carrying value of goodwill and the activity for the two year period ending December 31, 2018 are as follows (in thousands): Balance, December 31, 2016 $ 801,406 Goodwill from acquisitions 96,431 Classification as asset held for sale (13,090 ) Currency translation adjustments 25,064 Balance, December 31, 2017 909,811 Goodwill from acquisitions 9,228 Currency translation adjustments (14,468 ) Balance, December 31, 2018 $ 904,571 During the year ended December 31, 2017, the Company recorded $96.4 million of goodwill primarily in connection with the purchase price allocation associated with Prox Dynamics, AS ("Prox Dynamics"). During the year ended December 31, 2018, the Company recorded $4.7 million and $4.6 million of goodwill primarily in connection with the purchase price allocation associated with Fishing Hot Spots and Fishidy, respectively. Note 8. Goodwill - (Continued) The Company reviews its goodwill for impairment annually during the third quarter, or more frequently, if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. During the third quarter of 2018 , the Company completed its annual review of goodwill and determined that no impairment of its recorded goodwill was necessary. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets are summarized as follows (in thousands): Weighted Average Estimated Useful Life December 31, 2018 2017 Product technology 10 years $ 117,563 $ 123,474 Customer relationships 11 years 73,260 73,382 Trademarks and trade name portfolios 12 years 7,220 9,606 Trade name portfolio not subject to amortization indefinite 32,076 32,076 In-process research and development 3 years 6,272 5,602 Other 7 years 1,638 1,929 Acquired identifiable intangibles 238,029 246,069 Less accumulated amortization (93,154 ) (80,841 ) Net acquired identifiable intangibles 144,875 165,228 Patents 7 years 6,086 6,112 Less accumulated amortization (4,253 ) (3,399 ) Net patents 1,833 2,713 Acquired in-place leases and other 10 years 446 456 Less accumulated amortization (309 ) (267 ) Net acquired in-place leases and other 137 189 $ 146,845 $ 168,130 During the year ended December 31, 2018, the Company recorded $2.2 million and $3.8 million of identified intangibles assets in connection with the purchase price allocation associated with Fishing Hot Spot and Fishidy, respectively. During the year ended December 31, 2017, the Company recorded $31.4 million of identified intangibles assets in connection with the purchase price allocation associated with Prox Dynamics and reclassified $8.4 million to Assets Held for Sale, net on the Consolidated Balance Sheets related to the Company's planned divestiture of the Consumer and SMB Security businesses within the Commercial business unit. During the year ended December 31, 2016, the Company acquired $47.4 million of identifiable intangible assets as part of the acquisitions of Armasight and Point Grey. Refer to Note 19, "Business Acquisitions and Divestitures" for further discussion. The aggregate amortization expense recorded in 2018, 2017 and 2016 was $24.7 million , $27.5 million and $18.4 million , respectively. For intangible assets recorded at December 31, 2018 , the estimated future aggregate amortization expense for the years ending December 31, 2019 through 2023 is approximately (in thousands): 2019 $ 23,918 2020 22,049 2021 19,588 2022 18,726 2023 15,426 |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreement On February 8, 2011, the Company entered into a Credit Agreement (“Credit Agreement”) with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other Lenders. The Credit Agreement provided for a $200 million , five -year revolving line of credit. On April 5, 2013, the Credit Agreement was amended to extend the maturity of the revolving credit facility from April 8, 2016 to April 5, 2018 in addition to incorporating a $150 million term loan facility maturing April 5, 2019. On May 31, 2016, the Credit Agreement was further amended to increase the borrowing capacity to $500 million and to extend the maturity of the revolving credit facility from April 5, 2018 to May 31, 2021. The amendment also incorporated a revised schedule of fees and interest rate spreads. The Company has the right, subject to certain conditions, including approval of additional commitments by qualified lenders, to increase the revolving line of credit under the Credit Agreement by an additional $200 million until May 31, 2021. The Credit Agreement allows the Company and certain designated subsidiaries to borrow in United States dollars, European euros, Swedish kronor, British pound sterling, Japanese yen, Canadian dollars, Australian dollars and other agreed upon currencies. Interest rates under the Credit Agreement are determined based on the type of borrowing. Interest associated with borrowings can be based on the prime lending rate of Bank of America, N.A. or the published Eurocurrency rate (i.e. LIBOR). The borrowings have an applicable margin of 0.125 percent to 2.125 percent depending on the applicable base rate and our consolidated total leverage ratio. Including the respective spreads, the one-month LIBOR interest rate was 3.897 percent per annum and the prime lending rate was 5.875 percent per annum at December 31, 2018 . The Credit Agreement requires the Company to pay a commitment fee on the amount of unused revolving commitments at a rate, based on the Company’s total leverage ratio, which ranges from 0.150 percent to 0.300 percent of unused revolving commitments. At December 31, 2018 , the commitment fee rate was 0.175 percent per annum. The Credit Agreement contains two financial covenants that require the maintenance of a total leverage ratio and an interest coverage ratio , with which the Company was in compliance at December 31, 2018 . The credit facilities available under the Credit Agreement are unsecured. On May 31, 2016, the Company drew down $105 million under the revolving credit facility and repaid the term loan originally issued under the credit agreement dated April 5, 2013. During the year ended December 31, 2017, the Company repaid all amounts outstanding under the revolving credit facility. At December 31, 2018 , the Company had $10.8 million of letters of credit outstanding, which reduces the total available revolving credit under the Credit Agreement. |
Accrued Product Warranties
Accrued Product Warranties | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Accrued Product Warranties | Accrued Product Warranties The Company generally provides a twelve to twenty-four month warranty on its products. A provision for the estimated future costs of warranty, based upon historical cost and product performance experience, is recorded when revenue is recognized. The following table summarizes the Company’s warranty liability and activity for 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Accrued product warranties, beginning of year $ 18,052 $ 20,845 $ 16,514 Amounts paid for warranty services (17,347 ) (16,764 ) (19,592 ) Warranty provisions for products sold 17,888 14,422 22,928 Business acquisition 8 — 1,215 Currency translation adjustments and other (18 ) (451 ) (220 ) Accrued product warranties, end of year $ 18,583 $ 18,052 $ 20,845 Current accrued product warranties, end of year $ 15,204 $ 15,024 $ 17,476 Long-term accrued product warranties, end of year $ 3,379 $ 3,028 $ 3,369 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): December 31, 2018 2017 Unsecured notes $ 425,000 $ 425,000 Unamortized discounts and issuance costs of unsecured notes (3,052 ) (4,316 ) $ 421,948 $ 420,684 In August 2011, the Company issued $250 million aggregate principal amount of its 3.75 percent senior unsecured notes due September 1, 2016 (the “Notes”). The 2011 Notes were repaid on July 5, 2016 and the Company recorded a $1.3 million loss on the extinguishment of the 2011 Notes in Interest Expense. 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. On April 5, 2013, the Company borrowed $150 million under the term loan facility incorporated in the Credit Agreement. As discussed in Note 10, "Credit Agreement," of the Notes to the Consolidated Financial Statements above, 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 accrued at the one-month LIBOR rate plus the applicable margin for the amount outstanding and is paid monthly in arrears. During the year ended December 31, 2017, the Company repaid all amounts outstanding under the revolving credit facility. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company leases some of its primary facilities under various operating leases that expire in 2019 through 2028 . The Company also leases certain operating machinery and equipment and office equipment under operating lease agreements. Total net rent expense for the years ended December 31, 2018, 2017 and 2016 amounted to $13.3 million , $13.9 million and $9.0 million , respectively. The future minimum obligations under all non-cancelable leases and other contractual obligations are as follows (in thousands): Net Operating Leases Other Contractual Obligations 2019 $ 10,561 $ 1,528 2020 8,270 — 2021 7,283 — 2022 4,894 — 2023 2,934 — Thereafter 5,911 — Total minimum payments $ 39,853 $ 1,528 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Matters Involving the United States Department of State and Department of Commerce On April 24, 2018, the Company entered into a Consent Agreement with the United States Department of State Office of Defense Trade Controls Compliance (“DDTC”) to resolve allegations regarding the unauthorized export of technical data and defense services to dual and third country nationals from certain Company facilities, the failure to properly use and manage export licenses and export authorizations, and failures to report certain payments under 22 CFR Part 130 in potential violation of the International Traffic in Arms Regulation (“ITAR”). The Consent Agreement has a four-year term and provides for: (i) a civil penalty of $30.0 million with $15.0 million of this amount suspended on the condition that the funds have or will be used for Department-approved Consent Agreement remedial compliance measures, (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued implementation of ongoing remedial compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures, and training. During the three-month period ended March 31, 2018, the Company recorded a $15.0 million charge for the portion of the penalty that is not subject to suspension. In April 2018, the Company paid $1.0 million of the $15.0 million charge and as of of December 31, 2018 , the remaining amount payable of $3.5 million and $10.5 million has been recorded in other current liabilities and pension and other long-term liabilities, respectively. The remaining $14 million is payable in annual installments of $3.5 million through April 2022. The Company expects recent and future investments in remedial compliance measures will be sufficient to cover the $15.0 million suspension amount. As part of the Consent Agreement, DDTC acknowledged that the Company voluntarily disclosed certain of the alleged Arms Export Control Act and ITAR violations, which were resolved pursuant to the Consent Agreement, cooperated in the DDTC's review, and instituted a number of compliance program improvements. In May 2017, the Company submitted an initial notification to DDTC regarding potential violations related to certain export classifications obtained through the commodity jurisdiction process and a final voluntary disclosure in August 2017. DDTC acknowledged the notification and at the request of DDTC, the Company executed a tolling agreement for this matter, suspending the statute of limitations through January 13, 2019. This matter was not resolved pursuant to the Consent Agreement identified above and remains under review. In June 2017, the United States Department of Commerce Bureau of Industry and Security informed the Company of additional export licensing requirements that restrict the Company’s ability to sell certain thermal products without a license to customers in China not identified on a list maintained by the United States Department of Commerce. This action was precipitated by concerns of sale without a license or potential diversion of some of the Company's products to prohibited end users and to countries subject to economic and other sanctions implemented by the United States. The United States Department of Commerce Bureau of Industry and Security subsequently favorably modified these restrictions to reduce the applicability of the restrictions to sales of FLIR's Tau camera cores (as opposed to finished products containing Tau camera cores) to customers in China not identified on a list maintained by the United States Department of Commerce and persons in a country other than those in EAR Country Group A:5 (Supplement No. 1 to Part 740 of the EAR). If the Company is found to have violated applicable rules and regulations with respect to customers and limitations on the export and end use of the Company’s products, the Company could be subject to substantial fines and penalties, suspension of existing licenses or other authorizations and/or loss or suspension of export privileges. The Company is unable to reasonably estimate the time it may take to resolve these matters or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with these matters. However, an unfavorable outcome could result in substantial fines and penalties or loss or suspension of export privileges or of particular authorizations that could be material to the Company’s financial position, results of operations or cash flows in and following the period in which such an outcome becomes estimable or known. Note 14. Contingencies - (Continued) SkyWatch Product Quality Matters In March 2016, the Company learned of potential quality concerns with respect to as many as 315 Level III and Level IV SkyWatch Surveillance Towers sold by FLIR and companies acquired by FLIR from 2002 through 2014. The Company notified customers who purchased the affected SkyWatch Towers of the potential concerns and, as a precautionary measure, 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. The Company identified the cause of these quality issues, notified customers of their option to request repair and modification of their in-field units, and has begun in-field repairs of identified affected units. 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 on remaining units to be between $4.9 million and $12.1 million . As no single amount within the range is a better estimate than any other amount within the range, the Company has recorded an accrual of $4.9 million in other current liabilities as of December 31, 2018 . Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate. Other Matters 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 records a liability with respect to a matter when management believes it is both probable that a liability has been incurred and the Company can reasonably estimate the amount of the loss. The Company believes it has recorded adequate provisions for any probable and estimable losses for matters in existence on the date hereof. The Company reviews these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. 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 | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes New tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”), was enacted on December 22, 2017. In connection with the Company's initial analysis of the impact of the Tax Act, the Company recorded provisional net tax expense of $94.4 million for the period ended December 31, 2017. This amount consists of net expense of $66.5 million for the transition tax and net expense of $12.8 million for the remeasurement of the Company's net deferred tax assets using the reduced United States tax rate. In addition, the Company also recorded net tax expense of $15.1 million for state income and foreign taxes estimated to be due upon distribution of approximately $1.0 billion of previously undistributed foreign earnings no longer permanently reinvested as of December 31, 2017. The Company has completed the accounting for the tax effects of the Tax Act, and during the year ended December 31, 2018 recognized a measurement period adjustment resulting in a $9.9 million reduction of tax expense. In addition, the Company reduced by $6.3 million the estimated state and foreign liability for tax due upon distribution of approximately $902.4 million of previously undistributed foreign earnings no longer permanently reinvested as of December 31, 2017. As of December 31, 2018 and 2017, we have accrued income tax liabilities of $42.9 million and $66.5 million , respectively, related to the transition tax. The decrease in the liability is primarily attributed to transition tax payments of $9.0 million for 2017 and 2018, application by the United States Internal Revenue Service of a $4.7 million overpayment, and a $9.9 million reduction in the initial liability as described above. Of the amounts accrued, none are expected to be due within one year due to the overpayment discussed above. The transition tax will be paid in installments over an eight-year period and will not accrue interest. Other significant provisions of the Tax Act include: an exemption from United States tax on dividends of future foreign earnings, a deduction related to foreign derived intangible income ("FDII"), limitation on the current deductibility of net interest expense in excess of 30 percent of adjusted taxable income, an incremental tax (base erosion anti-abuse tax or "BEAT") on excessive amounts paid to foreign related parties, and a minimum tax on certain foreign earnings in excess of 10 percent of the foreign subsidiaries tangible assets (i.e., global intangible low-taxed income or "GILTI"), which the Company has elected to treat as a period expense. Note 15. Income Taxes - (Continued) In 2016, the Company, in accordance with FASB ASC Topic 740, "Income Taxes," recorded discrete tax charges totaling $39.6 million related to the January 11, 2016 announcement from the European Commission of a decision concluding that certain rules under Belgian tax legislation were deemed to be incompatible with European Union regulations on state aid. As a result of this decision, the European Commission directed the Belgian Government to recover past taxes from certain entities, reflective of disallowed state aid, which impacted one of the Company’s international subsidiaries. The Belgian Government announced they have appealed this decision and filed action for an annulment in the General Court of the European Union, and in July 2016 the Company filed a separate appeal with the General Court of the European Union. On January 10, 2017, the Company received tax assessments from the Belgium government approximating the discrete tax charge recorded during 2016. The Company filed a complaint against the Belgian tax assessments, and on October 23, 2018 the Belgian government canceled $33.1 million of the tax assessments and accrued interest. As a result, the Company reversed a similar amount of previously accrued income tax plus interest associated with the assessments during the three-month period ending December 31, 2018. In addition, the euro equivalent of $35.7 million held in a restricted cash account as of September 30, 2018 became unrestricted during the three-month period ending December 31, 2018. While the Company believes the matter has been effectively settled, an adverse opinion from the European Commission with regards to the cancellation of the tax assessments could be cause for accrual of tax in a future period. During the three-month period ending December 31, 2018, the Swedish Tax Authority (“STA”) issued a reassessment of tax for the year ending December 31, 2012 to one of the Company's non-operating subsidiaries in Sweden. The reassessment concerns the use of tax credits applied against capital gains pursuant to European Union Council Directive 2009/133/EC, commonly referred to as the EU Merger Directive, and assesses taxes and penalties totaling approximately $334.5 million (Swedish kroner 3.0 billion ). The Company believes the STA’s assertions in the reassessment are not in accordance with Swedish tax regulations and plans to defend the Company's positions with the STA and through the Swedish court system, as necessary. Consequently, no adjustment to the Company's unrecognized tax benefits has been recorded in relation to this matter. Management believes that the Company's recorded tax liabilities are adequate in the aggregate for its income tax exposures. Pre-tax earnings by significant geographical locations are as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 165,719 $ 143,924 $ 124,500 Foreign 141,384 135,141 151,457 $ 307,103 $ 279,065 $ 275,957 The provisions for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit): Federal $ 17,900 $ 112,673 $ 36,771 State 5,980 5,035 5,785 Foreign (16,008 ) 19,689 64,109 7,872 137,397 106,665 Deferred tax expense (benefit): Federal 1,273 34,857 1,404 State 235 473 267 Foreign 15,298 (885 ) 995 16,806 34,445 2,666 Total income tax provision $ 24,678 $ 171,842 $ 109,331 Note 15. Income Taxes - (Continued) The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events and basis differences that have been recognized in the Company’s financial statements and tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amount and the tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. Net deferred tax assets (liabilities) were classified on the balance sheet as follows (in thousands): December 31, 2018 2017 Deferred tax assets, non-current 100,620 21,001 Deferred tax liabilities, non-current (22,927 ) (12,496 ) Net deferred tax assets $ 77,693 $ 8,505 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and deferred tax liabilities were as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Accrued liabilities and allowances $ 19,783 $ 20,425 Tax credit and loss carry-forwards 30,831 30,979 Stock-based compensation 12,461 11,715 Inventory basis differences 10,749 8,555 Deferred revenue 2,900 2,732 Intangible assets 20,882 — Unremitted earnings of foreign subsidiaries 2,121 — Other assets 1,156 2,527 Gross deferred tax assets 100,883 76,933 Valuation allowance (3,196 ) (3,392 ) Total deferred tax assets, net 97,687 73,541 Deferred tax liabilities: Intangible assets — (29,117 ) Property and equipment (14,070 ) (16,499 ) Unremitted earnings of foreign subsidiaries — (15,100 ) Other liabilities (5,924 ) (4,320 ) Total deferred tax liabilities (19,994 ) (65,036 ) Net deferred tax assets $ 77,693 $ 8,505 Note 15. Income Taxes - (Continued) The provision for income taxes differs from the amount of tax determined by applying the applicable United States statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21.0 % 35.0 % 35.0 % (Decrease) increase in rates resulting from: State taxes 2.5 1.8 2.3 Difference between statutory rate and foreign effective rate (0.2 ) (10.7 ) (11.3 ) Foreign, federal and state income tax credits (1.5 ) (2.0 ) (1.2 ) European Union state aid matter (10.8 ) 0.1 14.4 United States transition tax (3.4 ) 23.8 — Tax rate change on deferred items — 5.1 — Unremitted earnings of foreign subsidiaries — 5.4 — Other 0.4 3.1 0.4 Effective tax rate 8.0 % 61.6 % 39.6 % The Company's effective tax rate in 2018 was lower than the United States Federal tax rate of 21.0 percent mainly due to recognition of previously unrecognized tax benefits relating to the European Union state aid recovery discussed above, excess tax benefits from stock compensation and a reduction in the accrual for the United States transition tax, offset partially by state taxes, higher tax rates applied to income earned in certain foreign jurisdictions, and other discrete items. The Company's effective tax rate in 2017 was higher than the United States federal tax rate of 35 percent mainly due to the Company's estimate of the impact of the Tax Act. Unrecognized tax benefits for intercompany pricing increased in various jurisdictions in 2017, but this was partially offset by excess tax benefits for stock compensation and the mix of lower foreign tax rates. The foreign tax rate differential in 2016 was mainly due to the impact of amortization and lower statutory rates. The European Union state aid recovery in 2016 relates to the European Commission’s decision regarding the three-year agreement in Belgium, discussed above. At December 31, 2018 , the Company had United States tax net operating loss carry-forwards totaling approximately $3.5 million which expire between 2019 and 2031 and are subject to annual limitation under Section 382 of the Internal Revenue Code. In addition, the Company has various state net operating loss carry-forwards totaling approximately $0.9 million which expire between 2023 and 2036 . Finally, the Company has various foreign net operating loss carry-forwards totaling approximately $111.7 million , a portion of which expire between 2019 and 2036 , and a portion of which have an indefinite carry-forward period. The tax benefits described above are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of the assets and liabilities. To the extent that management assesses the realization of such assets to not be more likely than not, a valuation allowance is required to be recorded. As of December 31, 2018 , the Company has determined that a valuation allowance against its deferred tax assets of $3.2 million is required, primarily related to certain foreign deductions carried forward and acquired net operating losses. A review of all available positive and negative evidence is considered, including past and future performance, the market environment in which the Company operates, utilization of tax attributes in the past, length of carry-back and carry-forward periods, and evaluation of potential tax planning strategies, when evaluating the realizability of deferred tax assets. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. We have not provided United States, state or foreign income taxes for earnings generated after January 1, 2018 by certain subsidiaries outside the United States as we currently intend to reinvest the earnings in operations and other activities outside of the United States indefinitely. Should we subsequently elect to repatriate such foreign earnings, we would need to accrue and pay state and foreign income taxes, thereby reducing the amount of our cash. United States taxes would generally not be payable due to changes made by the Tax Act. Note 15. Income Taxes - (Continued) The following table summarizes the activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 77,275 $ 51,851 $ 14,967 Increases related to current year tax positions — 17,264 40,840 Increases related to prior year tax positions 2,229 5,022 456 Lapse of statute of limitations (1,558 ) (1,260 ) (4,070 ) Settlements (40,514 ) (986 ) (342 ) Change due to currency translation (4,227 ) 5,384 — Balance, end of year $ 33,205 $ 77,275 $ 51,851 The unrecognized tax benefits at December 31, 2018 relate to the United States, Belgium, United Kingdom, France and various other foreign jurisdictions, all of which would affect the Company’s effective tax rate if recognized. The Company anticipates approximately $5.1 million 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 unrecognized tax benefits in the income tax provision. As of December 31, 2018 , the Company had $6.1 million of accrued interest and penalties related to unrecognized tax benefits that are recorded as current and non-current accrued income taxes on the Consolidated Balance Sheet. The Company files United States federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company currently has the following tax years open to examination by major taxing jurisdictions: Tax Years: United States Federal 2015 - 2017 State of California 2014 - 2017 State of Massachusetts 2014 - 2017 State of Oregon 2015 - 2017 Sweden 2012 - 2017 United Kingdom 2014 - 2017 Belgium 2011 - 2017 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 non-statutory stock options and nonvested stock awards (referred to as restricted stock unit awards) granted under two plans: the FLIR Systems, Inc. 2002 Stock Incentive Plan (the “2002 Plan”) and the FLIR Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company has discontinued issuing awards out of the 2002 Plan but previously granted awards under the 2002 Plan remain outstanding. The Company has granted time-based options, time-based restricted stock unit awards, market-based restricted stock unit awards and performance-based restricted stock unit awards. Options generally expire ten years from the grant date. Time-based options and restricted stock unit awards generally vest over a three year period. Market-based restricted stock unit awards may be earned based upon the Company's total shareholder return compared to the total shareholder return of the component company at the 60th percentile level in the S&P 500 Index over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2016 may be earned based upon the Company's return on invested capital over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2017 may be earned based upon the Company's operating margin performance over a three year period. Performance-based restricted stock unit awards granted during the year ended December 31, 2018 may be earned based upon a combination of the Company's revenue and operating performance over a three year period. Certain 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. Shares issued as a result of stock option exercises and the distribution of vested restricted stock units are new shares. Information with respect to stock option activity for 2018 is as follows: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 3,212 $ 29.66 5.4 Granted — — Exercised (959 ) 29.47 Forfeited (97 ) 31.16 Outstanding at December 31, 2018 2,156 $ 29.67 4.7 $ 29,903 Exercisable at December 31, 2018 1,970 $ 29.28 4.4 $ 28,091 Vested and expected to vest at December 31, 2018 2,147 $ 29.66 4.7 $ 29,812 Information with respect to restricted stock unit activity for 2018 is as follows: Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 2,013 $ 31.86 Granted 771 52.83 Vested (812 ) 31.17 Forfeited (221 ) 34.47 Outstanding at December 31, 2018 1,751 $ 40.77 Included in the restricted stock units outstanding at December 31, 2018 were approximately 216,000 vested restricted stock units that were not distributed. As of December 31, 2018 , there were 7,451,000 shares of common stock reserved for future issuance under the stock incentive plans. Note 16. Stock-based Compensation - (Continued) 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 fair market value at the lower of either the date of enrollment or 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. The Company reserved 5,000,000 shares of common stock for issuance under the ESPP. There were 140,000 shares issued at the average purchase price of $39.47 during 2018 and 2,838,000 shares remained available under the ESPP at December 31, 2018 for future issuance. Shares issued for ESPP purchases are new shares. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Other Employee Benefit Plan | Other Employee Benefit Plans Employee 401(k) Plans The Company has a 401(k) Savings and Retirement Plan (the “Plan”) to provide for voluntary salary deferral contributions on a pre-tax basis for employees within the United States in accordance with Section 401(k) of the Internal Revenue Code of 1986, as amended. The Plan allows for contributions by the Company. The Company made and expensed matching contributions of $9.8 million , $8.9 million and $8.1 million during the years ended December 31, 2018, 2017 and 2016 , respectively. Pension Plans The Company previously offered most of the employees outside the United States participation in a defined benefit pension plan that has been curtailed. In addition, the Company previously provided a Supplemental Executive Retirement Plan (the “SERP”) for certain officers of the Company based in the United States. As of December 31, 2017, the last remaining SERP participant retired. Consequently, during the year ended December 31, 2018 and 2017, the Company recorded a settlement gain of approximately $0.6 million and an actuarial gain of approximately $1.7 million , respectively, primarily associated with the change in projected benefit obligation associated with the adjusted date of expected retirement and related actuarial compensation estimates for the final SERP participant. The Company has recorded changes to the minimum pension liability to accumulated other comprehensive earnings (loss) and the estimated benefit to be paid in 2019 has been reported in other current liabilities. The remaining obligations are recorded in pension and other long-term liabilities. The measurement date used for the pension plans is December 31. Amounts recognized in other comprehensive income (loss) during the years ended December 31, 2018, 2017 and 2016 , net of tax, are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Net earnings (loss) $ (338 ) $ 1,286 $ 78 Prior service cost — (15 ) 24 $ (338 ) $ 1,271 $ 102 Components of accumulated other comprehensive loss related to the Company’s pension plans as of December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 2017 Net loss $ (682 ) $ (344 ) Prior service cost — — $ (682 ) $ (344 ) Note 17. Other Employee Benefit Plans - (Continued) Pension Plans - (Continued) A summary of the components of the net periodic pension expense for the benefit obligation and fund assets of the plans is as follows (in thousands): Year Ended December 31, 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 10,149 $ 11,419 Interest costs 96 386 Actuarial loss (gain) 22 (1,720 ) Benefits paid (6,230 ) (310 ) Foreign currency changes (327 ) 374 Benefit obligation at December 31 $ 3,710 $ 10,149 Fair value of plan assets at December 31 $ — $ — Unfunded status at December 31 $ 3,710 $ 10,149 Amounts recognized in the Consolidated Balance Sheets: Current liabilities $ 293 $ 6,262 Non-current liabilities $ 3,417 $ 3,887 The weighted average assumptions used are as follows: Year Ended December 31, 2018 2017 Net periodic benefit cost: SERP: Discount rate 2.75 % 4.00 % Rate of increase in compensation levels n/a 3.00 % Defined benefit pension plan for employees outside the United States: Discount rate 1.75 % 2.00 % Funded status and projected benefit obligation: SERP: Discount rate 3.40 % 2.75 % Rate of increase in compensation levels n/a n/a Defined benefit pension plan for employees outside the United States: Discount rate 1.75 % 1.75 % For the SERP, the discount rate used is determined using a yield curve and applying the individual spot rates from appropriate maturities to each of the future expected benefit payouts by year to better match the plan's duration. The Company then discounted back to the measurement date to determine the appropriate single level equivalent discount rate. As there are no active participants left in the plan, there was no rate of increase for compensation levels included in the December 31, 2018 and 2017 year-end projected benefit obligations. For the defined benefit pension plan outside the United States, the discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate bonds with similar maturities matching the duration of the projected benefit obligation. A pension liability of $1.2 million and $0.8 million as of December 31, 2018 and 2017 , respectively, has been recognized for the pension plans representing the excess of the unfunded accumulated benefit obligation over the accrued pension costs. Note 17. Other Employee Benefit Plans - (Continued) Pension Plans - (Continued) Benefits expected to be paid under the plans are approximately (in thousands): 2019 $ 418 2020 412 2021 406 2022 390 2023 386 Five years thereafter 1,266 $ 3,278 Components of net periodic benefit (income) cost are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Service costs $ — $ — $ — Interest costs 96 386 397 Net amortization and deferral 63 235 260 Settlement gain (608 ) — — Net periodic pension (income) cost $ (449 ) $ 621 $ 657 Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings (loss) during the year ending December 31, 2019 is $48,000 . |
Operating Segments and Related
Operating Segments and Related Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | Operating Segments and Related Information Operating Segments In August 2017, the Company announced a realignment of its business which resulted in reducing the number of operating segments from six to three effective as of January 1, 2018. The Company's three reportable operating segments are as follows: Industrial Business Unit The Industrial business unit develops and manufactures thermal and visible-spectrum imaging camera cores and components that are utilized by third parties to create thermal, industrial, and other types of imaging systems. The segment also develops and manufactures devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications, imaging payloads for Unmanned Aerial Systems ("UAS"), machine vision cameras, people counting and tracking, and thermal imaging solutions for use by consumers in the smartphone and mobile devices markets. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices. Government and Defense Business Unit The Government and Defense business unit 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. The segment also 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. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, CBRNE detectors, nano-class UAS solutions, and services related to these systems. Note 18. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Commercial Business Unit The Commercial business unit develops and manufactures cameras, video recording systems, and video management systems for use in commercial and critical infrastructure, electronics and imaging instruments for the recreational and commercial maritime market, intelligent traffic monitoring and signal control systems, and hand-held and weapon-mounted thermal imaging systems for use in a variety of applications. Products include thermal and visible-spectrum security cameras, digital and networked video recorders, and related software and accessories, a full suite of networked marine 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, traffic cameras, sensors and associated traffic management software, and thermal scopes and handheld thermal cameras. The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on revenue and segment operating income. Intersegment revenues are recorded at cost and are eliminated in consolidation. The Company and each of its segments employ consistent accounting policies. The following tables present revenue, operating income, and assets for the three segments. Operating income as reviewed by the CODM is revenue less cost of goods sold and operating expense, excluding general corporate expenses, acquisition related costs, executive transition costs, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, costs associated with the SkyWatch product remediation, restructuring charges, and the loss on sale of business. Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation for all periods presented below were managed on a Company-wide basis. Operating segment information is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Revenue—External Customers: Industrial $ 717,882 $ 672,120 $ 552,580 Government and Defense 663,436 629,147 616,777 Commercial 394,368 499,167 492,810 $ 1,775,686 $ 1,800,434 $ 1,662,167 Revenue—Intersegments: Industrial $ 19,482 $ 21,747 $ 19,874 Government and Defense 11,409 11,283 10,344 Commercial 20,056 14,942 17,277 Eliminations (50,947 ) (47,972 ) (47,495 ) $ — $ — $ — Segment operating income: Industrial $ 216,880 $ 199,903 $ 156,749 Government and Defense 199,702 179,160 176,749 Commercial 57,399 56,066 52,659 $ 473,981 $ 435,129 $ 386,157 Note 18. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Consolidated segment operating income $ 473,981 $ 435,129 $ 386,157 Unallocated corporate expenses (106,994 ) (87,184 ) (65,012 ) Amortization of purchased intangible assets (24,524 ) (27,391 ) (18,266 ) Amortization of acquisition-related inventory step-up — (1,992 ) (3,230 ) Restructuring charges (8,203 ) (625 ) (1,431 ) Loss on sale of business (13,708 ) (23,588 ) — Other charges (1,946 ) (4,388 ) (2,500 ) Consolidated earnings from operations 318,606 289,961 295,718 Interest and non-operating expense, net (11,503 ) (10,896 ) (19,761 ) Consolidated earnings before income taxes $ 307,103 $ 279,065 $ 275,957 Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. December 31, 2018 2017 Operating segment assets: Net accounts receivable, inventories and demonstration assets: Industrial $ 266,457 $ 287,439 Government and Defense 307,041 332,044 Commercial 137,560 136,941 $ 711,058 $ 756,424 Goodwill (1) : Industrial 391,603 — Government and Defense 284,188 — Commercial 228,780 — $ 904,571 — Total operating segment assets $ 1,615,629 $ 756,424 Assets not allocated: Cash, cash equivalents and restricted cash $ 512,144 $ 519,090 Assets held for sale, net 2,032 67,344 Prepaid expenses and other current assets 67,413 44,361 Property and equipment, net 247,407 263,996 Deferred income taxes 100,620 21,001 Goodwill (1) — 909,811 Intangible assets, net 146,845 168,130 Other assets $ 89,152 $ 59,869 Total assets $ 2,781,242 $ 2,810,026 ___________ (1) Due to the realignment of the Company's business operations effective as of January 1, 2018, goodwill as of December 31, 2017 is presented as an asset not allocated to the operating segments in this table. See Note 8. "Goodwill" for additional information and goodwill by operating segments as of January 1, 2018. Note 18. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Year Ended December 31, 2018 2017 Industrial Government and Defense Commercial Total Industrial Government and Defense Commercial Total United States $ 364,443 $ 420,032 $ 150,052 $ 934,527 $ 314,910 $ 379,356 $ 262,172 $ 956,438 Europe 130,901 89,725 156,227 376,853 140,265 92,021 143,188 375,474 Asia 159,150 55,160 40,850 255,160 156,201 36,484 34,362 227,047 Middle East/Africa 18,089 85,726 27,240 131,055 18,183 87,633 21,980 127,796 Canada/Latin America 45,299 12,793 19,999 78,091 42,561 33,653 37,465 113,679 $ 717,882 $ 663,436 $ 394,368 $ 1,775,686 $ 672,120 $ 629,147 $ 499,167 $ 1,800,434 Revenue and Long-Lived Assets by Geographic Area Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands): December 31, 2018 2017 United States $ 720,885 $ 797,816 Europe 446,704 343,208 Other foreign 220,386 260,782 $ 1,387,975 $ 1,401,806 Major Customers Revenue derived from major customers is as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States government $ 511,094 $ 466,304 $ 416,341 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisitions and Divestitures Point Grey Research, Inc. During 2016, the Company completed a transaction to acquire the assets of Point Grey Research Inc. (“Point Grey”), a global leader in the development of advanced visible imaging cameras and solutions that are used in industrial automation systems, medical diagnostic equipment, people counting systems, intelligent traffic systems, military and defense products, and advanced mapping systems, for approximately $259.2 million in cash. During 2017, the Company finalized the purchase price allocation which had no change to the previously recorded allocation of $39.8 million to identifiable intangible assets and $183.7 million to goodwill. These amounts have been recorded in the Company’s OEM & Emerging Markets segment. Note 19. Business Acquisitions and Divestitures - (Continued) Point Grey Research, Inc. - (Continued) The allocation of the purchase price for Point Grey is as follows (in thousands): Cash acquired $ 2,994 Other tangible assets and liabilities, net 35,127 Net deferred taxes (2,438 ) Identifiable intangible assets 39,800 Goodwill 183,678 Total purchase price $ 259,161 The allocation of the purchase price related to this acquisition is based on management’s judgments after evaluating several factors, including valuation assessments of tangible and intangible assets, and estimates of the fair value of liabilities assumed. The goodwill of $183.7 million represents future economic benefits expected to arise from synergies from combining operations and the ability of Point Grey to provide the Company domain knowledge and distribution channels in adjacent markets. In connection with the allocation of purchase price to the assets acquired and liabilities assumed, the Company identified certain intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and estimated useful lives (in thousands, except years): Estimated Amount Developed technology 10.0 years $ 23,100 Customer relationships 7.0 years 13,200 Backlog 1.0 year 2,300 Non-Competition Agreements 5.0 years 1,000 Other n/a 200 $ 39,800 Acquisition-date identifiable intangible assets primarily consist of intangibles derived from developed technology, customer relationships, backlog, and non-competition agreements. Developed technology represents the economic advantage of having certain technologies in place that lowers manufacturing and operating costs and drives higher margins. Customer relationships represents the relationships Point Grey has established in the OEM and people counting markets as of the date of the acquisition. Backlog represents “pre-sold” business at the date of acquisition, which provides positive earning streams post acquisition that exceed what is required to provide a return on the other assets employed. Non-competition agreements represent the economic benefit of having agreements with certain current and former employees and shareholders of Point Grey that restrict their ability to compete directly with the Company. The developed technology was valued using the income approach and relief from royalty method. Customer relationships and backlog were valued using the income approach and multi-period excess earnings method. Non-competition agreements were valued using the income approach and the with-and-without method. Prox Dynamics, AS During 2016, the Company acquired 100% of the outstanding stock of Prox Dynamics AS. (“Prox Dynamics”), a leading developer and manufacturer of nano-class UAS for military and para-military intelligence, surveillance, and reconnaissance applications, for approximately $134.4 million in cash, which resulted in the allocation of $11.3 million to net tangible asset and the excess purchase price of approximately $123.1 million to other long-term assets. During 2017, the Company finalized the purchase price allocation, which has been recorded in the Company’s Surveillance business segment. Note 19. Business Acquisitions and Divestitures - (Continued) Prox Dynamics, AS - (Continued) The allocation of the purchase price for Prox Dynamics is as follows (in thousands): Cash acquired $ 11,706 Other tangible assets and liabilities, net (900 ) Net deferred taxes (4,250 ) Identifiable intangible assets 31,400 Goodwill 96,431 Total purchase price $ 134,387 The goodwill of $96.4 million million represents future economic benefits expected to arise from synergies from combining operations the ability of Prox Dynamics to provide the Company domain knowledge and distribution channels in adjacent markets. In connection with the allocation of purchase price to the assets acquired and liabilities assumed, the Company identified certain intangible assets. The following table presents the acquired intangible assets, their estimated fair values, and estimated useful lives (in thousands, except years): Estimated Amount Developed technology 8 years $ 23,400 Customer relationships 7 years 3,500 Patents 8 years 3,100 Trade name 8 years 1,400 $ 31,400 Acquisition-date identifiable intangible assets primarily consist of intangibles derived from developed technology, customer relationships, patents, and trade name. Developed technology and patents represent the economic advantage of having certain technologies in place that lower manufacturing and operating costs and drive higher margins. Customer relationships represents the relationships Prox Dynamics has established in the military and defense ministries of countries throughout the world. Trade name represents the "Black Hornet" name, which is well recognized within the industry and is known as a leading product within the nano-class UAS segment. The developed technology and customer relationships were valued using the income approach and multi-period excess earnings method. Patents and trade name were valued using the income approach and relief from royalty method. Fishing Hot Spots, Inc. On March 26, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Fishing Hot Spots, Inc., a privately held technology company, for approximately $7.1 million in cash. During the third quarter of 2018, the Company finalized the purchase price allocation and recorded $2.2 million of identified intangible assets and goodwill of $4.7 million in the Commercial business unit. Fishidy, Inc. On April 3, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Fishidy, Inc., a privately held startup technology company, for approximately $7.1 million in cash. During the fourth quarter of 2018, the Company finalized the purchase price allocation and recorded $3.8 million of identified intangible assets and goodwill of $4.6 million in the Commercial business unit. Note 19. Business Acquisitions and Divestitures - (Continued) Acyclica, Inc. On September 10, 2018, the Company completed a transaction to acquire 100% of the outstanding stock of Acyclica, Inc., a privately held software developer for automotive roadway and intersection data generation and analysis. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the first half of 2019. Goodwill and intangibles will be recorded in the Commercial business unit. The preliminary unallocated purchase price of approximately $10.3 million , including an estimate for contingent consideration pursuant to the stock purchase agreement, has been reported in other assets as of December 31, 2018. SeaPilot AB On October 16, 2018, the Company acquired substantially all of the outstanding shares of SeaPilot AB, a privately held technology company. The allocation of the purchase price to identified intangible assets and goodwill is subject to the final determination of the valuation of the assets acquired and liabilities assumed. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of intangible assets and related taxes. The final allocation of the purchase price to the assets acquired and liabilities assumed will be completed when the final assessments of the intangible assets and related taxes are completed during the first half of 2019. Goodwill and intangibles will be recorded in the Commercial business unit. The preliminary unallocated purchase price of approximately $4.6 million has been reported in other assets as of December 31, 2018. The business acquisitions listed above are not significant as defined in Regulation S-X under the Securities Exchange Act of 1934, nor are they significant compared to the Company's overall results of operations. Consequently, no pro forma financial information is provided. Divestitures of the Consumer and Small and Medium-Sized Security Businesses On February 6, 2018 the Company sold the Consumer and Small and Medium-sized ("SMB") Security businesses within the Commercial business unit for total cash consideration of approximately $28.8 million . As a result of this combined sale and subsequent negotiations with the buyer, the Company recognized an incremental pre-tax loss of $13.7 million during 2018 . This group of assets was previously classified as held for sale during the fourth quarter of 2017, when the Company recorded an estimated pre-tax loss on net assets held for sale of $23.6 million . This disposal does not qualify as discontinued operations and therefore, its operating results are included in the Company’s continuing operations for all periods presented through the date of the sale. The carrying amounts of the assets and liabilities that were expected to be included in the sale were classified as held for sale as of December 31, 2017 as follows (in thousands): Accounts receivable, net $ 20,414 Inventories 43,050 Other current assets 1,031 Property and equipment, net 4,888 Intangible assets, net 8,359 Goodwill 13,090 Loss on net assets held for sale (23,488 ) Assets held for sale, net $ 67,344 Accounts payable and accrued expenses $ 39,544 Liabilities held for sale $ 39,544 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity On February 5, 2015, the Company's Board of Directors authorized the repurchase of up to 15.0 million shares of common stock in the open market or through privately negotiated transactions. This authorization expired on February 5, 2017. On February 8, 2017, the Company’s Board of Directors authorized the repurchase of up to 15.0 million shares of common stock in the open market or through privately negotiated transactions. This authorization expired on February 8, 2019. During the year ended December 31, 2018 , the Company repurchased approximately 5.0 million shares. During the year ended December 31, 2018 , the Company paid dividends quarterly at the rate of $0.16 per share for a total of $88.1 million . During the year ended December 31, 2017 , the Company paid dividends quarterly at the rate of $0.15 per share for a total of $82.6 million . During the year ended December 31, 2016 , the Company paid dividends quarterly at the rate of $0.12 per share for a total of $65.9 million . |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During the years ended December 31, 2018, 2017 and 2016 , the Company recorded net pre-tax restructuring expenses totaling $8.2 million , $0.6 million and $1.4 million , respectively. In 2013, the Company initiated a realignment plan that included closing six not-to-scale sites in the United States and Europe and a transfer of those operations to the Company's larger facilities ("the 2013 Realignment Program"). The Company also consolidated its optics and laser manufacturing businesses to better realize the benefits of vertical integration in these areas. The 2013 Realignment Program was concluded in 2018. During the years ended December 31, 2018, 2017 and 2016 , the Company also incurred other restructuring charges associated with cost reduction initiatives that were not related to the 2013 Realignment Program. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Effective January 11, 2019, a standby letter of credit totaling approximately $245 million (Swedish kroner 2.2 billion) was issued under a new bilateral letter of credit reimbursement agreement ("L/C Agreement") to secure a payment guarantee required by the Swedish Tax Authorities in order to grant a respite from paying the tax reassessment described in Note 15, "Income Taxes." Outstanding amounts under the L/C Agreement do not reduce the available revolving credit from The Credit Agreement as described in Note 10, "Credit Agreement". On January 28, 2019, the Company completed its acquisition of 100% of the outstanding stock of Aeryon Labs Inc., a privately held aerospace company, for total cash consideration of approximately $200 million . Aeryon Labs is a leading developer of high-performance UAS for the global military, public safety, and critical infrastructure markets. The final purchase price allocation will be completed in 2019 and will be recorded in the Company's Government and Defense business unit. On February 7, 2019, the Company's Board of Directors authorized the repurchase of up to 15 million shares of the Company's outstanding common stock. This authorization will expire on February 7, 2021. On February 7, 2019 , the Company's Board of Directors declared a quarterly dividend of $0.17 per share on the Company's common stock, payable on March 8, 2019 , to shareholders of record as of the close of business on February 22, 2019 . The total cash payment of this dividend will be approximately $23 million . On February 11, 2019, the Company announced that it has entered into a definitive agreement to acquire Endeavor Robotics Holdings, Inc. ("Endeavor") from Arlington Capital Partners for total cash consideration of approximately $385 million . Endeavor Robotics is a leading developer of battle-tested, tactical unmanned ground vehicles for the global military, public safety, and critical infrastructure markets. Upon closing of the acquisition, which is expected in the first quarter of 2019, Endeavor will be a part of the Company's Government and Defense business unit. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) FLIR SYSTEMS, INC. (In thousands, except per share data) Q1 Q2 Q3 Q4 2018 Revenue $ 439,618 $ 452,707 $ 434,898 $ 448,463 Gross profit 217,914 232,551 222,074 227,779 Net earnings (1) 39,195 71,563 73,151 98,516 Earnings per share: Basic earnings per share $ 0.28 $ 0.52 $ 0.53 $ 0.72 Diluted earnings per share $ 0.28 $ 0.51 $ 0.52 $ 0.71 2017 Revenue $ 406,814 $ 434,124 $ 464,712 $ 494,784 Gross profit 191,321 206,732 222,891 237,832 Net earnings (loss) (2) 42,571 51,413 63,529 (50,290 ) Earnings per share: Basic earnings (loss) per share $ 0.31 $ 0.38 $ 0.46 $ (0.36 ) Diluted earnings (loss) per share $ 0.31 $ 0.37 $ 0.46 $ (0.36 ) _______________ (1) Net earnings for the fourth quarter of 2018 includes $15.0 million for the costs of a regulatory settlement and a discrete tax benefit of $33.1 million for the cancellation of Belgium tax assessments issued as part of the European Commission's decision regarding state aid. (2) Net earnings for the fourth quarter of 2017 includes a discrete tax charge of $94.4 million associated with US Tax Cuts and Jobs Act enacted in December 2017 and a loss on net assets held for sale of $23.6 million. The sum of the quarterly earnings per share does not always equal the annual earnings per share as a result of the computation of quarterly versus annual average shares outstanding. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principals of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions were eliminated. |
Reclassification | Reclassification The Company made certain reclassifications to the prior years' financial statements to conform them to the presentation as of and for the year ended December 31, 2018. These reclassifications had no effect on consolidated financial position, net earnings, shareholders' equity, or net cash flows for any of the periods presented. |
Foreign currency translation | Foreign currency translation The assets and liabilities of the Company’s subsidiaries outside the United States are translated into United States dollars at current exchange rates in effect at the balance sheet date. Revenues and expenses are translated at monthly average exchange rates. Resulting translation adjustments are reflected in accumulated other comprehensive earnings (loss) within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in currencies other than the functional currency are reflected as other (income) expense, net, in the Consolidated Statements of Income as incurred. The cumulative translation adjustment included in accumulated other comprehensive earnings (loss) is a loss of $148.4 million and $113.0 million at December 31, 2018 and 2017 , respectively. Transaction gains and losses included in other (income) expense, net, are net losses of $1.3 million , $0.2 million , and $2.2 million for the years ended December 31, 2018, 2017 and 2016 , |
Revenue recognition | Revenue recognition The Company designs, markets and sells products primarily as commercial, off-the-shelf products. Certain customers request different system configurations, based on standard options or accessories that the Company offers. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company regularly enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. In such situations, contract values are allocated to each performance obligation based on its relative estimated standalone selling price. The vast majority of the Company's revenues are recognized at a point in time when goods are transferred to a customer. However, for certain contracts that include highly customized components, if performance does not create an asset with an alternative use and termination for convenience clauses provide an enforceable right to payment for performance completed to date, revenue is recognized over time as the performance obligation is satisfied. Revenue includes certain shipping and handling costs and is stated net of third party agency fees. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Revenue is recognized net of allowances for returns and net of taxes collected from customers which are subsequently remitted to governmental authorities. The Company’s products are sold with warranty provisions that require it to remedy deficiencies in quality or performance of the Company’s products over a specified period of time, generally twelve to twenty-four months, at no cost to its customers. Warranty liabilities are established at the time that revenue is recognized at levels that represent the Company’s estimate of the costs that will be incurred to fulfill those warranty requirements. Provisions for estimated losses on sales or related receivables are recorded when identified. Revenue includes certain shipping and handling costs and is stated net of representative commissions and sales taxes. Service revenue is deferred and recognized over the contract period, as is the case for extended warranty contracts, or recognized as services are provided. See Note 18. "Operating Segments and Related Information - Revenue and Long-Lived Assets by Geographic Area" for information related to the Company’s revenues disaggregated by significant geographical region and operating segment. |
Cost of goods sold | Cost of goods sold Cost of goods sold includes materials, labor and overhead costs incurred in the manufacturing of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation, occupancy costs, and purchasing, receiving and inspection costs. |
Research and development | Research and development Expenditures for research and development activities are expensed as incurred. |
Cash equivalents | Cash equivalents and restricted cash The Company considers short-term investments that are highly liquid, readily convertible into cash and have maturities of less than three months when purchased to be cash equivalents. Cash equivalents at December 31, 2018 and 2017 were $200.0 million and $140.7 million , respectively, which were primarily investments in money market funds and overnight deposits. Restricted cash includes cash that is subject to a legal or contractual restriction by a third party and restricted as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. The Company did not have any restricted cash balances at December 31, 2018 and 2017 , respectively. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the amounts the Company expects to collect. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company regularly evaluates the collectability of its trade receivables balances based on a combination of factors. If it is determined that a customer will be unable to fully meet its financial obligation, the Company records a specific allowance to reduce the related receivable to the amount expected to be recovered. In addition, the Company also records an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers. |
Inventories | Inventories Inventories are stated at the lower of cost or market and include materials, labor, and manufacturing overhead. Cost is determined based on a currently adjusted standard cost basis that approximates actual manufacturing cost on a first-in, first-out basis. Inventory write-downs are recorded when conditions exist to indicate that inventories are likely to be in excess of anticipated demand or are obsolete based upon the Company’s assumptions about future demand for its products and market conditions. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product end of life dates, estimated current and future market values and new product introductions. When recorded, write-downs reduce the carrying value of the Company’s inventories to their net realizable value and create a new cost-basis in the inventories. Write-downs are reflected in cost of goods sold in the Consolidated Statements of Income. |
Demonstration Units | Demonstration units The Company’s products which are being used as demonstration units are stated at the lower of cost or market and are included in prepaid expenses and other current assets in the Consolidated Balance Sheets. Demonstration units are available for sale and the Company periodically evaluates them as to marketability and realizable values. The carrying value of demonstration units was $35.2 million and $37.6 million at December 31, 2018 and 2017 , respectively. |
Property and equipment | Property and equipment Property and equipment are stated at cost and are depreciated using a straight-line methodology over their estimated useful lives. Repairs and maintenance are charged to expense as incurred. |
Goodwill | Goodwill Goodwill is reviewed during the third quarter of each year, or more frequently if warranted, for impairment to determine if events or changes in business conditions indicate that the carrying value may not be recoverable. The Company did not recognize any impairment charges on goodwill during the years ended December 31, 2018, 2017 and 2016 . See Note 8, "Goodwill," for additional information. |
Intangible assets | Intangible assets Intangible assets are amortized using a straight-line methodology over their estimated useful lives. Intangible assets with indefinite useful lives are evaluated annually for impairment, or more frequently if required. The Company did not recognize any impairment charges on intangible assets with indefinite lives during the years ended December 31, 2018, 2017 and 2016 . |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived asset groups are reviewed for impairment when circumstances indicate that the carrying amounts may not be recoverable. Impairment exists when the carrying value is greater than the expected undiscounted future cash flows expected to be provided by the asset group. If impairment exists, the asset group is written down to its fair value. The Company did not recognize any impairment charges on long-lived assets during the years ended December 31, 2018, 2017 and 2016 . |
Advertising costs | Advertising costs Advertising costs, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2018, 2017 and 2016 were $12.5 million , $19.2 million and $19.3 million , respectively. |
Contingencies | Contingencies The Company is subject to the possibility of loss contingencies arising in the normal course of business. An estimated loss is accrued when the Company determines that it is probable that an asset has been impaired or a liability has been incurred and the amount can be reasonably estimated. The Company regularly evaluates current available information to determine whether such accruals and disclosures should be adjusted. |
Earnings per share | Earnings per share Basic earnings per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted shares outstanding are increased to include additional shares from the assumed exercise of stock options, if dilutive, and the assumed issuance of shares upon vesting of restricted stock awards. 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): Year Ended December 31, 2018 2017 2016 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 282,425 $ 107,223 $ 166,626 Denominator for earnings per share: Weighted average number of common shares outstanding 137,815 137,456 137,138 Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 2,394 2,190 1,359 Diluted shares outstanding 140,209 139,646 138,497 The effect of stock-based compensation awards for the years ended December 31, 2018, 2017 and 2016 that aggregated 10,000 , 39,000 and 233,000 shares, respectively, have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2018 2017 2016 Cash paid for: Interest $ 14,183 $ 15,394 $ 15,815 Taxes $ 83,259 $ 72,340 $ 32,465 |
Stock-based compensation | Stock-based compensation The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards and shares expected to be issued under the Company's employee stock purchase plan. Nonvested stock awards (referred to as restricted stock unit awards) are valued based on the fair market value of the Company's stock, discounted for expected dividends, on the date of grant. Restricted stock units containing performance-based vesting criteria are valued on the date of grant based on the fair value of the Company's stock, discounted for expected dividends and an estimate for illiquidity. The fair value of market-based restricted stock units is determined on the date of grant using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation and a discount for illiquidity. The estimated discount for illiquidity is relevant for share based awards that require the plan participant to hold the shares for a specified period of time after the award vests and is estimated using the protective put method. The Company recognizes the compensation expense for all stock-based compensation awards on a straight-line basis over the requisite service period of each award. The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Cost of goods sold $ 3,157 $ 2,665 $ 3,103 Research and development 6,697 5,068 4,815 Selling, general and administrative 24,316 23,285 19,879 Stock-based compensation expense before income taxes $ 34,170 $ 31,018 $ 27,797 Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2018, 2017 and 2016 is as follows (in thousands): December 31, 2018 2017 2016 Capitalized in inventory $ 1,080 $ 1,062 $ 567 As of December 31, 2018 , the Company had approximately $48.1 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of approximately two years. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Stock-based compensation - (Continued) The fair value of the stock-based awards granted in the years ended December 31, 2018, 2017 and 2016 was estimated with the following weighted-average assumptions: 2018 2017 2016 Stock option awards: Risk-free interest rate — 1.8 % 0.9 % Expected dividend yield — 1.6 % 1.6 % Expected term — 6.0 years 4.3 years Expected volatility — 26.6 % 25.6 % Performance-based restricted stock awards: Expected dividend yield 1.2 % 1.6 % 1.6 % Discount for illiquidity — — 9.9 % Market-based restricted stock awards: Risk-free interest rate — — 0.9 % Expected dividend yield — — 1.6 % Expected term — — 4.0 years Expected volatility — — 25.8 % Expected volatility of S&P 500 — — 25.0 % Discount for illiquidity — — 9.9 % Employee stock purchase plan: Risk-free interest rate 2.3 % 1.0 % 0.5 % Expected dividend yield 1.3 % 1.6 % 1.5 % Expected term 6 months 6 months 6 months Expected volatility 26.4 % 20.9 % 27.0 % Discount for illiquidity 10.5 % 10.5 % 10.5 % The Company uses the United States Treasury (constant maturity) interest rate on the date of grant as the risk-free interest rate and uses historical volatility as the expected volatility. The Company’s determination of expected term is based on an analysis of historical and expected exercise patterns. In 2017 and 2016, all stock options granted were time-based options. The Company uses an estimated forfeiture rate of 5 percent of the stock-compensation expense of non-executive employees based on an analysis of historical and expected forfeitures. During the years ended December 31, 2018, 2017 and 2016 , the Company granted approximately 594,000 , 773,000 and 865,000 time-vested restricted stock units, respectively. The fair value of time-vested restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested restricted stock units granted during the years ended December 31, 2018, 2017 and 2016 were $52.93 , $36.20 and $29.48 per share, respectively. During the year ended December 31, 2016, the Company granted approximately 64,000 market-based restricted stock units. These units may be 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 S&P 500 Index. Shares vested under the market-based restricted stock unit awards must be held by the participant for a period of one year from the vest date. The fair value of the market-based restricted stock units granted during the year ended December 31, 2016 was $22.89 per share, respectively. During the years ended December 31, 2018, 2017 and 2016 , the Company granted approximately 177,000 , 283,000 and 62,000 performance-based restricted stock units, respectively. These units are earned based upon the Company's return on invested capital over a three year period. The fair value of the performance-based restricted units granted during the years ended December 31, 2018, 2017 and 2016 was $52.32 , $35.08 and $26.41 per share, respectively. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Stock-based compensation - (Continued) The total fair value of the restricted stock unit awards granted during the year ended December 31, 2018 in the table below of $40.7 million includes $9.2 million of grant date fair value associated with the performance-based restricted stock units. The total fair value of the restricted stock unit awards granted during the year ended December 31, 2017 in the table below of $37.9 million includes $9.9 million of grant date fair value associated with the performance-based restricted stock units. The total fair value of the restricted stock unit awards granted during the year ended December 31, 2016 in the table below of $28.6 million includes $1.5 million of grant date fair value associated with the market-based restricted stock units and $1.6 million of grant date fair value associated with the performance-based restricted stock units. The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): Years Ended December 31, 2018 2017 2016 Stock option awards: Weighted average grant date fair value per share — $ 8.55 $ 5.68 Total fair value of awards granted — $ 2,824 $ 4,716 Total fair value of awards vested $ 2,529 $ 4,203 $ 4,407 Total intrinsic value of options exercised $ 24,652 $ 20,631 $ 6,170 Restricted stock unit awards: Weighted average grant date fair value per share $ 52.79 $ 35.90 $ 28.86 Total fair value of awards granted $ 40,675 $ 37,906 $ 28,603 Total fair value of awards vested $ 48,705 $ 27,489 $ 21,130 Employee stock purchase plan: Weighted average grant date fair value per share $ 10.01 $ 7.66 $ 6.33 Total fair value of shares estimated to be issued $ 1,330 $ 1,087 $ 923 The total amount of cash received from the exercise of stock options in the years ended December 31, 2018, 2017 and 2016 was $23.7 million , $53.5 million and $7.7 million , respectively, and the related tax benefits realized from the exercise of the stock options in the years ended December 31, 2018, 2017 and 2016 was $8.7 million , $3.0 million and $1.3 million , respectively. |
Concentration of risk | Concentration of risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of accounts receivable. Concentration of credit risk with respect to accounts receivable is limited because a relatively large number of geographically diverse customers make up the Company’s customer base, thus diversifying the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers and requires letters of credit, bank guarantees and advanced payments, if deemed necessary. A substantial portion of the Company’s revenue is derived from sales to United States and foreign government agencies (see Note 18, "Operating Segments and Related Information"). The Company also purchases certain key components from sole or limited source suppliers. The Company maintains cash deposits with major banks that from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and instruments in which it invests and adjusts its investment balances to mitigate the risk of principal loss. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments made by management of the Company include matters such as collectability of accounts receivable, realizability of inventories, recoverability of deferred tax assets, impairment tests of goodwill, intangible assets and other long-lived assets, recognition and measurement of loss contingencies and adequacy of warranty accruals. Actual results could differ from those estimates. The Company believes that the estimates used are reasonable. |
Accumulated other comprehensive earnings | Accumulated other comprehensive earnings (loss) Accumulated other comprehensive earnings (loss) includes cumulative translation adjustments, fair value adjustments on interest rate swap contracts, unrealized gains and losses on available-for-sale securities and changes in minimum liability for pension plans. Foreign currency translation adjustments included in comprehensive income were not tax affected as investments in international affiliates are deemed to be indefinite in duration. The following table sets forth the changes in the balances of each component of accumulated other comprehensive earnings (loss) for the year ended December 31, 2018 : Pension Plans Items Available-For-Sale Items Foreign Currency Items Total Balance, December 31, 2017 $ (344 ) $ (4 ) $ (113,012 ) $ (113,360 ) Other comprehensive income (loss) before reclassifications, net of tax (338 ) — (35,394 ) (35,732 ) Amounts reclassified from accumulated other comprehensive earnings (loss), net of tax — — — — Net current period other comprehensive income (loss), net of tax (338 ) — (35,394 ) (35,732 ) Balance, December 31, 2018 $ (682 ) $ (4 ) $ (148,406 ) $ (149,092 ) |
Product warranties | The Company generally provides a twelve to twenty-four month warranty on its products. A provision for the estimated future costs of warranty, based upon historical cost and product performance experience, is recorded when revenue is recognized. |
Segment reporting | The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on revenue and segment operating income. Intersegment revenues are recorded at cost and are eliminated in consolidation. The Company and each of its segments employ consistent accounting policies. The following tables present revenue, operating income, and assets for the three segments. Operating income as reviewed by the CODM is revenue less cost of goods sold and operating expense, excluding general corporate expenses, acquisition related costs, executive transition costs, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, costs associated with the SkyWatch product remediation, restructuring charges, and the loss on sale of business. Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation for all periods presented below were managed on a Company-wide basis. |
Recent accounting pronouncements | Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). Effective January 1, 2018, the Company adopted ASU 2016-18 on a retrospective basis. This update clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. The amendment requires restricted cash be included in an entity's cash and cash-equivalent balances in the statement of cash flows and also requires an entity to disclose information about the nature of the restrictions. Further, a reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company's adoption of ASU 2016-18 did not have a material impact on the consolidated financial statements. FASB ASU No. 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). Effective January 1, 2018, the Company adopted ASU 2016-01. The update requires changes to the accounting for financial instruments that primarily affect equity securities, financial liabilities measured using the fair value option, and the presentation and disclosure requirements for such instruments. The Company's adoption of ASU 2016-01 did not have an impact on the consolidated financial statements. The most significant impact is the Company's non-marketable equity securities formerly classified as cost method investments are now measured and recorded using the measurement alternative. In addition, the existing impairment model has been replaced with a new one-step qualitative impairment model. No initial adoption adjustment was recorded for these instruments since the standard was required to be applied prospectively for securities measured using the measurement alternative. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Recently Adopted Accounting Pronouncements - (Continued) FASB ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"). Effective January 1, 2018, the Company adopted ASU 2017-01. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company's adoption of ASU 2017-01 did not have a material impact on the consolidated financial statements. FASB ASU No. 2014-09, "Revenue - Revenue from Contracts with Customers". Effective January 1, 2018, the Company adopted ASU 2014-09 and all the related amendments ("new revenue standard" or "ASC 606") using the modified retrospective method to those contracts not yet completed as of January 1, 2018. As a result, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings in the amount of approximately $1.0 million as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of the new standard to be immaterial to net income on an ongoing basis. FASB ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"). Effective January 1, 2018, the Company adopted ASU 2016-16, which eliminates the exception of recognizing, at the time of transfer, current and deferred income taxes for intra-entity asset transfers other than inventory. This new standard has been applied on a modified retrospective transition basis with an adjustment to the opening balance of retained earnings in the amount of approximately $79.3 million as of January 1, 2018. The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606, "Revenue - Revenue from Contracts with Customers" and ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" were as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASC 606 Adjustments Due to ASU 2016-16 Balance at January 1, 2018 Assets Accounts receivable, net $ 346,687 $ 981 $ — $ 347,668 Inventories 372,183 (524 ) — 371,659 Deferred income taxes, net 21,001 — 74,367 95,368 Other assets 59,869 — (1,005 ) 58,864 Liabilities Deferred revenue 25,614 (788 ) — 24,826 Deferred income taxes 12,496 290 2,067 14,853 Pension and other long-term liabilities 59,872 — (8,030 ) 51,842 Shareholders' Equity Retained earnings 1,856,756 955 79,325 1,937,036 Note 1. Basis of Presentation - (Continued) Recently Adopted Accounting Pronouncements - (Continued) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): Year Ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Income Statement Revenue $ 1,775,686 $ 1,773,938 $ 1,748 Cost of goods sold 875,368 874,993 375 Income tax provision 24,678 24,389 289 Net earnings 282,425 281,341 1,084 December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Assets Accounts receivable, net $ 323,746 $ 321,017 $ 2,729 Inventories 352,107 352,482 (375 ) Liabilities Deferred revenue 32,703 32,703 — Deferred income taxes 22,927 22,348 579 Equity Retained earnings 2,024,523 2,022,748 1,775 See Note 2, "Revenue" for additional disclosures required by the new revenue standard. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases, by issuing Accounting Standards Update ("ASU") No. 2016-02 (“ASU 2016-02”). Among other things, ASU 2016-02 requires recognition of a right-of-use asset and liability for future lease payments for contracts that meet the definition of a lease and requires disclosure of certain information about leasing arrangements. ASU 2016-02 is effective January 1, 2019. On July 30, 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements," which, among other things, allows companies to elect an optional transition method to apply the new lease standard through a cumulative-effect adjustment in the period of adoption. The Company adopted the new standard on January 1, 2019 and used this effective date as the date of initial application pursuant to the optional transition method. The company has made substantial progress in executing its implementation plan. The Company has revised its controls and processes to address the lease standard and is currently finalizing the implementation and validation of data input into its lease accounting software tool. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. Adoption of the standard is expected to have an impact of approximately $40 million on our consolidated balance sheets for the addition of lease assets and liabilities related to operating leases. ASU 2016-02 also requires expanded disclosure regarding the amounts, timing and uncertainties of cash flows related to a company’s lease portfolio. The Company is evaluating these disclosure requirements and incorporating the collection of relevant data into its processes in preparation for disclosure in 2019. The Company does not expect ASU 2016-02 to have a material impact on its Consolidated Statements of Income or it Consolidated Statements of Cash Flows. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Recently Issued Accounting Pronouncements - (Continued) In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The amendments in this update simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendment should be applied on a prospective basis. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments in ASU 2017-04 are to be applied on a prospective basis. The Company adopted the standard as of January 1, 2019 and the adoption is not expected to have a material impact on the Company's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). The standard will permit entities to reclassify tax effects stranded in accumulated other comprehensive income ("AOCI") as a result of U.S. tax reform to retained earnings. The standard is effective January 1, 2019. The Company adopted the standard as of January 1, 2019 and the adoption is not expected to have a material impact on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). The standard more closely aligns the accounting for employee and nonemployee share-based payments. The standard is effective January 1, 2019. The Company adopted the standard as of January 1, 2019 and the adoption is not expected to have a material impact on its consolidated financial statements or disclosures. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted the standard as of January 1, 2019 and the adoption is not expected to have a material impact on the Company’s consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" ("ASU 2018-18"). The standard clarifies that certain transactions between collaborative arrangement participants should be accounted for under ASC 606, when one participant is a customer, and specifies that a distinct good or service is the unit of account for evaluating whether the transaction is with a customer. The standard also provides some guidance on presentation of transactions not in the scope of ASC 606. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted as long as a company has already adopted the guidance in ASC 606. The Company plans to adopt the standard as of January 1, 2020 and is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. |
Investment, Policy [Policy Text Block] | Minority interest equity investments The Company holds certain investments in equity instruments of non-publicly traded companies. Equity investments in which the Company does not have control, but has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. The Company's proportionate share of income or loss is recorded in interest income and other, net in the Consolidated Statement of Income. All other non-marketable equity investments are measured at cost less impairment, if any, adjusted for changes resulting from qualifying observable price changes. Prior to 2018, all other non-marketable equity investments were accounted for using the cost method. The Company periodically reviews its equity investments for impairment. During the years ended December 31, 2018, 2017, and 2016 the Company did not recognize any impairments on its minority interest equity investments. The carrying values of the minority interest equity investments were $17.1 million and $3.1 million at December 31, 2018 and 2017 , respectively, and are included in other assets in the Consolidated Balance Sheets. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [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): Year Ended December 31, 2018 2017 2016 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 282,425 $ 107,223 $ 166,626 Denominator for earnings per share: Weighted average number of common shares outstanding 137,815 137,456 137,138 Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 2,394 2,190 1,359 Diluted shares outstanding 140,209 139,646 138,497 The effect of stock-based compensation awards for the years ended December 31, 2018, 2017 and 2016 that aggregated 10,000 , 39,000 and 233,000 shares, respectively, have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive. |
Supplemental cash flow disclosure | Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2018 2017 2016 Cash paid for: Interest $ 14,183 $ 15,394 $ 15,815 Taxes $ 83,259 $ 72,340 $ 32,465 |
Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets | The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Cost of goods sold $ 3,157 $ 2,665 $ 3,103 Research and development 6,697 5,068 4,815 Selling, general and administrative 24,316 23,285 19,879 Stock-based compensation expense before income taxes $ 34,170 $ 31,018 $ 27,797 Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2018, 2017 and 2016 is as follows (in thousands): December 31, 2018 2017 2016 Capitalized in inventory $ 1,080 $ 1,062 $ 567 |
Fair value of the stock-based awards granted weighted-average assumptions | The fair value of the stock-based awards granted in the years ended December 31, 2018, 2017 and 2016 was estimated with the following weighted-average assumptions: 2018 2017 2016 Stock option awards: Risk-free interest rate — 1.8 % 0.9 % Expected dividend yield — 1.6 % 1.6 % Expected term — 6.0 years 4.3 years Expected volatility — 26.6 % 25.6 % Performance-based restricted stock awards: Expected dividend yield 1.2 % 1.6 % 1.6 % Discount for illiquidity — — 9.9 % Market-based restricted stock awards: Risk-free interest rate — — 0.9 % Expected dividend yield — — 1.6 % Expected term — — 4.0 years Expected volatility — — 25.8 % Expected volatility of S&P 500 — — 25.0 % Discount for illiquidity — — 9.9 % Employee stock purchase plan: Risk-free interest rate 2.3 % 1.0 % 0.5 % Expected dividend yield 1.3 % 1.6 % 1.5 % Expected term 6 months 6 months 6 months Expected volatility 26.4 % 20.9 % 27.0 % Discount for illiquidity 10.5 % 10.5 % 10.5 % |
Fair value of the stock-based awards granted and vested, and intrinsic value of options exercised | The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): Years Ended December 31, 2018 2017 2016 Stock option awards: Weighted average grant date fair value per share — $ 8.55 $ 5.68 Total fair value of awards granted — $ 2,824 $ 4,716 Total fair value of awards vested $ 2,529 $ 4,203 $ 4,407 Total intrinsic value of options exercised $ 24,652 $ 20,631 $ 6,170 Restricted stock unit awards: Weighted average grant date fair value per share $ 52.79 $ 35.90 $ 28.86 Total fair value of awards granted $ 40,675 $ 37,906 $ 28,603 Total fair value of awards vested $ 48,705 $ 27,489 $ 21,130 Employee stock purchase plan: Weighted average grant date fair value per share $ 10.01 $ 7.66 $ 6.33 Total fair value of shares estimated to be issued $ 1,330 $ 1,087 $ 923 |
Changes in the balances of each component of accumulated other comprehensive earnings (loss) | The following table sets forth the changes in the balances of each component of accumulated other comprehensive earnings (loss) for the year ended December 31, 2018 : Pension Plans Items Available-For-Sale Items Foreign Currency Items Total Balance, December 31, 2017 $ (344 ) $ (4 ) $ (113,012 ) $ (113,360 ) Other comprehensive income (loss) before reclassifications, net of tax (338 ) — (35,394 ) (35,732 ) Amounts reclassified from accumulated other comprehensive earnings (loss), net of tax — — — — Net current period other comprehensive income (loss), net of tax (338 ) — (35,394 ) (35,732 ) Balance, December 31, 2018 $ (682 ) $ (4 ) $ (148,406 ) $ (149,092 ) Components of accumulated other comprehensive loss related to the Company’s pension plans as of December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 2017 Net loss $ (682 ) $ (344 ) Prior service cost — — $ (682 ) $ (344 ) |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606, "Revenue - Revenue from Contracts with Customers" and ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" were as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASC 606 Adjustments Due to ASU 2016-16 Balance at January 1, 2018 Assets Accounts receivable, net $ 346,687 $ 981 $ — $ 347,668 Inventories 372,183 (524 ) — 371,659 Deferred income taxes, net 21,001 — 74,367 95,368 Other assets 59,869 — (1,005 ) 58,864 Liabilities Deferred revenue 25,614 (788 ) — 24,826 Deferred income taxes 12,496 290 2,067 14,853 Pension and other long-term liabilities 59,872 — (8,030 ) 51,842 Shareholders' Equity Retained earnings 1,856,756 955 79,325 1,937,036 Note 1. Basis of Presentation - (Continued) Recently Adopted Accounting Pronouncements - (Continued) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): Year Ended December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Income Statement Revenue $ 1,775,686 $ 1,773,938 $ 1,748 Cost of goods sold 875,368 874,993 375 Income tax provision 24,678 24,389 289 Net earnings 282,425 281,341 1,084 December 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Balance Sheet Assets Accounts receivable, net $ 323,746 $ 321,017 $ 2,729 Inventories 352,107 352,482 (375 ) Liabilities Deferred revenue 32,703 32,703 — Deferred income taxes 22,927 22,348 579 Equity Retained earnings 2,024,523 2,022,748 1,775 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of outstanding foreign currency forward contracts by currency | Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent the Company's total exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency at December 31, 2018 and 2017 (in thousands): Year Ended December 31, 2018 2017 European euro $ 61,452 $ 34,800 Canadian dollar 19,685 7,426 Brazilian real 8,598 7,794 Swedish kroner 3,608 59,373 Australian dollar 1,131 2,817 British pound sterling 609 34,317 Japanese yen 405 3,362 Other 408 3,095 $ 95,896 $ 152,984 The carrying amounts of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands): December 31, 2018 December 31, 2017 Prepaid Expenses and Other Current Assets Other Current Liabilities Prepaid Expenses and Other Current Assets Other Current Liabilities Foreign exchange contracts $ 431 $ 951 $ 1,760 $ 579 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for doubtful accounts and the activity | The following table summarizes the Company’s allowance for doubtful accounts and the activity for 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Allowance for doubtful accounts, beginning of year $ 7,630 $ 6,457 $ 6,853 Charges to costs and expenses 879 2,303 1,460 Write-offs of uncollectible accounts, net of recoveries (3,985 ) (1,505 ) (1,661 ) Business disposals (593 ) — — Currency translation adjustments 353 375 (195 ) Allowance for doubtful accounts, end of year $ 4,284 $ 7,630 $ 6,457 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2018 2017 Raw material and subassemblies $ 214,164 $ 210,615 Work-in-progress 43,096 47,400 Finished goods 94,847 114,168 $ 352,107 $ 372,183 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment are summarized as follows (in thousands): Estimated Useful Life December 31, 2018 2017 Land — $ 21,595 $ 22,765 Buildings 30 years 171,406 167,645 Machinery and equipment 3 to 7 years 287,596 275,688 Office equipment and other 3 to 10 years 100,210 104,064 580,807 570,162 Less accumulated depreciation (333,400 ) (306,166 ) $ 247,407 $ 263,996 Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $40.6 million , $42.3 million and $37.8 million , respectively. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying value of goodwill by reporting segment and the activity | In August 2017, the Company announced a realignment of its business operations into three reportable operating segments effective as of January 1, 2018. Because of this realignment, the Company reassigned its reported goodwill as of January 1, 2018 to its new reportable segments based on the relative fair value of the respective reporting units at that time. Goodwill was reallocated as follows (in thousands): January 1, 2018 Industrial $ 389,575 Government and Defense 291,229 Commercial 229,007 $ 909,811 After the reassignment of goodwill, the Company performed an impairment test of the new reporting units as of January 1, 2018. As a result of this analysis, no impairment was identified. The reassignment and impairment test were completed during the three months ended June 30, 2018. See Note 18, "Operating Segments and Related Information" of the Notes to the Consolidated Financial Statements for additional information on the three new reportable operating segments. The carrying value of goodwill and the activity for the two year period ending December 31, 2018 are as follows (in thousands): Balance, December 31, 2016 $ 801,406 Goodwill from acquisitions 96,431 Classification as asset held for sale (13,090 ) Currency translation adjustments 25,064 Balance, December 31, 2017 909,811 Goodwill from acquisitions 9,228 Currency translation adjustments (14,468 ) Balance, December 31, 2018 $ 904,571 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets are summarized as follows (in thousands): Weighted Average Estimated Useful Life December 31, 2018 2017 Product technology 10 years $ 117,563 $ 123,474 Customer relationships 11 years 73,260 73,382 Trademarks and trade name portfolios 12 years 7,220 9,606 Trade name portfolio not subject to amortization indefinite 32,076 32,076 In-process research and development 3 years 6,272 5,602 Other 7 years 1,638 1,929 Acquired identifiable intangibles 238,029 246,069 Less accumulated amortization (93,154 ) (80,841 ) Net acquired identifiable intangibles 144,875 165,228 Patents 7 years 6,086 6,112 Less accumulated amortization (4,253 ) (3,399 ) Net patents 1,833 2,713 Acquired in-place leases and other 10 years 446 456 Less accumulated amortization (309 ) (267 ) Net acquired in-place leases and other 137 189 $ 146,845 $ 168,130 |
Estimated future aggregate amortization expense | For intangible assets recorded at December 31, 2018 , the estimated future aggregate amortization expense for the years ending December 31, 2019 through 2023 is approximately (in thousands): 2019 $ 23,918 2020 22,049 2021 19,588 2022 18,726 2023 15,426 |
Accrued Product Warranties (Tab
Accrued Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Liability and Activity | The following table summarizes the Company’s warranty liability and activity for 2018, 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 Accrued product warranties, beginning of year $ 18,052 $ 20,845 $ 16,514 Amounts paid for warranty services (17,347 ) (16,764 ) (19,592 ) Warranty provisions for products sold 17,888 14,422 22,928 Business acquisition 8 — 1,215 Currency translation adjustments and other (18 ) (451 ) (220 ) Accrued product warranties, end of year $ 18,583 $ 18,052 $ 20,845 Current accrued product warranties, end of year $ 15,204 $ 15,024 $ 17,476 Long-term accrued product warranties, end of year $ 3,379 $ 3,028 $ 3,369 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following (in thousands): December 31, 2018 2017 Unsecured notes $ 425,000 $ 425,000 Unamortized discounts and issuance costs of unsecured notes (3,052 ) (4,316 ) $ 421,948 $ 420,684 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Obligations | The future minimum obligations under all non-cancelable leases and other contractual obligations are as follows (in thousands): Net Operating Leases Other Contractual Obligations 2019 $ 10,561 $ 1,528 2020 8,270 — 2021 7,283 — 2022 4,894 — 2023 2,934 — Thereafter 5,911 — Total minimum payments $ 39,853 $ 1,528 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Pre-tax earnings by significant geographical locations | Pre-tax earnings by significant geographical locations are as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 165,719 $ 143,924 $ 124,500 Foreign 141,384 135,141 151,457 $ 307,103 $ 279,065 $ 275,957 |
Provisions for income taxes | The provisions for income taxes are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit): Federal $ 17,900 $ 112,673 $ 36,771 State 5,980 5,035 5,785 Foreign (16,008 ) 19,689 64,109 7,872 137,397 106,665 Deferred tax expense (benefit): Federal 1,273 34,857 1,404 State 235 473 267 Foreign 15,298 (885 ) 995 16,806 34,445 2,666 Total income tax provision $ 24,678 $ 171,842 $ 109,331 |
Deferred tax assets (liabilities) | Net deferred tax assets (liabilities) were classified on the balance sheet as follows (in thousands): December 31, 2018 2017 Deferred tax assets, non-current 100,620 21,001 Deferred tax liabilities, non-current (22,927 ) (12,496 ) Net deferred tax assets $ 77,693 $ 8,505 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and deferred tax liabilities were as follows (in thousands): December 31, 2018 2017 Deferred tax assets: Accrued liabilities and allowances $ 19,783 $ 20,425 Tax credit and loss carry-forwards 30,831 30,979 Stock-based compensation 12,461 11,715 Inventory basis differences 10,749 8,555 Deferred revenue 2,900 2,732 Intangible assets 20,882 — Unremitted earnings of foreign subsidiaries 2,121 — Other assets 1,156 2,527 Gross deferred tax assets 100,883 76,933 Valuation allowance (3,196 ) (3,392 ) Total deferred tax assets, net 97,687 73,541 Deferred tax liabilities: Intangible assets — (29,117 ) Property and equipment (14,070 ) (16,499 ) Unremitted earnings of foreign subsidiaries — (15,100 ) Other liabilities (5,924 ) (4,320 ) Total deferred tax liabilities (19,994 ) (65,036 ) Net deferred tax assets $ 77,693 $ 8,505 |
Effective income tax rate reconciliation | The provision for income taxes differs from the amount of tax determined by applying the applicable United States statutory federal income tax rate to pretax income as a result of the following differences: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21.0 % 35.0 % 35.0 % (Decrease) increase in rates resulting from: State taxes 2.5 1.8 2.3 Difference between statutory rate and foreign effective rate (0.2 ) (10.7 ) (11.3 ) Foreign, federal and state income tax credits (1.5 ) (2.0 ) (1.2 ) European Union state aid matter (10.8 ) 0.1 14.4 United States transition tax (3.4 ) 23.8 — Tax rate change on deferred items — 5.1 — Unremitted earnings of foreign subsidiaries — 5.4 — Other 0.4 3.1 0.4 Effective tax rate 8.0 % 61.6 % 39.6 % |
Activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties | The following table summarizes the activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 77,275 $ 51,851 $ 14,967 Increases related to current year tax positions — 17,264 40,840 Increases related to prior year tax positions 2,229 5,022 456 Lapse of statute of limitations (1,558 ) (1,260 ) (4,070 ) Settlements (40,514 ) (986 ) (342 ) Change due to currency translation (4,227 ) 5,384 — Balance, end of year $ 33,205 $ 77,275 $ 51,851 |
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: United States Federal 2015 - 2017 State of California 2014 - 2017 State of Massachusetts 2014 - 2017 State of Oregon 2015 - 2017 Sweden 2012 - 2017 United Kingdom 2014 - 2017 Belgium 2011 - 2017 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Information with Respect to Stock Option Activity | Information with respect to stock option activity for 2018 is as follows: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 3,212 $ 29.66 5.4 Granted — — Exercised (959 ) 29.47 Forfeited (97 ) 31.16 Outstanding at December 31, 2018 2,156 $ 29.67 4.7 $ 29,903 Exercisable at December 31, 2018 1,970 $ 29.28 4.4 $ 28,091 Vested and expected to vest at December 31, 2018 2,147 $ 29.66 4.7 $ 29,812 |
Information with Respect to Restricted Stock Unit Activity | Information with respect to restricted stock unit activity for 2018 is as follows: Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 2,013 $ 31.86 Granted 771 52.83 Vested (812 ) 31.17 Forfeited (221 ) 34.47 Outstanding at December 31, 2018 1,751 $ 40.77 |
Other Employee Benefit Plans (T
Other Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Amounts recognized in other comprehensive earnings | Amounts recognized in other comprehensive income (loss) during the years ended December 31, 2018, 2017 and 2016 , net of tax, are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Net earnings (loss) $ (338 ) $ 1,286 $ 78 Prior service cost — (15 ) 24 $ (338 ) $ 1,271 $ 102 |
Components of accumulated other comprehensive earnings (loss) related to the Company’s pension plans | The following table sets forth the changes in the balances of each component of accumulated other comprehensive earnings (loss) for the year ended December 31, 2018 : Pension Plans Items Available-For-Sale Items Foreign Currency Items Total Balance, December 31, 2017 $ (344 ) $ (4 ) $ (113,012 ) $ (113,360 ) Other comprehensive income (loss) before reclassifications, net of tax (338 ) — (35,394 ) (35,732 ) Amounts reclassified from accumulated other comprehensive earnings (loss), net of tax — — — — Net current period other comprehensive income (loss), net of tax (338 ) — (35,394 ) (35,732 ) Balance, December 31, 2018 $ (682 ) $ (4 ) $ (148,406 ) $ (149,092 ) Components of accumulated other comprehensive loss related to the Company’s pension plans as of December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 2017 Net loss $ (682 ) $ (344 ) Prior service cost — — $ (682 ) $ (344 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | A summary of the components of the net periodic pension expense for the benefit obligation and fund assets of the plans is as follows (in thousands): Year Ended December 31, 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 10,149 $ 11,419 Interest costs 96 386 Actuarial loss (gain) 22 (1,720 ) Benefits paid (6,230 ) (310 ) Foreign currency changes (327 ) 374 Benefit obligation at December 31 $ 3,710 $ 10,149 Fair value of plan assets at December 31 $ — $ — Unfunded status at December 31 $ 3,710 $ 10,149 Amounts recognized in the Consolidated Balance Sheets: Current liabilities $ 293 $ 6,262 Non-current liabilities $ 3,417 $ 3,887 |
Weighted average assumptions used | The weighted average assumptions used are as follows: Year Ended December 31, 2018 2017 Net periodic benefit cost: SERP: Discount rate 2.75 % 4.00 % Rate of increase in compensation levels n/a 3.00 % Defined benefit pension plan for employees outside the United States: Discount rate 1.75 % 2.00 % Funded status and projected benefit obligation: SERP: Discount rate 3.40 % 2.75 % Rate of increase in compensation levels n/a n/a Defined benefit pension plan for employees outside the United States: Discount rate 1.75 % 1.75 % |
Benefits expected to be paid under the plans | Benefits expected to be paid under the plans are approximately (in thousands): 2019 $ 418 2020 412 2021 406 2022 390 2023 386 Five years thereafter 1,266 $ 3,278 |
Components of net periodic benefit cost | Components of net periodic benefit (income) cost are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Service costs $ — $ — $ — Interest costs 96 386 397 Net amortization and deferral 63 235 260 Settlement gain (608 ) — — Net periodic pension (income) cost $ (449 ) $ 621 $ 657 |
Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings (loss) | Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings (loss) during the year ending December 31, 2019 is $48,000 . |
Operating Segments and Relate_2
Operating Segments and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating segment information is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Revenue—External Customers: Industrial $ 717,882 $ 672,120 $ 552,580 Government and Defense 663,436 629,147 616,777 Commercial 394,368 499,167 492,810 $ 1,775,686 $ 1,800,434 $ 1,662,167 Revenue—Intersegments: Industrial $ 19,482 $ 21,747 $ 19,874 Government and Defense 11,409 11,283 10,344 Commercial 20,056 14,942 17,277 Eliminations (50,947 ) (47,972 ) (47,495 ) $ — $ — $ — Segment operating income: Industrial $ 216,880 $ 199,903 $ 156,749 Government and Defense 199,702 179,160 176,749 Commercial 57,399 56,066 52,659 $ 473,981 $ 435,129 $ 386,157 Note 18. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Consolidated segment operating income $ 473,981 $ 435,129 $ 386,157 Unallocated corporate expenses (106,994 ) (87,184 ) (65,012 ) Amortization of purchased intangible assets (24,524 ) (27,391 ) (18,266 ) Amortization of acquisition-related inventory step-up — (1,992 ) (3,230 ) Restructuring charges (8,203 ) (625 ) (1,431 ) Loss on sale of business (13,708 ) (23,588 ) — Other charges (1,946 ) (4,388 ) (2,500 ) Consolidated earnings from operations 318,606 289,961 295,718 Interest and non-operating expense, net (11,503 ) (10,896 ) (19,761 ) Consolidated earnings before income taxes $ 307,103 $ 279,065 $ 275,957 Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. |
Segment Assets | Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. December 31, 2018 2017 Operating segment assets: Net accounts receivable, inventories and demonstration assets: Industrial $ 266,457 $ 287,439 Government and Defense 307,041 332,044 Commercial 137,560 136,941 $ 711,058 $ 756,424 Goodwill (1) : Industrial 391,603 — Government and Defense 284,188 — Commercial 228,780 — $ 904,571 — Total operating segment assets $ 1,615,629 $ 756,424 Assets not allocated: Cash, cash equivalents and restricted cash $ 512,144 $ 519,090 Assets held for sale, net 2,032 67,344 Prepaid expenses and other current assets 67,413 44,361 Property and equipment, net 247,407 263,996 Deferred income taxes 100,620 21,001 Goodwill (1) — 909,811 Intangible assets, net 146,845 168,130 Other assets $ 89,152 $ 59,869 Total assets $ 2,781,242 $ 2,810,026 ___________ (1) Due to the realignment of the Company's business operations effective as of January 1, 2018, goodwill as of December 31, 2017 is presented as an asset not allocated to the operating segments in this table. See Note 8. "Goodwill" for additional information and goodwill by operating segments as of January 1, 2018. |
By Significant Geographical Location | Note 18. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Year Ended December 31, 2018 2017 Industrial Government and Defense Commercial Total Industrial Government and Defense Commercial Total United States $ 364,443 $ 420,032 $ 150,052 $ 934,527 $ 314,910 $ 379,356 $ 262,172 $ 956,438 Europe 130,901 89,725 156,227 376,853 140,265 92,021 143,188 375,474 Asia 159,150 55,160 40,850 255,160 156,201 36,484 34,362 227,047 Middle East/Africa 18,089 85,726 27,240 131,055 18,183 87,633 21,980 127,796 Canada/Latin America 45,299 12,793 19,999 78,091 42,561 33,653 37,465 113,679 $ 717,882 $ 663,436 $ 394,368 $ 1,775,686 $ 672,120 $ 629,147 $ 499,167 $ 1,800,434 Revenue and Long-Lived Assets by Geographic Area Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands): December 31, 2018 2017 United States $ 720,885 $ 797,816 Europe 446,704 343,208 Other foreign 220,386 260,782 $ 1,387,975 $ 1,401,806 |
Revenue Derived from Major Customers | Major Customers Revenue derived from major customers is as follows (in thousands): Year Ended December 31, 2018 2017 2016 United States government $ 511,094 $ 466,304 $ 416,341 |
Business Acquisitions and Dives
Business Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Point Grey Research, Inc. [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The allocation of the purchase price for Point Grey is as follows (in thousands): Cash acquired $ 2,994 Other tangible assets and liabilities, net 35,127 Net deferred taxes (2,438 ) Identifiable intangible assets 39,800 Goodwill 183,678 Total purchase price $ 259,161 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table presents the acquired intangible assets, their estimated fair values, and estimated useful lives (in thousands, except years): Estimated Amount Developed technology 10.0 years $ 23,100 Customer relationships 7.0 years 13,200 Backlog 1.0 year 2,300 Non-Competition Agreements 5.0 years 1,000 Other n/a 200 $ 39,800 |
Prox Dynamics, AS [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The allocation of the purchase price for Prox Dynamics is as follows (in thousands): Cash acquired $ 11,706 Other tangible assets and liabilities, net (900 ) Net deferred taxes (4,250 ) Identifiable intangible assets 31,400 Goodwill 96,431 Total purchase price $ 134,387 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table presents the acquired intangible assets, their estimated fair values, and estimated useful lives (in thousands, except years): Estimated Amount Developed technology 8 years $ 23,400 Customer relationships 7 years 3,500 Patents 8 years 3,100 Trade name 8 years 1,400 $ 31,400 |
Held-for-sale [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The carrying amounts of the assets and liabilities that were expected to be included in the sale were classified as held for sale as of December 31, 2017 as follows (in thousands): Accounts receivable, net $ 20,414 Inventories 43,050 Other current assets 1,031 Property and equipment, net 4,888 Intangible assets, net 8,359 Goodwill 13,090 Loss on net assets held for sale (23,488 ) Assets held for sale, net $ 67,344 Accounts payable and accrued expenses $ 39,544 Liabilities held for sale $ 39,544 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | During the years ended December 31, 2018, 2017 and 2016 , the Company also incurred other restructuring charges associated with cost reduction initiatives that were not related to the 2013 Realignment Program. |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator for earnings per share: | |||
Net earnings for basic and diluted earnings per share | $ 282,425 | $ 107,223 | $ 166,626 |
Denominator for earnings per share: | |||
Weighted average number of common shares outstanding | 137,815 | 137,456 | 137,138 |
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 2,394 | 2,190 | 1,359 |
Diluted shares outstanding | 140,209 | 139,646 | 138,497 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid for: | |||
Interest | $ 14,183 | $ 15,394 | $ 15,815 |
Taxes | $ 83,259 | $ 72,340 | $ 32,465 |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 34,170 | $ 31,018 | $ 27,797 |
Cost of goods sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,157 | 2,665 | 3,103 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 6,697 | 5,068 | 4,815 |
Selling General and Administrative Expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 24,316 | $ 23,285 | $ 19,879 |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Capitalized in inventory | $ 1,080 | $ 1,062 | $ 567 |
Nature of Business and Signif_8
Nature of Business and Significant Accounting Policies (Details 5) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Risk-free interest rate | 0.00% | 1.80% | 0.90% |
Expected dividend yield | 0.00% | 1.60% | 1.60% |
Expected term | 6 years | 4 years 3 months | |
Expected volatility | 0.00% | 26.60% | 25.60% |
Performance-based restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Expected dividend yield | 1.20% | 1.60% | 1.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 0.00% | 0.00% | 9.90% |
Market-based restricted stock unit | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Risk-free interest rate | 0.00% | 0.00% | 0.90% |
Expected dividend yield | 0.00% | 0.00% | 1.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 0.00% | 0.00% | 9.90% |
Expected term | 4 years | ||
Expected volatility | 0.00% | 0.00% | 25.80% |
Expected volatility of S&P 500 | 0.00% | 0.00% | 25.00% |
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |||
Risk-free interest rate | 2.30% | 1.00% | 0.50% |
Expected dividend yield | 1.30% | 1.60% | 1.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 10.50% | 10.50% | 10.50% |
Expected term | 6 months | 6 months | 6 months |
Expected volatility | 26.40% | 20.90% | 27.00% |
Nature of Business and Signif_9
Nature of Business and Significant Accounting Policies (Details 6) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance-based restricted stock unit [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards granted | $ 9,200 | $ 1,600 | |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (Deprecated 2017-01-31) | 8,700 | $ 3,000 | 1,300 |
Total fair value of awards granted | 0 | 2,824 | 4,716 |
Total fair value of awards vested | 2,529 | 4,203 | 4,407 |
Total intrinsic value of options exercised | $ 24,652 | $ 20,631 | $ 6,170 |
Weighted average grant date fair value per share | $ 0 | $ 8.55 | $ 5.68 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 52.79 | $ 35.90 | $ 28.86 |
Total fair value of awards granted | $ 40,675 | $ 37,906 | $ 28,603 |
Total fair value of awards vested | $ 48,705 | $ 27,489 | $ 21,130 |
Market-based restricted stock unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 64 | ||
Weighted average grant date fair value per share | $ 22.89 | ||
Total fair value of awards granted | $ 1,500 | ||
Performance-based restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 177 | 283 | 62 |
Weighted average grant date fair value per share | $ 52.32 | $ 35.08 | $ 26.41 |
Total fair value of awards granted | $ 9,900 | ||
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 10.01 | $ 7.66 | $ 6.33 |
Total fair value of shares estimated to be issued | $ 1,330 | $ 1,087 | $ 923 |
Nature of Business and Signi_10
Nature of Business and Significant Accounting Policies (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes from Accumulated Other Comprehensive income [Abstract] | ||
Pension plans, beginning balance | $ (344) | |
Pension plans adjustment, before reclassification | (338) | |
Pension plans, reclassification | 0 | |
Pension plans adjustment, after reclassification | (338) | |
Pension plans, ending balalnce | (682) | $ (344) |
Cash flow hedges, reclassification | 0 | |
Foreign currency translation, beginning balance | (113,012) | |
Foreign currency translation adjustment | (35,394) | |
Foreign currency translation, ending balance | (148,406) | (113,012) |
Accumulated other comprehensive earnings, beginning balance | (113,360) | |
Other comprehensive earnings, before reclassifications | (35,732) | |
Other comprehensive earnings, reclassification | 0 | |
Other comprehensive earnings, after adjustment | (35,732) | |
Other comprehensive income (loss), available-for-sale before reclassification, net of tax | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (4) | (4) |
Accumulated other comprehensive earnings, ending balance | $ (149,092) | $ (113,360) |
Nature of Business and Signi_11
Nature of Business and Significant Accounting Policies Nature of Business and Significant Accounting Policies (Details 8) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||||
Balance Sheet | ||||||||||||||||
Accounts Receivable, Net | $ 323,746 | $ 323,746 | $ 347,668 | |||||||||||||
Inventory, Net | 352,107 | $ 372,183 | 352,107 | $ 372,183 | 371,659 | |||||||||||
Deferred income taxes, net | 100,620 | 21,001 | 100,620 | 21,001 | 95,368 | |||||||||||
Other Assets | 58,864 | |||||||||||||||
Deferred Revenue | 32,703 | 32,703 | 24,826 | |||||||||||||
Deferred income taxes | 22,927 | 12,496 | 22,927 | 12,496 | 14,853 | |||||||||||
Pension and other long-term liabilities | 3,417 | 3,887 | 3,417 | 3,887 | 51,842 | |||||||||||
Retained Earnings | 2,024,523 | 1,856,756 | 2,024,523 | 1,856,756 | 1,937,036 | |||||||||||
Income Statement [Abstract] | ||||||||||||||||
Revenue | 448,463 | $ 434,898 | $ 452,707 | $ 439,618 | 494,784 | $ 464,712 | $ 434,124 | $ 406,814 | 1,775,686 | 1,800,434 | $ 1,662,167 | |||||
Cost of Goods Sold | 875,368 | 941,658 | 895,046 | |||||||||||||
Income Tax provision | 24,678 | 171,842 | 109,331 | |||||||||||||
Net earnings | 98,516 | [1] | $ 73,151 | [1] | $ 71,563 | [1] | $ 39,195 | [1] | (50,290) | $ 63,529 | $ 51,413 | $ 42,571 | 282,425 | 107,223 | $ 166,626 | |
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||
Balance Sheet | ||||||||||||||||
Accounts Receivable, Net | 0 | |||||||||||||||
Inventory, Net | 0 | |||||||||||||||
Deferred income taxes, net | 74,367 | |||||||||||||||
Other Assets | (1,005) | |||||||||||||||
Deferred Revenue | 0 | |||||||||||||||
Deferred income taxes | 2,067 | |||||||||||||||
Pension and other long-term liabilities | (8,030) | |||||||||||||||
Retained Earnings | 79,325 | |||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||||
Balance Sheet | ||||||||||||||||
Accounts Receivable, Net | 321,017 | 346,687 | 321,017 | 346,687 | ||||||||||||
Inventory, Net | 352,482 | 372,183 | 352,482 | 372,183 | ||||||||||||
Deferred income taxes, net | 21,001 | 21,001 | ||||||||||||||
Other Assets | 59,869 | 59,869 | ||||||||||||||
Deferred Revenue | 32,703 | 25,614 | 32,703 | 25,614 | ||||||||||||
Deferred income taxes | 22,348 | 12,496 | 22,348 | 12,496 | ||||||||||||
Pension and other long-term liabilities | 59,872 | 59,872 | ||||||||||||||
Retained Earnings | 2,022,748 | $ 1,856,756 | 2,022,748 | $ 1,856,756 | ||||||||||||
Income Statement [Abstract] | ||||||||||||||||
Revenue | 1,773,938 | |||||||||||||||
Cost of Goods Sold | 874,993 | |||||||||||||||
Income Tax provision | 24,389 | |||||||||||||||
Net earnings | 281,341 | |||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||
Revenue | 1,748 | |||||||||||||||
Cost of Goods Sold | 375 | |||||||||||||||
Income Tax provision | 289 | |||||||||||||||
Net earnings | 1,084 | |||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||||
Balance Sheet | ||||||||||||||||
Accounts Receivable, Net | 2,729 | 2,729 | 981 | |||||||||||||
Inventory, Net | (375) | (375) | (524) | |||||||||||||
Deferred income taxes, net | 0 | |||||||||||||||
Other Assets | 0 | |||||||||||||||
Deferred Revenue | 0 | 0 | (788) | |||||||||||||
Deferred income taxes | 579 | 579 | 290 | |||||||||||||
Pension and other long-term liabilities | 0 | |||||||||||||||
Retained Earnings | $ 1,775 | $ 1,775 | $ 955 | |||||||||||||
[1] | (2) |
Nature of Business and Signi_12
Nature of Business and Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (148,406) | $ (113,012) | |
Gains and (losses) netted against other income, net | (1,300) | (200) | $ (2,200) |
Other Inventory, Demo, Gross | 35,200 | 37,600 | |
Advertising costs | 12,500 | 19,200 | $ 19,300 |
Carrying value of cost-basis investments | $ 17,069 | $ 3,100 | |
Effect of stock-based compensation awards, shares excluded for purposes of diluted earnings per share | 10 | 39 | 233 |
Unrecognized stock-based compensation costs, net of estimated forfeitures | $ 48,100 | ||
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeitures | 2 years | ||
Estimated forfeiture rate | 5.00% | ||
Net cash provided by operating activities | $ 374,157 | $ 308,252 | $ 319,751 |
Net cash (used) provided by financing activities | (318,944) | (132,612) | 31,136 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | (16,228) | (10,731) | $ (5,991) |
Level 1 | |||
Cash equivalents at fair value | $ 200,000 | $ 140,700 | |
Time-vested restricted stock unit | |||
Restricted stock units granted | 594 | 773 | 865 |
Time-vested and performance-based restricted stock unit | |||
Weighted average grant date fair value per share | $ 52.93 | $ 36.20 | $ 29.48 |
Performance-based restricted stock unit [Domain] | |||
Total fair value of awards granted | $ 9,200 | $ 1,600 | |
Restricted Stock Unit Awards | |||
Total fair value of awards granted | $ 40,675 | $ 37,906 | $ 28,603 |
Market-based restricted stock unit | |||
Restricted stock units granted | 64 | ||
Weighted average grant date fair value per share | $ 22.89 | ||
Total fair value of awards granted | $ 1,500 | ||
Performance-based restricted stock unit [Member] | |||
Restricted stock units granted | 177 | 283 | 62 |
Weighted average grant date fair value per share | $ 52.32 | $ 35.08 | $ 26.41 |
Total fair value of awards granted | $ 9,900 | ||
Stock Option Awards | |||
Cash received from the exercise of stock options | $ 23,700 | 53,500 | $ 7,700 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 8,700 | $ 3,000 | $ 1,300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | $ 200 | $ 140.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior unsecured notes | $ 418.8 | $ 427.5 |
Revenue Revenue (Details)
Revenue Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 10.5 | $ 14.1 |
Contract with Customer, Liability | 66.4 | 60.1 |
Contract with Customer, Liability, Revenue Recognized | 42.2 | |
Contract with Customer, Liability, Noncurrent | 14 | $ 13.8 |
Revenue, Remaining Performance Obligation, Amount | $ 154.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, percent | 85.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | $ 95,896 | $ 152,984 |
Swedish Kronor | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 3,608 | 59,373 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 19,685 | 7,426 |
British Pound Sterling | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 609 | 34,317 |
Brazil, Brazil Real | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 8,598 | 7,794 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 1,131 | 2,817 |
Euro | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 61,452 | 34,800 |
Japanese Yen | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 405 | 3,362 |
Other | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | $ 408 | $ 3,095 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 2) - Foreign exchange contracts - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current Assets | ||
Derivatives [Line Items] | ||
Carrying amount of derivative asset | $ 431 | $ 1,760 |
Other Current Liabilities | ||
Derivatives [Line Items] | ||
Carrying amount of derivative liability | $ 951 | $ 579 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional Amount | $ 95,896 | $ 152,984 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2016 | |
Derivative [Line Items] | ||||
Net gain (loss) | $ (9.1) | $ (9.4) | $ 7.9 | |
Long-term Line of Credit | 86.3 | $ 105 | ||
Interest Income, Other | $ 0.5 |
Accounts Receivable (Details)
Accounts Receivable (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts, beginning of year | $ 7,630 | $ 6,457 | $ 6,853 |
Charges to costs and expenses | 879 | 2,303 | 1,460 |
Write-offs of uncollectible accounts, net of recoveries | (3,985) | (1,505) | (1,661) |
Business acquisitions and disposals | (593) | 0 | 0 |
Currency translation adjustments | 353 | 375 | (195) |
Allowance for doubtful accounts, end of year | $ 4,284 | $ 7,630 | $ 6,457 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Raw material and subassemblies | $ 214,164 | $ 210,615 | |
Work-in-progress | 43,096 | 47,400 | |
Finished goods | 94,847 | 114,168 | |
Total inventories | $ 352,107 | $ 371,659 | $ 372,183 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 580,807 | $ 570,162 |
Less accumulated depreciation | (333,400) | (306,166) |
Property and equipment, net | 247,407 | 263,996 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 21,595 | 22,765 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 171,406 | 167,645 |
Building | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 30 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 287,596 | 275,688 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 7 years | |
Office equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 100,210 | $ 104,064 |
Office equipment and other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 3 years | |
Office equipment and other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 10 years |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 40.6 | $ 42.3 | $ 37.8 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 909,811 | $ 801,406 | $ 909,811 |
Beginning Balance | 909,811 | 801,406 | |
Goodwill, Acquired During Period | 9,228 | 96,431 | |
Goodwill, Translation Adjustments | (14,468) | 25,064 | |
Goodwill, Written off Related to Sale of Business Unit | (13,090) | ||
Ending Balance | 904,571 | 909,811 | |
Prox Dynamics, AS [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 96,431 | 96,431 | |
Beginning Balance | 96,431 | ||
Goodwill, Acquired During Period | 96,431 | ||
Ending Balance | $ 96,431 | ||
Fishing Hot Spot [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 4,650 | ||
Fishidy [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | $ 4,578 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible Assets [Line Items] | ||||
In Process Research and Development | $ 6,272 | $ 5,602 | ||
Net carrying amount | 146,845 | 168,130 | ||
Aggregate amortization expense | 24,700 | 27,500 | $ 18,400 | |
2,017 | 23,918 | |||
2,018 | 22,049 | |||
2,019 | 19,588 | |||
2,020 | 18,726 | |||
2,021 | 15,426 | |||
Armasight, Inc. and Point Grey Research, Inc. | ||||
Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 47,400 | |||
Prox Dynamics, AS [Member] | ||||
Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 123,100 | 31,400 | ||
acquired indefinite life intangible asset | 31,400,000 | |||
Fishidy [Member] | ||||
Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,782 | |||
Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Acquired identifiable intangibles,Gross | 238,029 | 246,069 | ||
Less accumulated amortization | (93,154) | (80,841) | ||
Net carrying amount | 144,875 | 165,228 | ||
Aggregate amortization expense | (24,524) | (27,391) | $ (18,266) | |
Product technology | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 117,563 | 123,474 | ||
Weighted average estimated useful life | 10 years | |||
Trade name | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 73,260 | 73,382 | ||
Weighted average estimated useful life | 11 years | |||
Trademarks and tradename portfolios | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 7,220 | 9,606 | ||
Weighted average estimated useful life | 12 years | |||
Tradename not subject to amortization | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
acquired indefinite life intangible asset | indefinite | |||
In Process Research and Development | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Weighted average estimated useful life | 3 years | |||
Trade Secrets | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 1,638 | 1,929 | ||
Weighted average estimated useful life | 7 years | |||
Patents | Nonacquired intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 6,086 | 6,112 | ||
Less accumulated amortization | (4,253) | (3,399) | ||
Net carrying amount | $ 1,833 | 2,713 | ||
Weighted average estimated useful life | 7 years | |||
Acquired in-place leases and other | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 446 | 456 | ||
Less accumulated amortization | (309) | (267) | ||
Net carrying amount | $ 137 | 189 | ||
Acquired in-place leases and other | Nonacquired intangibles | ||||
Intangible Assets [Line Items] | ||||
Weighted average estimated useful life | 10 years | |||
Trade Names [Member] | Prox Dynamics, AS [Member] | ||||
Intangible Assets [Line Items] | ||||
acquired indefinite life intangible asset | 1,400 | |||
Weighted average estimated useful life | 8 years | |||
Trade Names [Member] | Acquired identifiable intangibles | ||||
Intangible Assets [Line Items] | ||||
Infinite-Lived Intangibles, Gross | $ 32,076 | $ 32,076 |
Intangible Assets Intangible (D
Intangible Assets Intangible (Details textual ) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Assets, Current | $ 2,032 | $ 67,344 | |
Fishing Hot Spot [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,163 | ||
Fishidy [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,782 | ||
Prox Dynamics, AS [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 31,400 | $ 123,100 | |
Consumer and Small and Medium-Sized Security Business [Member] | Held-for-sale [Member] | Acquired Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 8,359 |
Credit Agreement (Details)
Credit Agreement (Details) $ in Millions | May 31, 2016USD ($) | Dec. 31, 2018USD ($)covenants | Feb. 08, 2011USD ($) |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 105 | $ 86.3 | |
Bank Of America February Two Thousand Eleven New Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200 | ||
Option to increase maximum borrowing capacity | 200 | ||
Term of agreement | 5 years | ||
Commitment fee rate | 0.175% | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 10.8 | ||
Letter of Credit Facility, Number of Covenants | covenants | 2 | ||
Bank Of America February Two Thousand Eleven New Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||
Bank Of America February Two Thousand Eleven New Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Long-term Debt | Bank Of America February Two Thousand Eleven New Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Term loan | $ 150 | ||
Line of Credit | Revolving Credit Facility | Amended Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500 | ||
Line of Credit | Revolving Credit Facility | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Proceeds from Lines of Credit | $ 105 | ||
LIBOR | Bank Of America February Two Thousand Eleven New Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate at Period End | 3.897% | ||
Prime Rate | Bank Of America February Two Thousand Eleven New Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate at Period End | 5.875% | ||
Prime Rate | Bank Of America February Two Thousand Eleven New Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||
Prime Rate | Bank Of America February Two Thousand Eleven New Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.125% |
Accrued Product Warranties (Det
Accrued Product Warranties (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)months | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Accrued product warranties, beginning of year | $ 18,052 | $ 20,845 | $ 16,514 |
Amounts paid for warranty services | (17,347) | (16,764) | (19,592) |
Warranty provisions for products sold | 17,888 | 14,422 | 22,928 |
Business acquisitions and disposals | 8 | 0 | 1,215 |
Currency translation adjustments and other | (18) | (451) | (220) |
Accrued product warranties, end of year | 18,583 | 18,052 | 20,845 |
Current accrued product warranties, end of year | 15,204 | 15,024 | 17,476 |
Long-term accrued product warranties, end of ear | $ 3,379 | $ 3,028 | $ 3,369 |
Minimum | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | months | 12 | ||
Maximum | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | months | 24 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 05, 2016 | Jun. 30, 2016 | Aug. 31, 2011 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 01, 2016 | Apr. 05, 2013 |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 3,052 | $ 4,316 | ||||||
Long-term Debt | 421,948 | 420,684 | ||||||
Long-term Debt, Excluding Current Maturities | $ 421,948 | 420,684 | ||||||
Line of Credit Assumed | $ 105,000 | |||||||
3.75 % senior unsecured notes due September 1, 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, issued amount | $ 250,000 | |||||||
Senior unsecured notes, interest rate | 3.75% | |||||||
Senior unsecured notes, maturity date | Sep. 1, 2016 | |||||||
Term of agreement | 5 years | |||||||
Three Point One Two Five Percent Senior Unsecured Notes Due June Fifteenth Twenty Twenty Five [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, issued amount | $ 425,000 | |||||||
Senior unsecured notes, interest rate | 3.125% | |||||||
Senior unsecured notes, proceeds | $ 421,000 | |||||||
Term of agreement | 5 years | |||||||
Term loan facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior unsecured notes, issued amount | $ 150,000 | |||||||
Unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 425,000 | $ 425,000 | ||||||
Unsecured notes | 3.75 % senior unsecured notes due September 1, 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Gain (Loss) on Extinguishment of Debt | $ 1,300 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total net rent expense | $ 13,300 | $ 13,900 | $ 9,000 |
Net Operating Leases | |||
2,017 | 10,561 | ||
2,018 | 8,270 | ||
2,019 | 7,283 | ||
2,020 | 4,894 | ||
2,021 | 2,934 | ||
Thereafter | 5,911 | ||
Total minimum payments | 39,853 | ||
Other Contractual Obligations | |||
2,017 | 1,528 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Total minimum payments | $ 1,528 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | Apr. 24, 2018 | Dec. 31, 2018 |
Civil Penalty | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 15,000 | |
Civil Penalty | Other Current Liabilities | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | 3,500 | |
Civil Penalty | Other Noncurrent Liabilities | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | 10,500 | |
Product Quality Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | 4,900 | |
Minimum | Civil Penalty | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss Reduction | $ 15,000 | |
Minimum | Product Quality Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 4,900 | |
Maximum | Civil Penalty | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 30,000 | |
Maximum | Product Quality Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 12,100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings from Continuing Operations before Income Taxes [Abstract] | |||
United States | $ 165,719 | $ 143,924 | $ 124,500 |
Foreign | 141,384 | 135,141 | 151,457 |
Earnings before income taxes | 307,103 | 279,065 | 275,957 |
Current tax expense (benefit): | |||
Federal | 17,900 | 112,673 | 36,771 |
State | 5,980 | 5,035 | 5,785 |
Foreign | (16,008) | 19,689 | 64,109 |
Current income tax expense (benefit) | 7,872 | 137,397 | 106,665 |
Deferred tax expense (benefit): | |||
Federal | 1,273 | 34,857 | 1,404 |
State | 235 | 473 | 267 |
Foreign | 15,298 | (885) | 995 |
Deferred income taxes | 14,604 | 25,968 | 5,613 |
Deferred Income Tax Expense (Benefit), Excluding Discontinued Operations | 16,806 | 34,445 | 2,666 |
Total provision | $ 24,678 | $ 171,842 | $ 109,331 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Oct. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||||||
Total deferred tax assets, net | $ 77,693 | $ 8,505 | $ 77,693 | ||||
Accrued Liabilities and allowances | 19,783 | 20,425 | 19,783 | ||||
Tax credit carry-forwards | 30,831 | 30,979 | 30,831 | ||||
Stock-based compensation | 12,461 | 11,715 | 12,461 | ||||
Deferred Tax Assets, Inventory | 10,749 | 8,555 | 10,749 | ||||
Deferred Tax Assets, Deferred Revenue | 2,900 | 2,732 | 2,900 | ||||
Deferred Tax Assets, Intangible Assets | 20,882 | 0 | 20,882 | ||||
Deferred Tax Assets, Investment in Subsidiaries | 2,121 | 0 | 2,121 | ||||
Deferred Tax Assets, Other | 1,156 | 2,527 | 1,156 | ||||
Deferred Tax Assets, Gross | 100,883 | 76,933 | 100,883 | ||||
Valuation allowance | (3,196) | (3,392) | (3,196) | ||||
Net deferred tax assets | 97,687 | 73,541 | 97,687 | ||||
Deferred tax liabilities - Intangibles | 0 | (29,117) | 0 | ||||
Deferred tax liabilities - Depreciation | (14,070) | (16,499) | (14,070) | ||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 0 | 15,100 | 0 | ||||
Other deferred tax liabilities | (5,924) | (4,320) | (5,924) | ||||
Total deferred tax liabilities | (19,994) | (65,036) | (19,994) | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 33,100 | 94,400 | $ 39,600 | ||||
Unrecognized Tax Benefits | 33,205 | 77,275 | 51,851 | 33,205 | $ 14,967 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 40,514 | 986 | $ 342 | ||||
Undistributed Earnings of Foreign Subsidiaries | (902,400) | (1,000,000) | (902,400) | ||||
Restricted Cash | $ 35,700 | ||||||
Transition [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax Adjustments, Settlements, and Unusual Provisions | 42,900 | 66,500 | |||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | 9,000 | ||||||
Remeasurement new tax rate | |||||||
Income Taxes [Line Items] | |||||||
Tax Adjustments, Settlements, and Unusual Provisions | 9,900 | 12,800 | |||||
State and Foreign on undistributed foreign earnings [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax Adjustments, Settlements, and Unusual Provisions | 6,300 | $ 15,100 | |||||
UNITED STATES FEDERAL | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carry-forwards | 3,500 | 3,500 | |||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 4,700 | ||||||
Foreign | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carry-forwards | 111,700 | 111,700 | |||||
Income Tax Examination, Estimate of Possible Loss | 334,500 | ||||||
State taxes | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carry-forwards | $ 900 | 900 | |||||
Minimum | UNITED STATES FEDERAL | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,019 | ||||||
Minimum | Foreign | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,019 | ||||||
Minimum | State taxes | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,023 | ||||||
Maximum | UNITED STATES FEDERAL | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,031 | ||||||
Maximum | Foreign | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,036 | ||||||
Maximum | State taxes | |||||||
Income Taxes [Line Items] | |||||||
Operating Loss Carryforwards, Expiration Year | 2,036 | ||||||
Other Current Assets | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized Tax Benefits | $ 5,100 | $ 5,100 |
Income Taxes (Details 3)
Income Taxes (Details 3) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 35.00% | 35.00% |
State taxes | 2.50% | 1.80% | 2.30% |
Foreign rate differential | (0.20%) | (10.70%) | (11.30%) |
Foreign, federal and state income tax credits | (1.50%) | (2.00%) | (1.20%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Percent | (10.80%) | 0.10% | 14.40% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (3.40%) | 23.80% | 0.00% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 0.00% | 5.10% | 0.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 0.00% | 5.40% | 0.00% |
Other | 0.40% | 3.10% | 0.40% |
Effective tax rate | 8.00% | 61.60% | 39.60% |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | Oct. 23, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance, beginning of year | $ 77,275 | $ 51,851 | $ 14,967 | |
Increases related to current year tax positions | 0 | 17,264 | 40,840 | |
Increase related to prior year tax positions | 2,229 | 5,022 | 456 | |
Lapse of statute of limitations | (1,558) | (1,260) | (4,070) | |
Settlements | (40,514) | (986) | (342) | |
Change due to Currency Translation | (4,227) | |||
Change due to Currency Translation | 5,384 | 0 | ||
Balance, end of year | 33,205 | 77,275 | 51,851 | |
Discrete tax expense | $ 33,100 | 94,400 | $ 39,600 | |
Accrued interest and penalties | 6,100 | |||
Other Current Assets | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance, end of year | 5,100 | |||
UNITED STATES FEDERAL | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Settlements | (4,700) | |||
Foreign | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Income Tax Examination, Estimate of Possible Loss | 334,500 | |||
Remeasurement new tax rate | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Discrete tax expense | 9,900 | 12,800 | ||
State and Foreign on undistributed foreign earnings [Member] | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Discrete tax expense | $ 6,300 | $ 15,100 |
Income Taxes (Details 5)
Income Taxes (Details 5) | 12 Months Ended |
Dec. 31, 2018 | |
United States Federal | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,015 |
United States Federal | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
State of California | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,014 |
State of California | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
MASSACHUSETTS | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,014 |
MASSACHUSETTS | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
OREGON | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,015 |
OREGON | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
SWEDEN | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,012 |
SWEDEN | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
UNITED KINGDOM | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,014 |
UNITED KINGDOM | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
BELGIUM | Minimum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,011 |
BELGIUM | Maximum | |
Income Tax Examination [Line Items] | |
Tax years open to examination by major taxing jurisdictions | 2,017 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Outstanding at beginning of period | 3,212 | |
Granted | 0 | |
Exercised | (959) | |
Forfeited | (97) | |
Outstanding at end of period | 2,156 | 3,212 |
Exercisable at end of period | 1,970 | |
Vested and expected to vest at end of period | 2,147 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period | $ 29.66 | |
Granted | 0 | |
Exercised | 29.47 | |
Forfeited | 31.16 | |
Outstanding at end of period | 29.67 | $ 29.66 |
Exercisable at end of period | 29.28 | |
Vested and expected to vest at end of period | $ 29.66 | |
Weighted-Average Remaining Contractual Term (in years) | ||
Outstanding at beginning of period | 4 years 8 months 15 days | 5 years 5 months 4 days |
Exercisable at end of period | 4 years 5 months 2 days | |
Vested and expected to vest at end of period | 4 years 8 months 15 days | |
Outstanding at end of period | 4 years 8 months 15 days | 5 years 5 months 4 days |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 29,903 | |
Exercisable at end of period | 28,091 | |
Vested and expected to vest at end of period | $ 29,812 |
Stock-based Compensation (Det_2
Stock-based Compensation (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for future issuance under all of the stock incentive plans | 7,451,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Outstanding at beginning of period | 2,013,000 | ||
Granted | 771,000 | ||
Vested | (812,000) | ||
Forfeited | (221,000) | ||
Outstanding at end of period | 1,751,000 | 2,013,000 | |
Vested not distributed | 216,000 | ||
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of period | $ 31.86 | ||
Granted | 52.83 | ||
Vested | 31.17 | ||
Forfeited | 34.47 | ||
Outstanding at end of period | $ 40.77 | $ 31.86 | |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for future issuance under all of the stock incentive plans | 2,838,000 | ||
Weighted Average Grant-Date Fair Value | |||
Granted | $ 10.01 | $ 7.66 | $ 6.33 |
Stock-based Compensation (Det_3
Stock-based Compensation (Details 3) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP, Weighted Average Purchase Price of Shares Purchased | $ / shares | $ 39.47 |
Employee Stock Purchase Plan (ESPP) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance under all of the stock incentive plans | 2,838,000 |
Discount from fair market value of the stock | 85.00% |
Shares of common stock reserved for issuance under the ESPP | 5,000,000 |
Number of common stock shares issued | 140,000 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
401(k) matching contributions | $ 9.8 | $ 8.9 | $ 8.1 |
Pension liability | $ 1.2 | $ 0.8 |
Other Employee Benefit Plans _2
Other Employee Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net earnings (loss) | $ (338) | $ 1,286 | $ 78 |
Prior service cost | 0 | (15) | 24 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | (338) | 1,271 | $ 102 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Net loss | (682) | (344) | |
Prior service cost | 0 | 0 | |
Total recognized in AOCI | $ (682) | $ (344) |
Other Employee Benefit Plans _3
Other Employee Benefit Plans (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Change in benefit obligation: | ||||
Benefit obligation at January 1 | $ 10,149 | $ 11,419 | ||
Service costs | 0 | 0 | $ 0 | |
Interest costs | 96 | 386 | 397 | |
Actuarial loss (gain) | 22 | (1,720) | ||
Benefits paid | 6,230 | 310 | ||
Foreign currency exchange changes | (327) | 374 | ||
Benefit obligation at December 31 | 3,710 | 10,149 | $ 11,419 | |
Fair value of plan assets at December 31 | 0 | 0 | ||
Unfunded status at December 31 | 3,710 | 10,149 | ||
Amounts recognized in the Consolidated Balance Sheets: | ||||
Current liabilities | 293 | 6,262 | ||
Non-current liabilities | $ 3,417 | $ 3,887 | $ 51,842 | |
Supplemental Executive Retirement Plan (SERP) | ||||
Net periodic benefit cost: | ||||
Discount rate | 2.75% | 4.00% | ||
Rate of increase in compensation levels | 3.00% | |||
Funded status and projected benefit obligation: | ||||
Discount rate | 3.40% | 2.75% | ||
Defined benefit pension plan for employees outside the United States | ||||
Change in benefit obligation: | ||||
Actuarial loss (gain) | $ 600 | $ 1,700 | ||
Net periodic benefit cost: | ||||
Discount rate | 1.75% | 2.00% | ||
Funded status and projected benefit obligation: | ||||
Discount rate | 1.75% | 1.75% |
Other Employee Benefit Plans _4
Other Employee Benefit Plans (Details 4) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2,019 | $ 418 |
2,020 | 412 |
2,021 | 406 |
2,022 | 390 |
2,023 | 386 |
Five years thereafter | 1,266 |
Total expected future benefit payments | $ 3,278 |
Other Employee Benefit Plans _5
Other Employee Benefit Plans (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service costs | $ 0 | $ 0 | $ 0 |
Interest costs | 96 | 386 | 397 |
Net amortization and deferral | 63 | 235 | 260 |
Settlement gain | (608) | 0 | 0 |
Net periodic pension costs | (449) | $ 621 | $ 657 |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |||
Net loss | $ 48 |
Operating Segments and Relate_3
Operating Segments and Related Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments and Relate_4
Operating Segments and Related Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 448,463 | $ 434,898 | $ 452,707 | $ 439,618 | $ 494,784 | $ 464,712 | $ 434,124 | $ 406,814 | $ 1,775,686 | $ 1,800,434 | $ 1,662,167 |
Intersegment revenue | 0 | 0 | 0 | ||||||||
Earnings (loss) from operations | 318,606 | 289,961 | 295,718 | ||||||||
Industrial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 717,882 | 672,120 | 552,580 | ||||||||
Intersegment revenue | 19,482 | 21,747 | 19,874 | ||||||||
Earnings (loss) from operations | 216,880 | 199,903 | 156,749 | ||||||||
Government and defense | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 663,436 | 629,147 | 616,777 | ||||||||
Intersegment revenue | 11,409 | 11,283 | 10,344 | ||||||||
Earnings (loss) from operations | 199,702 | 179,160 | 176,749 | ||||||||
Commercial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 394,368 | 499,167 | 492,810 | ||||||||
Intersegment revenue | 20,056 | 14,942 | 17,277 | ||||||||
Earnings (loss) from operations | 57,399 | 56,066 | 52,659 | ||||||||
Eliminations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Intersegment revenue | 50,947 | 47,972 | 47,495 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,800,434 | ||||||||||
Earnings (loss) from operations | $ 473,981 | $ 435,129 | $ 386,157 |
Operating Segments and Relate_5
Operating Segments and Related Information (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Consolidated segment operating income | $ 473,981 | $ 435,129 | $ 386,157 | |
Unallocated corporate expense | (106,994) | (87,184) | (65,012) | |
Amortization of Intangible Assets | 24,700 | 27,500 | 18,400 | |
Purchase accounting adjustments | 0 | (1,992) | (3,230) | |
Restructuring expenses | $ (4,854) | $ (625) | $ (1,431) | |
Product Liability Contingency, Accrual, Assumptions | (1,946) | (4,388) | (2,500) | |
Operating Income (Loss) | $ 318,606 | $ 289,961 | $ 295,718 | |
Gain (Loss) on Disposition of Business | (13,708) | (23,588) | 0 | |
Other Nonoperating Expense | (11,503) | (10,896) | (19,761) | |
Consolidated earnings before income taxes | 307,103 | 279,065 | 275,957 | |
Goodwill | 904,571 | 909,811 | 801,406 | $ 909,811 |
Cash and Cash Equivalents | 512,144 | 519,090 | ||
Disposal Group, Including Discontinued Operation, Assets, Current | 2,032 | 67,344 | ||
Prepaid expense and other current assets, excluding demo assets | 67,413 | 44,361 | ||
Property, Plant and Equipment, Net | 247,407 | 263,996 | ||
Deferred income taxes, net | 100,620 | 21,001 | 95,368 | |
Intangible assets, net | 146,845 | 168,130 | ||
Other assets | 89,152 | 59,869 | ||
Assets | 2,781,242 | 2,810,026 | ||
Acquired Intangible Assets [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Amortization of Intangible Assets | (24,524) | (27,391) | (18,266) | |
Intangible assets, net | 144,875 | 165,228 | ||
Total Segments [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Restructuring expenses | (8,203) | |||
Operating Income (Loss) | 473,981 | 435,129 | 386,157 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 711,058 | 756,424 | ||
Goodwill | 904,571 | |||
BU assets (AR, inventories, demo assets and goodwill, net) | 1,615,629 | 756,424 | ||
Industrial | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 216,880 | 199,903 | 156,749 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 266,457 | 287,439 | ||
Goodwill | 391,603 | 389,575 | ||
Government and defense | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 199,702 | 179,160 | 176,749 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 307,041 | 332,044 | ||
Goodwill | 284,188 | 291,229 | ||
Commercial | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 57,399 | 56,066 | $ 52,659 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 137,560 | $ 136,941 | ||
Goodwill | $ 228,780 | $ 229,007 |
Operating Segments and Relate_6
Operating Segments and Related Information (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 448,463 | $ 434,898 | $ 452,707 | $ 439,618 | $ 494,784 | $ 464,712 | $ 434,124 | $ 406,814 | $ 1,775,686 | $ 1,800,434 | $ 1,662,167 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 934,527 | ||||||||||
Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 376,853 | ||||||||||
Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 255,160 | ||||||||||
Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 131,055 | ||||||||||
Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 78,091 | ||||||||||
Total Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,800,434 | ||||||||||
Total Segments [Member] | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 956,438 | ||||||||||
Total Segments [Member] | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 375,474 | ||||||||||
Total Segments [Member] | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 227,047 | ||||||||||
Total Segments [Member] | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 127,796 | ||||||||||
Total Segments [Member] | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 113,679 | ||||||||||
Industrial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 717,882 | 672,120 | 552,580 | ||||||||
Industrial | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 364,443 | 314,910 | |||||||||
Industrial | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 130,901 | 140,265 | |||||||||
Industrial | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 159,150 | 156,201 | |||||||||
Industrial | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 18,089 | 18,183 | |||||||||
Industrial | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 45,299 | 42,561 | |||||||||
Government and defense | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 663,436 | 629,147 | 616,777 | ||||||||
Government and defense | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 420,032 | 379,356 | |||||||||
Government and defense | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 89,725 | 92,021 | |||||||||
Government and defense | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 55,160 | 36,484 | |||||||||
Government and defense | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 85,726 | 87,633 | |||||||||
Government and defense | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 12,793 | 33,653 | |||||||||
Commercial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 394,368 | 499,167 | $ 492,810 | ||||||||
Commercial | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 150,052 | 262,172 | |||||||||
Commercial | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 156,227 | 143,188 | |||||||||
Commercial | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 40,850 | 34,362 | |||||||||
Commercial | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 27,240 | 21,980 | |||||||||
Commercial | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 19,999 | $ 37,465 |
Operating Segments and Relate_7
Operating Segments and Related Information (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 1,387,975 | $ 1,401,806 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 720,885 | 797,816 |
Europe [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 446,704 | 343,208 |
Other Geographic Region [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 220,386 | $ 260,782 |
Operating Segments and Relate_8
Operating Segments and Related Information (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 448,463 | $ 434,898 | $ 452,707 | $ 439,618 | $ 494,784 | $ 464,712 | $ 434,124 | $ 406,814 | $ 1,775,686 | $ 1,800,434 | $ 1,662,167 |
United States government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 511,094 | $ 466,304 | $ 416,341 |
Business Acquisitions (Detail)
Business Acquisitions (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 04, 2016 | Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 909,811 | $ 904,571 | $ 909,811 | $ 801,406 | ||
Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | $ 2,994 | |||||
Other tangible assets and liabilities, net | 35,127 | |||||
Net deferred taxes | (2,438) | |||||
Identifiable intangible assets | 39,800 | |||||
Goodwill | 183,678 | |||||
Total purchase price | $ 259,161 | |||||
Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | 11,706 | |||||
Net tangible assets | $ 11,300 | (900) | ||||
Net deferred taxes | (4,250) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 123,100 | 31,400 | ||||
Goodwill | 96,431 | |||||
Total purchase price | $ 134,400 | $ 134,387 |
Business Acquisitions (Details
Business Acquisitions (Details 1) - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 04, 2016 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | $ 200 | |||||
Goodwill | $ 904,571 | $ 909,811 | $ 909,811 | $ 801,406 | ||
Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | 39,800 | |||||
Goodwill | $ 183,678 | |||||
Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 123,100 | 31,400 | ||||
Indefinite-lived Intangible Assets Acquired | 31,400,000 | |||||
Goodwill | $ 96,431 | |||||
Patents [Member] | Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 8 years | |||||
Indefinite-lived Intangible Assets Acquired | 3,100 | |||||
Developed technology | Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 10 years | |||||
Developed technology | Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 8 years | |||||
Indefinite-lived Intangible Assets Acquired | 23,400 | |||||
Trade name | Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 7 years | |||||
Finite-lived intangible assets acquired | $ 13,200 | |||||
Trade name | Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 7 years | |||||
Indefinite-lived Intangible Assets Acquired | 3,500 | |||||
Trade Names [Member] | Prox Dynamics, AS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 8 years | |||||
Indefinite-lived Intangible Assets Acquired | 1,400 | |||||
Backlog | Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 1 year | |||||
Finite-lived intangible assets acquired | $ 2,300 | |||||
Non-Competition Agreements | Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated Useful Life | 5 years | |||||
Finite-lived intangible assets acquired | $ 1,000 | |||||
Developed technology | Point Grey Research, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived intangible assets acquired | $ 23,100 |
Business Acquisitions (Detail_2
Business Acquisitions (Details textual) - USD ($) $ in Thousands | Oct. 16, 2018 | Sep. 10, 2018 | Apr. 03, 2018 | Mar. 26, 2018 | Nov. 30, 2016 | Nov. 04, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 |
Business Acquisition [Line Items] | ||||||||||
Gain (Loss) on Disposition of Business | $ (13,708) | $ (23,588) | $ 0 | |||||||
Loss on sale of business | (13,708) | 0 | ||||||||
Goodwill | 904,571 | 909,811 | $ 801,406 | $ 909,811 | ||||||
Goodwill, Acquired During Period | 9,228 | 96,431 | ||||||||
Point Grey Research, Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash acquired | $ 2,994 | |||||||||
Goodwill | 183,678 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 2,438 | |||||||||
Total purchase price | 259,161 | |||||||||
Identifiable intangible assets | $ 39,800 | |||||||||
Prox Dynamics, AS [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash acquired | 11,706 | |||||||||
Goodwill | 96,431 | |||||||||
Total purchase price | $ 134,400 | 134,387 | ||||||||
Goodwill, Acquired During Period | 96,431 | |||||||||
Net tangible assets | 11,300 | (900) | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 123,100 | $ 31,400 | ||||||||
Fishidy [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 7,100 | |||||||||
Goodwill, Acquired During Period | 4,578 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,782 | |||||||||
Fishing Hot Spots [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 7,100 | |||||||||
Acyclica [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 10,300 | |||||||||
SeaPilot [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | $ 4,600 |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Divestitures Textual) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on sale of business | $ 13,708 | $ 0 | |
Consumer and Small and Medium-Sized Security Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Carrying amount of disposal group | $ 28,800 | ||
Held-for-sale [Member] | Consumer and Small and Medium-Sized Security Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on sale of business | $ (23,600) |
Business Acquisitions and Div_3
Business Acquisitions and Divestitures Divestitures (Details 2) - Consumer and Small and Medium-Sized Security Business [Member] - Held-for-sale [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |
Accounts receivable, net | $ 20,414 |
Inventories | 43,050 |
Other current assets | 1,031 |
Property and equipment, net | 4,888 |
Goodwill | 13,090 |
Loss on net assets held for sale | (23,488) |
Assets held for sale, net | 67,344 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |
Accounts payable and accrued expenses | 39,544 |
Liabilities held for sale | $ 39,544 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 08, 2017 | Feb. 05, 2015 | |
Stockholders Equity Note [Line Items] | |||||
Common stock authorized to be repurchased, number of shares | 15,000,000 | 15,000,000 | |||
Common stock repurchased, shares | 5,000,000 | ||||
Common stock repurchased, value | $ 243,706 | $ 66,057 | |||
Common stock dividends, paid per share | $ 0.16 | $ 0.15 | $ 0.12 | ||
Common stock dividends, total cash paid | $ 88,123 | $ 82,605 | $ 65,920 | ||
Payments of Ordinary Dividends, Common Stock | $ 88,123 | 82,605 | $ 65,920 | ||
Common Stock and Additional Paid-in Capital | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock repurchased, shares | 4,986,000 | 2,132,000 | |||
Common stock repurchased, value | $ 136,891 | $ 24,222 | |||
Retained Earnings | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock repurchased, value | 106,815 | 41,835 | |||
Common stock dividends, total cash paid | $ 88,123 | $ 82,605 | $ 65,920 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 4,854 | $ 625 | $ 1,431 |
Total COGS and SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 8,200 | $ 600 | $ 1,400 |
Restructuring Costs (Details 2)
Restructuring Costs (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 4,854 | $ 625 | $ 1,431 |
Total COGS and SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 8,200 | $ 600 | $ 1,400 |
Restructuring Costs (Details 3)
Restructuring Costs (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 4,854 | $ 625 | $ 1,431 |
Total COGS and SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 8,200 | $ 600 | $ 1,400 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 08, 2019 | Feb. 22, 2019 | Feb. 11, 2019 | Feb. 07, 2019 | Jan. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 11, 2019 |
Subsequent Event [Line Items] | |||||||||
Proceeds from Divestiture of Businesses | $ 25,920 | $ 0 | $ 0 | ||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date Declared | Feb. 7, 2019 | ||||||||
Quarterly dividend, value per share | $ 0.17 | ||||||||
Quarterly dividend, date to be paid | Mar. 8, 2019 | ||||||||
Quarterly dividend, date of record | Feb. 22, 2019 | ||||||||
Quarterly dividend, amount declared | $ 23,000 | ||||||||
Total purchase price | $ 385,000 | $ 200,000 | |||||||
Letter of Credit | $ 245,300 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Restructuring expenses | $ 4,854 | $ 625 | $ 1,431 | ||||||||||||
Revenue | $ 448,463 | $ 434,898 | $ 452,707 | $ 439,618 | $ 494,784 | $ 464,712 | $ 434,124 | $ 406,814 | 1,775,686 | 1,800,434 | 1,662,167 | ||||
Gross profit | 227,779 | 222,074 | 232,551 | 217,914 | [1] | 237,832 | 222,891 | 206,732 | 191,321 | 900,318 | 858,776 | 767,121 | |||
Net earnings | $ 98,516 | [2] | $ 73,151 | [2] | $ 71,563 | [2] | $ 39,195 | [2] | $ (50,290) | $ 63,529 | $ 51,413 | $ 42,571 | $ 282,425 | $ 107,223 | $ 166,626 |
Basic earnings per share: | |||||||||||||||
Basic earnings per share (in dollars per share) | $ 0.72 | $ 0.53 | $ 0.52 | $ 0.28 | $ (0.36) | $ 0.46 | $ 0.38 | $ 0.31 | $ 2.05 | $ 0.78 | $ 1.22 | ||||
Diluted earnings per share: | |||||||||||||||
Diluted earnings per share (in dollars per share) | $ 0.71 | $ 0.52 | $ 0.51 | $ 0.28 | $ (0.36) | $ 0.46 | $ 0.37 | $ 0.31 | $ 2.01 | $ 0.77 | $ 1.20 | ||||
[1] | (1) | ||||||||||||||
[2] | (2) |
Uncategorized Items - flir-2018
Label | Element | Value |
Deferred taxes balance sheet classification [Member] | ||
Deferred Tax Liabilities, Gross, Noncurrent | us-gaap_DeferredTaxLiabilitiesGrossNoncurrent | $ 12,496,000 |
Deferred Tax Liabilities, Gross, Noncurrent | us-gaap_DeferredTaxLiabilitiesGrossNoncurrent | 22,927,000 |
Deferred Tax Assets, Net | us-gaap_DeferredTaxAssetsLiabilitiesNet | 8,505,000 |
Deferred Tax Assets, Net | us-gaap_DeferredTaxAssetsLiabilitiesNet | 77,693,000 |
Deferred Tax Assets, Gross, Noncurrent | us-gaap_DeferredTaxAssetsGrossNoncurrent | 21,001,000 |
Deferred Tax Assets, Gross, Noncurrent | us-gaap_DeferredTaxAssetsGrossNoncurrent | $ 100,620,000 |