Cover
Cover | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Cover [Abstract] | |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Entity File Number | 000-21918 |
Entity Registrant Name | FLIR Systems, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 93-0708501 |
Entity Address, Address Line One | 27700 SW Parkway Avenue, |
Entity Address, City or Town | Wilsonville, |
Entity Address, State or Province | OR |
Entity Address, Postal Zip Code | 97070 |
City Area Code | 503 |
Local Phone Number | 498-3547 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | FLIR |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Public Float | $ | $ 5,279,054,662 |
Entity Common Stock, Shares Outstanding | shares | 131,238,445 |
Entity Central Index Key | 0000354908 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 1,923,689 | $ 1,887,026 | $ 1,775,686 |
Cost of Goods Sold | 976,676 | 957,640 | 874,463 |
Gross profit | 947,013 | 929,386 | 901,223 |
Operating expenses: | |||
Research and development | (210,166) | (203,611) | (174,962) |
Selling, general and administrative | (389,130) | (442,416) | (389,093) |
Restructuring expenses | (30,475) | (10,099) | (4,854) |
Loss on sale of Business | 0 | 0 | 13,708 |
Total operating expenses | 629,771 | 656,126 | 582,617 |
Earnings from operations | 317,242 | 273,260 | 318,606 |
Interest expense | 27,240 | 27,711 | 16,147 |
Interest income | (608) | (2,651) | (3,901) |
Gain (Loss) on Extinguishment of Debt | 9,126 | 0 | 0 |
Other (income) expense, net | (3,520) | 6,284 | (743) |
Earnings before income taxes | 285,004 | 241,916 | 307,103 |
Income tax provision | 72,420 | 70,319 | 24,678 |
Net earnings | $ 212,584 | $ 171,597 | $ 282,425 |
Net earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 1.61 | $ 1.27 | $ 2.05 |
Diluted earnings per share (in dollars per share) | $ 1.60 | $ 1.26 | $ 2.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 212,584 | $ 171,597 | $ 282,425 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Change in minimum liability for pension plans (1) | (192) | (58) | (338) |
Fair value adjustment on derivative instruments designated as hedges (2) | 2,177 | (796) | 0 |
Unrealized gain on available-for-sale investments | 0 | 4 | 0 |
Foreign currency translation adjustments | 5,974 | (16,003) | (35,394) |
Total other comprehensive income (loss) | 7,959 | (16,853) | (35,732) |
Comprehensive income | $ 220,543 | $ 154,744 | $ 246,693 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ (100) | ||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), Adjustments, Tax | $ 300 | $ 300 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and Cash Equivalents, at Carrying Value | $ 297,795 | $ 284,592 |
Accounts receivable, net | 353,561 | 318,652 |
Inventories | 472,237 | 388,762 |
Prepaid expenses and other current assets | 104,646 | 116,728 |
Total current assets | 1,228,239 | 1,108,734 |
Property and equipment, net | 267,682 | 255,905 |
Deferred income taxes, net | 36,210 | 39,983 |
Goodwill | 1,394,364 | 1,364,596 |
Intangible assets, net | 209,636 | 247,514 |
Other assets | 116,217 | 120,809 |
Total assets | 3,252,348 | 3,137,541 |
Current liabilities: | ||
Accounts payable | 157,592 | 158,033 |
Accrued payroll and related liabilities | 98,911 | 72,476 |
Accrued product warranties | 17,019 | 14,611 |
Contract With Customer, Liability, Customer Advances, Current | 10,940 | 28,005 |
Contract With Customer, Liability, Deferred Revenue, Current | 25,862 | 28,587 |
Accrued expenses | 41,347 | 40,815 |
Accrued income taxes | 28,941 | 14,735 |
Other current liabilities | 44,053 | 27,349 |
Line of Credit, Current | 0 | 16,000 |
Long-term debt, current portion | 13,473 | 12,444 |
Total current liabilities | 438,138 | 413,055 |
Long-term debt, net of current portion | 724,919 | 648,419 |
Deferred income taxes | 43,708 | 53,544 |
Accrued income taxes | 60,248 | 55,514 |
Other Liabilities, Noncurrent | 101,961 | 95,576 |
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, 2020 or 2019 | 0 | 0 |
Common stock, $0.01 par value; 500,000 shares authorized; 131,360 and 134,394 shares issued, 131,153 and 134,394 shares outstanding at December 31, 2020 and 2019, respectively, and additional paid-in capital | 31,767 | 16,692 |
Retained earnings | 2,017,097 | 2,020,686 |
Treasury Stock, Carrying Basis | 7,504 | 0 |
Accumulated other comprehensive loss | (157,986) | (165,945) |
Total shareholders’ equity | 1,883,374 | 1,871,433 |
Total liabilities and shareholders' equity | $ 3,252,348 | $ 3,137,541 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 131,360 | 134,394 |
Common Stock, Shares, Outstanding | 131,353 | 134,394 |
Treasury Stock, Shares | 207 | 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Unvested | Cumulative Effect, Period of Adoption, Adjustment | Common Stock and Additional Paid-in Capital | Common Stock and Additional Paid-in CapitalUnvested | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Earnings (Loss) | Treasury Stock, Common | Treasury Stock, CommonUnvested |
Balance (in shares) at beginning of period at Dec. 31, 2017 | 138,869 | |||||||||
Balance at beginning 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 | $ 80,280 | 282,425 | |||||||
Repurchase of common stock (in shares) | (4,986) | |||||||||
Repurchase of common stock | (243,706) | $ (136,891) | (106,815) | |||||||
Stock Issued During Period, Value, Acquisitions | 0 | |||||||||
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] | ||||||||||
Net earnings for the year | 171,597 | $ 3,439 | 171,597 | $ 3,439 | ||||||
Repurchase of common stock (in shares) | (2,549) | |||||||||
Repurchase of common stock | (124,998) | $ (37,819) | (87,179) | |||||||
Stock Issued During Period, Value, Acquisitions | 0 | |||||||||
Common stock issued pursuant to stock-based compensation plans, net (in shares) | 1,427 | |||||||||
Common stock issued pursuant to stock-based compensation plans, net | 16,425 | $ 16,425 | ||||||||
Stock-based compensation expense | 36,731 | $ 36,731 | ||||||||
Dividends paid | (91,694) | (91,694) | ||||||||
Other comprehensive income (loss) | (16,853) | (16,853) | ||||||||
Balance (in shares) at end of period at Dec. 31, 2019 | 134,394 | |||||||||
Balance at end of period at Dec. 31, 2019 | $ 1,871,433 | $ 16,692 | 2,020,686 | 165,945 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Treasury Stock, Shares | 0 | |||||||||
Net earnings for the year | $ 212,584 | 212,584 | ||||||||
Repurchase of common stock (in shares) | (4,600) | (4,115) | (450) | |||||||
Repurchase of common stock | $ (166,311) | $ (23,380) | (126,629) | $ (16,302) | ||||||
Stock Issued During Period, Value, Acquisitions | 7,335 | $ 0 | $ 753 | $ 2,216 | $ 6,582 | $ 2,216 | ||||
Common stock issued pursuant to stock-based compensation plans, net (in shares) | 1,081 | |||||||||
Common stock issued pursuant to stock-based compensation plans, net | 707 | $ 707 | ||||||||
Stock-based compensation expense | 39,211 | $ 39,211 | ||||||||
Dividends paid | (89,544) | (89,544) | ||||||||
Other comprehensive income (loss) | 7,959 | 7,959 | ||||||||
Balance (in shares) at end of period at Dec. 31, 2020 | 131,360 | |||||||||
Balance at end of period at Dec. 31, 2020 | 1,883,374 | $ 31,767 | $ 2,017,097 | $ 157,986 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock Issued During Period, Shares, Acquisitions | 182 | 61 | ||||||||
Treasury Stock, Value | $ 7,504 | |||||||||
Treasury Stock, Shares | 207 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Statement of Cash Flows [Abstract] | |||
Cash and Cash Equivalents | $ 297,795 | $ 284,592 | |
CASH PROVIDED BY OPERATING ACTIVITIES: | |||
Net earnings | 212,584 | 171,597 | $ 282,425 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 94,740 | 103,132 | 66,462 |
Stock-based compensation | 39,164 | 36,689 | 34,170 |
Other Asset Impairment Charges | 3,669 | 13,666 | 3,349 |
Gain (Loss) on Extinguishment of Debt | 9,126 | 0 | 0 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 4,803 | 4,141 | 0 |
Other, net | 8,034 | (18) | (3,832) |
Increase (decrease) in cash, net of acquisitions, resulting from changes in: | |||
Accounts receivable | (29,696) | 19,372 | 29,057 |
Inventories | (71,053) | (24,360) | 17,425 |
Prepaid expenses and other current assets | 12,447 | (1,744) | (3,427) |
Other assets | (12,485) | (1,099) | (2,663) |
Accounts payable | (4,348) | 51,752 | (22,449) |
Deferred revenue | (3,266) | (6,187) | 8,081 |
Accrued payroll and other liabilities | 860 | (8,339) | 6,599 |
Accrued income taxes | 28,808 | (24,723) | (74,888) |
Other long-term liabilities | (17,196) | (10,639) | 13,918 |
Net cash provided by operating activities | 312,363 | 370,372 | 374,157 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to property and equipment, net | (57,151) | (44,794) | (30,773) |
Business acquisitions, net of cash acquired | (26,614) | (601,927) | (26,764) |
Proceeds from sale of assets | 0 | 6,365 | 3,017 |
Proceeds from Divestiture of Businesses | 0 | 0 | 25,920 |
Payments for (Proceeds from) Other Investing Activities | 310 | (11,030) | (15,500) |
Net cash used in investing activities | (83,455) | (651,386) | (44,100) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of common stock | (166,311) | (124,998) | (243,706) |
Dividends paid | 89,544 | 91,694 | 88,123 |
Proceeds from shares issued pursuant to stock-based compensation plans | 11,981 | 28,418 | 29,124 |
Tax paid for net share exercises and issuance of vested restricted stock units | 11,274 | 11,993 | 16,228 |
Other financing activities | 0 | (523) | (11) |
Net cash (used in) provided by financing activities | (223,102) | 54,040 | (318,944) |
Effect of exchange rate changes on cash and cash equivalents | 7,397 | (578) | (18,059) |
Cash and cash equivalents, beginning of year | 284,592 | 512,144 | 519,090 |
Cash and cash equivalents, end of year | 297,795 | 284,592 | 512,144 |
Repayments of Unsecured Debt | (425,000) | 0 | 0 |
Payment for Debt Extinguishment or Debt Prepayment Cost | (8,509) | 0 | 0 |
Senior unsecured notes, proceeds | 494,234 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 13,203 | (227,552) | (6,946) |
Deferred Income Tax Expense (Benefit) | 11,202 | 44,934 | 14,604 |
Proceeds from Issuance of Other Long-term Debt | 175,000 | 723,054 | 0 |
Repayments of Other Long-term Debt | $ 203,679 | $ 468,224 | $ 0 |
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 government, industrial and commercial 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 improving personal and public safety and security, providing advanced intelligence, surveillance, reconnaissance, and tactical defense capabilities, facilitating air, ground, and maritime-based situational awareness, detecting electrical, mechanical and building envelope problems, displaying process irregularities, detecting volatile organic gas emissions, and enhancing advanced driver-assistance systems and autonomous driving solutions, as well as a variety of other uses of thermal and other sensing technologies. The Company's business model and range of solutions allow it to sell products to various end markets, including industrial, original equipment manufacturing, military, homeland security, enterprise, infrastructure, and environmental. The Company sells off-the-shelf products and customized solutions in configurations to suit specific customer requirements in an efficient, timely, and affordable manner, and supports those customers with training and ongoing support and services. 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 significant intercompany accounts and transactions have been 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, 2020. 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. Revenue recognition The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. The Company designs, markets and sells products primarily as 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. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Revenue recognition - (Continued) 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 fulfillment costs 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. 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 19, "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, 2020 and 2019 were $0.1 million and $0.7 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, 2020 and 2019, 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, in certain instances, the Company also records an allowance 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) Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company considers the principal or most advantageous market in which the asset or liability would transact, and if necessary, considers assumptions that market participants would use when pricing the asset or liability. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. 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. Inventories Inventories are stated at the lower of cost or net realizable value 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 net realizable value 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 $30.1 million and $30.4 million at December 31, 2020 and 2019, 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 Effective January 1, 2019, the Company adopted the requirements of ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". Goodwill represents the excess purchase price of an acquired enterprise over the estimated fair value of identifiable net assets acquired. The Company assesses goodwill for potential impairment at the reporting unit level during the third quarter of each year, or whenever events or circumstances indicate that the carrying value of these assets may exceed their fair value. The Company may assess qualitative factors to make this determination, or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process. As a result of the adoption of ASU 2017-04, if it is determined that the goodwill is impaired, it is no longer required to compare the implied fair value of the reporting unit goodwill associated with the carrying amount of that goodwill, which is commonly referred to as Step 2. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Goodwill - (Continued) The Company elects to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. When performing a qualitative assessment, the Company considers factors including, but not limited to, current macroeconomic conditions, industry and market conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments and entity specific factors such as strategies and financial performance and other events relevant to the entity or reporting unit under evaluation. If, based on the review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, (of if the Company elected to bypass assessing the qualitative factors) the Company would perform a quantitative impairment test to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized (if any) by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would 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. During the first quarter of 2020, as a result of a deterioration in macroeconomic conditions driven by COVID-19 as well as Company-specific events which combined resulted in declines to our stock price and market capitalization, the Company determined it was more likely than not that these factors had a significant adverse impact on its reporting units. An interim quantitative goodwill impairment analysis was performed as of March 31, 2020 and the Company determined that the fair values of its reporting units were greater than their carrying values. During the third quarter of 2020, the Company performed its annual goodwill impairment analysis. The Company performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary. The Company did not recognize any impairment charges on goodwill during the years ended December 31, 2020 and 2018, respectively. The impairment tests performed during the year ended December 31, 2019 indicated, based on the assessment of qualitative factors in the fourth quarter, that it was more likely than not that the fair value was less than the carrying value for the OTS reporting unit. As such, a quantitative impairment test was performed which determined that the fair value of the OTS reporting unit was approximately 63% of its carrying value. As a result, the Company recorded goodwill impairment charges in the Industrial Technologies Segment during the fourth quarter of 2019, which represents the difference between the carrying value and the fair value of the OTS reporting unit. See Note 9, "Goodwill" for additional information and discussion on impairment charges on goodwill recorded during the year ended December 31, 2019. Intangible assets Intangible assets are amortized using the method that best reflects how their economic benefits are utilized, or, if a pattern of economic benefits cannot be reliably determined, 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. 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 intangible assets with indefinite lives during the years ended December 31, 2020 and 2018, respectively. See Note 10, "Intangibles Assets" for additional information and discussion on impairment charges associated with the OTS restructuring within Industrial Technologies Segment recognized during the year ended December 31, 2019. Advertising costs Advertising costs, including social media, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2020, 2019 and 2018 were $8.1 million, $10.7 million and $13.0 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 other (income) expense, 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. The Company periodically reviews its equity investments for impairment. During the years ended December 31, 2020 and 2019, the Company recognized impairments of $4.8 million and $4.1 million, respectively associated with its equity investments which are included in other (income) expense, net in the Consolidated Statement of Income. During the year ended December 31, 2018, the Company did not recognize any impairments on its minority interest equity investments. The carrying values of the minority interest equity investments were $14.1 million and $19.9 million at December 31, 2020 and 2019, 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. Income taxes The Company accounts for income taxes 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 measured using the enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances against deferred tax assets are recorded when a determination is made that the deferred tax assets are not more likely than not to be realized in the future. In making that determination, on a jurisdiction by jurisdiction basis, the Company estimates the future taxable income based upon historical operating results and external market data. Future levels of taxable income are dependent upon, but not limited to, general economic conditions, competitive pressures and other factors beyond our control. The Company is subject to income taxes in the United States and in numerous foreign jurisdictions, and in the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The Company records a benefit on a tax position when it is more likely than not that the position is sustainable upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions that are more likely than not to be sustained, the Company measures the tax position at the largest amount of benefit that has a greater than 50 percent likelihood of being realized when it is effectively settled, using information that is available at the reporting date. The Company reviews its tax positions as circumstances warrant, and updates its liability for additional taxes as changes in available facts arise. Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2020 2019 2018 Cash paid for: Interest $ 20,806 $ 21,544 $ 14,183 Taxes $ 40,387 $ 52,146 $ 83,259 Non-cash transactions: Stock issued for business acquisition $ 7,335 $ — $ — Note 1. Nature of Business and Significant Accounting Policies - (Continued) Stock-based compensation The Company accounts for stock-based compensation at the grant date based on the fair value of the award and recognizes compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period, net of an estimated forfeiture rate. For awards granted beginning in 2020, the fair value of restricted stock unit awards and restricted stock units containing performance-based vesting criteria was based on the fair market value of the closing price of the Company's common stock on the date of grant. For awards granted prior to 2020, the fair value of restricted stock unit awards and restricted stock units containing performance-based vesting criteria was valued based on the fair market value of the closing price of the Company's common stock, discounted for expected dividends, on the date of grant. The Company uses the Black-Scholes option pricing model to estimate the fair value of shares expected to be issued under the Company's employee stock purchase plan. The estimation of such fair value requires management to make estimates and judgments about, among other things, forfeiture rates and the expected volatility of FLIR common stock over the expected term. These judgments directly affect the amount of compensation expense that will ultimately be recognized. In addition, the fair value was discounted for an estimate for illiquidity. The estimated discount for illiquidity was 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 was estimated using the protective put method. Treasury stock The Company accounts for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in the Consolidated Balance Sheets. 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 19, "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 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. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Accumulated other comprehensive earnings (loss) Accumulated other comprehensive earnings (loss) includes cumulative translation adjustments, fair value adjustments on interest rate swap contracts, fair value adjustments on currency forward contracts 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, 2020. Pension Plans Interest Rate Swap Contracts Currency Forward Contracts Foreign Total Balance, December 31, 2019 $ (740) $ (796) $ — $ (164,409) $ (165,945) Other comprehensive income (loss) before reclassifications, net of tax (192) (772) 2,949 5,974 7,959 Balance, December 31, 2020 $ (932) $ (1,568) $ 2,949 $ (158,435) $ (157,986) Recently adopted accounting pronouncements Financial Accounting Standards Board ("FASB") ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13" or "Topic 326"): Effective January 1, 2020, the Company adopted ASU 2016-13 using a modified-retrospective approach. The standard changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. Adoption of the standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" ("ASU 2018-18" ) : Effective January 1, 2020, the Company adopted 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 guidance on presentation of transactions not in the scope of ASC 606. Adoption of the standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2016-02, "Leases ("ASC 842"). Effective January 1, 2019, the Company adopted ASC 842 and all the related amendments using the modified retrospective method, using the permitted practical expedients, to those contracts still outstanding as of January 1, 2019. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impact was the recognition, on a discounted basis, of right-of-use (ROU) assets totaling approximately $31.9 million and lease liabilities totaling approximately $34.2 million under non-cancelable operating leases as of January 1, 2019 and the related new required disclosures. The standard did not have an impact on the Company's consolidated income statements or consolidated statements of cash flows. For additional disclosures required under the new standard, see Note 7, "Leases." FASB ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Effective January 1, 2019, the Company adopted 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 also 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 standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). Effective January 1, 2019, the Company adopted ASU 2018-02. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Recently adopted accounting pronouncements - (Continued) The standard allows companies to reclassify stranded tax effects in accumulated other comprehensive earnings (loss) that have been caused by the Tax Cuts and Jobs Act of 2017 (the "Tax Act") to retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. However, the FASB made the reclassification optional. As a result, the Company assessed the impact of the ASU on its financial statements and did not exercise the option to reclassify the stranded tax effects caused by the Tax Act. FASB ASU No. 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). Effective January 1, 2019, the Company adopted ASU 2018-07. The standard more closely aligns the accounting for employee and nonemployee share-based payments. The standard did not have a material impact on the Company's consolidated financial statements or disclosures. FASB ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). Effective January 1, 2019, the Company adopted 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 standard did not have a material impact on the Company’s consolidated financial statements. 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 $3.4 million and $79.3 million as of January 1, 2019 and 2018, respectively. Recently issued accounting pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)", which temporarily simplifies the accounting for contract modifications, including hedgi |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
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 Sheets as of December 31, 2020 and 2019. Note 2. Revenue - (Continued) Contract Balances - (Continued) 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, 2020 and 2019 were $45.0 million and $9.4 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, 2020 and 2019, the contract liability balances totaled $48.8 million and $69.1 million, respectively. These balances included amounts classified as long-term as of December 31, 2020 and 2019 which were of $12.0 million and of $12.5 million, respectively, and are included within other long-term liabilities in the accompanying Consolidated Balance Sheets. Approximately $44.2 million of revenue recognized during the twelve month period ended December 31, 2020 was included in the combined contract liability balances as of December 31, 2019. Remaining Performance Obligations Remaining performance obligations 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, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $313.1 million. The Company expects to recognize revenue on a majority of the remaining performance obligations over the next twelve months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The Company had $0.1 million and $0.7 million of cash equivalents at December 31, 2020 and 2019, respectively, which were primarily investments in money market funds and overnight deposits. The Company has categorized its cash equivalents as a Level 1 financial assets, 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 values of the Company’s derivative contracts as of December 31, 2020 and 2019 are disclosed in Note 4, "Derivative Financial Instruments," and are based on Level 2 inputs. The fair value of the Company's borrowings under the Credit Agreement as described in Note 11, "Debt," as of December 31, 2020 approximates the carrying value. The fair value of the Company’s senior unsecured 2030 notes as described in Note 11, "Debt," was approximately $527.7 million based upon Level 2 inputs at December 31, 2020. The Company’s senior unsecured 2021 notes were redeemed in full in connection with the Company’s August 2020 issuance of the Company’s senior unsecured 2030 notes in a public offering. The fair value of the Company’s senior unsecured 2021 notes as described in Note 11, "Debt," was $430.1 million based upon Level 2 inputs at December 31, 2019. The fair value of observable price changes related to the Company's minority interest equity investments, as discussed in Note 1, "Nature of Business and Significant Accounting Policies," are based on Level 3 inputs. The Company does not have any other significant financial assets or liabilities that are measured at fair value.See the discussion of accounting guidance for fair value measurements and the factors used in determining the fair value of financial assets and liabilities as disclosed in Note 1, |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 4. Derivative Financial Instruments The Company's financial position and results of operations are subject to certain financial market risks. The Company regularly assesses these risks and has established risk management practices designed to mitigate the impact of certain foreign currency exchange rate and interest rate risk exposures. The Company does not engage in speculative trading in any financial market. Note 4. Derivative Financial Instruments - (Continued) Foreign Currency Contracts The Company uses currency forward contracts, not formally designated as hedges, to manage the consolidated exchange rate risk associated with the remeasurement of certain non-functional currency denominated monetary assets and liabilities primarily by subsidiaries that use U.S. dollars, European euros, Canadian dollars, Swedish kronor, Norwegian kroner, Brazilian real and British pound sterling as their functional currency. Changes in fair value of foreign currency forward contracts are recognized in other (income) expense, net at the end of each reporting period. 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. At December 31, 2020, the Company’s foreign currency forward contracts, not formally designated as hedges, had maturities of three months or less. In addition, the Company manages the risk of changes in the fair value of certain monetary liabilities attributable to changes in exchange rates. The Company manages these risks by using currency forward contracts formally designated and effective as fair value hedges. Hedge effectiveness is generally determined by evaluating the alignment of the hedging instrument's critical terms with the critical terms of the hedged item. The forward points attributable to the hedging instruments are excluded from the assessment of effectiveness and amortized to other (income) expense, net using a systematic and rational methodology. Differences between the change in fair value of the excluded component and amounts recognized under the systematic and rational method are recognized in other comprehensive income (loss). The change in fair value of the hedging instruments attributable to the hedged risk is reported in other (income) expense, net. The change in fair value of the hedged item attributable to the hedged risk is reported as an adjustment to its carrying value and also included in other (income) expense, net. At December 31, 2020, the Company’s foreign currency forward contracts formally designated as fair value hedges had maturities of two years or less. Interest Rate Swap The Company's outstanding debt at December 31, 2020 consists of fixed rate notes and an unsecured credit facility consisting of an unsecured revolving loan facility, an unsecured U.S. dollar term loan and an unsecured Swedish kronor term loan, all of which accrue interest at a floating rate. As discussed in Note 11, "Debt," interest expense on the Company's floating rate debt is calculated based on a fixed spread over the applicable Eurocurrency rate (e.g. LIBOR) subject to a floor of zero percent. Therefore, fluctuations in market interest rates will cause interest expense increases or decreases on a given amount of floating rate debt. The Company is managing its interest rate risk related to certain floating rate debt through an interest rate swap (“swap”) in which the Company receives floating rate payments subject to a floor of zero percent and makes fixed rate payments. The impact of the swap is to fix the floating rate basis for the calculation of interest on the unsecured Swedish kronor term loan at 0.590 percent. The swap is designated and effective as a cash flow hedge with individual swap cash flows recorded as an asset or liability in the Company's Consolidated Balance Sheets at fair value. Hedge effectiveness is generally determined by evaluating the alignment of the hedging instrument's critical terms with the critical terms of the hedged item. Fair value adjustments are recorded as an adjustment to accumulated other comprehensive income (loss). All of the Company's derivative counterparties have investment grade credit ratings. The Company is a party to master netting arrangements that contain features that allow counterparties to net settle amounts arising from multiple separate derivative transactions or net settle in the case of certain triggering events such as a bankruptcy or major default of one of the counterparties to the transaction. The Company has not pledged assets or posted collateral as a requirement for entering into or maintaining derivative positions. The following table presents the gross notional amounts of outstanding derivative instruments (in thousands): December 31, 2020 December 31, 2019 Derivative instruments designated as cash flow hedges: Interest Rate Swap $ 154,633 $ 143,302 Derivative instruments designated as fair value hedges: Currency Forward Contracts 226,667 340,000 Derivative instruments not formally designated as hedges: Currency Forward Contracts 70,338 104,835 Note 4. Derivative Financial Instruments - (Continued) Interest Rate Swap - (Continued) The following table presents the balance sheet classification and fair value of derivative instruments (in thousands): December 31, December 31, Classification 2020 2019 Derivative instruments designated as cash flow hedges: Derivative instruments in asset positions: Interest Rate Swap Prepaid expense and other current assets $ 519 $ 404 Derivative instruments in liability positions: Interest Rate Swap Other current liabilities 982 453 Interest Rate Swap Other long-term liabilities 1,628 1,012 Derivative instruments designated as fair value hedges: Derivative instruments in liability positions: Currency forward contracts Other current liabilities 13,295 454 Currency forward contracts Other long-term liabilities 12,211 1,189 Derivative instruments not formally designated as hedges: Derivative instruments in asset positions: Currency forward contracts Prepaid expenses and other current assets 5,704 3,010 Derivative instruments in liability positions: Currency forward contracts Other current liabilities 506 391 The following table presents the statement of income classification of derivative instruments (in thousands): Year Ended December 31, Classification 2020 2019 2018 Derivative instruments designated as cash flow hedges: Loss recognized in other comprehensive loss, net of tax Other comprehensive income (loss) $ (772) $ (796) $ — Loss reclassified from other comprehensive loss to earnings for the effective portion Interest expense 703 656 — Derivative instruments designated as fair value hedges: Loss recognized in earnings for effective portion Other (income) expense, net 28,810 927 — Gain recognized in income for amount excluded from effectiveness testing Other (income) expense, net (4,207) — — Gain (loss) recognized in other comprehensive income (loss), net of tax Other comprehensive income (loss) 3,665 (716) — Derivative instruments not formally designated as hedges: (Gain) loss recognized in earnings Other (income) expense, net (16,966) (1,309) 9,111 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable are net of an allowance for credit losses. The following table summarizes the Company’s allowance for credit losses and the activity for 2020, 2019 and 2018 (in thousands): Note 5. Accounts Receivable - (Continued) Year Ended December 31, 2020 2019 2018 Allowance for credit losses, beginning of year $ 6,112 $ 4,284 $ 7,630 Charges to costs and expenses 2,474 3,136 879 Write-offs of uncollectible accounts, net of recoveries (2,129) (1,293) (3,985) Business disposals — — (593) Currency translation adjustments 149 (15) 353 Allowance for credit losses, end of year $ 6,606 $ 6,112 $ 4,284 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2020 2019 Raw material and subassemblies $ 281,641 $ 224,239 Work-in-progress 51,763 44,344 Finished goods 138,833 120,179 $ 472,237 $ 388,762 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, other current liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company did not have any finance leases at December 31, 2020. Operating lease right-of-use assets ("ROU assets") represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of minimum fixed lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include prepaid lease payments made prior to commencement of the lease plus initial capitalized direct costs and exclude tenant improvement allowances. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum fixed lease payments is recognized on a straight-line basis over the lease term. The Company has elected to apply the short-term lease exemption in accordance with guidance, and therefore, short-term leases (leases with a term of twelve months or less) are not recorded on the balance sheet. The Company has only a small number of leases that qualify for the exemption and the amount of its remaining short-term lease commitments is not significant. Most of the Company’s operating leases are for buildings, warehouses and office space. These leases have remaining lease terms of approximately one year to ten years. The components of lease expense were as follows (in thousands): Note 7. Leases - (Continued) Year Ended December 31, 2020 2019 Operating lease expense $ 12,055 $ 11,925 Short-term lease expense 81 963 Variable lease expense 2,265 1,586 Total lease expense $ 14,401 $ 14,474 Supplemental cash flow information related to operating leases (in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,289 $ 11,244 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,926 $ 12,210 Supplemental balance sheet information related to operating leases (in thousands): December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 32,833 $ 35,479 Operating lease liabilities $ 36,745 $ 39,291 As of December 31, 2020, the weighted average remaining lease term for operating leases was 5.9 years and the weighted average discount rate was 3.73 percent. Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): 2021 $ 11,699 2022 7,649 2023 4,607 2024 3,465 2025 2,945 Thereafter 10,712 Total lease payments 41,077 Less: imputed interest (4,332) Present value of lease liabilities $ 36,745 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment are summarized as follows (in thousands): Estimated December 31, 2020 2019 Land — $ 24,270 $ 21,511 Buildings 30 years 186,064 167,852 Machinery and equipment 3 to 7 years 326,984 307,530 Office equipment and other 3 to 10 years 130,851 129,127 668,169 626,020 Less accumulated depreciation (400,487) (370,115) $ 267,682 $ 255,905 Note 8. Property and Equipment - (Continued) Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $45.1 million, $44.2 million and $40.6 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill In the first quarter of 2020, the Company completed a business reorganization as part of its “Project Be Ready” restructuring plan which resulted in identification of two reportable segments (Industrial Technologies and Defense Technologies). The Company commenced operating and reporting under the new organization structure effective January 1, 2020. See Note 21, “Restructuring” for further information on Project Be Ready and Note 19, "Operating Segments and Related Information" for additional information on the two new reportable operating segments. Goodwill was allocated to identified reporting units using a relative fair value approach. In conjunction with the change in reportable segments, the Company evaluated goodwill for impairment, both before and after the segment change and determined that goodwill was not impaired. The following table presents changes in the carrying value of goodwill and the activity by reportable segment for the two year period ending December 31, 2020 (in thousands): Industrial Technologies Defense Technologies Consolidated Balance, December 31, 2018 $ 620,383 $ 284,188 $ 904,571 Goodwill from acquisitions 23,945 445,501 469,446 Goodwill impairment (6,543) — (6,543) Currency translation adjustments (1,886) (992) (2,878) Balance, December 31, 2019 635,899 728,697 1,364,596 Adjustments to goodwill (6) (12,617) (12,623) Goodwill from acquisitions — 22,857 22,857 Currency translation adjustments 15,546 3,988 19,534 Balance, December 31, 2020 $ 651,439 $ 742,925 $ 1,394,364 During the year ended December 31, 2020, the Company recorded $22.9 million of goodwill in connection with the preliminary purchase price allocation associated with the Altavian, Inc. ("Altavian") acquisition and completed the tax assessment for the short–period return in connection with the final purchase price allocation associated with Endeavor Robotics Holdings, Inc. ("Endeavor") acquisition that resulted in a goodwill adjustment of $12.6 million. During the year ended December 31, 2019, the Company recorded $469.4 million of goodwill in connection with the purchase price allocation associated with the following acquisitions: Acyclica, Inc. ("Acylica"), SeaPilot AB ("SeaPilot"), Aeryon Labs, Inc. ("Aeryon"), Endeavor and New England Optical Systems, Inc. See Note 20, "Business Acquisitions" for additional information on goodwill from acquisitions. 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 first quarter of 2020, as a result of a deterioration in macroeconomic conditions driven by COVID-19 as well as Company-specific events which combined resulted in declines to our stock price and market capitalization, the Company determined it was more likely than not that these factors had a significant adverse impact on its reporting units. An interim quantitative goodwill impairment analysis was performed as of March 31, 2020 and the Company determined that the fair values of its reporting units were greater than their carrying values. During the third quarter of 2020, the Company performed its annual goodwill impairment analysis. The Company performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary. There were no goodwill impairments during the year ended December 31, 2020. During the third quarter of 2019, the Company completed its annual review of goodwill and determined that no impairment of its recorded goodwill was necessary. During the fourth quarter of 2019, the Company approved a plan to restructure the OTS reporting unit within the Industrial Technologies segment. The restructuring discontinued operations of the thermal and night vision business and refocused strategy on the Personal Vision System product line in the law enforcement and public safety markets. As a result, the Company revised its outlook and lowered its financial forecast for the OTS business. The Company determined that the above factors are more likely than not to have a significant adverse impact on the OTS reporting unit and therefore an interim goodwill impairment quantitative analysis was performed utilizing both an income and market approach to determine the reporting units fair value. Note 9. Goodwill - (Continued) The income approach, discounted cash flow method, was performed by calculating the fair value based on future forecasted cash flows discounted back to the present value, including significant judgments related to risk adjusted discount rates, terminal growth rates, and the weighted average cost of capital (“WACC”). The projected cash flows were developed by the Company for planning purposes based on current known business and market conditions as well as future anticipated industry trends. A terminal value growth rate of 2.5% and WACC of 16% were utilized based on industry and macroeconomic indicators as well as estimated risk premiums. The market approach, guideline public company method, was performed to calculate the fair value of the OTS reporting unit by applying pricing multiples derived from selected publicly traded guideline companies. The Company utilized enterprise/earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples and enterprise/revenue multiples which ranged from low 5.0 to high 20.6, and from low 0.6 to high 4.6, respectively. Based on the quantitative goodwill impairment test the Company determined that the fair value of the OTS reporting unit, determined using an equal weighting from the income and market approaches, was approximately 63% of its carrying value. As a result, the Company recorded goodwill impairment charges of $6.5 million in Industrial Technologies segment, which represents the difference between the carrying value and the fair value of the OTS reporting unit, for the year ended December 31, 2019. The Company recorded the goodwill impairment charge in "Selling, general and administrative" in the Consolidated Statements of Income. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets are summarized as follows (in thousands): Weighted December 31, 2020 2019 Product technology 8 years $ 214,363 $ 207,511 Customer relationships 11 years 70,616 67,274 Trademarks and trade name portfolios 8 years 18,598 18,557 Trade name portfolio not subject to amortization indefinite 34,023 32,076 In-process research and development 8 years 33,900 34,698 Other 8 years 10,921 10,756 Acquired identifiable intangibles 382,421 370,872 Less accumulated amortization (172,958) (124,411) Net acquired identifiable intangibles 209,463 246,461 Patents 9 years 299 6,075 Less accumulated amortization (177) (5,109) Net patents 122 966 Acquired in-place leases and other 10 years 141 441 Less accumulated amortization (90) (354) Net acquired in-place leases and other 51 87 $ 209,636 $ 247,514 During the year ended December 31, 2020, the Company recorded $6.1 million of identified intangibles assets in connection with the preliminary purchase price allocation associated with the Altavian acquisition. During the year ended December 31, 2019, the Company recorded $159.7 million of identified intangibles assets in connection with the purchase price allocation associated with the following acquisitions: Acyclica, SeaPilot, Aeryon, Endeavor and New England Optical Systems, Inc. Refer to Note 20, "Business Acquisitions" for further discussion. The Company did not recognize any impairment charges on intangible assets during the year ended December 31, 2020. During the year ended December 31, 2019, the Company recognized an intangible asset impairment charge of $1.2 million. These assets, included in Customer Relationships and Other, were determined not to be recoverable due to a change in their expected future economic benefit associated with the OTS restructuring and strategic shift discussed in Note 9, "Goodwill." The Company recorded the intangible asset impairment charge in "Selling, general and administrative" in the Consolidated Statements of Income. Note 10. Intangibles Assets - (Continued) The aggregate amortization expense recorded in 2020, 2019 and 2018 was $47.6 million, $57.5 million and $24.7 million, respectively. For intangible assets recorded at December 31, 2020, the estimated future aggregate amortization expense for the years ending December 31, 2021 through 2025 is approximately (in thousands): 2021 $ 46,199 2022 44,266 2023 41,016 2024 19,504 2025 8,899 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Debt The Company's debt consists of the following (in thousands): December 31, 2020 December 31, 2019 Maturity Date Amount Stated Rate Effective Rate Amount Stated Rate Effective Rate Senior Unsecured Notes: 2030 Notes August 1, 2030 $ 500,000 2.500 % 2.630 % $ — — % — % 2021 Notes (1) June 15, 2021 — — % — % 425,000 3.125 % 3.343 % Credit Agreement: U.S. dollar term loan March 29, 2024 91,250 1.504 % 1.769 % 96,250 1.945 % 2.196 % Swedish kronor term loan March 29, 2024 154,632 1.250 % 1.484 % 143,302 1.348 % 1.601 % Revolving credit facility March 29, 2024 — 1.397 % 1.397 % 16,000 1.799 % 1.799 % Total 745,882 680,552 Unamortized discounts and issuance costs (7,490) (3,689) Total debt $ 738,392 $ 676,863 Reported as: Credit facility $ — $ 16,000 Long-term debt, current portion 13,473 12,444 Long-term debt, net of current portion 724,919 648,419 Total $ 738,392 $ 676,863 (1) The 2021 Notes were redeemed in full in connection with the Company’s August 2020 issuance of the 2030 Notes in a public offering described below under “Senior Unsecured Notes”. Senior Unsecured Notes On August 3, 2020, the Company issued and sold its $500.0 million senior unsecured notes maturing on August 1, 2030 (the “2030 Notes”) in an underwritten public offering. The aggregate net proceeds from the offering were approximately $494.2 million after deducting underwriting fees, debt discount and transaction issuance costs, which are being amortized over a period of ten years. Interest on the 2030 Notes is payable semiannually in arrears on February 1 and August 1 of each year beginning on February 1, 2021. The net proceeds from the sale of the 2030 Notes were used to redeem the Company’s outstanding $425.0 million senior unsecured notes due June 15, 2021 (the “2021 Notes”), and for general corporate purposes, which may include funding for working capital, investments in Company's subsidiaries, capital expenditures, acquisitions, and stock repurchases. In connection with the redemption of the 2021 Notes, during the year ended December 31, 2020, the Company recorded a $9.1 million loss on debt extinguishment on the Consolidated Statements of Income, which consisted of a $8.5 million redemption premium payment and $0.6 million for the unamortized portion of the original issue discount and previously incurred issuance costs. Note 11. Debt - (Continued) Credit Agreement On March 29, 2019, the Company entered into a Second Amended and Restated Credit Agreement (“Credit Agreement”) with Bank of America, N.A., JPMorgan Chase Bank, N.A., U.S. Bank National Association, Citibank, N.A., MUFG Union Bank, N.A., and the other lenders party thereto. The Credit Agreement has a term of five years and matures on March 29, 2024. In connection with the closing of the Credit Agreement, the Company made an initial borrowing of $100.0 million in revolving loans, $100.0 million in term loans in U.S. dollars, and the equivalent of $150.0 million in term loans in Swedish kronor and repaid all outstanding amounts under its prior credit agreement. The Company borrowed an additional $175.0 million and made payments of $191.0 million under the revolving credit facility during the year ended December 31, 2020. The Company has the right, subject to certain conditions, including approval of additional commitments by qualified lenders, to increase the availability under the revolving credit facility by an additional $200.0 million until March 29, 2024. 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 from the type and tenor of the borrowing and includes loans based on the published term Eurocurrency rate (e.g. LIBOR) in which the loan is denominated. The Eurocurrency rate loans have a floor of zero percent and an applicable margin that ranges from 1.000 percent to 1.375 percent depending on the Company’s consolidated total leverage ratio. The Credit Agreement requires the Company to pay a commitment fee on the amount of unused revolving commitments at a rate, based on our consolidated total leverage ratio, which ranges from 0.125 percent to 0.200 percent of unused revolving commitments. At December 31, 2020, the commitment fee on the amount of unused revolving credit was 0.175 percent per annum. The Credit Agreement contains one financial covenant that requires maintenance of a consolidated total leverage ratio with which the Company was in compliance at December 31, 2020. The facilities available under the Credit Agreement are unsecured. The Credit Agreement also contains language providing for the adoption of a LIBOR successor rate in anticipation of the possibility of LIBOR benchmark reform, consistent with market practice. The Company is engaged in regular dialogue with its lenders and derivatives counterparties to keep apprised of the proposed successor rates in each of the jurisdictions that might be impacted by a need to execute a financial transaction. Although progress has been made by the various working groups, the Company believes it is too early to accurately assess any financial impact of the LIBOR benchmark reform. As disclosed in Note 3, "Fair Value of Financial Instruments", the Company entered into a floored interest rate swap with a Swedish kronor notional amount initially equivalent to $150.0 million to hedge the cash flows associated with the interest rate risk arising from the variability in interest expense attributable to amounts drawn under the Swedish kronor term loan. Letters of Credit At December 31, 2020, the Company had $14.1 million of letters of credit outstanding under the Credit Agreement, which reduced the total availability under the revolving commitments under the Credit Agreement. On January 11, 2019, a standby letter of credit, not to exceed Swedish kronor 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 Authority in order to grant the original respite from paying the tax reassessment described in Note 15, "Income Taxes." The outstanding amount of the L/C Agreement was equivalent to approximately $270.5 million at December 31, 2020. While outstanding amounts under the L/C Agreement do not reduce the available revolving credit from the Credit Agreement, they are considered indebtedness and influence the incremental debt capacity governed by our Credit Agreement covenants. The standby letter of credit was further amended on April 24, 2020 to reflect the new respite. |
Accrued Product Warranties
Accrued Product Warranties | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Accrued Product Warranties | The following table summarizes the Company’s warranty liability and activity for 2020, 2019 and 2018 (in thousands): Note 12. Accrued Product Warranties - (Continued) Year Ended December 31, 2020 2019 2018 Accrued product warranties, beginning of year $ 19,144 $ 18,583 $ 18,052 Amounts paid for warranty services (8,490) (14,925) (17,347) Warranty provisions for products sold 10,514 14,616 17,888 Business acquisition — 899 8 Currency translation adjustments and other 354 (29) (18) Accrued product warranties, end of year $ 21,522 $ 19,144 $ 18,583 Current accrued product warranties, end of year $ 17,019 $ 14,611 $ 15,204 Long-term accrued product warranties, end of year $ 4,503 $ 4,533 $ 3,379 |
Standard Product Warranty, Policy [Policy Text Block] | 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. Long-term accrued product warranties are included in other long-term liabilities on the Consolidated Balance Sheets. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Total net rent expense for the years ended December 31, 2020, 2019 and 2018 amounted to $14.8 million, $14.8 million and $13.3 million, respectively. For additional information and future minimum obligations under all non-cancelable leases, refer to Note 7, "Leases." |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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's Directorate of Defense Trade Controls (“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, 2019, and 2020, the Company paid $1.0 million, $3.5 million and $3.5 million, respectively, of the $15.0 million charge. As of December 31, 2020, the remaining $7.0 million is payable in annual installments of $3.5 million through April 2022 and have been recorded in other current liabilities and other long-term liabilities accordingly. The Company's investments in remedial compliance measures to date have been 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 several 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. The Company also submitted a voluntary self-disclosure regarding the same matter with the United States Department of Commerce Bureau of Industry and Security ("BIS"). This matter remains under review by DDTC, BIS and the Department of Justice ("DOJ"). DDTC and BIS both acknowledged the submissions, and the Company executed tolling agreements for this matter with each of DDTC, BIS and DOJ. The DDTC tolling agreement has lapsed, and the BIS and DOJ tolling agreements have been extended to March 1, 2021 and March 15, 2021, respectively. Note 14. Contingencies - (Continued) Matters Involving the United States Department of State and Department of Commerce - (Continued) In June 2017, BIS 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. BIS 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 the Export Administration Regulations ("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. At this time, based on available information regarding these proceedings, 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. Shareholder Derivative Lawsuit In June 2020, a shareholder filed a derivative lawsuit in the Court of Chancery for the State of Delaware, Case No. 2020-0464, against the Company, as a nominal defendant, and certain current and former directors of the Company. Pointing to the Company’s 2015 settlement with the United States Securities and Exchange Commission of alleged United States Foreign Corrupt Practices Act violations and 2018 settlement with United States Department of State of alleged export control violations, the complaint alleges that the Company’s directors breached their fiduciary duties by failing to ensure that the Company had internal controls in place that would have prevented the alleged underlying misconduct and these settlements. The complaint also asserts claims for, among other matters, corporate waste and unjust enrichment, and seeks unspecified monetary damages from the individual defendants, injunctive relief, disgorgement of director compensation, and attorneys’ fees and costs. Because the complaint is derivative in nature, it does not seek monetary damages from the Company. However, the Company may be required to advance, and ultimately be responsible for, the legal fees and costs incurred by the individual defendants. The Company filed a motion to dismiss in the third quarter of 2020. Due to the announcement of the Teledyne Technologies acquisition of the Company on January 4, 2021, the parties stipulated to stay the action pending the close of the transaction, termination of the transaction, or through June 30, 2021, whichever occurs first. 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 cannot be predicted with certainty, the Company believes the probability is remote that the outcome of each of these matters 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, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Pre-tax earnings by significant geographical locations are as follows (in thousands): Note 15. Income Taxes - (Continued) Year Ended December 31, 2020 2019 2018 United States $ 77,477 $ 81,695 $ 165,719 Foreign 207,527 160,221 141,384 $ 285,004 $ 241,916 $ 307,103 The provisions for income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 2018 Current tax expense (benefit): Federal $ 10,281 $ 5,791 $ 17,900 State 2,877 5,895 5,980 Foreign 48,754 9,061 (16,008) 61,912 20,747 7,872 Deferred tax expense (benefit): Federal 6,209 11,459 1,273 State (1,488) (719) 235 Foreign 5,787 38,832 15,298 10,508 49,572 16,806 Total income tax provision $ 72,420 $ 70,319 $ 24,678 Net deferred tax assets (liabilities) were classified on the balance sheet as follows (in thousands): December 31, 2020 2019 Deferred tax assets, non-current $ 36,210 $ 39,983 Deferred tax liabilities, non-current (43,708) (53,544) Net deferred tax liabilities $ (7,498) $ (13,561) 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, 2020 2019 Deferred tax assets: Accrued liabilities and allowances $ 19,799 $ 17,850 Tax credit and loss carry-forwards 23,419 19,471 Stock-based compensation 6,476 10,660 Inventory basis differences 13,851 11,306 Deferred revenue 3,230 2,869 Other assets — 265 Gross deferred tax assets 66,775 62,421 Valuation allowance (4,399) (2,787) Total deferred tax assets, net 62,376 59,634 Deferred tax liabilities: Intangible assets (33,739) (38,209) Property and equipment (17,249) (16,536) Unremitted earnings of foreign subsidiaries (13,419) (13,225) Other liabilities (5,467) (5,225) Total deferred tax liabilities (69,874) (73,195) Net deferred tax liabilities $ (7,498) $ (13,561) Note 15. Income Taxes - (Continued) At December 31, 2020, the Company had United States tax net operating loss carry-forwards totaling approximately $42.0 million which expire between 2032 and 2040 and are subject to annual limitation under Section 382 of the Internal Revenue Code. The Company also has various foreign net operating loss carry-forwards totaling approximately $29.3 million, a portion of which expire between 2021 and 2040, and a portion of which have an indefinite carry-forward period. As of December 31, 2020, the Company has determined that a valuation allowance against its deferred tax assets of $4.4 million is required, primarily related to foreign net operating losses and capital losses carried forward. 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. 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, 2020 2019 2018 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rates resulting from: State taxes 1.8 2.6 2.5 Difference between statutory rate and foreign effective rate 2.1 2.7 (0.2) Foreign, federal and state income tax credits (2.8) (3.3) (1.5) Non-deductible expenses 5.9 3.1 2.3 European Union state aid matter — — (10.8) Domestic benefit of foreign sales (1.7) (2.1) (0.8) United States transition tax — — (2.6) Tax rate change on deferred items — 1.0 — Unremitted earnings of foreign subsidiaries — 2.3 (0.8) Audit settlements — 6.7 — Other (0.9) (4.9) (1.1) Effective tax rate 25.4 % 29.1 % 8.0 % The Company's effective tax rate in 2020 was higher than the United States Federal tax rate of 21.0 percent mainly due to state taxes, non-deductible expenses, accruals for unrecognized tax benefits and settlements with taxing authorities, and higher tax rates on income earned in foreign jurisdictions. These amounts were partially offset by tax credits generated in the United States and foreign jurisdictions. The Company's effective tax rate in 2019 was higher than the United States Federal Tax rate of 21.0 percent mainly due to accruals for settlements with various taxing authorities, state taxes, additional withholding tax due on future distributions of foreign earnings included in the transition tax levied by the Tax Act, and higher tax rates on income earned in foreign jurisdictions. 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, 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. 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 $365.7 million (Swedish kroner 3.0 billion). On March 26, 2020, the Company received an adverse judgment from the First Instance Court of Sweden (the “Court”) regarding the STA's reassessment. The Company does not agree with the Court’s ruling, continues to believe the STA's arguments in the reassessment are not in accordance with Swedish tax regulations or the treaty for the avoidance of double taxation between Sweden and Belgium, and has appealed the decision to the Administrative Court of Appeal in Stockholm. Consequently, no adjustment to the Company's unrecognized tax benefits has been recorded in relation to this matter. Note 15. Income Taxes - (Continued) The Company has received a respite from paying the reassessment until after a decision by the Administrative Court of Appeal by putting in place a bank guarantee to secure possible future payment of the tax and interest. There can be no assurance that the Company's appeal will be successful. During the third quarter of 2019, the European Commission announced the opening of a separate review to assess whether an excess profit tax ruling granted by Belgium to one of the Company's international subsidiaries is in breach of European Union state aid rules. The Company believes all taxes assessed by Belgium have been paid and has not adjusted unrecognized tax benefits in relation to this matter. As of December 31, 2020 and 2019, the Company has accrued income tax liabilities of $37.1 million and $37.1 million, respectively, related to the Tax Act's transition tax which is paid in installments over an eight-year period and will not accrue interest. Approximately $3.9 million is due within the next twelve months. As of December 31, 2020, the Company has undistributed earnings generated after January 1, 2018 by certain foreign subsidiaries of approximately $344.3 million that the Company intends to indefinitely invest outside the United States and on which it has not recognized deferred tax. Estimating the amount of potential tax is not practicable due to the complexity and variety of assumptions required. Management believes that the Company's recorded tax liabilities are adequate in the aggregate for its income tax exposures. 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, 2020 2019 2018 Balance, beginning of year $ 20,753 $ 33,205 $ 77,275 Increases related to current year tax positions 14,874 2,602 — Increases related to prior year tax positions 2,485 2,719 2,229 Lapse of statute of limitations (10,616) (13,371) (1,558) Settlements (1,764) (4,402) (40,514) Change due to currency translation — — (4,227) Balance, end of year $ 25,732 $ 20,753 $ 33,205 The unrecognized tax benefits at December 31, 2020 relate to the United States, Belgium, United Kingdom and various other foreign jurisdictions, of which $24.4 million would affect the Company’s effective tax rate if recognized. The Company anticipates approximately $3.2 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, 2020, the Company had $2.7 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 Sheets. 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 2017 - 2019 State of California 2015 - 2019 State of Massachusetts 2016 - 2019 State of Oregon 2017 - 2019 Sweden 2012 - 2019 United Kingdom 2016 - 2019 Belgium 2012 - 2019 |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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 “401(k) 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 401(k) Plan allows for contributions by the Company. The Company made and expensed matching contributions of $12.1 million, $11.3 million and $9.8 million during the years ended December 31, 2020, 2019 and 2018, respectively. Pension Plans 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, the Company recorded a settlement gain of approximately $0.6 million, primarily associated with the change in projected benefit obligation associated with the adjusted date of expected retirement for the final SERP participant. In addition, the Company previously offered certain employees outside the United States participation in a defined benefit pension plan that has been curtailed. The projected benefit obligation for the plans was $3.8 million and $3.6 million as of December 31, 2020 and 2019, respectively. The plans funding status was underfunded by $3.8 million and $3.6 million as of December 31, 2020 and 2019, respectively. A pension liability of $1.5 million and $1.3 million as of December 31, 2020 and 2019, respectively, has been recognized for the pension plans representing the excess of the unfunded accumulated benefit obligation over the accrued pension costs. For the defined benefit pension plan outside the United States, the discount rates of 0.8 percent and 1.4 percent used during the years ended December 31, 2020 and 2019, respectively, were 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. Benefits expected to be paid under the plans are approximately (in thousands): 2021 $ 302 2022 292 2023 284 2024 279 2025 271 Five years thereafter 1,080 $ 2,508 |
Operating Segments and Related
Operating Segments and Related Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | Operating Segments and Related Information Operating Segments The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segments’ 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. In the first quarter of 2020, the Company completed a business reorganization as part of its "Project Be Ready" restructuring plan which resulted in identification of two reportable segments (Industrial Technologies and Defense Technologies). The Company commenced operating and reporting under the new organization structure effective January 1, 2020. See Note 21, “Restructuring” for further information on Project Be Ready. Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Industrial Technologies Segment. The Industrial Technologies segment 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, manufactures, and services offerings that image, measure, and analyze thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications, imaging payloads for Unmanned Aerial Systems ("UAS"), and machine vision cameras. Additionally, the segment develops, manufactures, and services fixed-mounted visible and thermal imaging cameras and related analytics software for perimeter security, critical infrastructure, recreational and commercial maritime, and traffic monitoring and control. Offerings include thermal imaging cameras, analytics software, gas detection cameras, firefighting cameras, process automation cameras, environmental test and measurement devices, security cameras, marine electronics, and traffic cameras. Defense Technologies Segment. The Defense Technologies segment develops and manufactures enhanced imaging and recognition solutions for a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. 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. The segment also produces advanced multi-mission unmanned air and ground based systems serving US Department of Defense and Federal government agencies, public safety, and governmental customers in international markets. The following tables present revenue, segment operating income, and segment assets for the two segments. Segment operating income as reviewed by the CODM is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, separation, transaction, and integration costs, amortization of acquired intangible assets, restructuring expenses and asset impairment charges, and discrete legal and compliance matters. Net accounts receivable, inventories and demonstration assets for the operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures, and depreciation are managed on a Company-wide basis. Segment operating income information is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Revenue—External Customers: Industrial Technologies $ 1,156,058 $ 1,092,085 $ 1,112,250 Defense Technologies 767,631 794,941 663,436 $ 1,923,689 $ 1,887,026 $ 1,775,686 Revenue—Intersegments: Industrial Technologies $ 12,206 $ 15,073 $ 19,052 Defense Technologies 7,580 5,507 11,409 Eliminations (19,786) (20,580) (30,461) $ — $ — $ — Segment operating income: Industrial Technologies $ 344,376 $ 276,167 $ 268,472 Defense Technologies 168,469 196,592 194,009 $ 512,845 $ 472,759 $ 462,481 A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Year Ended December 31, 2020 2019 2018 Consolidated segment operating income $ 512,845 $ 472,759 $ 462,481 Unallocated corporate expenses (117,657) (118,358) (97,440) Amortization of purchased intangible assets (47,471) (57,376) (24,524) Asset impairment charges — (13,666) (3,349) Restructuring expenses (30,475) (10,099) (4,854) Loss on sale of business — — (13,708) Consolidated earnings from operations 317,242 273,260 318,606 Loss on debt extinguishment (9,126) — — Interest and non-operating income (expense), net (23,112) (31,344) (11,503) Consolidated earnings before income taxes $ 285,004 $ 241,916 $ 307,103 Unallocated corporate expenses include general corporate expenses, separation, transaction, and integration costs, amortization of acquired intangible assets, restructuring expenses and asset impairment charges, and discrete legal and compliance matters. A reconciliation of the Company's consolidated segment operating assets to consolidated total assets is as follows (in thousands): December 31, 2020 2019 Operating segment assets: Net accounts receivable, inventories and demonstration assets: Industrial Technologies $ 419,323 $ 405,166 Defense Technologies 436,595 332,639 $ 855,918 $ 737,805 Goodwill: Industrial Technologies 651,439 635,899 Defense Technologies 742,925 728,697 $ 1,394,364 $ 1,364,596 Total operating segment assets $ 2,250,282 $ 2,102,401 Assets not allocated: Cash and cash equivalents $ 297,795 $ 284,592 Prepaid expenses and other current assets 74,526 86,337 Property and equipment, net 267,682 255,905 Deferred income taxes 36,210 39,983 Intangible assets, net 209,636 247,514 Other assets $ 116,217 $ 120,809 Total assets $ 3,252,348 $ 3,137,541 Revenue and Long-Lived Assets by Geographic Area Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Note 19. Operating Segments and Related Information - (Continued) Revenue and Long-Lived Assets by Geographic Area - (Continued) Year Ended December 31, 2020 2019 Industrial Technologies Defense Technologies Total Consolidated Industrial Technologies Defense Technologies Total Consolidated United States $ 517,951 $ 511,296 $ 1,029,247 $ 523,766 $ 513,428 $ 1,037,194 Europe 294,090 99,074 393,164 280,184 118,301 398,485 Asia 238,997 53,901 292,898 193,437 63,717 257,154 Middle East/Africa 48,772 92,243 141,015 32,642 90,110 122,752 Canada/Latin America 56,248 11,117 67,365 62,056 9,385 71,441 $ 1,156,058 $ 767,631 $ 1,923,689 $ 1,092,085 $ 794,941 $ 1,887,026 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, 2020 2019 United States $ 1,144,758 $ 1,137,375 Europe 440,549 435,024 Other foreign 402,592 416,425 $ 1,987,899 $ 1,988,824 Major Customers Revenue derived from major customers is as follows (in thousands): Year Ended December 31, 2020 2019 2018 United States government $ 602,735 $ 603,769 $ 511,094 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring The Company had various active restructuring programs focused on reorganization and discontinuation of certain businesses, targeted workforce reductions, and facility consolidation actions. These targeted reductions enabled the Company to better align its resources in areas providing the greatest benefit in the current business environment. In the first quarter of 2020, the Company initiated a strategy-driven restructuring plan, Project Be Ready, to simplify the Company’s product portfolio and better align resources with higher growth opportunities while reducing costs. Project Be Ready includes an organizational realignment, targeted workforce reductions, and facility optimization initiatives. All previously approved ongoing restructuring activities that were in process as of January 1, 2020 were consolidated into Project Be Ready. The Company expects to incur total costs of approximately $40.0 million to $55.0 million related to Project Be Ready, including approximately $20.0 million to $25.0 million of employee separation costs, approximately $5.0 million to $10.0 million of facility consolidation expenses, and approximately $15.0 million to $20.0 million of third party and other costs. The Company estimates that a majority of the cumulative pretax costs will be cash outlays related to employee separation, facility consolidation, and third-party expenses and that the costs will continue through 2021. Restructuring expenses related to Project Be Ready, which are recorded in “Restructuring Expenses” on the Consolidated Statements of Income, were as follows (in thousands): Year Ended December 31, 2020 2019 Employee separation costs $ 18,427 $ — Lease consolidation expenses 204 — Third party and other costs 11,844 — Total Restructuring Program Expenses $ 30,475 $ — The restructuring liability related to Project Be Ready was as follows (in thousands): Note 21. Restructuring - (Continued) Employee separation costs Third party and other costs Total Balance at December 31, 2019 $ 1,343 $ 2,780 $ 4,123 Accrual and accrual adjustments 18,427 12,048 30,475 Cash payments (15,553) (14,561) (30,114) Balance at December 31, 2020 $ 4,217 $ 267 $ 4,484 During the years ended December 31, 2019 and 2018, the Company recorded net pre-tax restructuring charges in connection with other restructuring activities totaling approximately $10.1 million and $4.9 million, respectively, which primarily represented employee termination benefits and costs to consolidate, relocate or discontinue operations. In addition, during the year ended December 31, 2019 the Company incurred goodwill and intangible asset impairment charges totaling approximately $6.5 million and $1.2 million, respectively, related to the other restructuring actions. Inventory write-downs associated with the other restructuring actions were also incurred and totaled $5.9 million and $3.3 million for the years ended December 31, 2019 and 2018, respectively. Refer to Note 9, "Goodwill," Note 10, "Intangibles Assets," and Note 6, "Inventories," for further discussion. Accrued restructuring balances were recorded as a current liability within “Accrued payroll and related benefits” on the Consolidated Balance Sheets and not deemed material as of December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 4, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Teledyne Technologies Incorporated, a Delaware corporation (“Teledyne”), Firework Merger Sub I, Inc., a Delaware corporation and a wholly owned subsidiary of Teledyne (“Merger Sub I”), and Firework Merger Sub II, LLC, a Delaware limited liability company and a wholly owned subsidiary of Teledyne (“Merger Sub II”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub I will merge with and into the Company, with the Company surviving the merger as a wholly owned subsidiary of Teledyne (the “First Merger”) and immediately thereafter, the Company will merge with and into Merger Sub II, with Merger Sub II surviving the subsequent merger (the “Second Merger”, and, together with the First Merger, the “Mergers”). Subject to the terms and conditions set forth in the Merger Agreement, upon completion of the Mergers, the Company stockholders will receive, in exchange for each share of our common stock held immediately prior to the Mergers, (i) $28.00 in cash and (ii) 0.0718 shares of Teledyne common stock. The Merger Agreement provides each of the Company and Teledyne with certain termination rights and, under certain circumstances, may require the Company or Teledyne to pay a termination fee. The transaction is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, approvals of Teledyne and the Company stockholders and other customary closing conditions. On February 16, 2021, the Company's Board of Directors declared a quarterly dividend of $0.17 per share on the Company's common stock, payable on March 19, 2021, to shareholders of record as of the close of business on March 5, 2021. The total cash payment of this dividend will be approximately $22.3 million. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Q1 Q2 Q3 Q4 2020 Revenue $ 450,923 $ 482,015 $ 466,414 $ 524,337 Gross profit 219,368 252,200 228,914 246,531 Net earnings (1) 15,424 61,257 60,663 75,240 Earnings per share: Basic earnings per share $ 0.12 $ 0.47 $ 0.46 $ 0.57 Diluted earnings per share $ 0.11 $ 0.47 $ 0.46 $ 0.57 2019 Revenue $ 444,736 $ 481,998 $ 471,248 $ 489,044 Gross profit 233,861 233,408 229,747 232,370 Net earnings (2) 61,748 46,118 62,047 1,684 Earnings per share: Basic earnings per share $ 0.46 $ 0.34 $ 0.46 $ 0.01 Diluted earnings per share $ 0.45 $ 0.34 $ 0.46 $ 0.01 _______________ (1) Net earnings for the third quarter of 2020 includes $9.1 million of loss on debt extinguishment due to the redemption of our 2021 Notes and for the fourth quarter of 2020 includes discrete tax expense of $18.3 million. (2) Net earnings for the fourth quarter of 2019 includes discrete tax expense of $24.4 million and $13.7 million of asset impairment charges associated with the Company's restructuring of the OTS business. 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, 2020 | 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 significant intercompany accounts and transactions have been 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, 2020. 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. | |
Revenue recognition | Revenue recognition The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. The Company designs, markets and sells products primarily as 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. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Revenue recognition - (Continued) 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 fulfillment costs 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. 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 19, "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, 2020 and 2019 were $0.1 million and $0.7 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, 2020 and 2019, 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, in certain instances, the Company also records an allowance based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers. | |
Fair Value of Financial Instruments | Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company considers the principal or most advantageous market in which the asset or liability would transact, and if necessary, considers assumptions that market participants would use when pricing the asset or liability. Assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. 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. | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value 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 net realizable value 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 $30.1 million and $30.4 million at December 31, 2020 and 2019, 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 Effective January 1, 2019, the Company adopted the requirements of ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". Goodwill represents the excess purchase price of an acquired enterprise over the estimated fair value of identifiable net assets acquired. The Company assesses goodwill for potential impairment at the reporting unit level during the third quarter of each year, or whenever events or circumstances indicate that the carrying value of these assets may exceed their fair value. The Company may assess qualitative factors to make this determination, or bypass such a qualitative assessment and proceed directly to testing goodwill for impairment using a two-step process. As a result of the adoption of ASU 2017-04, if it is determined that the goodwill is impaired, it is no longer required to compare the implied fair value of the reporting unit goodwill associated with the carrying amount of that goodwill, which is commonly referred to as Step 2. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Goodwill - (Continued) The Company elects to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. When performing a qualitative assessment, the Company considers factors including, but not limited to, current macroeconomic conditions, industry and market conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments and entity specific factors such as strategies and financial performance and other events relevant to the entity or reporting unit under evaluation. If, based on the review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, (of if the Company elected to bypass assessing the qualitative factors) the Company would perform a quantitative impairment test to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized (if any) by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would 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. During the first quarter of 2020, as a result of a deterioration in macroeconomic conditions driven by COVID-19 as well as Company-specific events which combined resulted in declines to our stock price and market capitalization, the Company determined it was more likely than not that these factors had a significant adverse impact on its reporting units. An interim quantitative goodwill impairment analysis was performed as of March 31, 2020 and the Company determined that the fair values of its reporting units were greater than their carrying values. During the third quarter of 2020, the Company performed its annual goodwill impairment analysis. The Company performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary. The Company did not recognize any impairment charges on goodwill during the years ended December 31, 2020 and 2018, respectively. The impairment tests performed during the year ended December 31, 2019 indicated, based on the assessment of qualitative factors in the fourth quarter, that it was more likely than not that the fair value was less than the carrying value for the OTS reporting unit. As such, a quantitative impairment test was performed which determined that the fair value of the OTS reporting unit was approximately 63% of its carrying value. As a result, the Company recorded goodwill impairment charges in the Industrial Technologies Segment during the fourth quarter of 2019, which represents the difference between the carrying value and the fair value of the OTS reporting unit. See Note 9, "Goodwill" for additional information and discussion on impairment charges on goodwill recorded during the year ended December 31, 2019. | |
Intangible assets | Intangible assets Intangible assets are amortized using the method that best reflects how their economic benefits are utilized, or, if a pattern of economic benefits cannot be reliably determined, 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. | |
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 intangible assets with indefinite lives during the years ended December 31, 2020 and 2018, respectively. See Note 10, "Intangibles Assets" for additional information and discussion on impairment charges associated with the OTS restructuring within Industrial Technologies Segment recognized during the year ended December 31, 2019. | |
Advertising costs | Advertising costs Advertising costs, including social media, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2020, 2019 and 2018 were $8.1 million, $10.7 million and $13.0 million, respectively. | |
Minority interest equity investments | 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 other (income) expense, 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. The Company periodically reviews its equity investments for impairment. During the years ended December 31, 2020 and 2019, the Company recognized impairments of $4.8 million and $4.1 million, respectively associated with its equity investments which are included in other (income) expense, net in the Consolidated Statement of Income. During the year ended December 31, 2018, the Company did not recognize any impairments on its minority interest equity investments. The carrying values of the minority interest equity investments were $14.1 million and $19.9 million at December 31, 2020 and 2019, respectively, and are included in other assets in the Consolidated Balance Sheets. | |
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. | |
Income Tax | Income taxes The Company accounts for income taxes 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 measured using the enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances against deferred tax assets are recorded when a determination is made that the deferred tax assets are not more likely than not to be realized in the future. In making that determination, on a jurisdiction by jurisdiction basis, the Company estimates the future taxable income based upon historical operating results and external market data. Future levels of taxable income are dependent upon, but not limited to, general economic conditions, competitive pressures and other factors beyond our control. The Company is subject to income taxes in the United States and in numerous foreign jurisdictions, and in the ordinary course of business, there are many transactions and calculations where the ultimate tax determination is uncertain. The Company records a benefit on a tax position when it is more likely than not that the position is sustainable upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions that are more likely than not to be sustained, the Company measures the tax position at the largest amount of benefit that has a greater than 50 percent likelihood of being realized when it is effectively settled, using information that is available at the reporting date. The Company reviews its tax positions as circumstances warrant, and updates its liability for additional taxes as changes in available facts arise. | |
Supplemental cash flow disclosure | Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2020 2019 2018 Cash paid for: Interest $ 20,806 $ 21,544 $ 14,183 Taxes $ 40,387 $ 52,146 $ 83,259 Non-cash transactions: Stock issued for business acquisition $ 7,335 $ — $ — | |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation at the grant date based on the fair value of the award and recognizes compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period, net of an estimated forfeiture rate. For awards granted beginning in 2020, the fair value of restricted stock unit awards and restricted stock units containing performance-based vesting criteria was based on the fair market value of the closing price of the Company's common stock on the date of grant. For awards granted prior to 2020, the fair value of restricted stock unit awards and restricted stock units containing performance-based vesting criteria was valued based on the fair market value of the closing price of the Company's common stock, discounted for expected dividends, on the date of grant. The Company uses the Black-Scholes option pricing model to estimate the fair value of shares expected to be issued under the Company's employee stock purchase plan. The estimation of such fair value requires management to make estimates and judgments about, among other things, forfeiture rates and the expected volatility of FLIR common stock over the expected term. These judgments directly affect the amount of compensation expense that will ultimately be recognized. In addition, the fair value was discounted for an estimate for illiquidity. The estimated discount for illiquidity was 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 was estimated using the protective put method. Treasury stock The Company accounts for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in the Consolidated Balance Sheets. | |
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 19, "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, fair value adjustments on currency forward contracts 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, 2020. Pension Plans Interest Rate Swap Contracts Currency Forward Contracts Foreign Total Balance, December 31, 2019 $ (740) $ (796) $ — $ (164,409) $ (165,945) Other comprehensive income (loss) before reclassifications, net of tax (192) (772) 2,949 5,974 7,959 Balance, December 31, 2020 $ (932) $ (1,568) $ 2,949 $ (158,435) $ (157,986) | |
Recent accounting pronouncements | Recently adopted accounting pronouncements Financial Accounting Standards Board ("FASB") ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13" or "Topic 326"): Effective January 1, 2020, the Company adopted ASU 2016-13 using a modified-retrospective approach. The standard changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. Adoption of the standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606" ("ASU 2018-18" ) : Effective January 1, 2020, the Company adopted 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 guidance on presentation of transactions not in the scope of ASC 606. Adoption of the standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2016-02, "Leases ("ASC 842"). Effective January 1, 2019, the Company adopted ASC 842 and all the related amendments using the modified retrospective method, using the permitted practical expedients, to those contracts still outstanding as of January 1, 2019. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The most significant impact was the recognition, on a discounted basis, of right-of-use (ROU) assets totaling approximately $31.9 million and lease liabilities totaling approximately $34.2 million under non-cancelable operating leases as of January 1, 2019 and the related new required disclosures. The standard did not have an impact on the Company's consolidated income statements or consolidated statements of cash flows. For additional disclosures required under the new standard, see Note 7, "Leases." FASB ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Effective January 1, 2019, the Company adopted 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 also 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 standard did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). Effective January 1, 2019, the Company adopted ASU 2018-02. Note 1. Nature of Business and Significant Accounting Policies - (Continued) Recently adopted accounting pronouncements - (Continued) The standard allows companies to reclassify stranded tax effects in accumulated other comprehensive earnings (loss) that have been caused by the Tax Cuts and Jobs Act of 2017 (the "Tax Act") to retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. However, the FASB made the reclassification optional. As a result, the Company assessed the impact of the ASU on its financial statements and did not exercise the option to reclassify the stranded tax effects caused by the Tax Act. FASB ASU No. 2018-07, "Improvements to Nonemployee Share-Based Payment Accounting" ("ASU 2018-07"). Effective January 1, 2019, the Company adopted ASU 2018-07. The standard more closely aligns the accounting for employee and nonemployee share-based payments. The standard did not have a material impact on the Company's consolidated financial statements or disclosures. FASB ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU 2018-15”). Effective January 1, 2019, the Company adopted 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 standard did not have a material impact on the Company’s consolidated financial statements. 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 $3.4 million and $79.3 million as of January 1, 2019 and 2018, respectively. Recently issued accounting pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)", which temporarily simplifies the accounting for contract modifications, including hedging relationships, due to the transition from LIBOR and other interbank offered rates to alternative reference interest rates. Subsequently the FASB issued ASU 2021-01 (Topic 848), which clarifies the scope of ASC 848. This ASU is available for adoption effective immediately, or as of January 1, 2020 or any date thereafter for the Company, and applies prospectively to contract modifications and hedging relationships. For example, entities can elect not to remeasure the contracts at the modification date or reassess a previous accounting determination if certain conditions are met. Additionally, entities can elect to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain conditions are met. The ASU 2020-04 guidance was effective for the Company beginning on March 12, 2020, and we may elect to apply the amendments prospectively from now through December 31, 2022. The Company has not yet adopted this guidance and is currently evaluating the potential impact of adoption on the Company's consolidated financial statements. | |
Earnings per share | Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2020 2019 2018 Cash paid for: Interest $ 20,806 $ 21,544 $ 14,183 Taxes $ 40,387 $ 52,146 $ 83,259 Non-cash transactions: Stock issued for business acquisition $ 7,335 $ — $ — |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share | |
Supplemental cash flow disclosure | Supplemental cash flow disclosure (in thousands) Year Ended December 31, 2020 2019 2018 Cash paid for: Interest $ 20,806 $ 21,544 $ 14,183 Taxes $ 40,387 $ 52,146 $ 83,259 Non-cash transactions: Stock issued for business acquisition $ 7,335 $ — $ — |
Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets | |
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, 2020. Pension Plans Interest Rate Swap Contracts Currency Forward Contracts Foreign Total Balance, December 31, 2019 $ (740) $ (796) $ — $ (164,409) $ (165,945) Other comprehensive income (loss) before reclassifications, net of tax (192) (772) 2,949 5,974 7,959 Balance, December 31, 2020 $ (932) $ (1,568) $ 2,949 $ (158,435) $ (157,986) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table presents the gross notional amounts of outstanding derivative instruments (in thousands): December 31, 2020 December 31, 2019 Derivative instruments designated as cash flow hedges: Interest Rate Swap $ 154,633 $ 143,302 Derivative instruments designated as fair value hedges: Currency Forward Contracts 226,667 340,000 Derivative instruments not formally designated as hedges: Currency Forward Contracts 70,338 104,835 The following table presents the balance sheet classification and fair value of derivative instruments (in thousands): December 31, December 31, Classification 2020 2019 Derivative instruments designated as cash flow hedges: Derivative instruments in asset positions: Interest Rate Swap Prepaid expense and other current assets $ 519 $ 404 Derivative instruments in liability positions: Interest Rate Swap Other current liabilities 982 453 Interest Rate Swap Other long-term liabilities 1,628 1,012 Derivative instruments designated as fair value hedges: Derivative instruments in liability positions: Currency forward contracts Other current liabilities 13,295 454 Currency forward contracts Other long-term liabilities 12,211 1,189 Derivative instruments not formally designated as hedges: Derivative instruments in asset positions: Currency forward contracts Prepaid expenses and other current assets 5,704 3,010 Derivative instruments in liability positions: Currency forward contracts Other current liabilities 506 391 The following table presents the statement of income classification of derivative instruments (in thousands): Year Ended December 31, Classification 2020 2019 2018 Derivative instruments designated as cash flow hedges: Loss recognized in other comprehensive loss, net of tax Other comprehensive income (loss) $ (772) $ (796) $ — Loss reclassified from other comprehensive loss to earnings for the effective portion Interest expense 703 656 — Derivative instruments designated as fair value hedges: Loss recognized in earnings for effective portion Other (income) expense, net 28,810 927 — Gain recognized in income for amount excluded from effectiveness testing Other (income) expense, net (4,207) — — Gain (loss) recognized in other comprehensive income (loss), net of tax Other comprehensive income (loss) 3,665 (716) — Derivative instruments not formally designated as hedges: (Gain) loss recognized in earnings Other (income) expense, net (16,966) (1,309) 9,111 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowance for doubtful accounts and the activity | Accounts Receivable Accounts receivable are net of an allowance for credit losses. The following table summarizes the Company’s allowance for credit losses and the activity for 2020, 2019 and 2018 (in thousands): Note 5. Accounts Receivable - (Continued) Year Ended December 31, 2020 2019 2018 Allowance for credit losses, beginning of year $ 6,112 $ 4,284 $ 7,630 Charges to costs and expenses 2,474 3,136 879 Write-offs of uncollectible accounts, net of recoveries (2,129) (1,293) (3,985) Business disposals — — (593) Currency translation adjustments 149 (15) 353 Allowance for credit losses, end of year $ 6,606 $ 6,112 $ 4,284 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2020 2019 Raw material and subassemblies $ 281,641 $ 224,239 Work-in-progress 51,763 44,344 Finished goods 138,833 120,179 $ 472,237 $ 388,762 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense were as follows (in thousands): Note 7. Leases - (Continued) Year Ended December 31, 2020 2019 Operating lease expense $ 12,055 $ 11,925 Short-term lease expense 81 963 Variable lease expense 2,265 1,586 Total lease expense $ 14,401 $ 14,474 Supplemental cash flow information related to operating leases (in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,289 $ 11,244 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,926 $ 12,210 Supplemental balance sheet information related to operating leases (in thousands): December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 32,833 $ 35,479 Operating lease liabilities $ 36,745 $ 39,291 |
Maturity of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): 2021 $ 11,699 2022 7,649 2023 4,607 2024 3,465 2025 2,945 Thereafter 10,712 Total lease payments 41,077 Less: imputed interest (4,332) Present value of lease liabilities $ 36,745 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment are summarized as follows (in thousands): Estimated December 31, 2020 2019 Land — $ 24,270 $ 21,511 Buildings 30 years 186,064 167,852 Machinery and equipment 3 to 7 years 326,984 307,530 Office equipment and other 3 to 10 years 130,851 129,127 668,169 626,020 Less accumulated depreciation (400,487) (370,115) $ 267,682 $ 255,905 Note 8. Property and Equipment - (Continued) Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $45.1 million, $44.2 million and $40.6 million, respectively. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying value of goodwill by reporting segment and the activity | The following table presents changes in the carrying value of goodwill and the activity by reportable segment for the two year period ending December 31, 2020 (in thousands): Industrial Technologies Defense Technologies Consolidated Balance, December 31, 2018 $ 620,383 $ 284,188 $ 904,571 Goodwill from acquisitions 23,945 445,501 469,446 Goodwill impairment (6,543) — (6,543) Currency translation adjustments (1,886) (992) (2,878) Balance, December 31, 2019 635,899 728,697 1,364,596 Adjustments to goodwill (6) (12,617) (12,623) Goodwill from acquisitions — 22,857 22,857 Currency translation adjustments 15,546 3,988 19,534 Balance, December 31, 2020 $ 651,439 $ 742,925 $ 1,394,364 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets are summarized as follows (in thousands): Weighted December 31, 2020 2019 Product technology 8 years $ 214,363 $ 207,511 Customer relationships 11 years 70,616 67,274 Trademarks and trade name portfolios 8 years 18,598 18,557 Trade name portfolio not subject to amortization indefinite 34,023 32,076 In-process research and development 8 years 33,900 34,698 Other 8 years 10,921 10,756 Acquired identifiable intangibles 382,421 370,872 Less accumulated amortization (172,958) (124,411) Net acquired identifiable intangibles 209,463 246,461 Patents 9 years 299 6,075 Less accumulated amortization (177) (5,109) Net patents 122 966 Acquired in-place leases and other 10 years 141 441 Less accumulated amortization (90) (354) Net acquired in-place leases and other 51 87 $ 209,636 $ 247,514 |
Estimated future aggregate amortization expense | For intangible assets recorded at December 31, 2020, the estimated future aggregate amortization expense for the years ending December 31, 2021 through 2025 is approximately (in thousands): 2021 $ 46,199 2022 44,266 2023 41,016 2024 19,504 2025 8,899 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | The Company's debt consists of the following (in thousands): December 31, 2020 December 31, 2019 Maturity Date Amount Stated Rate Effective Rate Amount Stated Rate Effective Rate Senior Unsecured Notes: 2030 Notes August 1, 2030 $ 500,000 2.500 % 2.630 % $ — — % — % 2021 Notes (1) June 15, 2021 — — % — % 425,000 3.125 % 3.343 % Credit Agreement: U.S. dollar term loan March 29, 2024 91,250 1.504 % 1.769 % 96,250 1.945 % 2.196 % Swedish kronor term loan March 29, 2024 154,632 1.250 % 1.484 % 143,302 1.348 % 1.601 % Revolving credit facility March 29, 2024 — 1.397 % 1.397 % 16,000 1.799 % 1.799 % Total 745,882 680,552 Unamortized discounts and issuance costs (7,490) (3,689) Total debt $ 738,392 $ 676,863 Reported as: Credit facility $ — $ 16,000 Long-term debt, current portion 13,473 12,444 Long-term debt, net of current portion 724,919 648,419 Total $ 738,392 $ 676,863 (1) The 2021 Notes were redeemed in full in connection with the Company’s August 2020 issuance of the 2030 Notes in a public offering described below under “Senior Unsecured Notes”. |
Accrued Product Warranties (Tab
Accrued Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Liability and Activity | The following table summarizes the Company’s warranty liability and activity for 2020, 2019 and 2018 (in thousands): Note 12. Accrued Product Warranties - (Continued) Year Ended December 31, 2020 2019 2018 Accrued product warranties, beginning of year $ 19,144 $ 18,583 $ 18,052 Amounts paid for warranty services (8,490) (14,925) (17,347) Warranty provisions for products sold 10,514 14,616 17,888 Business acquisition — 899 8 Currency translation adjustments and other 354 (29) (18) Accrued product warranties, end of year $ 21,522 $ 19,144 $ 18,583 Current accrued product warranties, end of year $ 17,019 $ 14,611 $ 15,204 Long-term accrued product warranties, end of year $ 4,503 $ 4,533 $ 3,379 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Obligations | Commitments Total net rent expense for the years ended December 31, 2020, 2019 and 2018 amounted to $14.8 million, $14.8 million and $13.3 million, respectively. For additional information and future minimum obligations under all non-cancelable leases, refer to Note 7, "Leases." |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Pre-tax earnings by significant geographical locations | Pre-tax earnings by significant geographical locations are as follows (in thousands): Note 15. Income Taxes - (Continued) Year Ended December 31, 2020 2019 2018 United States $ 77,477 $ 81,695 $ 165,719 Foreign 207,527 160,221 141,384 $ 285,004 $ 241,916 $ 307,103 |
Provisions for income taxes | The provisions for income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 2018 Current tax expense (benefit): Federal $ 10,281 $ 5,791 $ 17,900 State 2,877 5,895 5,980 Foreign 48,754 9,061 (16,008) 61,912 20,747 7,872 Deferred tax expense (benefit): Federal 6,209 11,459 1,273 State (1,488) (719) 235 Foreign 5,787 38,832 15,298 10,508 49,572 16,806 Total income tax provision $ 72,420 $ 70,319 $ 24,678 |
Deferred tax assets (liabilities) | Net deferred tax assets (liabilities) were classified on the balance sheet as follows (in thousands): December 31, 2020 2019 Deferred tax assets, non-current $ 36,210 $ 39,983 Deferred tax liabilities, non-current (43,708) (53,544) Net deferred tax liabilities $ (7,498) $ (13,561) 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, 2020 2019 Deferred tax assets: Accrued liabilities and allowances $ 19,799 $ 17,850 Tax credit and loss carry-forwards 23,419 19,471 Stock-based compensation 6,476 10,660 Inventory basis differences 13,851 11,306 Deferred revenue 3,230 2,869 Other assets — 265 Gross deferred tax assets 66,775 62,421 Valuation allowance (4,399) (2,787) Total deferred tax assets, net 62,376 59,634 Deferred tax liabilities: Intangible assets (33,739) (38,209) Property and equipment (17,249) (16,536) Unremitted earnings of foreign subsidiaries (13,419) (13,225) Other liabilities (5,467) (5,225) Total deferred tax liabilities (69,874) (73,195) Net deferred tax liabilities $ (7,498) $ (13,561) |
Effective income tax rate reconciliation | Year Ended December 31, 2020 2019 2018 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rates resulting from: State taxes 1.8 2.6 2.5 Difference between statutory rate and foreign effective rate 2.1 2.7 (0.2) Foreign, federal and state income tax credits (2.8) (3.3) (1.5) Non-deductible expenses 5.9 3.1 2.3 European Union state aid matter — — (10.8) Domestic benefit of foreign sales (1.7) (2.1) (0.8) United States transition tax — — (2.6) Tax rate change on deferred items — 1.0 — Unremitted earnings of foreign subsidiaries — 2.3 (0.8) Audit settlements — 6.7 — Other (0.9) (4.9) (1.1) Effective tax rate 25.4 % 29.1 % 8.0 % |
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, 2020 2019 2018 Balance, beginning of year $ 20,753 $ 33,205 $ 77,275 Increases related to current year tax positions 14,874 2,602 — Increases related to prior year tax positions 2,485 2,719 2,229 Lapse of statute of limitations (10,616) (13,371) (1,558) Settlements (1,764) (4,402) (40,514) Change due to currency translation — — (4,227) Balance, end of year $ 25,732 $ 20,753 $ 33,205 |
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 2017 - 2019 State of California 2015 - 2019 State of Massachusetts 2016 - 2019 State of Oregon 2017 - 2019 Sweden 2012 - 2019 United Kingdom 2016 - 2019 Belgium 2012 - 2019 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Information with Respect to Stock Option Activity | Information with respect to stock option activity for the year ended December 31, 2020 is as follows: Shares Weighted Average Weighted Average Aggregate Intrinsic Outstanding at December 31, 2019 1,389 $ 29.08 3.9 Exercised (122) 30.02 Outstanding at December 31, 2020 1,267 $ 28.99 2.9 $ 18,801 Exercisable at December 31, 2020 1,267 $ 28.99 2.9 $ 18,801 Vested and expected to vest at December 31, 2020 1,267 $ 28.99 2.9 $ 18,801 |
Information with Respect to Restricted Stock Unit Activity | Information with respect to restricted stock unit activity for the year ended December 31, 2020 is as follows: Shares Weighted Average Grant Outstanding at December 31, 2019 1,876 $ 47.08 Granted 1,116 43.67 Vested (825) 43.64 Forfeited (275) 48.73 Outstanding at December 31, 2020 1,892 $ 45.70 |
Other Employee Benefit Plans (T
Other Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefits expected to be paid under the plans | Benefits expected to be paid under the plans are approximately (in thousands): 2021 $ 302 2022 292 2023 284 2024 279 2025 271 Five years thereafter 1,080 $ 2,508 |
Operating Segments and Relate_2
Operating Segments and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Year Ended December 31, 2020 2019 2018 Revenue—External Customers: Industrial Technologies $ 1,156,058 $ 1,092,085 $ 1,112,250 Defense Technologies 767,631 794,941 663,436 $ 1,923,689 $ 1,887,026 $ 1,775,686 Revenue—Intersegments: Industrial Technologies $ 12,206 $ 15,073 $ 19,052 Defense Technologies 7,580 5,507 11,409 Eliminations (19,786) (20,580) (30,461) $ — $ — $ — Segment operating income: Industrial Technologies $ 344,376 $ 276,167 $ 268,472 Defense Technologies 168,469 196,592 194,009 $ 512,845 $ 472,759 $ 462,481 A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Note 19. Operating Segments and Related Information - (Continued) Operating Segments - (Continued) Year Ended December 31, 2020 2019 2018 Consolidated segment operating income $ 512,845 $ 472,759 $ 462,481 Unallocated corporate expenses (117,657) (118,358) (97,440) Amortization of purchased intangible assets (47,471) (57,376) (24,524) Asset impairment charges — (13,666) (3,349) Restructuring expenses (30,475) (10,099) (4,854) Loss on sale of business — — (13,708) Consolidated earnings from operations 317,242 273,260 318,606 Loss on debt extinguishment (9,126) — — Interest and non-operating income (expense), net (23,112) (31,344) (11,503) Consolidated earnings before income taxes $ 285,004 $ 241,916 $ 307,103 Unallocated corporate expenses include general corporate expenses, separation, transaction, and integration costs, amortization of acquired intangible assets, restructuring expenses and asset impairment charges, and discrete legal and compliance matters. A reconciliation of the Company's consolidated segment operating assets to consolidated total assets is as follows (in thousands): |
Segment Assets | December 31, 2020 2019 Operating segment assets: Net accounts receivable, inventories and demonstration assets: Industrial Technologies $ 419,323 $ 405,166 Defense Technologies 436,595 332,639 $ 855,918 $ 737,805 Goodwill: Industrial Technologies 651,439 635,899 Defense Technologies 742,925 728,697 $ 1,394,364 $ 1,364,596 Total operating segment assets $ 2,250,282 $ 2,102,401 Assets not allocated: Cash and cash equivalents $ 297,795 $ 284,592 Prepaid expenses and other current assets 74,526 86,337 Property and equipment, net 267,682 255,905 Deferred income taxes 36,210 39,983 Intangible assets, net 209,636 247,514 Other assets $ 116,217 $ 120,809 Total assets $ 3,252,348 $ 3,137,541 |
By Significant Geographical Location | Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): Note 19. Operating Segments and Related Information - (Continued) Revenue and Long-Lived Assets by Geographic Area - (Continued) Year Ended December 31, 2020 2019 Industrial Technologies Defense Technologies Total Consolidated Industrial Technologies Defense Technologies Total Consolidated United States $ 517,951 $ 511,296 $ 1,029,247 $ 523,766 $ 513,428 $ 1,037,194 Europe 294,090 99,074 393,164 280,184 118,301 398,485 Asia 238,997 53,901 292,898 193,437 63,717 257,154 Middle East/Africa 48,772 92,243 141,015 32,642 90,110 122,752 Canada/Latin America 56,248 11,117 67,365 62,056 9,385 71,441 $ 1,156,058 $ 767,631 $ 1,923,689 $ 1,092,085 $ 794,941 $ 1,887,026 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, 2020 2019 United States $ 1,144,758 $ 1,137,375 Europe 440,549 435,024 Other foreign 402,592 416,425 $ 1,987,899 $ 1,988,824 |
Revenue Derived from Major Customers | Major Customers Revenue derived from major customers is as follows (in thousands): Year Ended December 31, 2020 2019 2018 United States government $ 602,735 $ 603,769 $ 511,094 |
Business Acquisitions and Dives
Business Acquisitions and Divestitures (Tables) | Mar. 04, 2019 | Dec. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the acquired intangible assets and their estimated fair values and estimated useful lives (in thousands, except years): Note 20. Business Acquisitions - (Continued) Endeavor Robotics Holdings, Inc. - (Continued) Estimated Amount Developed technology 5.0 years $ 60,400 In-process research and development 9.0 years 28,000 Trademarks and trade name 4.5 years 9,990 Backlog 1.0 year 3,850 Customer contracts 1.0 year 500 $ 102,740 | |
Aeryon Lab [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 Aeryon was as follows (in thousands): Cash acquired $ 5,145 Other tangible assets and liabilities 6,097 Net deferred taxes (11,130) Identified intangible assets 44,292 Goodwill 161,518 Total purchase price $ 205,922 | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Amount Developed technology 5.0 years $ 32,300 In-process research and development 7.0 years 4,100 Trademarks and trade name 8.0 years 4,050 Backlog 1.0 year 2,842 Other technology 3.0 years 1,000 $ 44,292 | |
Endeavor [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 Endeavor was as follows (in thousands): Cash acquired $ 6,687 Other tangible assets and liabilities 14,915 Net deferred taxes (9,776) Identified intangible assets 102,740 Goodwill 271,365 Total purchase price $ 385,931 | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Amount Developed technology 5.0 years $ 60,400 In-process research and development 9.0 years 28,000 Trademarks and trade name 4.5 years 9,990 Backlog 1.0 year 3,850 Customer contracts 1.0 year 500 $ 102,740 | |
NEOS [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 New England Optical Systems, Inc. was as follows (in thousands): Cash acquired $ 15 Other tangible assets and liabilities 1,479 Identified intangible assets 6,400 Goodwill 13,987 Total purchase price $ 21,881 | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Amount Know how 10.0 years $ 3,900 Customer relationship 4.0 years 2,500 $ 6,400 | |
Altavian [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price was as follows (in thousands): Cash acquired $ 157 Other tangible assets and liabilities 1,491 Net deferred taxes 3,526 Identified intangible assets 6,075 Goodwill 22,857 Total purchase price $ 34,106 | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The identifiable intangible assets and their preliminary estimated fair values and estimated useful lives were as follows (in thousands, except years): Estimated Amount Developed technology 10.0 years $ 5,100 Internally developed software 5.0 years 800 Noncompete agreement 5.0 years 175 $ 6,075 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring expenses related to Project Be Ready, which are recorded in “Restructuring Expenses” on the Consolidated Statements of Income, were as follows (in thousands): Year Ended December 31, 2020 2019 Employee separation costs $ 18,427 $ — Lease consolidation expenses 204 — Third party and other costs 11,844 — Total Restructuring Program Expenses $ 30,475 $ — The restructuring liability related to Project Be Ready was as follows (in thousands): Note 21. Restructuring - (Continued) Employee separation costs Third party and other costs Total Balance at December 31, 2019 $ 1,343 $ 2,780 $ 4,123 Accrual and accrual adjustments 18,427 12,048 30,475 Cash payments (15,553) (14,561) (30,114) Balance at December 31, 2020 $ 4,217 $ 267 $ 4,484 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator for earnings per share: | |||
Net earnings for basic and diluted earnings per share | $ 212,584 | $ 171,597 | $ 282,425 |
Denominator for earnings per share: | |||
Weighted average number of common shares outstanding | 131,648 | 135,016 | 137,815 |
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 941 | 1,621 | 2,394 |
Diluted shares outstanding | 132,589 | 136,637 | 140,209 |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for: | |||
Interest | $ 20,806 | $ 21,544 | $ 14,183 |
Taxes | 40,387 | 52,146 | 83,259 |
Stock Issued During Period, Value, Acquisitions | $ 7,335 | $ 0 | $ 0 |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes from Accumulated Other Comprehensive income [Abstract] | ||
Pension plans, beginning balance | $ (740) | |
Pension plans adjustment, before reclassification | (192) | |
Interest rate swap contracts, beginning balance | (796) | |
Other comprehensive loss before reclassification, tax | (772) | |
Interest rate swap contracts, ending balance | (1,568) | $ (796) |
Pension plans, ending balalnce | (932) | (740) |
Available for sale items, adjustment | 2,949 | |
Available for sale items | 2,949 | 0 |
Foreign currency translation, beginning balance | (164,409) | |
Foreign currency translation adjustment | 5,974 | |
Foreign currency translation, ending balance | (158,435) | (164,409) |
Accumulated other comprehensive earnings, beginning balance | (165,945) | |
Other comprehensive earnings, before reclassifications | 7,959 | |
Accumulated other comprehensive earnings, ending balance | $ (157,986) | $ (165,945) |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (158,435) | $ (164,409) | ||
Retained earnings | $ 2,017,097 | $ 2,020,686 | ||
Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 3,400 | $ 79,300 |
Nature of Business and Signif_8
Nature of Business and Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Deferred Tax Assets, Valuation Allowance | $ 4,399 | $ 2,787 | ||
Cash equivalents at fair value | 100 | 700 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (158,435) | (164,409) | ||
Other Inventory, Demo, Gross | 30,100 | 30,400 | ||
Advertising costs | 8,100 | 10,700 | $ 13,000 | |
Carrying value of cost-basis investments | 14,100 | 19,900 | ||
Impairment charge - Cost-basis Investments | $ 4,800 | $ 4,100 | ||
Effect of stock-based compensation awards, shares excluded for purposes of diluted earnings per share | 189 | 33 | 10 | |
Net cash provided by operating activities | $ 312,363 | $ 370,372 | $ 374,157 | |
Net cash (used) provided by financing activities | (223,102) | 54,040 | (318,944) | |
Excess Tax Benefit from Share-based Compensation, Financing Activities | (11,274) | (11,993) | $ (16,228) | |
Operating Lease, Right-of-Use Asset | 32,833 | 35,479 | $ 31,900 | |
Other Noncurrent Liabilities | ||||
Operating Lease, Liability | $ 36,745 | $ 39,291 | $ 34,200 | |
Time-vested restricted stock unit | ||||
Restricted stock units granted | 1,018 | 867 | 594 | |
Time-vested and performance-based restricted stock unit | ||||
Weighted average grant date fair value per share | $ 43.78 | $ 50.45 | $ 52.93 | |
Restricted Stock Unit Awards | ||||
Total fair value of awards granted | $ 48,752 | $ 51,578 | $ 40,675 | |
Performance-based restricted stock unit [Member] | ||||
Restricted stock units granted | 98 | 158 | 177 | |
Weighted average grant date fair value per share | $ 42.51 | $ 49.57 | $ 52.32 | |
Total fair value of awards granted | $ 4,200 | |||
Stock Option Awards | ||||
Cash received from the exercise of stock options | 3,300 | $ 21,200 | $ 23,700 | |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 2,600 | $ 4,800 | $ 8,700 |
Revenue Revenue (Details)
Revenue Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 45 | $ 9.4 |
Contract with Customer, Liability | 48.8 | 69.1 |
Contract with Customer, Liability, Revenue Recognized | 44.2 | |
Contract with Customer, Liability, Noncurrent | 12 | $ 12.5 |
Revenue, Remaining Performance Obligation, Amount | $ 313.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | $ 0.1 | $ 0.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior unsecured notes | $ 527.7 | $ 430.1 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Gross Notional Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative fixed rate | 0.59% | |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Gross notional amount | $ 154,633 | $ 143,302 |
Designated as Hedging Instrument | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Gross notional amount | 226,667 | 340,000 |
Not Designated as Hedging Instrument | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Gross notional amount | $ 70,338 | $ 104,835 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative assets | $ 519 | $ 404 |
Designated as Hedging Instrument | Other Current Liabilities | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liabilities | 982 | 453 |
Designated as Hedging Instrument | Other Current Liabilities | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Derivative liabilities | 13,295 | 454 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liabilities | 1,628 | 1,012 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Derivative liabilities | 12,211 | 1,189 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Derivative assets | 5,704 | 3,010 |
Not Designated as Hedging Instrument | Other Current Liabilities | Currency Forward Contracts | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 506 | $ 391 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument | Other Expense (Income), Net | |||
Derivative [Line Items] | |||
Gain (loss) recognized in earnings | $ (16,966) | $ (1,309) | $ 9,111 |
Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Loss recognized in other comprehensive income, net of tax | (772) | (796) | 0 |
Cash Flow Hedges | Designated as Hedging Instrument | Interest Expense | |||
Derivative [Line Items] | |||
Loss reclassified from other comprehensive income to earnings for effective portion | 703 | 656 | 0 |
Fair Value Hedges | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Loss recognized in other comprehensive income, net of tax | 3,665 | (716) | 0 |
Fair Value Hedges | Designated as Hedging Instrument | Other Expense (Income), Net | |||
Derivative [Line Items] | |||
Loss recognized in earnings for effective portion | 28,810 | 927 | 0 |
Gain from Components Excluded from Assessment of Fair Value Hedge Effectiveness | $ (4,207) | $ 0 | $ 0 |
Accounts Receivable (Details)
Accounts Receivable (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning of year | $ 6,112 | $ 4,284 | $ 7,630 |
Charges to costs and expenses | 2,474 | 3,136 | 879 |
Write-offs of uncollectible accounts, net of recoveries | (2,129) | (1,293) | (3,985) |
Business acquisitions and disposals | 0 | 0 | (593) |
Currency translation adjustments | 149 | (15) | 353 |
Allowance for doubtful accounts, end of year | $ 6,606 | $ 6,112 | $ 4,284 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |||
Raw material and subassemblies | $ 224,239 | $ 281,641 | |
Work-in-progress | 44,344 | 51,763 | |
Finished goods | 120,179 | 138,833 | |
Total inventories | 388,762 | $ 472,237 | |
Inventory Write-down | $ 5,900 | $ 3,300 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expense | $ 12,055 | $ 11,925 | |
Short-term lease expense | 81 | 963 | |
Variable lease expense | 2,265 | 1,586 | |
Total lease expense | $ 14,401 | 14,474 | |
Weighted average remaining lease term | 5 years 10 months 24 days | ||
Weighted average discount rate | 3.73% | ||
Other Noncurrent Liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability | $ 36,745 | $ 39,291 | $ 34,200 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 10 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 12,289 | $ 11,244 |
Right-of-use assets obtained in exchange for lease obligations | $ 7,926 | $ 12,210 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 32,833 | $ 35,479 | $ 31,900 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 11,699 |
2021 | 7,649 |
2022 | 4,607 |
2023 | 3,465 |
2024 | 2,945 |
Thereafter | 10,712 |
Total lease payments | 41,077 |
Less: imputed interest | $ (4,332) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 668,169 | $ 626,020 |
Less accumulated depreciation | (400,487) | (370,115) |
Property and equipment, net | 267,682 | 255,905 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,270 | 21,511 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 186,064 | 167,852 |
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 | $ 326,984 | 307,530 |
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 | $ 130,851 | $ 129,127 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 45.1 | $ 44.2 | $ 40.6 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 1,364,596 | $ 904,571 |
Goodwill, Purchase Accounting Adjustments | (12,623) | |
Goodwill, Acquired During Period | 22,857 | 469,446 |
Goodwill, Impairment Loss | (6,543) | |
Goodwill, Translation Adjustments | 19,534 | (2,878) |
Ending Balance | 1,394,364 | 1,364,596 |
Government and defense | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 728,697 | 284,188 |
Goodwill, Purchase Accounting Adjustments | (12,617) | |
Goodwill, Acquired During Period | 22,857 | 445,501 |
Goodwill, Impairment Loss | 0 | |
Goodwill, Translation Adjustments | 3,988 | (992) |
Ending Balance | 742,925 | 728,697 |
Industrial | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 635,899 | 620,383 |
Goodwill, Purchase Accounting Adjustments | (6) | |
Goodwill, Acquired During Period | 0 | 23,945 |
Goodwill, Impairment Loss | (6,543) | |
Goodwill, Translation Adjustments | 15,546 | (1,886) |
Ending Balance | $ 651,439 | $ 635,899 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | |||
In Process Research and Development | $ 33,900 | $ 34,698 | |
Net carrying amount | 209,636 | 247,514 | |
Aggregate amortization expense | 47,600 | 57,500 | $ 24,700 |
2021 | 46,199 | ||
2022 | 44,266 | ||
2023 | 41,016 | ||
2024 | 19,504 | ||
2025 | 8,899 | ||
Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Acquired identifiable intangibles,Gross | 382,421 | 370,872 | |
Less accumulated amortization | (172,958) | (124,411) | |
Net carrying amount | 209,463 | 246,461 | |
Aggregate amortization expense | (47,471) | (57,376) | $ (24,524) |
Product technology | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 214,363 | 207,511 | |
Weighted average estimated useful life | 8 years | ||
Customer Relationships | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 70,616 | 67,274 | |
Weighted average estimated useful life | 11 years | ||
Trademarks and tradename portfolios | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 18,598 | 18,557 | |
Weighted average estimated useful life | 8 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 | 8 years | ||
Trade Secrets | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 10,921 | 10,756 | |
Weighted average estimated useful life | 8 years | ||
Patents | Nonacquired intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 299 | 6,075 | |
Less accumulated amortization | (177) | (5,109) | |
Net carrying amount | $ 122 | 966 | |
Weighted average estimated useful life | 9 years | ||
Acquired in-place leases and other | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 141 | 441 | |
Less accumulated amortization | (90) | (354) | |
Net carrying amount | $ 51 | 87 | |
Weighted average estimated useful life | 10 years | ||
Trade Names | Acquired identifiable intangibles | |||
Intangible Assets [Line Items] | |||
Infinite-Lived Intangibles, Gross | $ 34,023 | $ 32,076 |
Intangible Assets Intangible (D
Intangible Assets Intangible (Details textual ) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 159.7 | $ 6.1 |
Asset Impairment Charges | $ 1.2 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Aug. 03, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 29, 2019 |
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 745,882 | $ 680,552 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 7,490 | 3,689 | |||
Long-term Debt | 738,392 | 676,863 | |||
Long-term debt, current portion | 13,473 | 12,444 | |||
Long-term Debt, Excluding Current Maturities | 724,919 | 648,419 | |||
Gain (Loss) on Extinguishment of Debt | 9,126 | 0 | $ 0 | ||
Senior unsecured notes, proceeds | 494,234 | 0 | 0 | ||
Payment for Debt Extinguishment or Debt Prepayment Cost | (8,509) | 0 | $ 0 | ||
Write off of Deferred Debt Issuance Cost | 600 | ||||
Letter of Credit | $ 14,100 | ||||
BANK OF AMERICA, NATIONAL ASSOCIATION [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fee rate | 0.175% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Commitment fee rate | 0.125% | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||
Commitment fee rate | 0.20% | ||||
Sweden, Kronor | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Debt, Net of Issuance Costs | $ 150,000 | ||||
Credit Agreement | United States of America, Dollars | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 91,250 | $ 96,250 | |||
Senior unsecured notes, interest rate | 1.504% | 1.945% | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.769% | 2.196% | |||
Senior unsecured notes, maturity date | Mar. 29, 2024 | ||||
Credit Agreement | Sweden, Kronor | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 154,632 | $ 143,302 | $ 150,000 | ||
Senior unsecured notes, interest rate | 1.25% | 1.348% | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.484% | 1.601% | |||
Senior unsecured notes, maturity date | Mar. 29, 2024 | ||||
Term loan facility [Member] | United States of America, Dollars | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Debt, Net of Issuance Costs | $ 100,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 0 | $ 16,000 | |||
Senior unsecured notes, interest rate | 1.397% | 1.799% | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.397% | 1.799% | |||
Senior unsecured notes, maturity date | Mar. 29, 2024 | ||||
Repayments of Lines of Credit | $ 191,000 | ||||
Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Letter of Credit | 270,500 | ||||
Unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 175,000 | ||||
Unsecured notes | Senior 2030 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 500,000 | $ 0 | |||
Senior unsecured notes, interest rate | 2.50% | 0.00% | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.63% | 0.00% | |||
Senior unsecured notes, maturity date | Aug. 1, 2030 | ||||
Proceeds from Debt, Net of Issuance Costs | $ 494,200 | ||||
Unsecured notes | Senior 2021 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 0 | $ 425,000 | |||
Senior unsecured notes, interest rate | 0.00% | 3.125% | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 3.343% | |||
Senior unsecured notes, maturity date | Jun. 15, 2021 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Debt, Net of Issuance Costs | $ 100,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 200,000 |
Accrued Product Warranties (Det
Accrued Product Warranties (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)months | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Standard and Extended Product Warranty Accrual | $ 21,522 | $ 19,144 | $ 18,583 | $ 18,052 |
Standard and Extended Product Warranty Accrual, Decrease for Payments | (8,490) | (14,925) | (17,347) | |
Warranty provisions for products sold | 10,514 | 14,616 | 17,888 | |
Business acquisitions and disposals | 0 | 899 | 8 | |
Currency translation adjustments and other | 354 | (29) | (18) | |
Accrued product warranties | 17,019 | 14,611 | 15,204 | |
Long-term accrued product warranties, end of ear | $ 4,503 | $ 4,533 | $ 3,379 | |
Minimum | ||||
Product warranty term | months | 12 | |||
Product warranty term | months | 12 | |||
Maximum | ||||
Product warranty term | months | 24 | |||
Product warranty term | months | 24 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total net rent expense | $ 14.8 | $ 14.8 | $ 13.3 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Apr. 24, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2022 |
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss Reduction | $ 15 | ||||
Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Payments for Legal Settlements | $ 3.5 | ||||
Civil Penalty | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | 7 | ||||
Payments for Legal Settlements | $ 3.5 | $ 3.5 | $ 1 | ||
Minimum | Civil Penalty | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss Reduction | $ 15 | ||||
Maximum | Civil Penalty | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 30 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings from Continuing Operations before Income Taxes [Abstract] | |||
United States | $ 77,477 | $ 81,695 | $ 165,719 |
Foreign | 207,527 | 160,221 | 141,384 |
Earnings before income taxes | 285,004 | 241,916 | 307,103 |
Current tax expense (benefit): | |||
Federal | 10,281 | 5,791 | 17,900 |
State | 2,877 | 5,895 | 5,980 |
Foreign | 48,754 | 9,061 | (16,008) |
Current income tax expense (benefit) | 61,912 | 20,747 | 7,872 |
Deferred tax expense (benefit): | |||
Federal | 6,209 | 11,459 | 1,273 |
State | (1,488) | (719) | 235 |
Foreign | 5,787 | 38,832 | 15,298 |
Deferred Income Tax Expense (Benefit), Excluding Discontinued Operations | 10,508 | 49,572 | 16,806 |
Total provision | $ 72,420 | $ 70,319 | $ 24,678 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||||
Deferred Income Tax Expense (Benefit), Excluding Discontinued Operations | $ 10,508 | $ 49,572 | $ 16,806 | |||
Accrued Liabilities and allowances | $ 19,799 | $ 17,850 | 19,799 | 17,850 | ||
Tax credit carry-forwards | 23,419 | 19,471 | 23,419 | 19,471 | ||
Stock-based compensation | 6,476 | 10,660 | 6,476 | 10,660 | ||
Deferred Tax Assets, Inventory | 13,851 | 11,306 | 13,851 | 11,306 | ||
Deferred Tax Assets, Deferred Revenue | 3,230 | 2,869 | 3,230 | 2,869 | ||
Deferred Tax Assets, Other | 0 | 265 | 0 | 265 | ||
Deferred Tax Assets, Gross | 66,775 | 62,421 | 66,775 | 62,421 | ||
Deferred Tax Assets, Valuation Allowance | (4,399) | (2,787) | (4,399) | (2,787) | ||
Net deferred tax assets | 62,376 | 59,634 | 62,376 | 59,634 | ||
Deferred tax liabilities - Intangibles | (33,739) | (38,209) | (33,739) | (38,209) | ||
Deferred tax liabilities - Depreciation | (17,249) | (16,536) | (17,249) | (16,536) | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 13,419 | 13,225 | 13,419 | 13,225 | ||
Other deferred tax liabilities | (5,467) | (5,225) | (5,467) | (5,225) | ||
Deferred Tax Liabilities, Gross | (69,874) | (73,195) | (69,874) | (73,195) | ||
Deferred Tax Liabilities, Net | 7,498 | 13,561 | 7,498 | 13,561 | ||
Discrete tax expense | 18,300 | 24,400 | ||||
Undistributed Earnings of Foreign Subsidiaries | (344,300) | (344,300) | ||||
Unrecognized Tax Benefits | 25,732 | 20,753 | 25,732 | 20,753 | $ 33,205 | $ 77,275 |
Deferred income taxes, net | 36,210 | 39,983 | 36,210 | 39,983 | ||
Deferred Income Tax Liabilities, Net | (43,708) | $ (53,544) | (43,708) | (53,544) | ||
Transition [Member] | ||||||
Income Taxes [Line Items] | ||||||
Discrete tax expense | 37,100 | $ 37,100 | ||||
UNITED STATES FEDERAL | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry-forwards | 42,000 | 42,000 | ||||
Foreign | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carry-forwards | 29,300 | 29,300 | ||||
Income Tax Examination, Estimate of Possible Loss | $ 365,700 | |||||
Minimum | UNITED STATES FEDERAL | ||||||
Income Taxes [Line Items] | ||||||
Operating Loss Carryforwards, Expiration Year | 2032 | |||||
Minimum | Foreign | ||||||
Income Taxes [Line Items] | ||||||
Operating Loss Carryforwards, Expiration Year | 2021 | |||||
Maximum | UNITED STATES FEDERAL | ||||||
Income Taxes [Line Items] | ||||||
Operating Loss Carryforwards, Expiration Year | 2040 | |||||
Maximum | Foreign | ||||||
Income Taxes [Line Items] | ||||||
Operating Loss Carryforwards, Expiration Year | 2040 | |||||
Other Current Assets | ||||||
Income Taxes [Line Items] | ||||||
Unrecognized Tax Benefits | $ 3,200 | $ 3,200 | ||||
Accrued income taxes [Member] | Transition [Member] | ||||||
Income Taxes [Line Items] | ||||||
Discrete tax expense | $ 3,900 |
Income Taxes (Details 3)
Income Taxes (Details 3) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 21.00% |
State taxes | 1.80% | 2.60% | 2.50% |
Foreign rate differential | 2.10% | 2.70% | (0.20%) |
Foreign, federal and state income tax credits | (2.80%) | (3.30%) | (1.50%) |
Effective Income Tax Rate Reconciliation, Deduction, Percent | 5.90% | 3.10% | 2.30% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Percent | 0.00% | 0.00% | (10.80%) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | (1.70%) | (2.10%) | (0.80%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 0.00% | (2.60%) |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 0.00% | 1.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 0.00% | 2.30% | (0.80%) |
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Percent | 0.00% | 6.70% | 0.00% |
Other | (0.90%) | (4.90%) | (1.10%) |
Effective tax rate | 25.40% | 29.10% | 8.00% |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Balance, beginning of year | $ 20,753 | $ 33,205 | $ 77,275 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 24,400 | 24,400 | |||
Increases related to current year tax positions | 14,874 | 2,602 | 0 | ||
Increase related to prior year tax positions | 2,485 | 2,719 | 2,229 | ||
Lapse of statute of limitations | (10,616) | (13,371) | (1,558) | ||
Settlements | (1,764) | (4,402) | (40,514) | ||
Change due to Currency Translation | 0 | 0 | (4,227) | ||
Balance, end of year | 25,732 | $ 20,753 | 25,732 | $ 20,753 | $ 33,205 |
Discrete tax expense | 18,300 | $ 24,400 | |||
Accrued interest and penalties | 2,700 | 2,700 | |||
Other Current Assets | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Balance, end of year | $ 3,200 | 3,200 | |||
Foreign | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Income Tax Examination, Estimate of Possible Loss | $ 365,700 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
Discrete tax expense | $ 18.3 | $ 24.4 | ||
United States Federal | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2017 | |||
United States Federal | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
State of California | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2015 | |||
State of California | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
MASSACHUSETTS | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2016 | |||
MASSACHUSETTS | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
OREGON | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2017 | |||
OREGON | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
SWEDEN | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2012 | |||
SWEDEN | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
UNITED KINGDOM | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2016 | |||
UNITED KINGDOM | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
BELGIUM | Minimum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2012 | |||
BELGIUM | Maximum | ||||
Income Tax Examination [Line Items] | ||||
Tax years open to examination by major taxing jurisdictions | 2019 | |||
Transition [Member] | ||||
Income Tax Examination [Line Items] | ||||
Discrete tax expense | $ 37.1 | $ 37.1 |
Stock-based Compensation (Detai
Stock-based Compensation (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | ||
ESPP, Weighted Average Purchase Price of Shares Purchased | $ 33.19 | $ 42.21 | |
Shares of common stock reserved for issuance under the ESPP | (15,000,000) | ||
Payments for Repurchase of Common Stock | $ (166,311) | $ (124,998) | $ (243,706) |
Repurchase of common stock (in shares) | (4,600,000) | ||
Common Stock and Additional Paid-in Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of common stock (in shares) | (4,115,000) | (2,549,000) | (4,986,000) |
Treasury Stock, Common | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of common stock (in shares) | (450,000) | ||
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 | 4,967,000 | ||
Vested not distributed | 120,000 | ||
Restricted stock units granted | 1,116,000 | ||
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares issued | 267,574 | 169,000 | |
Shares of common stock reserved for future issuance under all of the stock incentive plans | 1,136,841 | ||
Employee Stock Purchase Plan (ESPP) | 2019 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares issued | 95,585 | ||
Employee Stock Purchase Plan (ESPP) | 2009 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares issued | 73,415 | ||
Time-vested restricted stock unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 1,018,000 | 867,000 | 594,000 |
Time-vested and performance-based restricted stock unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 43.78 | $ 50.45 | $ 52.93 |
Performance-based restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 98,000 | 158,000 | 177,000 |
Weighted average grant date fair value per share | $ 42.51 | $ 49.57 | $ 52.32 |
Total fair value of awards granted | $ 4,200 | ||
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards granted | 48,752 | $ 51,578 | $ 40,675 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from the exercise of stock options | 3,300 | 21,200 | 23,700 |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 2,600 | $ 4,800 | $ 8,700 |
Stock-based Compensation (Det_2
Stock-based Compensation (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Outstanding at beginning of period | 1,389 | |
Exercised | (122) | |
Outstanding at end of period | 1,267 | 1,389 |
Exercisable at end of period | 1,267 | |
Vested and expected to vest at end of period | 1,267 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period | $ 29.08 | |
Exercised | 30.02 | |
Outstanding at end of period | 28.99 | $ 29.08 |
Exercisable at end of period | 28.99 | |
Vested and expected to vest at end of period | $ 28.99 | |
Weighted-Average Remaining Contractual Term (in years) | ||
Outstanding at beginning of period | 2 years 10 months 24 days | 3 years 10 months 24 days |
Exercisable at end of period | 2 years 10 months 24 days | |
Vested and expected to vest at end of period | 2 years 10 months 24 days | |
Outstanding at end of period | 2 years 10 months 24 days | 3 years 10 months 24 days |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 18,801 | |
Exercisable at end of period | 18,801 | |
Vested and expected to vest at end of period | $ 18,801 |
Stock-based Compensation (Det_3
Stock-based Compensation (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 4,967,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Outstanding at beginning of period | 1,876,000 | ||
Granted | 1,116,000 | ||
Vested | (825,000) | ||
Forfeited | (275,000) | ||
Outstanding at end of period | 1,892,000 | 1,876,000 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning of period | $ 47.08 | ||
Granted | 43.67 | ||
Vested | 43.64 | ||
Forfeited | 48.73 | ||
Outstanding at end of period | $ 45.70 | $ 47.08 | |
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 | 1,136,841 | ||
Weighted Average Grant-Date Fair Value | |||
Granted | $ 10.96 | $ 11.72 | $ 10.01 |
Time-vested restricted stock unit | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Granted | 1,018,000 | 867,000 | 594,000 |
Performance-based restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Granted | 98,000 | 158,000 | 177,000 |
Stock-based Compensation (Det_4
Stock-based Compensation (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 39,164 | $ 36,689 | $ 34,170 |
Cost of goods sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,376 | 3,704 | 3,157 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 7,716 | 6,595 | 6,697 |
Selling General and Administrative Expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 27,072 | $ 26,390 | $ 24,316 |
Stock-based Compensation (Det_5
Stock-based Compensation (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |||
Capitalized in inventory | $ 1,169 | $ 1,122 | $ 1,080 |
Stock-based Compensation (Det_6
Stock-based Compensation (Details 6) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 0.00% | 1.30% | 1.20% |
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 | 0.10% | 2.00% | 2.30% |
Expected dividend yield | 1.80% | 1.30% | 1.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 0.00% | 0.00% | 10.50% |
Expected term | 6 months | 6 months | 6 months |
Expected volatility | 53.50% | 25.00% | 26.40% |
Stock-based Compensation (Det_7
Stock-based Compensation (Details 7) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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) | $ 2,600 | $ 4,800 | $ 8,700 |
Total fair value of awards vested | 345 | 1,340 | 2,529 |
Total intrinsic value of options exercised | $ 2,108 | $ 16,124 | $ 24,652 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 43.67 | $ 50.31 | $ 52.79 |
Total fair value of awards granted | $ 48,752 | $ 51,578 | $ 40,675 |
Total fair value of awards vested | $ 40,961 | $ 39,287 | $ 48,705 |
Performance-based restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 98 | 158 | 177 |
Weighted average grant date fair value per share | $ 42.51 | $ 49.57 | $ 52.32 |
Total fair value of awards granted | $ 4,200 | ||
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 10.96 | $ 11.72 | $ 10.01 |
Total fair value of shares estimated to be issued | $ 3,182 | $ 2,399 | $ 1,330 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
401(k) matching contributions | $ 12,100 | $ 11,300 | $ 9,800 |
Pension liability | $ 1,500 | $ 1,300 |
Other Employee Benefit Plans _2
Other Employee Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in benefit obligation: | ||
Benefit obligation | $ 3,800 | $ 3,600 |
Unfunded status | 3,800 | $ (3,600) |
Defined benefit pension plan for employees outside the United States | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 600 | |
Funded status and projected benefit obligation: | ||
Discount rate | 0.80% | 1.40% |
Other Employee Benefit Plans _3
Other Employee Benefit Plans (Details 3) $ in Thousands | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
2021 | $ 302 |
2022 | 292 |
2023 | 284 |
2024 | 279 |
2025 | 271 |
Five years thereafter | 1,080 |
Total expected future benefit payments | $ 2,508 |
Operating Segments and Relate_3
Operating Segments and Related Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Operating Segments and Relate_4
Operating Segments and Related Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 524,337 | $ 466,414 | $ 482,015 | $ 450,923 | $ 489,044 | $ 471,248 | $ 481,998 | $ 444,736 | $ 1,923,689 | $ 1,887,026 | $ 1,775,686 |
Intersegment revenue | 0 | 0 | 0 | ||||||||
Earnings (loss) from operations | 317,242 | 273,260 | 318,606 | ||||||||
Industrial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,156,058 | 1,092,085 | 1,112,250 | ||||||||
Intersegment revenue | 12,206 | 15,073 | 19,052 | ||||||||
Earnings (loss) from operations | 344,376 | 276,167 | 268,472 | ||||||||
Government and defense | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 767,631 | 794,941 | 663,436 | ||||||||
Intersegment revenue | 7,580 | 5,507 | 11,409 | ||||||||
Earnings (loss) from operations | 168,469 | 196,592 | 194,009 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,887,026 | ||||||||||
Earnings (loss) from operations | 512,845 | 472,759 | 462,481 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Intersegment revenue | $ 19,786 | $ 20,580 | $ 30,461 |
Operating Segments and Relate_5
Operating Segments and Related Information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Consolidated segment operating income | $ 512,845 | $ 472,759 | $ 462,481 | |
Unallocated corporate expense | (117,657) | (118,358) | (97,440) | |
Amortization of Intangible Assets | 47,600 | 57,500 | 24,700 | |
Asset Impairment Charges | $ (13,700) | 0 | (13,666) | (3,349) |
Restructuring expenses | (30,475) | (10,099) | (4,854) | |
Loss on sale of Business | 0 | 0 | (13,708) | |
Operating Income (Loss) | 317,242 | 273,260 | 318,606 | |
Gain (Loss) on Extinguishment of Debt | (9,126) | 0 | 0 | |
Other Nonoperating Expense | (23,112) | (31,344) | (11,503) | |
Consolidated earnings before income taxes | 285,004 | 241,916 | 307,103 | |
Goodwill | 1,364,596 | 1,394,364 | 1,364,596 | 904,571 |
Cash and Cash Equivalents | 284,592 | 297,795 | 284,592 | |
Prepaid expense and other current assets, excluding demo assets | 86,337 | 74,526 | 86,337 | |
Property, Plant and Equipment, Net | 255,905 | 267,682 | 255,905 | |
Deferred income taxes, net | 39,983 | 36,210 | 39,983 | |
Intangible assets, net | 247,514 | 209,636 | 247,514 | |
Other assets | 120,809 | 116,217 | 120,809 | |
Assets | 3,137,541 | 3,252,348 | 3,137,541 | |
Acquired Intangible Assets [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Amortization of Intangible Assets | (47,471) | (57,376) | (24,524) | |
Intangible assets, net | 246,461 | 209,463 | 246,461 | |
Total Segments [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 512,845 | 472,759 | 462,481 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 737,805 | 855,918 | 737,805 | |
Goodwill | 1,364,596 | 1,394,364 | 1,364,596 | |
BU assets (AR, inventories, demo assets and goodwill, net) | 2,102,401 | 2,250,282 | 2,102,401 | |
Industrial | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 344,376 | 276,167 | 268,472 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 405,166 | 419,323 | 405,166 | |
Goodwill | 635,899 | 651,439 | 635,899 | 620,383 |
Government and defense | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Operating Income (Loss) | 168,469 | 196,592 | 194,009 | |
BU assets (accounts receivable, inventories and demonstration assets, net) | 332,639 | 436,595 | 332,639 | |
Goodwill | $ 728,697 | $ 742,925 | $ 728,697 | $ 284,188 |
Operating Segments and Relate_6
Operating Segments and Related Information (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 524,337 | $ 466,414 | $ 482,015 | $ 450,923 | $ 489,044 | $ 471,248 | $ 481,998 | $ 444,736 | $ 1,923,689 | $ 1,887,026 | $ 1,775,686 |
United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,029,247 | ||||||||||
Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 393,164 | ||||||||||
Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 292,898 | ||||||||||
Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 141,015 | ||||||||||
Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 67,365 | ||||||||||
Total Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,887,026 | ||||||||||
Total Segments [Member] | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,037,194 | ||||||||||
Total Segments [Member] | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 398,485 | ||||||||||
Total Segments [Member] | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 257,154 | ||||||||||
Total Segments [Member] | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 122,752 | ||||||||||
Total Segments [Member] | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 71,441 | ||||||||||
Industrial | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 1,156,058 | 1,092,085 | 1,112,250 | ||||||||
Industrial | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 517,951 | 523,766 | |||||||||
Industrial | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 294,090 | 280,184 | |||||||||
Industrial | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 238,997 | 193,437 | |||||||||
Industrial | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 48,772 | 32,642 | |||||||||
Industrial | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 56,248 | 62,056 | |||||||||
Government and defense | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 767,631 | 794,941 | $ 663,436 | ||||||||
Government and defense | United States | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 511,296 | 513,428 | |||||||||
Government and defense | Europe [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 99,074 | 118,301 | |||||||||
Government and defense | Asia [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 53,901 | 63,717 | |||||||||
Government and defense | Mid_East/Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 92,243 | 90,110 | |||||||||
Government and defense | Canada/Latin_America [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 11,117 | $ 9,385 |
Operating Segments and Relate_7
Operating Segments and Related Information (Details 5) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 1,987,899 | $ 1,988,824 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 1,144,758 | 1,137,375 |
Europe [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 440,549 | 435,024 |
Other Geographic Region [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 402,592 | $ 416,425 |
Operating Segments and Relate_8
Operating Segments and Related Information (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 524,337 | $ 466,414 | $ 482,015 | $ 450,923 | $ 489,044 | $ 471,248 | $ 481,998 | $ 444,736 | $ 1,923,689 | $ 1,887,026 | $ 1,775,686 |
United States government | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 602,735 | $ 603,769 | $ 511,094 |
Business Acquisitions (Detail)
Business Acquisitions (Detail) - USD ($) $ in Thousands | May 01, 2019 | Mar. 04, 2019 | Jan. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 |
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 6,100 | $ 159,700 | ||||
Goodwill, Acquired During Period | 22,857 | $ 469,446 | ||||
Aeryon Lab [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | 5,145 | |||||
Net tangible assets | 6,097 | |||||
Net deferred taxes | 11,130 | |||||
Identifiable intangible assets | $ 44,292 | |||||
Goodwill, Acquired During Period | 161,518 | |||||
Total purchase price | $ 205,900 | 205,922 | ||||
Endeavor [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | 6,687 | |||||
Net tangible assets | 14,915 | |||||
Net deferred taxes | 9,776 | |||||
Identifiable intangible assets | $ 102,740 | |||||
Goodwill, Acquired During Period | 271,365 | |||||
Total purchase price | 385,900 | 385,931 | ||||
Endeavor [Member] | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 60,400 | |||||
Weighted average estimated useful life | 5 years | |||||
NEOS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | 15 | |||||
Net tangible assets | 1,479 | |||||
Identifiable intangible assets | $ 6,400 | |||||
Goodwill, Acquired During Period | 13,987 | |||||
Total purchase price | $ 21,900 | 21,881 | ||||
NEOS [Member] | Subsequent Event [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price | $ 12,000 | |||||
Altavian [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash acquired | 157 | |||||
Net tangible assets | 1,491 | |||||
Net deferred taxes | 3,526 | |||||
Identifiable intangible assets | 6,075 | |||||
Goodwill, Acquired During Period | 22,857 | |||||
Total purchase price | 34,106 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 7,300 | |||||
Altavian [Member] | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 5,100 | |||||
Weighted average estimated useful life | 10 years | |||||
Altavian [Member] | Computer Software, Intangible Asset | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 800 | |||||
Weighted average estimated useful life | 5 years | |||||
Altavian [Member] | Noncompete Agreements | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 175 | |||||
Weighted average estimated useful life | 5 years |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures Business Acquisitions (Details 1) - USD ($) $ in Thousands | May 01, 2019 | Mar. 04, 2019 | Jan. 28, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | $ 6,100 | $ 159,700 | |||
Aeryon [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | $ 44,292 | ||||
Aeryon [Member] | Developed Technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 5 years | ||||
Identifiable intangible assets | $ 32,300 | ||||
Aeryon [Member] | In Process R&D | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 7 years | ||||
Identifiable intangible assets | $ 4,100 | ||||
Aeryon [Member] | Backlog | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 1 year | ||||
Identifiable intangible assets | $ 2,842 | ||||
Aeryon [Member] | Other Intangible Assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 3 years | ||||
Identifiable intangible assets | $ 1,000 | ||||
Aeryon [Member] | Trade Names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 8 years | ||||
Identifiable intangible assets | $ 4,050 | ||||
Endeavor [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | $ 102,740 | ||||
Endeavor [Member] | Developed Technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 5 years | ||||
Identifiable intangible assets | $ 60,400 | ||||
Endeavor [Member] | In Process R&D | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 9 years | ||||
Identifiable intangible assets | $ 28,000 | ||||
Endeavor [Member] | Backlog | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 1 year | ||||
Identifiable intangible assets | $ 3,850 | ||||
Endeavor [Member] | Trade Names | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 4 years 6 months | ||||
Identifiable intangible assets | $ 9,990 | ||||
Endeavor [Member] | Customer Contracts | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 1 year | ||||
Identifiable intangible assets | $ 500 | ||||
NEOS [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | $ 6,400 | ||||
NEOS [Member] | Know how | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 10 years | ||||
Identifiable intangible assets | $ 3,900 | ||||
NEOS [Member] | Customer Relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average estimated useful life | 4 years | ||||
Identifiable intangible assets | $ 2,500 |
Business Acquisitions (Details
Business Acquisitions (Details textual) - USD ($) $ in Thousands | May 01, 2019 | Mar. 04, 2019 | Jan. 28, 2019 | Oct. 16, 2018 | Sep. 10, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 |
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 22,857 | $ 469,446 | ||||||
Identifiable intangible assets | 6,100 | $ 159,700 | ||||||
Acyclica [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 7,000 | |||||||
Identifiable intangible assets | 2,700 | |||||||
Total purchase price | $ 9,700 | |||||||
SeaPilot [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 3,000 | |||||||
Identifiable intangible assets | 1,700 | |||||||
Total purchase price | $ 4,700 | |||||||
Aeryon Lab [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 161,518 | |||||||
Net tangible assets | 6,097 | |||||||
Identifiable intangible assets | 44,292 | |||||||
Total purchase price | 205,900 | 205,922 | ||||||
Aeryon [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Identifiable intangible assets | $ 44,292 | |||||||
Endeavor [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 271,365 | |||||||
Net tangible assets | 14,915 | |||||||
Identifiable intangible assets | 102,740 | |||||||
Total purchase price | $ 385,900 | 385,931 | ||||||
NEOS [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $ 13,987 | |||||||
Net tangible assets | 1,479 | |||||||
Identifiable intangible assets | 6,400 | |||||||
Total purchase price | $ 21,900 | 21,881 | ||||||
Altavian [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | 22,857 | |||||||
Net tangible assets | 1,491 | |||||||
Identifiable intangible assets | 6,075 | |||||||
Total purchase price | 34,106 | |||||||
Payments of Merger Related Costs, Financing Activities | 26,800 | |||||||
Business Combination, Contingent Consideration, Liability | $ 2,500 | |||||||
Subsequent Event [Member] | NEOS [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase price | $ 12,000 |
Business Acquisitions and Div_3
Business Acquisitions and Divestitures (Divestitures Textual) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on sale of Business | $ 0 | $ 0 | $ (13,708) |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 30,475 | $ 10,099 | $ 4,854 | ||
Payments for Restructuring | (30,114) | ||||
Goodwill, Impairment Loss | 6,543 | ||||
Asset Impairment Charges | 1,200 | ||||
Asset Impairment Charges | $ 13,700 | 0 | 13,666 | 3,349 | |
Inventory Write-down | 5,900 | $ 3,300 | |||
Restructuring Reserve | 4,123 | 4,484 | 4,123 | ||
Project Be Ready [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 30,475 | 0 | |||
Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 18,427 | ||||
Payments for Restructuring | (15,553) | ||||
Restructuring Reserve | 1,343 | 4,217 | 1,343 | ||
Employee Severance | Project Be Ready [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 18,427 | 0 | |||
Facility Consolidation | Project Be Ready [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 204 | 0 | |||
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 12,048 | ||||
Payments for Restructuring | (14,561) | ||||
Restructuring Reserve | $ 2,780 | 267 | 2,780 | ||
Other Restructuring [Member] | Project Be Ready [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 11,844 | $ 0 | |||
Subsequent Event [Member] | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 40,000 | ||||
Subsequent Event [Member] | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 55,000 | ||||
Subsequent Event [Member] | Employee Severance | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 20,000 | ||||
Subsequent Event [Member] | Employee Severance | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 25,000 | ||||
Subsequent Event [Member] | Facility Consolidation | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 5,000 | ||||
Subsequent Event [Member] | Facility Consolidation | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 10,000 | ||||
Subsequent Event [Member] | Third Party Cost | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 15,000 | ||||
Subsequent Event [Member] | Third Party Cost | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 20,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 19, 2021 | Mar. 05, 2021 | Feb. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||
Proceeds from Divestiture of Businesses | $ 0 | $ 0 | $ 25,920,000 | ||||
Letter of Credit | $ 14,100,000 | ||||||
Asset Impairment Charges | $ 1,200,000 | ||||||
Forecast [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Quarterly dividend, value per share | $ 0.17 | ||||||
Quarterly dividend, amount declared | $ 22,300,000 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividends Payable, Date Declared | Feb. 16, 2021 | ||||||
Quarterly dividend, date to be paid | Mar. 19, 2021 | ||||||
Quarterly dividend, date of record | Mar. 5, 2021 | ||||||
Stock Redeemed or Called During Period, Value | $ 28 | ||||||
Stock Redeemed or Called During Period, Shares | 0.0718 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Discrete tax expense | $ 18,300 | $ 24,400 | |||||||||||||
Asset Impairment Charges | 13,700 | $ 0 | $ 13,666 | $ 3,349 | |||||||||||
Loss Contingency, Estimate of Possible Loss Reduction | 15,000 | ||||||||||||||
Revenue | 524,337 | $ 466,414 | $ 482,015 | $ 450,923 | 489,044 | $ 471,248 | $ 481,998 | $ 444,736 | 1,923,689 | 1,887,026 | 1,775,686 | ||||
Gross profit | 246,531 | 228,914 | 252,200 | 219,368 | [1] | 232,370 | 229,747 | 233,408 | 233,861 | 947,013 | 929,386 | 901,223 | |||
Net earnings | $ 75,240 | [2] | $ 60,663 | [2] | $ 61,257 | [2] | $ 15,424 | [2] | $ 1,684 | $ 62,047 | $ 46,118 | $ 61,748 | $ 212,584 | $ 171,597 | $ 282,425 |
Basic earnings per share: | |||||||||||||||
Basic earnings per share (in dollars per share) | $ 0.57 | $ 0.46 | $ 0.47 | $ 0.12 | $ 0.01 | $ 0.46 | $ 0.34 | $ 0.46 | $ 1.61 | $ 1.27 | $ 2.05 | ||||
Diluted earnings per share: | |||||||||||||||
Diluted earnings per share (in dollars per share) | $ 0.57 | $ 0.46 | $ 0.47 | $ 0.11 | $ 0.01 | $ 0.46 | $ 0.34 | $ 0.45 | $ 1.60 | $ 1.26 | $ 2.01 | ||||
Gain (Loss) on Extinguishment of Debt | $ (9,126) | $ 0 | $ 0 | ||||||||||||
[1] | (1) | ||||||||||||||
[2] | (2) |
Uncategorized Items - flir-2020
Label | Element | Value |
Deferred taxes balance sheet classification [Member] | ||
Deferred Income Tax Liabilities, Net | us-gaap_DeferredIncomeTaxLiabilitiesNet | $ 53,544,000 |
Deferred Income Tax Liabilities, Net | us-gaap_DeferredIncomeTaxLiabilitiesNet | 43,708,000 |
Deferred Tax Liabilities, Net | us-gaap_DeferredTaxLiabilities | 13,561,000 |
Deferred Tax Liabilities, Net | us-gaap_DeferredTaxLiabilities | 7,498,000 |
Deferred Income Tax Assets, Net | us-gaap_DeferredIncomeTaxAssetsNet | 39,983,000 |
Deferred Income Tax Assets, Net | us-gaap_DeferredIncomeTaxAssetsNet | $ 36,210,000 |