Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Apr. 05, 2015 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | COGNEX CORP |
Entity Central Index Key | 851205 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 5-Apr-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 87,128,037 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Revenue | ||
Product | $105,775 | $83,569 |
Service | 7,659 | 7,360 |
Total revenue | 113,434 | 90,929 |
Cost of revenue | ||
Product | 23,634 | 17,286 |
Service | 4,320 | 3,798 |
Total cost of revenue | 27,954 | 21,084 |
Gross margin | ||
Product | 82,141 | 66,283 |
Service | 3,339 | 3,562 |
Total gross margin | 85,480 | 69,845 |
Research, development, and engineering expenses | 18,076 | 12,502 |
Selling, general, and administrative expenses | 43,487 | 34,900 |
Operating income | 23,917 | 22,443 |
Foreign currency gain (loss) | 405 | -110 |
Investment income | 850 | 787 |
Other expense | -310 | -273 |
Income before income tax expense | 24,862 | 22,847 |
Income tax expense | 4,360 | 4,341 |
Net income | $20,502 | $18,506 |
Earnings per weighted-average common and common-equivalent share: | ||
Basic (in dollars per share) | $0.24 | $0.21 |
Diluted (in dollars per share) | $0.23 | $0.21 |
Weighted-average common and common-equivalent shares outstanding: | ||
Basic (in shares) | 86,764 | 86,879 |
Diluted (in shares) | 88,749 | 89,259 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $20,502 | $18,506 |
Cash flows hedges [Abstract] | ||
Net unrealized gain (loss), net of tax of ($73) and ($16) in 2015 and 2014, respectively | -520 | -199 |
Reclassification of net realized (gain) loss into current operations | 110 | 33 |
Net change related to cash flow hedges | -410 | -166 |
Available-for-sale investments | ||
Net unrealized gain (loss), net of tax of $134 and $113 in 2015 and 2014, respectively | 899 | 1,019 |
Reclassification of net realized (gain) loss into current operations | -29 | -501 |
Net change related to available-for-sale investments | 870 | 518 |
Currency translation adjustments [Abstract] | ||
Foreign currency translation adjustments, net of tax of ($636) and $7 in 2015 and 2014, respectively | -10,690 | 445 |
Other comprehensive income (loss), net of tax | -10,230 | 797 |
Total comprehensive income | $10,272 | $19,303 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on cash flow hedges | ($73) | ($16) |
Tax effect of unrealized gain (loss) on available-for-sale investments | 134 | 113 |
Tax effect of foreign currency translation adjustment | ($636) | $7 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 05, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $36,047 | $55,694 |
Short-term investments | 142,343 | 90,456 |
Accounts receivable, less reserves of $1,024 and $1,095 in 2015 and 2014, respectively | 56,264 | 50,938 |
Inventories | 48,458 | 35,536 |
Deferred income taxes | 8,990 | 8,985 |
Prepaid expenses and other current assets | 17,857 | 22,997 |
Total current assets | 309,959 | 264,606 |
Long-term investments | 370,433 | 400,845 |
Property, plant, and equipment, net | 48,692 | 47,907 |
Deferred income taxes | 16,349 | 14,452 |
Intangible assets, net | 9,606 | 10,699 |
Goodwill | 81,689 | 81,689 |
Other assets | 1,617 | 1,536 |
Total assets | 838,345 | 821,734 |
Current liabilities: | ||
Accounts payable | 13,295 | 19,114 |
Accrued expenses | 32,240 | 39,949 |
Accrued income taxes | 928 | 1,048 |
Deferred revenue | 20,447 | 20,563 |
Total current liabilities | 66,910 | 80,674 |
Reserve for income taxes | 4,372 | 4,623 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common stock, $.002 par value – Authorized: 140,000 shares, issued and outstanding: 87,128 and 86,542 shares in 2015 and 2014, respectively | 174 | 173 |
Additional paid-in capital | 272,070 | 251,717 |
Retained earnings | 544,448 | 523,946 |
Accumulated other comprehensive loss, net of tax | -49,629 | -39,399 |
Total shareholders’ equity | 767,063 | 736,437 |
Total liabilities and shareholders' equity | $838,345 | $821,734 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 05, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Reserves for accounts receivable | $1,024 | $1,095 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 87,128,000 | 86,542,000 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Cash flows from operating activities: | ||
Net income | $20,502 | $18,506 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 6,946 | 4,004 |
Depreciation of property, plant, and equipment | 2,346 | 1,990 |
Amortization of intangible assets | 1,093 | 916 |
Amortization of discounts or premiums on investments | 203 | 896 |
Realized gain on sale of investments | -29 | -501 |
Tax effect of stock option exercises | -3,694 | -2,165 |
Change in deferred income taxes | -1,251 | 127 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | -26,380 | -6,312 |
Net cash provided by (used in) operating activities | -264 | 17,461 |
Cash flows from investing activities: | ||
Purchases of investments | -157,083 | -124,734 |
Maturities and sales of investments | 130,476 | 117,753 |
Purchases of property, plant, and equipment | -4,264 | -2,685 |
Net cash used in investing activities | -30,871 | -9,666 |
Cash flows from financing activities: | ||
Issuance of common stock under stock option plans | 9,666 | 5,951 |
Repurchase of common stock | 0 | -14,287 |
Tax effect of stock option exercises | 3,694 | 2,165 |
Net cash provided by (used in) financing activities | 13,360 | -6,171 |
Effect of foreign exchange rate changes on cash and cash equivalents | -1,872 | 195 |
Net change in cash and cash equivalents | -19,647 | 1,819 |
Cash and cash equivalents at beginning of period | 55,694 | 40,644 |
Cash and cash equivalents at end of period | $36,047 | $42,463 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2014 | $736,437 | $173 | $251,717 | $523,946 | ($39,399) |
Beginning Balance, Shares at Dec. 31, 2014 | 86,542 | 86,542 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock option plans, shares | 586 | ||||
Issuance of common stock under stock option plans | 9,666 | 1 | 9,665 | ||
Stock-based compensation expense | 6,946 | 6,946 | |||
Excess tax benefit from stock option exercises | 3,694 | 3,694 | |||
Tax benefit for research and development credits as a result of stock options | 48 | 48 | |||
Net income | 20,502 | 20,502 | |||
Net unrealized loss on cash flow hedges, net of tax of $73 | -520 | -520 | |||
Reclassification of net realized (gain) loss into current operations | 110 | 110 | |||
Net unrealized gain on available-for-sale investments, net of tax of $134 | 899 | 899 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | -29 | -29 | |||
Foreign currency translation adjustment, net of tax of $636 | -10,690 | -10,690 | |||
Ending Balance at Apr. 05, 2015 | $767,063 | $174 | $272,070 | $544,448 | ($49,629) |
Ending Balance, Shares at Apr. 05, 2015 | 87,128 | 87,128 |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 05, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Tax effect on cash flow hedges | ($73) |
Tax effect of unrealized gain (loss) on available-for-sale investments | 134 |
Foreign currency translation adjustment, tax | ($636) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 05, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
In the opinion of the management of Cognex Corporation (the “Company”), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications, necessary to present fairly the Company’s financial position as of April 5, 2015, and the results of its operations for the three-month periods ended April 5, 2015 and March 30, 2014, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. | |
The results disclosed in the Consolidated Statements of Operations for the three-month periods ended April 5, 2015 are not necessarily indicative of the results to be expected for the full year. |
New_Pronouncements
New Pronouncements | 3 Months Ended |
Apr. 05, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Pronouncements | New Pronouncements |
Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers” | |
The amendments in ASU 2014-09 will supersede and replace all currently existing U.S. GAAP, including industry-specific revenue recognition guidance, with a single, principle-based revenue recognition framework. The concept guiding this new model is that revenue recognition will depict transfer of control to the customer in an amount that reflects consideration to which an entity expects to be entitled. The core principles supporting this framework include (1) identifying the contract with a customer, (2) identifying separate performance obligations within the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing revenue. This new framework will require entities to apply significantly more judgment. This increase in management judgment will require expanded disclosure on estimation methods, inputs, and assumptions for revenue recognition. The guidance in ASU 2014-09 is effective for public companies for annual reporting periods beginning after December 15, 2016 and currently early adoption is not permitted. However, the Financial Accounting Standards Board is considering delaying the effective date of this standard by one year and also allowing early adoption. Management will continue to evaluate the impact of this standard as it evolves. | |
Accounting Standards Update (ASU) 2015-05, "Intangibles—Goodwill and Other—Internal-Use Software" | |
ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, then the customer should account for the arrangement as a service contract. For public companies, the guidance in ASU 2015-05 is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. Management does not expect ASU 2015-05 to have a material impact on the Company's financial statements and disclosures. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||
Apr. 05, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value Measurements | Fair Value Measurements | |||||||
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ||||||||
The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 5, 2015 (in thousands): | ||||||||
Quoted Prices in | Significant Other | |||||||
Active Markets | Observable | |||||||
for Identical | Inputs (Level 2) | |||||||
Assets (Level 1) | ||||||||
Assets: | ||||||||
Money market instruments | $ | 1,240 | $ | — | ||||
Corporate bonds | — | 241,634 | ||||||
Treasury bills | — | 96,168 | ||||||
Asset-backed securities | — | 77,840 | ||||||
Euro liquidity fund | — | 62,045 | ||||||
Agency bonds | — | 12,887 | ||||||
Sovereign bonds | — | 11,645 | ||||||
Municipal bonds | — | 6,699 | ||||||
Supranational bonds | — | 1,902 | ||||||
Cash flow hedge forward contracts | — | 327 | ||||||
Economic hedge forward contracts | — | 7 | ||||||
Liabilities: | ||||||||
Cash flow hedge forward contracts | — | 762 | ||||||
Economic hedge forward contracts | — | 17 | ||||||
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. | ||||||||
The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. | ||||||||
The Company did not record an other-than-temporary impairment of these financial assets or liabilities during the three-month period ended April 5, 2015. | ||||||||
Financial Assets that are Measured at Fair Value on a Non-recurring Basis | ||||||||
The Company has an interest in a limited partnership, which is accounted for using the cost method and is required to be measured at fair value on a non-recurring basis. Management is responsible for estimating the fair value of this investment, and in doing so, considers valuations of the partnership’s investments as determined by the General Partner. Publicly-traded investments in active markets are reported at the market closing price less a discount, as appropriate, to reflect restricted marketability. Fair value for private investments for which observable market prices in active markets do not exist is based upon the best information available including the value of a recent financing, reference to observable valuation measures for comparable companies (such as revenue multiples), public or private transactions (such as the sale of a comparable company), and valuations for publicly-traded comparable companies. The valuations also incorporate the General Partner’s own judgment and close familiarity with the business activities of each portfolio company. Significant increases or decreases in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The portfolio consists of securities of public and private companies, and consequently, inputs used in the fair value calculation are classified as Level 3. The Company did not record an other-than-temporary impairment of this asset during the three-month period ended April 5, 2015. | ||||||||
Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis | ||||||||
Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets during the three-month period ended April 5, 2015. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents, and Investments | 3 Months Ended | |||||||||||||||||||||||||||
Apr. 05, 2015 | ||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments | |||||||||||||||||||||||||||
Cash, cash equivalents, and investments consisted of the following (in thousands): | ||||||||||||||||||||||||||||
5-Apr-15 | 31-Dec-14 | |||||||||||||||||||||||||||
Cash | $ | 34,807 | $ | 54,917 | ||||||||||||||||||||||||
Money market instruments | 1,240 | 777 | ||||||||||||||||||||||||||
Cash and cash equivalents | 36,047 | 55,694 | ||||||||||||||||||||||||||
Euro liquidity fund | 62,045 | 48,235 | ||||||||||||||||||||||||||
Corporate bonds | 37,413 | 30,889 | ||||||||||||||||||||||||||
Treasury bills | 31,644 | — | ||||||||||||||||||||||||||
Sovereign bonds | 5,605 | — | ||||||||||||||||||||||||||
Supranational bonds | 1,902 | 1,901 | ||||||||||||||||||||||||||
Municipal bonds | 1,819 | 1,237 | ||||||||||||||||||||||||||
Agency bonds | 1,523 | 6,883 | ||||||||||||||||||||||||||
Asset-backed securities | 392 | 1,311 | ||||||||||||||||||||||||||
Short-term investments | 142,343 | 90,456 | ||||||||||||||||||||||||||
Corporate bonds | 204,221 | 216,294 | ||||||||||||||||||||||||||
Asset-backed securities | 77,448 | 62,556 | ||||||||||||||||||||||||||
Treasury bills | 64,524 | 90,412 | ||||||||||||||||||||||||||
Agency bonds | 11,364 | 9,566 | ||||||||||||||||||||||||||
Sovereign bonds | 6,040 | 13,461 | ||||||||||||||||||||||||||
Municipal bonds | 4,880 | 6,600 | ||||||||||||||||||||||||||
Limited partnership interest | 1,956 | 1,956 | ||||||||||||||||||||||||||
Long-term investments | 370,433 | 400,845 | ||||||||||||||||||||||||||
$ | 548,823 | $ | 546,995 | |||||||||||||||||||||||||
The Euro liquidity fund invests in a portfolio of investment-grade bonds; corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury bills consist of debt securities issued by both the U.S. and foreign governments; sovereign bonds consist of direct debt issued by foreign governments; supranational bonds consist of direct debt issued by two or more foreign central governments; municipal bonds consist of debt securities issued by state and local government entities; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; and asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement. The Euro liquidity fund is denominated in Euros, and the remaining securities are denominated in U.S. Dollars. | ||||||||||||||||||||||||||||
The following table summarizes the Company’s available-for-sale investments as of April 5, 2015 (in thousands): | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||||
Euro liquidity fund | $ | 61,866 | $ | 179 | $ | — | $ | 62,045 | ||||||||||||||||||||
Corporate bonds | 37,356 | 58 | (1 | ) | 37,413 | |||||||||||||||||||||||
Treasury bills | 31,652 | — | (8 | ) | 31,644 | |||||||||||||||||||||||
Sovereign bonds | 5,594 | 11 | — | 5,605 | ||||||||||||||||||||||||
Supranational bonds | 1,900 | 2 | — | 1,902 | ||||||||||||||||||||||||
Municipal bonds | 1,814 | 5 | — | 1,819 | ||||||||||||||||||||||||
Agency bonds | 1,521 | 2 | — | 1,523 | ||||||||||||||||||||||||
Asset-backed securities | 392 | — | — | 392 | ||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||||
Corporate bonds | 203,712 | 618 | (109 | ) | 204,221 | |||||||||||||||||||||||
Asset-backed securities | 77,417 | 43 | (12 | ) | 77,448 | |||||||||||||||||||||||
Treasury bills | 64,468 | 57 | (1 | ) | 64,524 | |||||||||||||||||||||||
Agency bonds | 11,344 | 20 | — | 11,364 | ||||||||||||||||||||||||
Sovereign bonds | 6,033 | 7 | — | 6,040 | ||||||||||||||||||||||||
Municipal bonds | 4,855 | 25 | — | 4,880 | ||||||||||||||||||||||||
$ | 509,924 | $ | 1,027 | $ | (131 | ) | $ | 510,820 | ||||||||||||||||||||
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 5, 2015 (in thousands): | ||||||||||||||||||||||||||||
Unrealized Loss Position For: | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||
Corporate bonds | $ | 48,070 | $ | (109 | ) | $ | 399 | $ | (1 | ) | $ | 48,469 | $ | (110 | ) | |||||||||||||
Treasury bills | 33,143 | (9 | ) | — | — | 33,143 | (9 | ) | ||||||||||||||||||||
Asset-backed securities | 16,974 | (7 | ) | 2,597 | (5 | ) | 19,571 | (12 | ) | |||||||||||||||||||
$ | 98,187 | $ | (125 | ) | $ | 2,996 | $ | (6 | ) | $ | 101,183 | $ | (131 | ) | ||||||||||||||
As of April 5, 2015, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before its effective maturity or market price recovery. | ||||||||||||||||||||||||||||
The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $197,000 and $168,000, respectively, during the three-month period ended April 5, 2015 and $512,000 and $11,000, respectively, during the three-month period ended March 30, 2014. These gains and losses are included in "Investment income" on the Consolidated Statement of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as other comprehensive income (loss). | ||||||||||||||||||||||||||||
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 5, 2015 (in thousands): | ||||||||||||||||||||||||||||
1 | 2-Jan | 3-Feb | 4-Mar | 5-Apr | 5-8 Years | Total | ||||||||||||||||||||||
Year or Less | Years | Years | Years | Years | ||||||||||||||||||||||||
Corporate bonds | $ | 37,413 | $ | 101,597 | $ | 74,312 | $ | 22,542 | $ | 5,770 | $ | — | $ | 241,634 | ||||||||||||||
Treasury bills | 31,644 | 64,524 | — | — | — | — | 96,168 | |||||||||||||||||||||
Asset-backed securities | 392 | 8,564 | 38,917 | 16,673 | 8,982 | 4,312 | 77,840 | |||||||||||||||||||||
Euro liquidity fund | 62,045 | — | — | — | — | — | 62,045 | |||||||||||||||||||||
Agency bonds | 1,523 | 6,360 | 5,004 | — | — | — | 12,887 | |||||||||||||||||||||
Sovereign bonds | 5,605 | 6,040 | — | — | — | — | 11,645 | |||||||||||||||||||||
Municipal bonds | 1,819 | 334 | 3,546 | — | — | 1,000 | 6,699 | |||||||||||||||||||||
Supranational bonds | 1,902 | — | — | — | — | — | 1,902 | |||||||||||||||||||||
$ | 142,343 | $ | 187,419 | $ | 121,779 | $ | 39,215 | $ | 14,752 | $ | 5,312 | $ | 510,820 | |||||||||||||||
The Company is a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with an expiration date of December 31, 2015. As of April 5, 2015, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2015. Distributions and contributions are at the discretion of Venrock’s management. No contributions were made and no distributions were received during the three-month period ended April 5, 2015. |
Inventories
Inventories | 3 Months Ended | |||||||
Apr. 05, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following (in thousands): | ||||||||
5-Apr-15 | 31-Dec-14 | |||||||
Raw materials | $ | 29,621 | $ | 23,498 | ||||
Work-in-process | 10,885 | 5,753 | ||||||
Finished goods | 7,952 | 6,285 | ||||||
$ | 48,458 | $ | 35,536 | |||||
Warranty_Obligations
Warranty Obligations | 3 Months Ended | |||
Apr. 05, 2015 | ||||
Guarantees [Abstract] | ||||
Warranty Obligations | Warranty Obligations | |||
The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets. | ||||
The changes in the warranty obligations were as follows (in thousands): | ||||
Balance as of December 31, 2014 | $ | 4,494 | ||
Provisions for warranties issued during the period | 734 | |||
Fulfillment of warranty obligations | (608 | ) | ||
Foreign exchange rate changes | (412 | ) | ||
Balance as of April 5, 2015 | $ | 4,208 | ||
Contingencies
Contingencies | 3 Months Ended |
Apr. 05, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
In March 2013, the Company filed a lawsuit against Microscan Systems, Inc. (“Microscan”) and Code Corporation in the United States District Court for the Southern District of New York alleging that Microscan’s Mobile Hawk handheld imager infringes U.S. Patent 7,874,487 owned by the Company (the “'487 patent”). The lawsuit sought to prohibit Code Corporation from manufacturing the product, and Microscan from selling and distributing the product. The Company also sought monetary damages resulting from the alleged infringement. Late in the day on April 30, 2014, the jury found that Microscan willfully infringed the ‘487 patent and awarded Cognex $2,600,000 in damages. Following the verdict, Microscan filed motions requesting judgment as a matter of law on the issues of infringement, invalidity and willfulness, as well as a motion to dismiss for lack of standing. The Company filed motions seeking treble damages (based on the finding of willfulness), attorneys’ fees as an exceptional case, and a permanent injunction against future infringement of the ‘487 patent and the import, manufacture and/or sale of Microscan’s Mobile Hawk product within the U.S. In June 2014, the court issued an order denying all of Microscan’s motions and the Company’s motion for treble damages, while granting the Company’s motion for permanent injunction (limited to enjoining future infringement of the ‘487 patent and the import, manufacture and/or sale of infringing versions of Microscan’s Mobile Hawk product within the U.S.) and the Company’s motion for attorneys’ fees, in part, pending a determination thereof following submission of supplemental briefs by both parties. In July 2014, Microscan filed a Notice of Appeal with the Federal Circuit appealing all orders, findings, and/or conclusions of the District Court that were adverse to Microscan. In August 2014, the Company filed a Notice of Appeal with the Federal Circuit appealing the order granting summary judgment that claims 23, 28, and 29 of the ’487 patent are invalid. Also in August 2014, the Federal Circuit consolidated Microscan’s appeal and the Company’s appeal. In November 2014, the Company filed an unopposed motion to dismiss the Company's appeal, and in December 2014, the Court of Appeals granted the Company's motion to dismiss the Company's appeal. In January 2015, Microscan submitted their appeal brief asserting that the damage award should be vacated, the infringement judgment should be reversed, and that the remaining '487 claims are invalid. The Company filed its response to Microscan’s appeal brief, contesting all assertions therein, on March 16, 2015. | |
In August 2014, Microscan filed a lawsuit against the Company in the United States District Court for the Southern | |
District of New York alleging that the Company’s DataMan® 8500 handheld imager infringes U.S. Patent 6,352,204 | |
(the “'204 patent”). The lawsuit sought to prohibit the Company from manufacturing, selling, and distributing the DataMan® 8500 product. Microscan also sought monetary damages resulting from the alleged infringement. In September 2014, the Company filed an Answer to the Complaint denying all allegations and asserting in a counterclaim that the ’204 patent is invalid. In October 2014, the Company filed an Amended Answer further explaining its counterclaim of invalidity. Also in October 2014, Microscan filed an Amended Complaint alleging that the Company’s DataMan® 7500 and DataMan® 8600 also infringe the ’204 patent. The Company subsequently responded in October 2014 with its Answer to the Amended Complaint. In December 2014, a Markman hearing regarding the legal construction of the relevant patent claim terms was held. In January 2015, the Court issued an order construing such patent claim terms. In early February 2015, the Company submitted summary judgment motions. On April 6, 2015 the Court issued its rulings on the summary judgment motions. The Court partially granted the Company’s summary judgment motion of non-infringement, dismissing Microscan’s contention that the accused products literally infringe, but denying summary judgment to the Company with respect to Microscan’s claim of infringement under other doctrines. The Court granted the Company’s motion for summary judgment dismissing Microscan’s contention that any infringement was willful. The Court denied the Company’s motion for summary judgment with respect to the invalidity of one claim and denied the Company’s motion on the claim of laches. The Court granted Microscan’s motion for summary judgment holding that the Company infringed a single claim. The trial took place from April 21, 2015 to April 29, 2015 in the Southern District of New York. On April 30, 2015, the jury reached a verdict awarding Microscan royalties of $4,411,000 related to sales of the Company’s products during the applicable period. Cognex intends to file an appeal, subject to the Court’s final assessment and decisions regarding the jury’s verdict. | |
The Company cannot predict the outcome of the above-referenced pending matter and an adverse resolution of this lawsuit could have a material adverse effect on the Company’s financial position, liquidity, results of operations, and/or indemnification obligations. In addition, various other claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these incidental matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations. |
Guarantees
Guarantees | 3 Months Ended | ||||||
Apr. 05, 2015 | |||||||
Guarantees [Abstract] | |||||||
Guarantees | Guarantees | ||||||
In the ordinary course of business, the Company enters into guarantee contracts with certain customers, generally in the Company’s Surface Inspection Systems Division (SISD) business. These guarantees represent standby letters of credit (LOC) which can be grouped into three categories: (1) bank guarantees which may require the Company to return a customer’s initial payment if the Company cannot deliver the order; (2) warranty bonds which may require the Company to resolve warranty issues within a specified time period; and (3) performance bonds which include a combination of the above two options. The type of LOC is generally determined based upon customer request and the guarantee amount represents the maximum potential amount of future payments. All of the Company’s LOCs are with the same counterparty and they do not contain any recourse provisions or collateral obligations. | |||||||
The following table details the letters of credit outstanding as of April 5, 2015: | |||||||
Type | Guarantee | Guarantee Due Date | |||||
Amount | |||||||
(in thousands) | |||||||
Bank guarantees | $ | 1,241 | Various from May 2015 to January 2017 | ||||
Warranty bonds | 594 | Various from May 2015 to December 2016 | |||||
Performance bonds | 568 | Various from June 2015 to December 2017 | |||||
$ | 2,403 | ||||||
The Company evaluates losses for guarantees under accounting for contingencies. The Company considers such factors as the degree of probability that the Company would be required to satisfy the guarantee and the ability to make a reasonable estimate of the loss. To date, the Company has not incurred any losses as a result of these obligations, and therefore, has not recorded any liability related to such obligation in its financial statements. The fair value of the Company’s outstanding guarantees is immaterial for all periods presented. |
Indemnification_Provisions
Indemnification Provisions | 3 Months Ended |
Apr. 05, 2015 | |
Guarantees [Abstract] | |
Indemnification Provisions | Indemnification Provisions |
Except as limited by Massachusetts law, the by-laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which he or she is involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. The maximum potential amount of future payments the Company could be required to make under these provisions is unlimited. The Company has never incurred significant costs related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company may accept standard limited indemnification provisions in connection with the sale of its products, whereby it indemnifies its customers for certain direct damages incurred in connection with third-party patent or other intellectual property infringement claims with respect to the use of the Company’s products. The term of these indemnification provisions generally coincides with the customer’s use of the Company’s products. The maximum potential amount of future payments the Company could be required to make under these provisions is generally subject to fixed monetary limits. The Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company also accepts limited indemnification provisions from time to time, whereby it indemnifies customers for certain direct damages incurred in connection with bodily injury and property damage arising from the installation of the Company’s products. The term of these indemnification provisions generally coincides with the period of installation. The maximum potential amount of future payments the Company could be required to make under these provisions is generally limited and is likely recoverable under the Company’s insurance policies. As a result of this coverage, and the fact that the Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions, the Company believes the estimated fair value of these provisions is minimal. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||||||||||||
Apr. 05, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||||||
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into two types of hedges to manage this risk. The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment. The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment. | ||||||||||||||||||||
The Company had the following outstanding forward contracts (in thousands): | ||||||||||||||||||||
As of April 5, 2015 | As of December 31, 2014 | |||||||||||||||||||
Currency | Notional | USD | Notional | USD | ||||||||||||||||
Value | Equivalent | Value | Equivalent | |||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 1,266,500 | $ | 9,836 | 1,225,000 | $ | 10,211 | ||||||||||||||
Hungarian Forint | 818,000 | 2,864 | 803,000 | 3,099 | ||||||||||||||||
Singapore Dollar | 3,274 | 2,214 | 3,515 | 2,564 | ||||||||||||||||
Canadian Dollar | 487 | 440 | 758 | 688 | ||||||||||||||||
British Pound | 304 | 408 | 491 | 732 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 785,000 | $ | 6,542 | 535,000 | $ | 4,464 | ||||||||||||||
British Pound | 1,650 | 2,432 | 1,400 | 2,183 | ||||||||||||||||
Taiwanese Dollar | 34,500 | 1,109 | 28,000 | 883 | ||||||||||||||||
Korean Won | 1,100,000 | 1,003 | 940,000 | 858 | ||||||||||||||||
Singapore Dollar | 1,250 | 918 | 1,225 | 922 | ||||||||||||||||
Hungarian Forint | 234,000 | 850 | 410,000 | 1,569 | ||||||||||||||||
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||||||||||
Sheet | 5-Apr-15 | 31-Dec-14 | Sheet | 5-Apr-15 | 31-Dec-14 | |||||||||||||||
Location | Location | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid expenses and | $ | 327 | $ | 108 | Accrued | $ | 762 | $ | 84 | ||||||||||
other current assets | expenses | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Economic hedge forward contracts | Prepaid expenses and | $ | 7 | $ | 6 | Accrued expenses | $ | 17 | $ | 13 | ||||||||||
other current assets | ||||||||||||||||||||
The table below details the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
April 5, 2015 | December 31, 2014 | April 5, 2015 | December 31, 2014 | |||||||||||||||||
Gross amounts of recognized assets | $ | 335 | $ | 188 | Gross amounts of recognized liabilities | $ | 819 | $ | 149 | |||||||||||
Gross amounts offset | (1 | ) | (74 | ) | Gross amounts offset | (40 | ) | (52 | ) | |||||||||||
Net amount of assets presented | $ | 334 | $ | 114 | Net amount of liabilities presented | $ | 779 | $ | 97 | |||||||||||
Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands): | ||||||||||||||||||||
Location in Financial Statements | Three-months Ended | |||||||||||||||||||
5-Apr-15 | 30-Mar-14 | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recorded in shareholders' equity (effective portion) | Accumulated other comprehensive income (loss), net of tax | $ | (378 | ) | $ | (62 | ) | |||||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | Product revenue | $ | (152 | ) | $ | 13 | ||||||||||||||
Research, development, and engineering expenses | 1 | (30 | ) | |||||||||||||||||
Selling, general, and administrative expenses | 41 | (16 | ) | |||||||||||||||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ | (110 | ) | $ | (33 | ) | ||||||||||||||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | — | $ | — | |||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recognized in current operations | Foreign currency gain (loss) | $ | 78 | $ | (152 | ) | ||||||||||||||
The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): | ||||||||||||||||||||
Balance as of December 31, 2014 | $ | 32 | ||||||||||||||||||
Reclassification of net realized loss on cash flow hedges into current operations | 110 | |||||||||||||||||||
Net unrealized loss on cash flow hedges | (520 | ) | ||||||||||||||||||
Balance as of April 5, 2014 | $ | (378 | ) | |||||||||||||||||
Net losses expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $401,000. |
StockBased_Compensation_Expens
Stock-Based Compensation Expense | 3 Months Ended | ||||||||||||
Apr. 05, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation Expense | Stock-Based Compensation Expense | ||||||||||||
The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. As of April 5, 2015, the Company had 7,823,929 shares available for grant. On April 17, 2015, the 2007 Stock Option and Incentive Plan received shareholder approval for an amendment and restatement of the plan, reserving an additional 2,000,000 shares of common stock, par value $0.002 per share, for issuance. Generally, stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date, vest over four years based upon continuous service, and expire ten years from the grant date. Restricted stock awards are granted with an exercise price equal to the market value of the Company's common stock at the time of grant. Conditions of the award may be based on continuing employment and or achievement of pre-established performance goals and objectives. Vesting for performance-based restricted stock awards and time-based restricted stock awards must be greater than one year and three years, respectively. | |||||||||||||
The following table summarizes the Company’s stock option activity for the three-month period ended April 5, 2015: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
Term (in years) | |||||||||||||
Outstanding as of December 31, 2014 | 6,812 | $ | 23.26 | ||||||||||
Granted | 1,399 | 41.26 | |||||||||||
Exercised | (586 | ) | 16.49 | ||||||||||
Forfeited or expired | (24 | ) | 9.2 | ||||||||||
Outstanding as of April 5, 2015 | 7,601 | $ | 27.07 | 7.6 | $ | 178,001 | |||||||
Exercisable as of April 5, 2015 | 3,137 | $ | 16.59 | 5.8 | $ | 106,335 | |||||||
Options vested or expected to vest as of | 6,732 | $ | 25.79 | 7.4 | $ | 166,252 | |||||||
April 5, 2015 (1) | |||||||||||||
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: | |||||||||||||
Three-months Ended | |||||||||||||
5-Apr-15 | 30-Mar-14 | ||||||||||||
Risk-free rate | 2.1 | % | 2.7 | % | |||||||||
Expected dividend yield | 1.25 | % | — | % | |||||||||
Expected volatility | 40 | % | 41 | % | |||||||||
Expected term (in years) | 5.4 | 5.4 | |||||||||||
Risk-free rate | |||||||||||||
The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option. | |||||||||||||
Expected dividend yield | |||||||||||||
Generally, the current dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date. However, in the fourth quarter of 2012, the Company paid the full annual dividends for 2013 and 2014 in advance, and therefore, the dividend yield for those years has been adjusted to zero. A dividend yield of 1.25% was estimated for future periods from 2015 through the expected life of the option. | |||||||||||||
Expected volatility | |||||||||||||
The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock. | |||||||||||||
Expected term | |||||||||||||
The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time. | |||||||||||||
The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently expects that approximately 74% of its stock options granted to senior management and 73% of its options granted to all other employees will actually vest. Therefore, the Company currently applies an estimated annual forfeiture rate of 10% to all unvested options for senior management and a rate of 11% for all other employees. The Company revised its estimated forfeiture rates in the first quarters of 2015 and 2014, resulting in an increase to compensation expense of $461,000 and $288,000, respectively. | |||||||||||||
The weighted-average grant-date fair values of stock options granted during the three-month periods ended April 5, 2015 and March 30, 2014 were $14.34 and $15.34, respectively. | |||||||||||||
The total intrinsic values of stock options exercised for the three-month periods ended April 5, 2015 and March 30, 2014 were $16,740,000 and $8,933,000, respectively. The total fair values of stock options vested for the three-month periods ended April 5, 2015 and March 30, 2014 were $13,523,000 and $8,361,000, respectively. | |||||||||||||
As of April 5, 2015, total unrecognized compensation expense related to non-vested stock options was $30,963,000, which is expected to be recognized over a weighted-average period of 2.10 years. | |||||||||||||
The following table summarizes the Company's restricted stock award activity: | |||||||||||||
Shares (in thousands) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in thousands) | |||||||||||
Nonvested as of December 31, 2014 | 20 | $ | 34.05 | ||||||||||
Granted | — | — | |||||||||||
Vested | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Nonvested as of April 5, 2015 | 20 | $ | 34.05 | $ | 329 | ||||||||
The fair values of restricted stock awards granted were determined based upon the market value of the Company's common stock at the time of grant. The initial cost is then amortized over the period of vesting until the restrictions lapse. These restricted shares will be fully vested in 2018. Participants are entitled to dividends on restricted stock awards, but only receive those amounts if the shares vest. The sale or transfer of these shares is restricted during the vesting period. | |||||||||||||
The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 5, 2015 were $6,946,000 and $2,337,000, respectively, and for the three-month period ended March 30, 2014 were $4,004,000 and $1,306,000, respectively. No compensation expense was capitalized as of April 5, 2015 or December 31, 2014. | |||||||||||||
The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | |||||||||||||
Three-months Ended | |||||||||||||
5-Apr-15 | 30-Mar-14 | ||||||||||||
Product cost of revenue | $ | 420 | $ | 285 | |||||||||
Service cost of revenue | 73 | 63 | |||||||||||
Research, development, and engineering | 1,848 | 1,056 | |||||||||||
Selling, general, and administrative | 4,605 | 2,600 | |||||||||||
$ | 6,946 | $ | 4,004 | ||||||||||
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended |
Apr. 05, 2015 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program |
In November 2011, the Company’s Board of Directors authorized the repurchase of up to $80,000,000 of the Company’s common stock. Purchases under this 2011 program were completed in 2014. In April 2014, the Company's Board of Directors authorized the repurchase of an additional $50,000,000 of the Company's common stock. Purchases under this 2014 program began in 2014 upon completion of the 2011 program. The Company did not repurchase any shares in the three-month period ended April 5, 2015. The Company may repurchase shares under this program in future periods depending upon a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements. |
Taxes
Taxes | 3 Months Ended | |||||
Apr. 05, 2015 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Taxes | Taxes | |||||
A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate, or income tax provision, was as follows: | ||||||
Three-months Ended | ||||||
5-Apr-15 | 30-Mar-14 | |||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | ||
State income taxes, net of federal benefit | 1 | % | 1 | % | ||
Foreign tax rate differential | (17 | )% | (17 | )% | ||
Discrete tax events | (1 | )% | — | % | ||
Income tax provision | 18 | % | 19 | % | ||
The effective tax rate for the three-month period ended April 5, 2015 included the impact of one discrete tax event, whereby the Company recorded a decrease in tax expense of $364,000 from the expiration of the statutes of limitations for certain reserves for income tax uncertainties. This discrete event decreased the effective tax rate from a provision of 19% to a provision of 18% for the three-month period ended April 5, 2015. | ||||||
During the three-month period ended April 5, 2015, the Company recorded a $211,000 decrease in reserves for income taxes, net of deferred tax benefit, including a reduction to additional paid in capital of $48,000 and a reduction in income tax expense of $163,000. Included in this net decrease is the discrete event noted above. Estimated interest and penalties included in these amounts totaled $15,000 for the three-month period ended April 5, 2015. | ||||||
In the first quarter of 2014, management adopted Accounting Standards Update (ASU) 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU requires companies to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward or a similar tax loss or tax credit carryforward. In the first quarter of 2014, the Company reclassified a reserve for income taxes of $1,028,000 as a reduction to noncurrent deferred tax assets in compliance with this new guidance. Retroactive application was not required under this ASU, and therefore, prior periods were not restated. | ||||||
The Company’s reserve for income taxes, including gross interest and penalties, was $5,400,000 as of April 5, 2015, which included $4,372,000 classified as a noncurrent liability and $1,028,000 recorded as a reduction to noncurrent deferred tax assets. The amount of gross interest and penalties included in these balances was $494,000. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period, less $616,000 that would be recorded through additional paid-in capital. As a result of the expiration of certain statutes of limitations and the conclusion of the IRS examination, there is a potential that a portion of these reserves could be released, which would decrease income tax expense by approximately $550,000 to $650,000 over the next twelve months. | ||||||
The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Japan, and within the United States, Massachusetts and California. Within the United States, the tax years 2012 through 2014 remain open to examination by the Internal Revenue Service, while the tax years 2011 through 2014 remain open to various state taxing authorities, and the tax years 2010 through 2014 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates. |
WeightedAverage_Shares
Weighted-Average Shares | 3 Months Ended | |||||
Apr. 05, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Weighted-Average Shares | Weighted-Average Shares | |||||
Weighted-average shares were calculated as follows (in thousands): | ||||||
Three-months Ended | ||||||
5-Apr-15 | 30-Mar-14 | |||||
Basic weighted-average common shares outstanding | 86,764 | 86,879 | ||||
Effect of dilutive stock options | 1,985 | 2,380 | ||||
Weighted-average common and common-equivalent shares outstanding | 88,749 | 89,259 | ||||
Stock options to purchase 2,263,787 and 585,208 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 5, 2015 and March 30, 2014, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Apr. 05, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems that are used to control the manufacture of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, paper, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense. | ||||||||||||||||
The following table summarizes information about the segments (in thousands): | ||||||||||||||||
Three-months Ended April 5, 2015 | MVSD | SISD | Reconciling Items | Consolidated | ||||||||||||
Product revenue | $ | 97,494 | $ | 8,281 | $ | — | $ | 105,775 | ||||||||
Service revenue | 3,879 | 3,780 | — | 7,659 | ||||||||||||
Operating income | 33,307 | 1,896 | (11,286 | ) | 23,917 | |||||||||||
Three-months Ended March 30, 2014 | MVSD | SISD | Reconciling Items | Consolidated | ||||||||||||
Product revenue | $ | 77,618 | $ | 5,951 | $ | — | $ | 83,569 | ||||||||
Service revenue | 3,698 | 3,662 | — | 7,360 | ||||||||||||
Operating income | 28,292 | 1,013 | (6,862 | ) | 22,443 | |||||||||||
Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 3 Months Ended |
Apr. 05, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On April 17, 2015, the 2007 Stock Option and Incentive Plan received shareholder approval for an amendment and restatement of the plan, reserving an additional 2,000,000 shares of common stock, par value $0.002 per share, for issuance. | |
In addition, on May 4, 2015, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on June 19, 2015 to all shareholders of record as of the close of business on June 5, 2015. | |
Finally, on April 30, 2015, the jury reached a verdict awarding Microscan royalties of $4,411,000 related to sales of the Company’s products during the applicable period. Cognex intends to file an appeal, subject to the Court’s final assessment and decisions regarding the jury’s verdict. Additional information regarding this litigation is included in Note 7 to the Consolidated Financial Statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||
Apr. 05, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 5, 2015 (in thousands): | |||||||
Quoted Prices in | Significant Other | |||||||
Active Markets | Observable | |||||||
for Identical | Inputs (Level 2) | |||||||
Assets (Level 1) | ||||||||
Assets: | ||||||||
Money market instruments | $ | 1,240 | $ | — | ||||
Corporate bonds | — | 241,634 | ||||||
Treasury bills | — | 96,168 | ||||||
Asset-backed securities | — | 77,840 | ||||||
Euro liquidity fund | — | 62,045 | ||||||
Agency bonds | — | 12,887 | ||||||
Sovereign bonds | — | 11,645 | ||||||
Municipal bonds | — | 6,699 | ||||||
Supranational bonds | — | 1,902 | ||||||
Cash flow hedge forward contracts | — | 327 | ||||||
Economic hedge forward contracts | — | 7 | ||||||
Liabilities: | ||||||||
Cash flow hedge forward contracts | — | 762 | ||||||
Economic hedge forward contracts | — | 17 | ||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents, and Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Apr. 05, 2015 | ||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): | |||||||||||||||||||||||||||
5-Apr-15 | 31-Dec-14 | |||||||||||||||||||||||||||
Cash | $ | 34,807 | $ | 54,917 | ||||||||||||||||||||||||
Money market instruments | 1,240 | 777 | ||||||||||||||||||||||||||
Cash and cash equivalents | 36,047 | 55,694 | ||||||||||||||||||||||||||
Euro liquidity fund | 62,045 | 48,235 | ||||||||||||||||||||||||||
Corporate bonds | 37,413 | 30,889 | ||||||||||||||||||||||||||
Treasury bills | 31,644 | — | ||||||||||||||||||||||||||
Sovereign bonds | 5,605 | — | ||||||||||||||||||||||||||
Supranational bonds | 1,902 | 1,901 | ||||||||||||||||||||||||||
Municipal bonds | 1,819 | 1,237 | ||||||||||||||||||||||||||
Agency bonds | 1,523 | 6,883 | ||||||||||||||||||||||||||
Asset-backed securities | 392 | 1,311 | ||||||||||||||||||||||||||
Short-term investments | 142,343 | 90,456 | ||||||||||||||||||||||||||
Corporate bonds | 204,221 | 216,294 | ||||||||||||||||||||||||||
Asset-backed securities | 77,448 | 62,556 | ||||||||||||||||||||||||||
Treasury bills | 64,524 | 90,412 | ||||||||||||||||||||||||||
Agency bonds | 11,364 | 9,566 | ||||||||||||||||||||||||||
Sovereign bonds | 6,040 | 13,461 | ||||||||||||||||||||||||||
Municipal bonds | 4,880 | 6,600 | ||||||||||||||||||||||||||
Limited partnership interest | 1,956 | 1,956 | ||||||||||||||||||||||||||
Long-term investments | 370,433 | 400,845 | ||||||||||||||||||||||||||
$ | 548,823 | $ | 546,995 | |||||||||||||||||||||||||
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of April 5, 2015 (in thousands): | |||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||||
Euro liquidity fund | $ | 61,866 | $ | 179 | $ | — | $ | 62,045 | ||||||||||||||||||||
Corporate bonds | 37,356 | 58 | (1 | ) | 37,413 | |||||||||||||||||||||||
Treasury bills | 31,652 | — | (8 | ) | 31,644 | |||||||||||||||||||||||
Sovereign bonds | 5,594 | 11 | — | 5,605 | ||||||||||||||||||||||||
Supranational bonds | 1,900 | 2 | — | 1,902 | ||||||||||||||||||||||||
Municipal bonds | 1,814 | 5 | — | 1,819 | ||||||||||||||||||||||||
Agency bonds | 1,521 | 2 | — | 1,523 | ||||||||||||||||||||||||
Asset-backed securities | 392 | — | — | 392 | ||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||||
Corporate bonds | 203,712 | 618 | (109 | ) | 204,221 | |||||||||||||||||||||||
Asset-backed securities | 77,417 | 43 | (12 | ) | 77,448 | |||||||||||||||||||||||
Treasury bills | 64,468 | 57 | (1 | ) | 64,524 | |||||||||||||||||||||||
Agency bonds | 11,344 | 20 | — | 11,364 | ||||||||||||||||||||||||
Sovereign bonds | 6,033 | 7 | — | 6,040 | ||||||||||||||||||||||||
Municipal bonds | 4,855 | 25 | — | 4,880 | ||||||||||||||||||||||||
$ | 509,924 | $ | 1,027 | $ | (131 | ) | $ | 510,820 | ||||||||||||||||||||
Gross Unrealized Losses and Fair Values for Available-for-Sale Investments | The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 5, 2015 (in thousands): | |||||||||||||||||||||||||||
Unrealized Loss Position For: | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||
Corporate bonds | $ | 48,070 | $ | (109 | ) | $ | 399 | $ | (1 | ) | $ | 48,469 | $ | (110 | ) | |||||||||||||
Treasury bills | 33,143 | (9 | ) | — | — | 33,143 | (9 | ) | ||||||||||||||||||||
Asset-backed securities | 16,974 | (7 | ) | 2,597 | (5 | ) | 19,571 | (12 | ) | |||||||||||||||||||
$ | 98,187 | $ | (125 | ) | $ | 2,996 | $ | (6 | ) | $ | 101,183 | $ | (131 | ) | ||||||||||||||
Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 5, 2015 (in thousands): | |||||||||||||||||||||||||||
1 | 2-Jan | 3-Feb | 4-Mar | 5-Apr | 5-8 Years | Total | ||||||||||||||||||||||
Year or Less | Years | Years | Years | Years | ||||||||||||||||||||||||
Corporate bonds | $ | 37,413 | $ | 101,597 | $ | 74,312 | $ | 22,542 | $ | 5,770 | $ | — | $ | 241,634 | ||||||||||||||
Treasury bills | 31,644 | 64,524 | — | — | — | — | 96,168 | |||||||||||||||||||||
Asset-backed securities | 392 | 8,564 | 38,917 | 16,673 | 8,982 | 4,312 | 77,840 | |||||||||||||||||||||
Euro liquidity fund | 62,045 | — | — | — | — | — | 62,045 | |||||||||||||||||||||
Agency bonds | 1,523 | 6,360 | 5,004 | — | — | — | 12,887 | |||||||||||||||||||||
Sovereign bonds | 5,605 | 6,040 | — | — | — | — | 11,645 | |||||||||||||||||||||
Municipal bonds | 1,819 | 334 | 3,546 | — | — | 1,000 | 6,699 | |||||||||||||||||||||
Supranational bonds | 1,902 | — | — | — | — | — | 1,902 | |||||||||||||||||||||
$ | 142,343 | $ | 187,419 | $ | 121,779 | $ | 39,215 | $ | 14,752 | $ | 5,312 | $ | 510,820 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Apr. 05, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following (in thousands): | ||||||||
5-Apr-15 | 31-Dec-14 | |||||||
Raw materials | $ | 29,621 | $ | 23,498 | ||||
Work-in-process | 10,885 | 5,753 | ||||||
Finished goods | 7,952 | 6,285 | ||||||
$ | 48,458 | $ | 35,536 | |||||
Warranty_Obligations_Tables
Warranty Obligations (Tables) | 3 Months Ended | |||
Apr. 05, 2015 | ||||
Guarantees [Abstract] | ||||
Changes in Warranty Obligations | The changes in the warranty obligations were as follows (in thousands): | |||
Balance as of December 31, 2014 | $ | 4,494 | ||
Provisions for warranties issued during the period | 734 | |||
Fulfillment of warranty obligations | (608 | ) | ||
Foreign exchange rate changes | (412 | ) | ||
Balance as of April 5, 2015 | $ | 4,208 | ||
Guarantees_Tables
Guarantees (Tables) | 3 Months Ended | ||||||
Apr. 05, 2015 | |||||||
Guarantees [Abstract] | |||||||
Details of Letters of Credit Outstanding | The following table details the letters of credit outstanding as of April 5, 2015: | ||||||
Type | Guarantee | Guarantee Due Date | |||||
Amount | |||||||
(in thousands) | |||||||
Bank guarantees | $ | 1,241 | Various from May 2015 to January 2017 | ||||
Warranty bonds | 594 | Various from May 2015 to December 2016 | |||||
Performance bonds | 568 | Various from June 2015 to December 2017 | |||||
$ | 2,403 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 05, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): | |||||||||||||||||||
As of April 5, 2015 | As of December 31, 2014 | |||||||||||||||||||
Currency | Notional | USD | Notional | USD | ||||||||||||||||
Value | Equivalent | Value | Equivalent | |||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 1,266,500 | $ | 9,836 | 1,225,000 | $ | 10,211 | ||||||||||||||
Hungarian Forint | 818,000 | 2,864 | 803,000 | 3,099 | ||||||||||||||||
Singapore Dollar | 3,274 | 2,214 | 3,515 | 2,564 | ||||||||||||||||
Canadian Dollar | 487 | 440 | 758 | 688 | ||||||||||||||||
British Pound | 304 | 408 | 491 | 732 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 785,000 | $ | 6,542 | 535,000 | $ | 4,464 | ||||||||||||||
British Pound | 1,650 | 2,432 | 1,400 | 2,183 | ||||||||||||||||
Taiwanese Dollar | 34,500 | 1,109 | 28,000 | 883 | ||||||||||||||||
Korean Won | 1,100,000 | 1,003 | 940,000 | 858 | ||||||||||||||||
Singapore Dollar | 1,250 | 918 | 1,225 | 922 | ||||||||||||||||
Hungarian Forint | 234,000 | 850 | 410,000 | 1,569 | ||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||||||||||
Sheet | 5-Apr-15 | 31-Dec-14 | Sheet | 5-Apr-15 | 31-Dec-14 | |||||||||||||||
Location | Location | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid expenses and | $ | 327 | $ | 108 | Accrued | $ | 762 | $ | 84 | ||||||||||
other current assets | expenses | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Economic hedge forward contracts | Prepaid expenses and | $ | 7 | $ | 6 | Accrued expenses | $ | 17 | $ | 13 | ||||||||||
other current assets | ||||||||||||||||||||
Offsetting Assets | The table below details the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
April 5, 2015 | December 31, 2014 | April 5, 2015 | December 31, 2014 | |||||||||||||||||
Gross amounts of recognized assets | $ | 335 | $ | 188 | Gross amounts of recognized liabilities | $ | 819 | $ | 149 | |||||||||||
Gross amounts offset | (1 | ) | (74 | ) | Gross amounts offset | (40 | ) | (52 | ) | |||||||||||
Net amount of assets presented | $ | 334 | $ | 114 | Net amount of liabilities presented | $ | 779 | $ | 97 | |||||||||||
Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands): | |||||||||||||||||||
Location in Financial Statements | Three-months Ended | |||||||||||||||||||
5-Apr-15 | 30-Mar-14 | |||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recorded in shareholders' equity (effective portion) | Accumulated other comprehensive income (loss), net of tax | $ | (378 | ) | $ | (62 | ) | |||||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | Product revenue | $ | (152 | ) | $ | 13 | ||||||||||||||
Research, development, and engineering expenses | 1 | (30 | ) | |||||||||||||||||
Selling, general, and administrative expenses | 41 | (16 | ) | |||||||||||||||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ | (110 | ) | $ | (33 | ) | ||||||||||||||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | — | $ | — | |||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recognized in current operations | Foreign currency gain (loss) | $ | 78 | $ | (152 | ) | ||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): | |||||||||||||||||||
Balance as of December 31, 2014 | $ | 32 | ||||||||||||||||||
Reclassification of net realized loss on cash flow hedges into current operations | 110 | |||||||||||||||||||
Net unrealized loss on cash flow hedges | (520 | ) | ||||||||||||||||||
Balance as of April 5, 2014 | $ | (378 | ) |
StockBased_Compensation_Expens1
Stock-Based Compensation Expense (Tables) | 3 Months Ended | ||||||||||||
Apr. 05, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three-month period ended April 5, 2015: | ||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
Term (in years) | |||||||||||||
Outstanding as of December 31, 2014 | 6,812 | $ | 23.26 | ||||||||||
Granted | 1,399 | 41.26 | |||||||||||
Exercised | (586 | ) | 16.49 | ||||||||||
Forfeited or expired | (24 | ) | 9.2 | ||||||||||
Outstanding as of April 5, 2015 | 7,601 | $ | 27.07 | 7.6 | $ | 178,001 | |||||||
Exercisable as of April 5, 2015 | 3,137 | $ | 16.59 | 5.8 | $ | 106,335 | |||||||
Options vested or expected to vest as of | 6,732 | $ | 25.79 | 7.4 | $ | 166,252 | |||||||
April 5, 2015 (1) | |||||||||||||
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: | ||||||||||||
Three-months Ended | |||||||||||||
5-Apr-15 | 30-Mar-14 | ||||||||||||
Risk-free rate | 2.1 | % | 2.7 | % | |||||||||
Expected dividend yield | 1.25 | % | — | % | |||||||||
Expected volatility | 40 | % | 41 | % | |||||||||
Expected term (in years) | 5.4 | 5.4 | |||||||||||
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company's restricted stock award activity: | ||||||||||||
Shares (in thousands) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in thousands) | |||||||||||
Nonvested as of December 31, 2014 | 20 | $ | 34.05 | ||||||||||
Granted | — | — | |||||||||||
Vested | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Nonvested as of April 5, 2015 | 20 | $ | 34.05 | $ | 329 | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | ||||||||||||
Three-months Ended | |||||||||||||
5-Apr-15 | 30-Mar-14 | ||||||||||||
Product cost of revenue | $ | 420 | $ | 285 | |||||||||
Service cost of revenue | 73 | 63 | |||||||||||
Research, development, and engineering | 1,848 | 1,056 | |||||||||||
Selling, general, and administrative | 4,605 | 2,600 | |||||||||||
$ | 6,946 | $ | 4,004 | ||||||||||
Taxes_Tables
Taxes (Tables) | 3 Months Ended | |||||
Apr. 05, 2015 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision | A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate, or income tax provision, was as follows: | |||||
Three-months Ended | ||||||
5-Apr-15 | 30-Mar-14 | |||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | ||
State income taxes, net of federal benefit | 1 | % | 1 | % | ||
Foreign tax rate differential | (17 | )% | (17 | )% | ||
Discrete tax events | (1 | )% | — | % | ||
Income tax provision | 18 | % | 19 | % |
WeightedAverage_Shares_Tables
Weighted-Average Shares (Tables) | 3 Months Ended | |||||
Apr. 05, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): | |||||
Three-months Ended | ||||||
5-Apr-15 | 30-Mar-14 | |||||
Basic weighted-average common shares outstanding | 86,764 | 86,879 | ||||
Effect of dilutive stock options | 1,985 | 2,380 | ||||
Weighted-average common and common-equivalent shares outstanding | 88,749 | 89,259 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Apr. 05, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Information About Segments | The following table summarizes information about the segments (in thousands): | |||||||||||||||
Three-months Ended April 5, 2015 | MVSD | SISD | Reconciling Items | Consolidated | ||||||||||||
Product revenue | $ | 97,494 | $ | 8,281 | $ | — | $ | 105,775 | ||||||||
Service revenue | 3,879 | 3,780 | — | 7,659 | ||||||||||||
Operating income | 33,307 | 1,896 | (11,286 | ) | 23,917 | |||||||||||
Three-months Ended March 30, 2014 | MVSD | SISD | Reconciling Items | Consolidated | ||||||||||||
Product revenue | $ | 77,618 | $ | 5,951 | $ | — | $ | 83,569 | ||||||||
Service revenue | 3,698 | 3,662 | — | 7,360 | ||||||||||||
Operating income | 28,292 | 1,013 | (6,862 | ) | 22,443 | |||||||||||
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | 3 Months Ended | |
Apr. 05, 2015 | Dec. 31, 2014 | |
Assets: | ||
Money market instruments | $1,240,000 | $777,000 |
Financial assets at fair value | 510,820,000 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 241,634,000 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 96,168,000 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 77,840,000 | |
Euro liquidity fund | ||
Assets: | ||
Financial assets at fair value | 62,045,000 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 12,887,000 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 11,645,000 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 6,699,000 | |
Supranational bonds | ||
Assets: | ||
Financial assets at fair value | 1,902,000 | |
Fair Value, Measurements, Nonrecurring | ||
Liabilities: | ||
Asset Impairment Charges | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 1,240,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Assets, Cash flow hedge forward contracts | 327,000 | |
Assets, Economic hedge forward contracts | 7,000 | |
Liabilities: | ||
Liabilities, Cash flow hedge forward contracts | 762,000 | |
Liabilities, Economic hedge forward contracts | 17,000 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 241,634,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 96,168,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 77,840,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Euro liquidity fund | ||
Assets: | ||
Financial assets at fair value | 62,045,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 12,887,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 11,645,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 6,699,000 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Supranational bonds | ||
Assets: | ||
Financial assets at fair value | 1,902,000 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | ||
Liabilities: | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $0 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) (USD $) | Apr. 05, 2015 | Dec. 31, 2014 | Mar. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $34,807 | $54,917 | ||
Money market instruments | 1,240 | 777 | ||
Cash and cash equivalents | 36,047 | 55,694 | 42,463 | 40,644 |
Short-term investments | 142,343 | 90,456 | ||
Limited partnership interest | 1,956 | 1,956 | ||
Long-term investments | 370,433 | 400,845 | ||
Total | 548,823 | 546,995 | ||
Euro liquidity fund | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 62,045 | 48,235 | ||
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 37,413 | 30,889 | ||
Long-term investments | 204,221 | 216,294 | ||
Treasury Bills | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 31,644 | 0 | ||
Long-term investments | 64,524 | 90,412 | ||
Sovereign Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 5,605 | 0 | ||
Long-term investments | 6,040 | 13,461 | ||
Supranational bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,902 | 1,901 | ||
Municipal Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,819 | 1,237 | ||
Long-term investments | 4,880 | 6,600 | ||
Agency Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,523 | 6,883 | ||
Long-term investments | 11,364 | 9,566 | ||
Asset-Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 392 | 1,311 | ||
Long-term investments | $77,448 | $62,556 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) (USD $) | Apr. 05, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $509,924 |
Gross Unrealized Gains | 1,027 |
Gross Unrealized Losses | -131 |
Fair Value | 510,820 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Losses | -110 |
Corporate Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 37,356 |
Gross Unrealized Gains | 58 |
Gross Unrealized Losses | -1 |
Fair Value | 37,413 |
Corporate Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 203,712 |
Gross Unrealized Gains | 618 |
Gross Unrealized Losses | -109 |
Fair Value | 204,221 |
Supranational bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,900 |
Gross Unrealized Gains | 2 |
Gross Unrealized Losses | 0 |
Fair Value | 1,902 |
Euro liquidity fund | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 61,866 |
Gross Unrealized Gains | 179 |
Gross Unrealized Losses | 0 |
Fair Value | 62,045 |
Municipal Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,814 |
Gross Unrealized Gains | 5 |
Gross Unrealized Losses | 0 |
Fair Value | 1,819 |
Municipal Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 4,855 |
Gross Unrealized Gains | 25 |
Gross Unrealized Losses | 0 |
Fair Value | 4,880 |
Sovereign Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 5,594 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | 0 |
Fair Value | 5,605 |
Sovereign Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,033 |
Gross Unrealized Gains | 7 |
Gross Unrealized Losses | 0 |
Fair Value | 6,040 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Losses | -12 |
Asset-Backed Securities | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 392 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 392 |
Asset-Backed Securities | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 77,417 |
Gross Unrealized Gains | 43 |
Gross Unrealized Losses | -12 |
Fair Value | 77,448 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross Unrealized Losses | -9 |
Treasury Bills | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 31,652 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | -8 |
Fair Value | 31,644 |
Treasury Bills | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 64,468 |
Gross Unrealized Gains | 57 |
Gross Unrealized Losses | -1 |
Fair Value | 64,524 |
Agency Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,521 |
Gross Unrealized Gains | 2 |
Gross Unrealized Losses | 0 |
Fair Value | 1,523 |
Agency Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 11,344 |
Gross Unrealized Gains | 20 |
Gross Unrealized Losses | 0 |
Fair Value | $11,364 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) (USD $) | Apr. 05, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 Months | $98,187 |
Unrealized Losses, Less than 12 Months | -125 |
Fair Value, 12 Months or Greater | 2,996 |
Unrealized Losses, 12 Months or Greater | -6 |
Total Fair Value | 101,183 |
Total Unrealized Losses | -131 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 Months | 33,143 |
Unrealized Losses, Less than 12 Months | -9 |
Fair Value, 12 Months or Greater | 0 |
Unrealized Losses, 12 Months or Greater | 0 |
Total Fair Value | 33,143 |
Total Unrealized Losses | -9 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 Months | 48,070 |
Unrealized Losses, Less than 12 Months | -109 |
Fair Value, 12 Months or Greater | 399 |
Unrealized Losses, 12 Months or Greater | -1 |
Total Fair Value | 48,469 |
Total Unrealized Losses | -110 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 Months | 16,974 |
Unrealized Losses, Less than 12 Months | -7 |
Fair Value, 12 Months or Greater | 2,597 |
Unrealized Losses, 12 Months or Greater | -5 |
Total Fair Value | 19,571 |
Total Unrealized Losses | ($12) |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) (USD $) | Apr. 05, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | $142,343 |
1-2 Years | 187,419 |
2-3 Years | 121,779 |
3-4 Years | 39,215 |
4-5 Years | 14,752 |
5-8 Years | 5,312 |
Fair Value | 510,820 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 37,413 |
1-2 Years | 101,597 |
2-3 Years | 74,312 |
3-4 Years | 22,542 |
4-5 Years | 5,770 |
5-8 Years | 0 |
Fair Value | 241,634 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 31,644 |
1-2 Years | 64,524 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value | 96,168 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 392 |
1-2 Years | 8,564 |
2-3 Years | 38,917 |
3-4 Years | 16,673 |
4-5 Years | 8,982 |
5-8 Years | 4,312 |
Fair Value | 77,840 |
Supranational bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 1,902 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value | 1,902 |
Euro liquidity fund | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 62,045 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value | 62,045 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 5,605 |
1-2 Years | 6,040 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value | 11,645 |
Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 1,819 |
1-2 Years | 334 |
2-3 Years | 3,546 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 1,000 |
Fair Value | 6,699 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 Year or Less | 1,523 |
1-2 Years | 6,360 |
2-3 Years | 5,004 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value | $12,887 |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents, and Investments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Apr. 05, 2015 | Mar. 30, 2014 | |
Amortized Cost And Fair Value Debt Securities [Abstract] | ||
Gross realized gains on sale of investments | $197,000 | $512,000 |
Gross realized losses on sale of investments | 168,000 | 11,000 |
Maximum amount committed to invest in limited partnership | 20,500,000 | |
Contribution to limited partnership | 19,886,000 | |
Remaining amount of commitment in limited partnership | 614,000 | |
Investment expiration date | 31-Dec-15 | |
Number of contributions made during the period | 0 | |
Distributions From Partnership During Period | $0 |
Inventories_Detail
Inventories (Detail) (USD $) | Apr. 05, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $29,621 | $23,498 |
Work-in-process | 10,885 | 5,753 |
Finished goods | 7,952 | 6,285 |
Inventories | $48,458 | $35,536 |
Warranty_Obligations_Changes_i
Warranty Obligations - Changes in Warranty Obligations (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 05, 2015 |
Payables and Accruals [Abstract] | |
Beginning Balance | $4,494 |
Provisions for warranties issued during the period | 734 |
Fulfillment of warranty obligations | -608 |
Foreign exchange rate changes | -412 |
Ending Balance | $4,208 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | |
Apr. 30, 2014 | Apr. 30, 2015 | |
Loss Contingencies [Line Items] | ||
Proceeds from Legal Settlements | $2,600,000 | |
Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Awarded, Value | $4,411,000 |
Guarantees_Additional_Informat
Guarantees - Additional Information (Detail) | 3 Months Ended |
Apr. 05, 2015 | |
Category | |
Guarantees [Abstract] | |
Number of categories of letters of credit | 3 |
Guarantees_Details_of_Letters_
Guarantees - Details of Letters of Credit Outstanding (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 05, 2015 |
Guarantor Obligations [Line Items] | |
Guarantee Amount | $2,403 |
Bank Guarantees | |
Guarantor Obligations [Line Items] | |
Guarantee Amount | 1,241 |
Guarantee due date | Various from May 2015 to January 2017 |
Warranty Bonds | |
Guarantor Obligations [Line Items] | |
Guarantee Amount | 594 |
Guarantee due date | Various from May 2015 to December 2016 |
Performance Bonds | |
Guarantor Obligations [Line Items] | |
Guarantee Amount | $568 |
Guarantee due date | Various from June 2015 to December 2017 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | 3 Months Ended |
Apr. 05, 2015 | |
Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Maximum Length of Time Hedged in Cash Flow Hedge | 18 months |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Maximum Remaining Maturity of Foreign Currency Derivatives | 45 days |
Derivative_Instruments_Outstan
Derivative Instruments - Outstanding Forward Contracts (Detail) | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 05, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument |
Japanese Yen | Japanese Yen | Japanese Yen | Japanese Yen | Hungarian Forint | Hungarian Forint | Hungarian Forint | Hungarian Forint | Singapore Dollar | Singapore Dollar | Singapore Dollar | Singapore Dollar | British Pound | British Pound | British Pound | British Pound | Canadian Dollar | Canadian Dollar | Canadian Dollar | Canadian Dollar | Japanese Yen | Japanese Yen | Japanese Yen | Japanese Yen | Hungarian Forint | Hungarian Forint | Hungarian Forint | Hungarian Forint | Singapore Dollar | Singapore Dollar | Singapore Dollar | Singapore Dollar | British Pound | British Pound | British Pound | British Pound | Korean Won | Korean Won | Korean Won | Korean Won | Taiwanese Dollar | Taiwanese Dollar | Taiwanese Dollar | Taiwanese Dollar | |
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | HUF | USD ($) | SGD | USD ($) | SGD | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | CAD | USD ($) | CAD | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | HUF | USD ($) | SGD | USD ($) | SGD | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | KRW | USD ($) | KRW | USD ($) | TWD | USD ($) | TWD | |
Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding forward contracts | $9,836 | ¥ 1,266,500 | $10,211 | ¥ 1,225,000 | $2,864 | 818,000 | $3,099 | 803,000 | $2,214 | 3,274 | $2,564 | 3,515 | $408 | £ 304 | $732 | £ 491 | $440 | 487 | $688 | 758 | $6,542 | ¥ 785,000 | $4,464 | ¥ 535,000 | $850 | 234,000 | $1,569 | 410,000 | $918 | 1,250 | $922 | 1,225 | $2,432 | £ 1,650 | $2,183 | £ 1,400 | $1,003 | 1,100,000 | $858 | 940,000 | $1,109 | 34,500 | $883 | 28,000 |
Derivative_Instruments_Informa
Derivative Instruments - Information Regarding Fair Value of Forward Contracts Outstanding (Detail) (USD $) | Apr. 05, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $334 | $114 |
Derivative Liability | 779 | 97 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 327 | 108 |
Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 762 | 84 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 7 | 6 |
Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $17 | $13 |
Derivative_Instruments_Assets_
Derivative Instruments - Assets and liabilities presented on a net basis due to the right of setoff (Detail) (USD $) | Apr. 05, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $335 | $188 |
Gross amounts offset | -1 | -74 |
Net amount of assets presented | 334 | 114 |
Gross amounts of recognized liabilities | 819 | 149 |
Gross amounts offset | -40 | -52 |
Net amount of liabilities presented | $779 | $97 |
Derivative_Instruments_Informa1
Derivative Instruments - Information Regarding Effect of Forward Contracts, Net of Underlying Exposure, on Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification of net realized (gain) loss into current operations | ($110) | ($33) |
Designated as Hedging Instrument | Accumulated other comprehensive income (loss), net of tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recorded in shareholders' equity (effective portion) | -378 | -62 |
Designated as Hedging Instrument | Product revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | -152 | 13 |
Designated as Hedging Instrument | Research, development, and engineering expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | 1 | -30 |
Designated as Hedging Instrument | Selling, general, and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | 41 | -16 |
Designated as Hedging Instrument | Foreign currency gain (loss) | ||
Information regarding the effect of the forward contracts, net of the underlying exposure, on the Consolidated Statements of Operations | ||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | 0 | 0 |
Not Designated as Hedging Instrument | Foreign currency gain (loss) | ||
Information regarding the effect of the forward contracts, net of the underlying exposure, on the Consolidated Statements of Operations | ||
Gains (losses) recognized in current operations | $78 | ($152) |
Derivative_Instruments_Effect_
Derivative Instruments - Effect on Other Comprehensive Income (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 05, 2015 |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | ($39,399) |
Ending balance | -49,629 |
Losses expected to be reclassified from OCI into Net Income, net of tax, 12 months | 401 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | 32 |
Reclassification of net realized loss on cash flow hedges into current operations | 110 |
Net unrealized loss on cash flow hedges | -520 |
Ending balance | ($378) |
StockBased_Compensation_Expens2
Stock-Based Compensation Expense - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Apr. 05, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | Apr. 17, 2015 | |
group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | ||
Expected dividend yield | 1.25% | 0.00% | ||
Groups within the employee population | 2 | |||
Percentage of stock options granted to senior management | 74.00% | |||
Percentage of stock options granted to all other employees | 73.00% | |||
Estimated annual forfeiture rate | 10.00% | |||
Estimated annual forfeiture rate for unvested options | 11.00% | |||
Increase (decrease) to compensation expense | $461,000 | $288,000 | ||
Weighted-average grant-date fair values, in dollars per share | $14.34 | $15.34 | ||
Total intrinsic value | 16,740,000 | 8,933,000 | ||
Total fair values of stock options vest | 13,523,000 | 8,361,000 | ||
Unrecognized compensation expense | 30,963,000 | |||
weighted average period to be recognized | 2 years 1 month 5 days | |||
Recognized Period Costs Capitalized Amount | $0 | $0 | ||
Stock Option And Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock option plans | 4 years | |||
Expiration period from grant day | 10 years | |||
General Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock option plans | 4 years | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant under stock option plans | 7,823,929 | |||
Expiration period from grant day | 10 years | |||
2015 Through Expected Life of Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 1.25% | |||
Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $0.00 | |||
Subsequent Event [Member] | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
additional shares under Share-based Compensation Arrangement by Share-based Payment Award, Additional Number of Shares Available for Grant | 2,000,000 | |||
Common Stock, Par or Stated Value Per Share | $0.00 |
StockBased_Compensation_Expens3
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 05, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, Shares | 6,812 | |
Granted, Shares | 1,399 | |
Exercised, Shares | -586 | |
Forfeited or expired, Shares | -24 | |
Outstanding, Shares | 7,601 | |
Exercisable as of April 5, 2015, Shares | 3,137 | |
Options vested or expected to vest as of April 5, 2015, Shares | 6,732 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, Weighted-Average Exercise Price, in dollars per share | $23.26 | |
Granted, Weighted-Average Exercise Price, in dollars per share | $41.26 | |
Exercised, Weighted-Average Exercise Price, in dollars per share | $16.49 | |
Forfeited or expired, Weighted-Average Exercise Price, in dollars per share | $9.20 | |
Outstanding, Weighted-Average Exercise Price, in dollars per share | $27.07 | |
Outstanding, Weighted Average Exercise Price | $27.07 | |
Exercisable as of April 5, 2015, Weighted-Average Exercise Price, in dollars per share | $16.59 | |
Options vested or expected to vest as of April 5, 2015, Weighted-Average Exercise Price, in dollars per share | $25.79 | [1] |
Outstanding, Weighted-Average Remaining Contractual Term | 7 years 7 months 0 days | |
Exercisable, Weighted-Average Remaining Contractual Term | 5 years 9 months 1 day | |
Options vested or expected to vest, Weighted-Average Remaining Contractual Term | 7 years 5 months 1 day | [1] |
Outstanding, Aggregate Intrinsic Value | $178,001 | |
Exercisable, Aggregate Intrinsic Value | 106,335 | |
Options vested or expected to vest, Aggregate Intrinsic Value | $166,252 | [1] |
[1] | In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
StockBased_Compensation_Expens4
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) | 3 Months Ended | |
Apr. 05, 2015 | Mar. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free rate | 2.10% | 2.70% |
Expected dividend yield | 1.25% | 0.00% |
Expected volatility | 40.00% | 41.00% |
Expected term (in years) | 5 years 4 months 18 days | 5 years 4 months 18 days |
StockBased_Compensation_Expens5
Stock-Based Compensation Expense Stock-Based Compensation Expense- Summary of Restricted Stock Option Activity (Detail) (Details) (Restricted Stock [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 05, 2015 | Dec. 31, 2014 |
Restricted Stock [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options, Shares Nonvested | 20 | 20 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | |
Options, Non-Vested, Weighted-Average Exercise Price, in dollars per share | $34.05 | $34.05 |
Nonvested as of April 5, 2015, Aggregate Intrinsic Value | $329 |
StockBased_Compensation_Expens6
Stock-Based Compensation Expense - Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | ||
Apr. 05, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $6,946,000 | $4,004,000 | |
Tax benefit from compensation expense | 2,337,000 | 1,306,000 | |
Recognized Period Costs Capitalized Amount | 0 | 0 | |
Product cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 420,000 | 285,000 | |
Service cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 73,000 | 63,000 | |
Research, development, and engineering | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,848,000 | 1,056,000 | |
Selling, general, and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $4,605,000 | $2,600,000 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (Common Stock, USD $) | Nov. 30, 2008 | Apr. 29, 2014 |
Repurchase Program 2011 | ||
Equity [Line Items] | ||
Repurchase of authorized common stock | $80,000,000 | |
Repurchase Program 2014 | ||
Equity [Line Items] | ||
Repurchase of authorized common stock | $50,000,000 |
Taxes_Reconciliation_of_United
Taxes - Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision (Detail) | 3 Months Ended | |
Apr. 05, 2015 | Mar. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at federal statutory rate | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.00% |
Foreign tax rate differential | -17.00% | -17.00% |
Discrete tax events | -1.00% | 0.00% |
Income tax provision | 18.00% | 19.00% |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Apr. 05, 2015 | Mar. 30, 2014 | Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | |||
Unrecognized Tax Benefits, Increase/Decrease Resulting from Prior Period Tax Positions | $364,000 | ||
Effective Income Tax Rate Continuing Operations | 19.00% | ||
Provision for effective tax rate | 18.00% | 19.00% | |
Increase (decrease) in liabilities, net of deferred tax benefit, for uncertain tax positions | 211,000 | ||
APIC portion of Decrease In Liability Net Of Deferred Tax Benefit For Uncertain Tax Positions | 48,000 | ||
tax expense portion of Decrease in Liability Net of Deferred Tax Benefit for Uncertain Tax Positions | 163,000 | ||
Increase (decrease) in interest and penalties | 15,000 | ||
Unrecognized tax benefit shown as a reduction to noncurrent deferred tax assets | 1,028,000 | ||
Liability For Uncertain Tax Positions | 5,400,000 | ||
Reserve for income taxes, total | 4,372,000 | 4,623,000 | |
Interest and penalties, gross | 494,000 | ||
Reserve for income taxes to be recorded in additional paid in capital | 616,000 | ||
Minimum decrease in income tax expense due to release in reserves | 550,000 | ||
Maximum decrease in income tax expense due to release in reserves | $650,000 | ||
Tax years open to examination by Internal Revenue Service | 2012 through 2014 | ||
Tax years open to examination by various taxing authorities | 2011 through 2014 | ||
Tax years open to examination by various taxing authorities for other entities | 2010 through 2014 |
WeightedAverage_Shares_Calcula
Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Earnings Per Share [Abstract] | ||
Basic weighted-average common shares outstanding | 86,764 | 86,879 |
Effect of dilutive stock options | 1,985 | 2,380 |
Weighted-average common and common-equivalent shares outstanding | 88,749 | 89,259 |
WeightedAverage_Shares_Additio
Weighted-Average Shares - Additional Information (Detail) | 3 Months Ended | |
Apr. 05, 2015 | Mar. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Stock options to purchase anti-dilutive common stock | 2,263,787 | 585,208 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Apr. 05, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment_Information_Informatio
Segment Information - Information About Segments (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 05, 2015 | Mar. 30, 2014 |
Segment Reporting Information [Line Items] | ||
Product revenue | $105,775 | $83,569 |
Service revenue | 7,659 | 7,360 |
Operating income | 23,917 | 22,443 |
Operating Segments | MVSD | ||
Segment Reporting Information [Line Items] | ||
Product revenue | 97,494 | 77,618 |
Service revenue | 3,879 | 3,698 |
Operating income | 33,307 | 28,292 |
Operating Segments | SISD | ||
Segment Reporting Information [Line Items] | ||
Product revenue | 8,281 | 5,951 |
Service revenue | 3,780 | 3,662 |
Operating income | 1,896 | 1,013 |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating income | ($11,286) | ($6,862) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | ||||
4-May-15 | Apr. 30, 2015 | Apr. 05, 2015 | Dec. 31, 2014 | Apr. 17, 2015 | |
Subsequent Event [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $0.00 | ||||
Dividends | $0.07 | ||||
Dividends Payable, Date Declared | 19-Jun-15 | ||||
Dividends Payable, Date of Record | 5-Jun-15 | ||||
Loss Contingency, Damages Awarded, Value | $4,411,000 | ||||
Employee Stock Option | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
additional shares under Share-based Compensation Arrangement by Share-based Payment Award, Additional Number of Shares Available for Grant | 2,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $0.00 |