Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A (Amendment No. 1) is being filed to amend our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (Original Filing), filed with the U.S. Securities and Exchange Commission on March 16, 2018 (Original Filing Date). The sole purpose of this Amendment No. 1 is to amend the following: Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations, in the explanation of the fluctuation in Industrial Inkjet Gross Profit on page 57 which inadvertently stated “gross profit increased to 35.5% (35.7% ex-currency using 2015 exchange rates) in 2016 from 34.2% in 2015” which should have stated “gross profit increased to 35.4% (35.6% ex-currency using 2015 exchange rates) in 2016 from 33.7% in 2015”. Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations, Liquidity and Capital Resources, in the explanation of the fluctuation in Accounts Payable, Accrued and Other Liabilities, and Income Taxes Receivable/Payable, Net on page 86 which inadvertently stated working capital as $454.5 million, which should have been $456.7 million. Item 8. Financial Statements and Supplementary Data, specifically to revise the information included in the Consolidated Balance Sheet as of December 31, 2017 on page 97, which inadvertently stated “Total current liabilities” as $278,167, which should have been $283,167 (amounts are stated in thousands). Note 4 to the Consolidated Financial Statements on page 130, which inadvertently stated “Contingent consideration—current” as $14,992, which should have been $14,922 (amounts are stated in thousands). Except as described above, no changes have been made to the Original Filing and this Amendment No. 1 does not modify, amend or update any of the financial or other information contained in the Original Filing. This Amendment No. 1 does not reflect events that may have occurred subsequent to the Original Filing Date. | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EFII | ||
Entity Registrant Name | ELECTRONICS FOR IMAGING INC | ||
Entity Central Index Key | 867,374 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 45,007,892 | ||
Entity Public Float | $ 2,168,108,942 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 170,345 | $ 164,313 |
Short-term investments, available for sale | 148,697 | 295,428 |
Accounts receivable, net of allowances of $32.2 and $23.3 million, respectively | 244,416 | 220,813 |
Inventories | 125,813 | 96,338 |
Income taxes receivable | 4,565 | 975 |
Assets held for sale | 4,200 | 3,781 |
Other current assets | 41,799 | 31,881 |
Total current assets | 739,835 | 813,529 |
Property and equipment, net | 98,762 | 103,474 |
Restricted cash equivalents and investments | 32,531 | 6,252 |
Goodwill | 403,278 | 359,841 |
Intangible assets, net | 123,008 | 122,997 |
Deferred tax assets | 45,083 | 58,477 |
Other assets | 15,504 | 14,359 |
Total assets | 1,458,001 | 1,478,929 |
Current liabilities: | ||
Accounts payable | 123,935 | 114,287 |
Accrued and other liabilities | 98,090 | 85,505 |
Deferred revenue | 55,833 | 53,813 |
Income taxes payable | 5,309 | 10,256 |
Total current liabilities | 283,167 | 263,861 |
Convertible senior notes, net | 318,957 | 304,484 |
Imputed financing obligation related to build-to-suit lease | 13,944 | 14,152 |
Noncurrent contingent and other liabilities | 28,801 | 42,786 |
Deferred tax liabilities | 11,652 | 15,601 |
Noncurrent income taxes payable | 20,169 | 12,030 |
Total liabilities | 676,690 | 652,914 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | ||
Common stock, $0.01 par value; 150,000 shares authorized; 54,249 and 53,038 shares issued, respectively | 542 | 530 |
Additional paid-in capital | 745,661 | 705,901 |
Treasury stock, at cost; 9,070 and 6,457 shares, respectively | (375,574) | (273,730) |
Accumulated other comprehensive gain (loss) | 8,138 | (24,575) |
Retained earnings | 402,544 | 417,889 |
Total stockholders' equity | 781,311 | 826,015 |
Total liabilities and stockholders' equity | $ 1,458,001 | $ 1,478,929 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 32.2 | $ 23.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 54,249,000 | 53,038,000 |
Treasury stock, shares | 9,070,000 | 6,457,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Revenue | $ 993,260 | $ 992,065 | $ 882,513 | |
Cost of revenue | [1] | 486,804 | 483,900 | 425,083 |
Gross profit | 506,456 | 508,165 | 457,430 | |
Operating expenses: | ||||
Research and development | [1] | 157,358 | 151,395 | 141,364 |
Sales and marketing | [1] | 173,697 | 169,042 | 156,339 |
General and administrative | [1] | 92,953 | 85,618 | 72,797 |
Amortization of identified intangibles | 47,339 | 39,560 | 26,510 | |
Restructuring and other (Note 13) | 7,562 | 6,731 | 5,731 | |
Total operating expenses | 478,909 | 452,346 | 402,741 | |
Income from operations | 27,547 | 55,819 | 54,689 | |
Interest expense | (19,505) | (17,716) | (17,364) | |
Interest income and other income (expense), net | 4,088 | 545 | (1,757) | |
Income before income taxes | 12,130 | 38,648 | 35,568 | |
Benefit from (provision for) income taxes | (27,475) | 6,301 | (3,369) | |
Net income (loss) | $ (15,345) | $ 44,949 | $ 32,199 | |
Net income (loss) per basic common share | $ (0.33) | $ 0.96 | $ 0.68 | |
Net income (loss) per diluted common share | $ (0.33) | $ 0.94 | $ 0.67 | |
Shares used in basic per-share calculation | 46,281 | 46,900 | 47,217 | |
Shares used in diluted per-share calculation | 46,281 | 47,797 | 48,150 | |
[1] | Includes stock-based compensation expense as follows: 2017 2016 2015 Cost of revenue $ 2,561 $ 2,784 $ 2,837 Research and development 9,177 8,968 9,406 Sales and marketing 6,583 7,690 7,602 General and administrative 8,211 12,384 14,226 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recognized stock-based compensation expense | $ 26,532 | $ 31,826 | $ 34,071 |
Cost of Revenue [Member] | |||
Recognized stock-based compensation expense | 2,561 | 2,784 | 2,837 |
Research and Development [Member] | |||
Recognized stock-based compensation expense | 9,177 | 8,968 | 9,406 |
Sales and Marketing [Member] | |||
Recognized stock-based compensation expense | 6,583 | 7,690 | 7,602 |
General and Administrative [Member] | |||
Recognized stock-based compensation expense | $ 8,211 | $ 12,384 | $ 14,226 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (15,345) | $ 44,949 | $ 32,199 |
Net unrealized investment losses: | |||
Unrealized holding losses, net of tax benefits of less than $0.1 million for the years ended December 31, 2017 and 2016, and $0.1 million for the year ended December 31, 2015 | (84) | (97) | (169) |
Reclassification adjustments included in net income, net of tax benefit of less than $0.1 million for the years ended December 31, 2017 and 2015, and no tax benefit for the year ended December 31, 2016 | (140) | (66) | |
Net unrealized investment losses | (224) | (97) | (235) |
Currency translation adjustments, net of $0.6 and $0.5 million tax benefit for the years ended December 31, 2017 and 2016, respectively, and no tax provision for the year ended December 31, 2015 | 32,905 | (7,111) | (9,823) |
Unrealized gains on cash flow hedges | 32 | 8 | 40 |
Comprehensive income | $ 17,368 | $ 37,749 | $ 22,181 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses), tax provisions (benefits) | $ 0.1 | ||
Reclassification adjustments included in net income, net of tax benefits | 0 | ||
Currency translation adjustments, tax provisions (benefits) | $ 0.6 | $ 0.5 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2014 | $ 788,689 | $ 497 | $ 568,896 | $ (113,992) | $ (7,357) | $ 340,645 |
Balance, shares treasury stock at Dec. 31, 2014 | (2,736) | |||||
Balance, shares common stock at Dec. 31, 2014 | 49,671 | |||||
Comprehensive income (loss), net of tax | 22,181 | (10,018) | 32,199 | |||
Exercise of common stock options | $ 1,902 | $ 1 | 1,901 | |||
Exercise of common stock options, shares | 442 | 123 | ||||
Restricted stock vested | $ 9 | (9) | ||||
Restricted stock vested, shares | 925 | |||||
Common stock issued in connection with business acquisitions | $ 36,567 | $ 8 | 36,559 | |||
Common stock issued in connection with business acquisitions, shares | 787 | |||||
Stock-based compensation, net of cash settlements | 33,741 | 33,741 | ||||
Non-cash settlement of vacation liabilities by issuing RSUs | 1,353 | 1,353 | ||||
Non-cash settlement of employee-related liabilities by issuing RSUs | 1,353 | |||||
Stock repurchases | (76,447) | $ (76,447) | ||||
Stock repurchases, shares | (1,740) | |||||
Stock issued pursuant to ESPP | 9,547 | $ 3 | 9,544 | |||
Stock issued pursuant to ESPP, shares | 302 | |||||
Tax benefit from employee stock plans | 5,369 | 5,369 | ||||
Balance at Dec. 31, 2015 | 822,902 | $ 518 | 657,354 | $ (190,439) | (17,375) | 372,844 |
Balance, shares treasury stock at Dec. 31, 2015 | (4,476) | |||||
Balance, shares common stock at Dec. 31, 2015 | 51,808 | |||||
Comprehensive income (loss), net of tax | 37,749 | (7,200) | 44,949 | |||
Exercise of common stock options | $ 1,345 | $ 1 | 1,344 | |||
Exercise of common stock options, shares | 115 | 116 | ||||
Restricted stock vested | $ 8 | (8) | ||||
Restricted stock vested, shares | 787 | |||||
Common stock issued in connection with business acquisitions | $ 73 | 73 | ||||
Common stock issued in connection with business acquisitions, shares | 30 | |||||
Stock-based compensation, net of cash settlements | 31,726 | 31,726 | ||||
Non-cash settlement of vacation liabilities by issuing RSUs | 3,059 | 3,059 | ||||
Non-cash settlement of employee-related liabilities by issuing RSUs | 3,059 | |||||
Stock repurchases | (83,291) | $ (83,291) | ||||
Stock repurchases, shares | (1,981) | |||||
Stock issued pursuant to ESPP | 9,759 | $ 3 | 9,756 | |||
Stock issued pursuant to ESPP, shares | 297 | |||||
Balance at Dec. 31, 2016 | $ 826,015 | $ 530 | 705,901 | $ (273,730) | (24,575) | 417,889 |
Balance, shares treasury stock at Dec. 31, 2016 | (6,457) | (6,457) | ||||
Balance, shares common stock at Dec. 31, 2016 | 53,038 | |||||
Cumulative effect adjustment upon adoption of ASU 2016-09 | $ 2,839 | 2,743 | 96 | |||
Comprehensive income (loss), net of tax | 17,368 | 32,713 | (15,345) | |||
Exercise of common stock options | $ 2,066 | $ 2 | 2,064 | |||
Exercise of common stock options, shares | 165 | 166 | ||||
Restricted stock vested | $ 7 | (7) | ||||
Restricted stock vested, shares | 761 | |||||
Stock-based compensation, net of cash settlements | $ 26,532 | 26,532 | ||||
Non-cash settlement of employee-related liabilities by issuing RSUs | 1,166 | 1,166 | ||||
Stock repurchases | (101,844) | $ (101,844) | ||||
Stock repurchases, shares | (2,613) | |||||
Stock issued pursuant to ESPP | 10,008 | $ 3 | 10,005 | |||
Stock issued pursuant to ESPP, shares | 284 | |||||
Balance at Dec. 31, 2017 | $ 781,311 | $ 542 | $ 745,661 | $ (375,574) | $ 8,138 | $ 402,544 |
Balance, shares treasury stock at Dec. 31, 2017 | (9,070) | (9,070) | ||||
Balance, shares common stock at Dec. 31, 2017 | 54,249 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (15,345) | $ 44,949 | $ 32,199 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 65,647 | 55,081 | 40,124 |
Deferred taxes | 8,753 | (11,091) | (7,997) |
Tax benefit from employee stock plans | 5,369 | ||
Provision for bad debts and sales-related allowances | 12,416 | 10,678 | 7,536 |
Provision for inventory obsolescence | 6,312 | 5,716 | 7,147 |
Stock-based compensation, net of cash settlements | 26,532 | 31,726 | 33,741 |
Contingent consideration payments related to businesses acquired | (5,906) | ||
Non-cash accretion of interest expense on convertible notes and imputed financing obligation | 14,981 | 13,489 | 12,957 |
Other non-cash charges and credits | 12,536 | 5,443 | 3,844 |
Changes in operating assets and liabilities, net of effect of acquired businesses: | |||
Accounts receivable | (29,189) | (31,221) | (34,355) |
Inventories | (24,398) | 4,510 | (6,758) |
Other current assets | (9,218) | (6,498) | (14,863) |
Accounts payable and accrued liabilities | (6,235) | 651 | (6,371) |
Income taxes receivable/payable, net | (5,591) | (2,429) | (4,216) |
Net cash provided by operating activities | 51,295 | 121,004 | 68,357 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (87,623) | (216,349) | (328,911) |
Proceeds from sales and maturities of short-term investments | 233,633 | 252,856 | 311,508 |
Purchases of restricted cash equivalents and investments | (26,274) | (6,252) | |
Purchases, net of proceeds from sales, of property and equipment | (13,754) | (22,373) | (18,449) |
Businesses and technology purchased, net of cash acquired and disposition | (29,559) | (19,932) | (74,766) |
Net cash provided by (used for) investing activities | 76,423 | (12,050) | (110,618) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 12,074 | 11,100 | 11,450 |
Purchases of treasury stock and net share settlements | (101,844) | (83,292) | (76,447) |
Repayment of debt assumed through business acquisitions and debt issuance costs | (11,094) | (8,803) | (22,592) |
Contingent consideration payments related to businesses acquired | (25,018) | (28,111) | (4,093) |
Net cash used for financing activities | (125,882) | (109,106) | (91,682) |
Effect of foreign exchange rate changes on cash and cash equivalents | 4,196 | 374 | (99) |
Increase (decrease) in cash and cash equivalents | 6,032 | 222 | (134,042) |
Cash and cash equivalents at beginning of year | 164,313 | 164,091 | 298,133 |
Cash and cash equivalents at end of year | $ 170,345 | $ 164,313 | $ 164,091 |
The Company and Its Significant
The Company and Its Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
The Company and Its Significant Accounting Policies | Note 1: The Company and Its Significant Accounting Policies The Company We are a world leader in customer-centric digital printing innovation focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog based printing to digital on-demand Our products include industrial super-wide and wide format display graphics, corrugated packaging and display, textile, and ceramic tile decoration digital inkjet printers that utilize our digital ink, industrial digital inkjet printer parts, and professional services; print production workflow, web-to-print, on-demand Our product portfolio includes Industrial Inkjet including VUTEk display graphics super-wide and wide format, Nozomi corrugated packaging, Reggiani textile, Cretaprint ceramic tile decoration and building material industrial digital inkjet printers and ink; print production workflow, web-to-print, Correction of Prior Period Financial Information We identified certain errors at our Italian manufacturing subsidiary attributable to the valuation and classification of certain finished goods inventory during the year ended December 31, 2017. The errors related to finished goods that should have been impaired and expensed in 2015, inventory utilized in research and development projects that expired and should have been expensed in 2016, and certain assets included in inventory that should have been capitalized and depreciated over their estimated useful lives. The preceding resulted in an understatement of cost of revenue in 2015 and operating expenses in 2016 due to failure to properly impair and expense certain items, properly classify certain amounts included in inventories on the balance sheet, and appropriately depreciate those amounts. As a result, we have corrected the accompanying consolidated balance sheet as of December 31, 2016 as follows: December 31, 2016 (in thousands) As Previously Adjustments As Adjusted Inventories $ 99,075 $ (2,737 ) $ 96,338 Property and equipment, net 103,304 170 103,474 Total assets 1,481,496 (2,567 ) 1,478,929 Deferred tax liabilities 16,351 (750 ) 15,601 Total liabilities 653,664 (750 ) 652,914 Accumulated other comprehensive loss (24,694 ) 119 (24,575 ) Retained earnings 419,825 (1,936 ) 417,889 Total shareholders’ equity 827,832 (1,817 ) 826,015 We consider this correction to previously issued financial statements to be immaterial. The impact to net income for the years ended December 31, 2016 and 2015 for this correction is a decrease of $0.6 and $1.3 million, respectively, from amounts previously reported of $45.5 and $33.5 million, respectively. Out-of-Period During the year ended December 31, 2017, we recorded out-of-period out-of-period Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of EFI and our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements requires estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, comprehensive income, cash flows, and related disclosure of contingent assets and liabilities. We evaluate our estimates, including those related to revenue recognition, bad debts, inventory valuation and purchase commitment reserves, warranty obligations, litigation expenses, restructuring activities, fair value of financial instruments, stock-based compensation, income taxes, valuation of goodwill and intangible assets, business combinations, build-to-suit Cash, Cash Equivalents, and Short-term Investments We invest our excess cash on deposit with major banks in money market, U.S. Treasury and government-sponsored entity, corporate, municipal government, asset-backed, and mortgage-backed residential securities. By policy, we invest primarily in high-grade marketable securities. We are exposed to credit risk in the event of default by the financial institutions or issuers of these investments to the extent of amounts recorded in our Consolidated Balance Sheets. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Typically, the cost of these investments has approximated fair value. Marketable investments with a maturity greater than three months are classified as available-for-sale Available-for-sale We review investments in debt securities for other-than-temporary impairment whenever the fair value is less than the amortized cost and evidence indicates the investment’s carrying amount is not recoverable within a reasonable period of time. We assess the fair value of individual securities as part of our ongoing portfolio management. Our other-than-temporary assessment includes reviewing the length of time and extent to which fair value has been less than amortized cost; the seniority and durations of the securities; adverse conditions related to a security, industry, or sector; historical and projected issuer financial performance, credit ratings, issuer specific news; and other available relevant information. To determine whether an impairment is other-than-temporary, we consider whether we have the intent to sell the impaired security or if it will be more likely than not that we will be required to sell the impaired security before a market price recovery and whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. In determining whether a credit loss existed, we used our best estimate of the present value of cash flows expected to be collected from each debt security. For these cash flow estimates, including prepayment assumptions, we rely on data from widely accepted third party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries, and changes in value. Expected cash flows were discounted using the effective interest rate implicit in the securities. Based on this analysis, there were no other-than-temporary impairments, including credit-related impairments, during the years ended December 31, 2017, 2016, and 2015. We have determined that gross unrealized losses on short-term investments at December 31, 2017 and 2016 are temporary in nature because each investment meets our investment policy and credit quality requirements. We have the ability and intent to hold these investments until they recover their unrealized losses, which may not be until maturity. Evidence that we will recover our investments outweighs evidence to the contrary. We classify our investments as current or noncurrent based on the nature of the investments and their availability for use in current operations. Restricted Cash Equivalents and Investments As explained further in Note 15—Property and Equipment, net, we have restricted cash equivalents and investments of $32.5 and $6.3 million as of December 31, 2017 and 2016 related to a lease with BTMU related to the construction of manufacturing and warehouse facilities in Manchester, New Hampshire, in our Industrial Inkjet operating segment. The funds pledged under the lease represent 115% of the total expenditures made by BTMU through December 31, 2017 and 2016. The funds are invested in $32.5 million of cash equivalents at December 31, 2017, and $5.1 and $1.2 million of U.S. government securities and cash equivalents at December 31, 2016, respectively, with a third party trustee, which are restricted during the construction period. Upon completion of construction, the funds will be released as cash and cash equivalents. The portion of released funds representing 100% of the total expenditures made by BTMU will be deposited with BTMU and restricted as collateral until the end of the underlying lease period. Fair Value of Financial Instruments We assess the fair value of our financial instruments each reporting period. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued and other liabilities, approximate their respective fair values due to the short maturities of these financial instruments and because accounts receivable are reduced by an allowance for doubtful accounts. The fair value of our available-for-sale Revenue Recognition We derive our revenue primarily from product revenue, which includes hardware (DFEs, design-licensed solutions including upgrades, industrial digital inkjet printers including components replaced under maintenance agreements, and ink), software licensing and development, and royalties. We receive service revenue from software license and printer maintenance agreements, customer support, training, and consulting. We recognize revenue on the sale of DFEs, printers, and ink in accordance with the provisions of SAB 104, Revenue Recognition, and when applicable, ASC 605-25. Products generally must be shipped against written purchase orders. We use either a binding purchase order or signed contract as evidence of an arrangement. Sales to the leading printer manufacturers are generally evidenced by a master agreement governing the relationship together with a binding purchase order. Sales to our resellers are also evidenced by binding purchase orders or signed contracts and do not generally contain rights of return or price protection. Our arrangements generally do not include product acceptance clauses. When acceptance is required and not considered perfunctory, revenue is recognized when the product is accepted by the customer. Delivery of hardware generally is complete when title and risk of loss is transferred at point of shipment from manufacturing facilities, or when the product is delivered to the customer’s local common carrier. We also sell products and services using sales arrangements with terms resulting in different timing for revenue recognition as follows: • if the title and/or risk of loss is transferred at a location other than our manufacturing facility, revenue is recognized when title and risk of loss transfers to the customer, per the terms of the agreement; • if title is retained until payment is received, revenue is recognized when title is passed upon receipt of payment; • if the sales arrangement is classified as an operating lease, revenue is recognized ratably over the lease term; • if the sales arrangement is classified as a sales-type lease, revenue is recognized upon shipment; • if the sales arrangement is a fixed price for performance extending over a long period and our right to receive future payment depends on our future performance in accordance with these agreements, revenue is recognized under the percentage of completion method. We assess whether the fee is fixed or determinable based on the terms of the contract or purchase order. We assess collectibility based on various factors, including past transaction history with the customer, the creditworthiness of the customer, customer concentrations, current economic trends and macroeconomic conditions, changes in customer payment terms, the length of time receivables are past due, and significant one-time We hold certain products manufactured by us on a “bill and hold” basis for our customers’ convenience. Revenue is recognized for these “bill and hold” arrangements in accordance with SAB 104, which requires consideration of, among other things, whether the customer has made a fixed commitment to purchase the product; the existence of a substantial business purpose for the arrangement; the “bill and hold” arrangement is at the request of the customer; the scheduled delivery date must be reasonable and consistent with the buyer’s business purpose; title and risk of ownership must pass to the customer, including any decline in the market value of the product; the product is complete and ready for shipment; the product has been segregated from our inventory; payment terms for such arrangements have not been modified from our normal billing and credit terms; our custodial risks must be insurable and insured; and no further performance obligations by us exist. Extended procedures are not necessary to assure that there are no exceptions to the customer’s commitment to accept and pay for the product. There are no bill-and-hold We license our software primarily under perpetual licenses. Software revenue consists of licensing, post-contract customer support, and professional consulting. We apply the provisions of ASC 985-605, 605-25, We enter into contracts to sell our products and services. While the majority of our sales agreements contain standard terms and conditions, there are agreements containing multiple elements or non-standard Multiple-Deliverable Arrangements We recognize revenue in multiple element arrangements involving tangible products containing software and non-software 605-25. non-software non-software 985-605. We have calculated BESP for software licenses and non-software When historical data is unavailable to calculate and support the determination of BESP on a newly launched or customized product, then BESP of similar products is substituted for revenue allocation purposes. We offer customization for some of our products. Customization does not have a significant impact on the discounting or pricing of our products. We have insignificant transactions where tangible and software products are sold together in a bundled arrangement. Tangible products containing software and non-software 985-605 985-605. Non-software Multiple element arrangements containing only software elements remain subject to the provisions of ASC 985-605 985-605. Subscription Arrangements We have subscription arrangements where the customer pays a fixed fee and receives services over a period of time. We recognize subscription revenue ratably over the service period. Any up front setup fees associated with our subscription arrangements are recognized ratably, generally over one year. Any up front setup fees that are not associated with our subscription arrangements are recognized upon completion. Leasing Arrangements If the sales arrangement is classified as a sales-type lease, then revenue is recognized upon shipment. Leases that are not classified as sales-type leases are accounted for as operating leases with revenue recognized ratably over the lease term. A lease is classified as a sales-type lease with revenue recognized upon shipment if the lease is determined to be collectible and has no significant uncertainties and if any of the following criteria are satisfied: • present value of all minimum lease payments is greater than or equal to 90% of the fair value of the equipment at lease inception, • noncancellable lease term is greater than or equal to 75% of the economic life of the equipment, • bargain purchase option that allows the lessee to purchase the equipment below fair value, or • transfer of ownership to the lessee upon termination of the lease. Long-term Contracts Involving Substantial Customization We have established our ability to produce estimates sufficiently dependable to require that we follow the percentage of completion method with respect to fixed price contracts where we provide information technology system development and implementation services. Revenue on such fixed price contracts is recognized over the contract term based on the percentage of development and implementation services that are provided during the period compared with the total estimated development and implementation services to be provided over the entire contract using guidance from ASC 605-35, We recognize losses on long-term fixed price contracts in the period that the contractual loss becomes probable and estimable. We record amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are met. We record revenue that is earned and recognized in excess of amounts invoiced on fixed price contracts as trade receivables. Deferred Revenue and Related Deferred Costs Deferred revenue represents amounts received in advance for product support contracts, software customer support contracts, consulting and integration projects, or product sales. Product support contracts include stand-alone product support packages, routine maintenance service contracts, and upgrades or extensions to standard product warranties. We defer these amounts when we invoice the customer and then generally recognize revenue either ratably over the support contract life, upon performing the related services, under the percentage of completion method, or in accordance with our revenue recognition policy. Deferred cost of revenue related to unrecognized revenue on shipments to customers was $3.5 and $3.4 million as of December 31, 2017 and 2016, respectively, and is included in other current assets in our Consolidated Balance Sheets. Shipping and Handling Costs Amounts billed to customers for shipping and handling costs are included in revenue. Shipping and handling costs are charged to cost of revenue as incurred. Allowance for Doubtful Accounts and Sales-related Allowances We establish an allowance for doubtful accounts to ensure that trade receivables are not overstated due to uncollectibility. We record specific reserves for individual accounts when we become aware of specific customer circumstances, such as bankruptcy filings, deterioration in the customer’s operating results or financial position, or potential unfavorable outcomes from disputes with customers or vendors. We perform ongoing credit evaluations of the financial condition of our printer manufacturer, third-party distributor, reseller, and other customers and require collateral, such as letters of credit and bank guarantees, in certain circumstances. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. The need to write off a receivable balance depends on the age, size, and determination of collectibility of the receivable. Balances are written off when we deem it probable that the receivable will not be recovered. We make provisions for sales rebates and revenue adjustments based on analysis of current sales programs and revenue in accordance with our revenue recognition policy. Financing Receivables ASC 310, Receivables, requires disclosures regarding the credit quality of our financing receivables and allowance for credit losses including disclosure of credit quality indicators, past due information, and modifications of our financing receivables. Our financing receivables were $28.7 and $31.0 million consisting of $16.6 and $17.8 million of sales-type lease receivables, included within other current assets and other assets at December 31, 2017 and 2016, respectively, and $12.1 and $13.2 million of trade receivables having an original contractual maturity in excess of one year, included within accounts receivable, net of allowance, at December 31, 2017 and 2016, respectively. The trade receivables of $12.1 and $13.2 million having an original total contractual maturity in excess of one year, at December 31, 2017 and 2016, include $4.4 and $7.1 million, respectively, which are scheduled to be received in less than one year. The credit quality of financing receivables is evaluated on the same basis as trade receivables. We do not have material past due financing receivables. Concentration of Risk We are exposed to credit risk in the event of default by any of our customers to the extent of amounts recorded in the Consolidated Balance Sheet. We perform ongoing evaluations of the collectibility of accounts receivable balances for our customers and maintain allowances for estimated credit losses. Actual losses have not historically been significant, but have risen over the past several years as our customer base has grown through acquisitions. Our Fiery products, which constitute approximately 27% of revenue for the year ended December 31, 2017, are primarily sold to a limited number of leading printer manufacturers. Although end customer and reseller channel preference for Fiery products drives demand, most Fiery revenue relies on these significant printer manufacturer / distributors to integrate Fiery technology into the design and development of their print engines. We expect that we will continue to depend on a relatively small number of leading printer manufacturers for a significant portion of our revenue, although their significance is expected to decline in future periods as our revenue increases from Industrial Inkjet and Productivity Software products. We generally have experienced longer accounts receivable collection cycles in our Industrial Inkjet and Productivity Software operating segments compared to our Fiery operating segment as, historically, the leading printer manufacturers have paid on a more timely basis. Down payments are generally required from Industrial Inkjet and Productivity Software customers as a means to ensure payment. Since Europe is composed of varied countries and regional economies, our European risk profile is somewhat more diversified due to the varying economic conditions among the countries. Approximately 32% of our receivables are with European customers as of December 31, 2017. Of this amount, 30% of our European receivables (10% of consolidated gross receivables) are in the higher risk southern European countries (mostly Italy, Spain, and Portugal) and Ireland. We rely on a limited number of suppliers for certain key components, including textile ink, and a few key contract manufacturers for our Fiery DFEs, and certain Industrial Inkjet subassemblies. Any disruption or termination of these arrangements could materially adversely affect our operating results. Many of our current Fiery and Productivity Software products include software that we license from Adobe. To obtain licenses from Adobe, Adobe requires that we obtain quality assurance approvals from them for our products that use Adobe software. Accounts Receivable Sales Arrangements In accordance with ASC 860-20, We have facilities in the U.S. and Italy that enable us to sell to third parties, on an ongoing basis, certain trade receivables with recourse. The trade receivables sold with recourse are generally short-term receivables with payment due dates of less than 10 days from the date of sale, which are subject to a servicing obligation. Trade receivables sold under these facilities were $21.4 and $19.8 million during the years ended December 31, 2017 and 2016, respectively, which approximates the cash received. We have facilities in Spain and Italy that enable us to sell to third parties, on an ongoing basis, certain trade receivables without recourse. Trade receivables sold without recourse are generally short-term receivables with payment due dates of less than one year, which are secured by international letters of credit. Trade receivables sold under these facilities were $5.9 and $3.5 million during the years ended December 31, 2017 and 2016, respectively, which approximates the cash received. We report collections from the sale of trade receivables to third parties as operating cash flows in the Consolidated Statements of Cash Flows. Inventories Inventories are generally stated at standard cost, which approximates the lower of actual cost, using the first-in, first-out Work-in-process We estimate potential future inventory obsolescence and purchase commitments to evaluate the need for inventory reserves. Current economic trends, changes in customer demand, product design changes, product life, demand, and the acceptance of our products are analyzed to evaluate the adequacy of such reserves. Property and Equipment, Net Property and equipment is recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: desktop and laptop computers (two years), computer server equipment (three years), software under perpetual licenses (three to five years), manufacturing equipment (seven years), testing and other equipment (three years), tooling (lesser of three years or the product life), research and development equipment with alternative future uses (three years), equipment leased to customers on operating leases (greater of three years or the lease term), furniture (five years), land improvements such as parking lots or sidewalks (seven years), leasehold improvements (the lease term), building improvements (five to ten years), building and improvements under a build-to-suit When assets are disposed, the asset and accumulated depreciation are removed from our records and the related gain or loss is recognized in our results of operations. Repairs and maintenance expenditures are expensed as incurred, unless they are considered to be improvements and extend the useful life of the property and equipment. Internal Use Software In accordance with ASC 350-40, Other—Internal-Use re-engineering, Goodwill Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. We perform our annual goodwill impairment analysis in the fourth quarter of each year or more frequently if we believe indicators of impairment exist. Triggering events that may require an interim impairment analysis include indicators such as adverse industry or economic trends, restructuring actions, significant changes in the manner of our use of the acquired assets, significant changes in the strategy for our overall business, lower projections of profitability, significant decline in our stock price for a sustained period, or a sustained decline in our market capitalization. According to the provisions of ASC 350-20-35, two-step Long-lived Assets, including Intangible Assets Purchased intangible assets are amortized on a straight-line basis over their economic lives of two to six years for developed technology, three to nine years for customer contracts/relationships, four to five years for covenants not to compete, and three to sixteen years for trademarks and trade names as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The useful lives of certain amortizable identifiable intangible assets were reduced during 2017 and 2016, respectively, based on a re-assessment We review the carrying values of long-lived assets whenever events and circumstances, such as reductions in demand, lower projections of profitability, significant changes in the manner of our use of acquired assets, or significant negative industry or economic trends, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. An asset is considered impaired if its carrying amount exceeds the undiscounted future cash flow the asset is expected to generate. If this review indicates that an impairment has occurred, the impaired asset is written down to its fair value, which is typically calculated using quoted market prices and/or discounted expected future cash flows. Our estimates regarding future anticipated net revenue and cash flows, the remaining economic life of the products and technologies, or both, may differ from those used to assess the recoverability of assets. In that event, impairment charges or shortened useful lives of certain long-lived assets may be required, resulting in charges to our Consolidated Statements of Operations when such determinations are made. An impairment loss is recorded for long-lived assets held-for-sale held-for-sale. We recorded an impairment loss of $0.9 million during the year ended December 31, 2017 related to the Meredith facility. For additional information, please refer to Note 15—Property and Equipment, net, for details. There were no asset impairment charges recognized during the years ended December 31, 2016 and 2015. Warranty Reserves Our Industrial Inkjet printers are generally accompanied by a 13-month cost-per-claim, Warranty reserves were $16.3 and $10.3 million as of December 31, 2017 and 2016, respectively. Litigation Accruals We may be involved, from time to time, in a variety of claims, lawsuits, investigations, or proceedings relating to contractual disputes, securities laws, intellectual property rights, employment, or other matters that may arise in the normal course of business. We assess our potential liability in each of these matters by using the information available to us. We develop our views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and various combinations of appropriate litigation and settlement strategies. We accrue estimated losses from contingencies if a loss is deemed probable and can be reasonably estimated. Restructuring Reserves Restructuring liabilities are established when the costs have been incurred. Severance and other employee separation costs are incurred when management commits to a plan of termination identifying the number of employees impacted, their termination dates, and the terms of their severance arrangements. The liability is accrued at the employee notification date unless service is required beyond the greater of 60 days or the legal notification period, in which case the liability is recognized ratably over the service period. Facility downsizing and closure costs are accrued at the earlier of the lessor notification date, if the lease agreement allows for early termination, or the cease use date. Relocation costs are incurred when the related relocation services are performed. Costs related to contracts without future benefit are incurred at the earlier of the cease use date or the contract cancellation date. Research and Development Research and development costs were $157.4, $151.4, and $141.4 million for the years ended December 31, 2017, 2016, and 2015, respectively. Research and development costs include salaries and benefits of employees performing research and development activities, supplies, and other expenses incurred from research and development efforts. We expense research and development costs associated with new software products as incurred until technological feasibility is established. To date, we have not capitalized research and development costs associated with software development as products and enhancements have generally reached technological feasibility, as defined by U.S. GAAP, and have been released for sale at substantially the same time. We have capitalized research and development equipment that has been acquired or constructed for research and development activities and has alternative future uses (in research and development projects or otherwise). Such research and development equipment is depreciated on a straight-line basis with a three year useful life. Advertising Advertising costs are expensed as incurred. Total advertising and promotional expenses were $5.9, $4.6, and $4.3 million for the years ended December 31, 2017, 2016, and 2015, respectively. Income Taxes We account for income taxes in accordance with the provisions of ASC 740, which requires that deferred tax assets and liabilities be determined based on the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. Accordingly, the tax bases of assets and liabilities reflect the impact of the tax reform legislation that was enacted on December 22, 2017. We estimate our actual current tax expense including permanent charges and benefits and the temporary differences resulting from differing treatment of items for tax and financial accounting purposes such as deferred revenue. These temporary differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheets. In some cases, provisional amounts were recorded based on reasonable estimates. We record the provisional amounts of the tax effects of the 2017 Tax Act in the first reporting period in which a reasonable estimate can be determined. SAB 118 provides that the measurement period may not extend beyond one year from the enactment date. We assess the likelihood that our deferred tax assets will be recovered from future taxable income by considering both positive and negative evidence relating to their recoverability. If we believe that recovery of these deferred tax assets is not more likely than not, we establish a valuation allowance. Significant |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2: Earnings Per Share Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, non-vested non-vested Performance-based and market-based restricted stock and stock options that would be issuable if the end of the reporting period were the end of the vesting period, if the result would be dilutive, are assumed to be outstanding for purposes of determining net income (loss) per diluted common share as of the later of the beginning of the period or the grant date in accordance with ASC 260-10-45-48. non-GAAP non-GAAP Basic and diluted earnings per share for the years ended December 31, 2017, 2016, and 2015 are reconciled as follows (in thousands, except for per share amounts): 2017 2016 2015 Basic net income (loss) per share: Net income (loss) available to common shareholders $ (15,345 ) $ 44,949 $ 32,199 Weighted average common shares outstanding 46,281 46,900 47,217 Basic net income (loss) per share $ (0.33 ) $ 0.96 $ 0.68 Dilutive net income (loss) per share: Net income (loss) available to common shareholders $ (15,345 ) $ 44,949 $ 32,199 Weighted average common shares outstanding 46,281 46,900 47,217 Dilutive stock options, restricted stock, and ESPP purchase rights — 897 933 Weighted average common shares outstanding for purposes of computing diluted net income (loss) per share 46,281 47,797 48,150 Dilutive net income (loss) per share $ (0.33 ) $ 0.94 $ 0.67 Potential shares of common stock that were not included in the determination of diluted net income (loss) per share for the periods presented because the impact of including them would have been anti-dilutive or because their performance conditions have not been met, consisted of the following (in thousands): For the years ended December 31, 2017 2016 2015 Options 138 — — RSUs & PSUs 692 183 489 ESPP purchase rights 160 10 12 Total potential shares of common stock excluded from the computation of diluted earnings per share 990 193 501 The weighted-average number of common shares outstanding does not include the effect of the potential common shares from conversion of our Notes and exercise of our Warrants, which were issued in September 2014. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive since the conversion price of the Notes and the strike price of the Warrants exceeded the average market price of our common stock. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the Notes. Our intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only amounts payable in excess of the principal amount of the Notes are considered in diluted net income (loss) per share under the treasury stock method. The Note Hedges are also not included in the calculation of diluted net income (loss) per share because the effect of any exercise of the Note Hedges would be anti-dilutive. Please refer to Note 7—Convertible Senior Notes, Note Hedges, and Warrants of the Notes to Consolidated Financial Statements for additional information. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 3: Business Acquisitions We acquired FFPS and Generation Digital during 2017, which have been included in our Fiery operating segment, and two business process automation businesses, CRC and Escada, which have been included in our Productivity Software operating segment. Post-acquisition revenue was $27.1 million in 2017 related to these four acquisitions. We acquired Optitex and Rialco during 2016, which have been included in our Productivity Software and Industrial Inkjet operating segments, respectively. Post-acquisition revenue was $19.8 million in 2016 related to these two acquisitions. We acquired Reggiani and Matan during 2015, which have been included in our Industrial Inkjet operating segment, and two business process automation businesses, which have been included in our Productivity Software operating segment. Post-acquisition revenue was $88.4 million in 2015 related to these four acquisitions. Acquisition-related transaction costs were $2.1, $2.2, and $5.5 million during the years ended December 31, 2017, 2016, and 2015, respectively. These acquisitions were accounted for as purchase business combinations. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed on the basis of their estimated fair value on their respective acquisition dates. Excess purchase consideration was recorded as goodwill. Factors contributing to a purchase price that results in goodwill include, but are not limited to, the retention of research and development personnel with skills to develop future technology, manufacturing capacity in the Industrial Inkjet operating segment, support personnel to provide maintenance services related to the products, a trained sales force capable of selling current and future products, the opportunity to cross-sell products of the acquired businesses to existing customers, the positive reputation of each of these businesses in the market, the opportunity to integrate acquired technology into our products, integration of Generation Digital’s digital textile design workflow with our Fiery textile DFEs and Reggiani digital textile printers linking textile design and production, the opportunity to sell Fiery DFEs to FFPS customers, and the opportunity to expand our presence in the DFE market through the synergy of FFPS technology with existing Fiery products, the opportunity to sell our Productivity Software Suite to customers of the acquired businesses, the opportunity to expand our presence in the digital inkjet textile printing market through the acquisition of the Reggiani digital inkjet textile printer business, and the synergy of Optitex technology with Reggiani digital inkjet textile printers. Rialco’s technical and commercial capabilities benefit the Industrial Inkjet operating segment in the sourcing, specification, and purification of high quality dyes and expand our research, development, and innovation base to develop ink for the signage, ceramic, and packaging markets. We engaged a third party valuation firm to aid management in its analyses of the fair value of these acquired businesses. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third party valuation firm, the fair value analyses and related valuations represent the conclusions of management and not the conclusions or statements of any third party. The purchase price allocations for the 2017 purchase business combinations are preliminary and subject to change within the respective measurement periods as valuations are finalized. We expect to continue to obtain information to assist us in finalizing the fair value of the net assets acquired during the respective measurement periods, which end at various dates in 2018. Measurement period adjustments will be recognized in the reporting period in which the adjustment amounts, if any, are determined. 2017 Acquisitions Fiery Operating Segment We acquired certain assets comprising the FFPS business from Xerox, a New York corporation headquartered in Norwalk, Connecticut, on January 31, 2017 for cash consideration of $23.9 million consisting of $5.9 million paid at closing, $9.0 million paid in July 2017, and $9.0 million payable in July 2018, which have been discounted at our incremental borrowing rate of 4.98%, resulting in a purchase price of $23.1 million. The FFPS business manufactures and markets the FFPS DFE, which is a DFE that previously competed with our Fiery DFEs and is included in our Fiery operating segment. We acquired privately held Generation Digital, which is a New York corporation headquartered in New York City, on August 14, 2017 for cash consideration of $3.2 million, net of cash acquired, plus an additional potential future cash earnout, which is contingent on achieving certain revenue and operating profit performance targets during a six-month 12-month The fair value of the earnout related to the Generation Digital acquisition is currently estimated to be $3.6 million at December 31, 2017, by applying the income approach in accordance with ASC 805-30-25-5. 820-10-35 805-30-35-1, Productivity Software Operating Segment We acquired privately held CRC and Escada, which have been included in our Productivity Software operating segment, for cash consideration of approximately $19.5 million, net of cash acquired, plus an additional potential future cash earnout related to Escada, which is contingent on Escada achieving certain revenue and operating profit performance targets over two consecutive 12-month CRC is a Michigan corporation headquartered in Scottsdale, Arizona, which was acquired from Reynolds, an Ohio corporation headquartered in Dayton, Ohio, on May 8, 2017. CRC provides business process automation software for label and packaging printers for commercial businesses and is included in the Midmarket Print Suite within our Productivity Software operating segment. Escada Innovations Limited, a private limited company incorporated in England and Wales and Escada Systems, Inc., a Delaware corporation headquartered in Decatur, Georgia (collectively, “Escada”) was acquired on October 1, 2017. Escada provides corrugator control systems for the corrugated packaging market, which provide comprehensive control and traceability for the entire corrugated packaging process. Escada will be integrated into the Productivity Software operating segment. The fair value of the earnout related to the Escada acquisition is currently estimated to be $2.1 million at December 31, 2017, by applying the income approach in accordance with ASC 805-30-25-5, 820-10-35 805-30-35-1, 2016 Acquisitions Industrial Inkjet Operating Segment Rialco, a private limited liability company incorporated in England and Wales and headquartered in Bradford, U.K., was acquired on March 1, 2016 for cash consideration of $8.4 million, net of cash acquired, plus an additional potential future cash earnout, which is contingent on achieving certain revenue and gross profit performance targets over three consecutive 12-month The fair value of the earnout related to the Rialco acquisition is estimated to be $3.4 million at December 31, 2017, by applying the income approach in accordance with ASC 805-30-25-5, 820-10-35 805-30-35-1, Productivity Software Operating Segment Optitex, a privately-held Israeli company headquartered in Rosh Ha’Ayin, Israel, was acquired on June 16, 2016 for cash consideration of $11.6 million, net of cash acquired, plus an additional potential future cash earnout, which is contingent on achieving certain revenue and operating profit performance targets over three consecutive 12-month The fair value of the earnout related to the Optitex acquisition is estimated to be $20.9 million at December 31, 2017, by applying the income approach in accordance with ASC 805-30-25-5, 820-10-35 805-30-35-1, 2015 Acquisitions Industrial Inkjet Operating Segment On July 1, 2015, we acquired privately-held Reggiani, a societa per azioni We purchased Matan for cash consideration of approximately $38.9 million, net of cash acquired. Matan super-wide format digital inkjet roll-to-roll in-line We purchased Reggiani for cash consideration of approximately $26.6 million, net of cash acquired, the issuance of 0.6 million shares of EFI common stock valued at $26.9 million, plus a potential future cash earnout, which is contingent on achieving certain revenue and EBIT performance targets over consecutive 18 and 12-month The fair value of the earnout related to the Reggiani acquisition was fully settled during 2017. Earnout payments of $21.5 and $23.8 million were accelerated into 2017 and 2016, respectively. Productivity Software Operating Segment We acquired privately-held CTI and Shuttleworth, which have been included in our Productivity Software operating segment, for aggregate cash consideration of $9.3 million, net of cash acquired, the issuance of 0.2 million shares of EFI common stock valued at $9.7 million, plus a potential future cash earnout, which is contingent on achieving certain performance targets. CTI, a California limited liability company headquartered in San Diego, California, was acquired on October 6, 2015 and provides manufacturing execution software for the corrugated packaging industry, including business and management capabilities, with a customer base including sheet feeders, sheet plants, and full corrugated box plants. Shuttleworth, a private limited liability company incorporated in England and Wales and headquartered in Kettering, U.K., was acquired on November 4, 2015, and provides business process automation solutions to the signage and packaging digital print industries. Support and operations of Shuttleworth were included in the Productivity Software operating segment, which provides Pace, Monarch, and Radius products to the Shuttleworth customer base, while continuing to support existing Shuttleworth customers. The fair value of the CTI and Shuttleworth earnouts are estimated to be $5.6 million at December 31, 2017, by applying the income approach in accordance with ASC 805-30-25-5. 820-10-35, Valuation Methodologies Intangible assets acquired in 2017, 2016, and 2015 consist of customer relationships, the Master Purchasing Agreement (the “Purchasing Agreement”) with Xerox, “take-or-pay” Customer Relationships and Backlog Backlog represents unfulfilled customer purchase orders at the acquisition date that will provide a relatively secure revenue stream, subject only to potential customer cancellation. Trade Names Existing Technology Rialco existing technology was valued using the cost approach. The value of existing technology is estimated based on the historical time and cost to develop the technology, the estimated man-years mark-up Purchasing Agreement Take-or-pay 12-month one-time IPR&D FFPS Matan Reggiani CTI Shuttleworth Discount rate for IPR&D 20 % 16 % 21 % 18 % 20 % IPR&D percent complete at acquisition date 63 % 33 % 70 % 75 % 17 % IPR&D percent complete at December 31, 2017 100 % 100 % 100 % 100 % 100 % Acquisition-date valuation (in thousands) $ 70 $ 3,190 $ 10,879 $ 150 $ 555 IPR&D is subject to amortization after product completion over the product life or otherwise assessed for impairment in accordance with acquisition accounting guidance. Additional costs incurred to complete IPR&D after the acquisition are expensed. The allocation of the purchase price to the assets acquired and liabilities assumed (in thousands) with respect to each of these acquisitions at their respective acquisition dates is summarized as follows: 2017 Acquisitions Fiery Productivity Software FFPS Generation Digital CRC and Escada Weighted Purchase Weighted Purchase Weighted Purchase Purchasing agreement 10 years $ 9,330 — $ — — $ — Take-or-pay 4 years 9,000 — — — — Customer relationships — — 8 years 3,030 7-9 years 5,240 Existing technology 2 years 2,570 5 years 890 4-6 years 5,870 Trade names 5 years 1,020 5 years 290 4-5 years 850 IPR&D < one year 70 — — — — Backlog — — — — one year 191 Goodwill — 6,590 — 3,012 — 11,632 28,580 7,222 23,783 Net tangible assets (liabilities) (5,537 ) (298 ) (3,738 ) Total purchase price $ 23,043 $ 6,924 $ 20,045 2016 Acquisitions 2015 Acquisitions Industrial Inkjet Productivity Industrial Inkjet Productivity Rialco Optitex Matan Reggiani CTI and Weighted Purchase Weighted Purchase Weighted Purchase Weighted Purchase Weighted Purchase Customer relationships 6 years $ 2,512 3-4 years $ 8,890 6 years $ 6,630 4 years $ 12,187 3-4 years $ 5,001 Existing technology 5 years 846 5 years 7,760 5 years 8,790 4 years 33,118 5 years 5,634 Trade names 5 years 763 4 years 2,020 5 years 2,570 5 years 11,964 4 years 1,357 IPR&D — — — — — 3,190 — 10,879 — 705 Backlog < one year 56 < one year 370 < one year 70 < one year 704 < one year 132 Goodwill 1,426 28,147 26,609 61,341 17,790 5,603 47,187 47,859 130,193 30,619 Net tangible assets (liabilities) 5,177 (11,924 ) (4,945 ) (32,571 ) (3,611 ) Total purchase price $ 10,780 $ 35,263 $ 42,914 $ 97,622 $ 27,008 The initial preliminary purchase price allocations were adjusted by $0.7, $0.8, and $3.8 million during 2017, 2016, and 2015, respectively, primarily related to certain current assets and deferred tax liabilities. Pro forma results of operations have not been presented because they are not material to our Consolidated Statements of Operations for the years ended December 31, 2017 and 2016. Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired. Goodwill that was generated by our acquisitions of Reggiani, CTI, Shuttleworth, Rialco, CRC and Escada is not deductible for tax purposes. Goodwill that was generated by our acquisitions of FFPS and Generation Digital is deductible for tax purposes. Goodwill that was generated by our acquisitions of Optitex and Matan is deductible for U.S. tax purposes, but is not deductible for tax purposes in Israel. Escada and Rialco generate revenue and incur operating expenses primarily in British pounds sterling. Upon consideration of the salient economic indicators discussed in ASC 830-10-55-5, |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Balance Sheet Components | Note 4: Balance Sheet Components Inventories Inventories as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Raw materials $ 57,061 $ 45,798 Work in process 9,792 7,362 Finished goods 58,960 43,178 Total $ 125,813 $ 96,338 Accrued and Other Liabilities Accrued and other liabilities as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Accrued compensation and benefits $ 29,113 $ 31,714 Contingent consideration—current 14,922 19,244 Warranty provision—current 12,931 10,054 Debt assumed through business acquisitions 11,101 98 Accrued royalty payments 4,903 4,994 Accrued litigation and consulting 4,277 1,916 Technology transfer 3,593 3,822 Hedging liability 3,281 258 Deferred rent 2,846 2,938 Sales tax liabilities 2,574 1,997 Restructuring and other 2,452 1,824 Other accrued liabilities 6,097 6,646 Total $ 98,090 $ 85,505 Accumulated Other Comprehensive Income (Loss) (“OCI”) OCI classified within stockholders’ equity in our Consolidated Balance Sheets as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Net unrealized investment losses $ (697 ) $ (473 ) Currency translation gains (losses) 8,794 (24,111 ) Net unrealized gains on cash flow hedges 41 9 Total $ 8,138 $ (24,575 ) There were $0.1 and less than $0.1 million, net of tax, reclassified out of OCI for the years ended December 31, 2017 and 2015, respectively, consisting of unrealized gains and losses from investments in debt securities reported within interest income and other income (expense), net, in our Consolidated Statements of Operations. There were no amounts reclassified out of OCI for the year ended December 31, 2016. |
Goodwill and Long-Lived Intangi
Goodwill and Long-Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Long-Lived Intangible Assets | Note 5: Goodwill and Long-Lived Intangible Assets Purchased Intangible Assets Our purchased intangible assets resulting from acquisitions are as follows (in thousands, except for weighted average useful life): December 31, 2017 December 31, 2016 Weighted Gross Accumulated Weighted Net carrying Gross carrying Accumulated Net carrying Goodwill — $ 403,278 $ — — $ 403,278 $ 359,841 $ — $ 359,841 Customer relationships and other 4.6 $ 95,862 $ (45,862 ) 3.6 $ 50,000 $ 88,557 $ (49,527 ) $ 39,030 Existing technology 4.1 196,693 (149,300 ) 2.9 47,393 173,543 (122,654 ) 50,889 Trademarks and trade names 4.9 72,048 (46,822 ) 5.5 25,226 67,701 (38,300 ) 29,401 IPR&D — 389 — — 389 3,677 — 3,677 Amortizable intangible assets 4.4 $ 364,992 $ (241,984 ) 3.8 $ 123,008 $ 333,478 $ (210,481 ) $ 122,997 Acquired customer relationships and other, existing technology, and trademarks and trade names are amortized over their estimated useful lives of two to sixteen years using the straight-line method, which approximates the pattern in which the economic benefits of the identified intangible assets are realized. The useful lives of certain amortizable identifiable intangible assets were reduced based on a re-assessment IPR&D is subject to amortization after product completion over the product life or otherwise assessed for impairment in accordance with acquisition accounting guidance. There were no impairments of IPR&D recognized during the years ended December 31, 2017, 2016, or 2015. As of December 31, 2017, future estimated amortization expense for each of the next five years and thereafter related to the amortization of identified intangible assets is as follows (in thousands): For the years ended December 31, Future 2018 $ 43,652 2019 35,770 2020 19,331 2021 7,253 2022 5,003 Thereafter 11,999 $ 123,008 Goodwill Rollforward The goodwill rollforward for the years ended December 31, 2017 and 2016 is as follows (in thousands): Industrial Productivity Fiery Total Ending Balance, December 31, 2015 $ 142,183 $ 133,128 $ 63,482 $ 338,793 Additions (Rialco and Optitex acquisitions) $ 1,426 $ 28,147 $ — $ 29,573 Opening balance sheet adjustments (171 ) (663 ) — (834 ) Foreign currency adjustments (2,370 ) (5,137 ) (184 ) (7,691 ) Ending Balance, December 31, 2016 $ 141,068 $ 155,475 $ 63,298 $ 359,841 Additions (FFPS, Generation Digital, CRC, and Escada acquisitions) $ — $ 11,632 $ 9,602 $ 21,234 Opening balance sheet adjustments — 10 679 689 Foreign currency adjustments 13,305 7,527 682 21,514 Ending Balance, December 31, 2017 $ 154,373 $ 174,644 $ 74,261 $ 403,278 Accumulated Impairment as of December 31, 2017, recognized in 2008 $ 103,991 $ — $ — $ 103,991 Goodwill Assessment ASU 2011-08, A two-step 350-20-35. Our goodwill valuation analysis is based on our respective reporting units (Industrial Inkjet, Productivity Software, and Fiery), which are consistent with our operating segments identified in Note 14—Segment Information, Geographic Regions, and Major Customers of the Notes to Consolidated Financial Statements. We determined the fair value of our reporting units as of December 31, 2017 by equally weighting the market and income approaches. Under the market approach, we estimated fair value based on market multiples of revenue or earnings of comparable companies. Under the income approach, we estimated fair value based on a projected cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. Based on our valuation results, we have determined that the fair values of our Industrial Inkjet, Productivity Software, and Fiery reporting units exceed their carrying values as of December 31, 2017, by $398.1, $78.7 and $207.9 million, respectively, or 90%, 43%, and 197%, respectively. To identify suitable comparable companies under the market approach, consideration was given to the financial condition and operating performance of the reporting unit being evaluated relative to companies operating in the same or similar businesses, potentially subject to corresponding economic, environmental, and political factors and considered to be reasonable investment alternatives. Consideration was given to the investment characteristics of the subject companies relative to those of similar publicly traded companies (i.e., guideline companies), which are actively traded. In applying the Public Company Market Multiple Method, valuation multiples were derived from historical and projected operating data of guideline companies and applied to the appropriate operating data of our reporting units to arrive at an indication of fair value. Five suitable guideline companies were identified for the Industrial Inkjet, reporting unit. Six suitable guideline companies were identified for the Productivity Software and Fiery reporting units, respectively. As part of this process, we engaged a third party valuation firm to assist management in its analysis. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third party valuation firm, the impairment analysis and related valuations represent the conclusions of management and not the conclusions or statements of any third party. Solely for purposes of establishing inputs for the income approach to assess the fair value of the Industrial Inkjet, Productivity Software, and Fiery reporting units, we made the following assumptions: • Industrial Inkjet revenue was comparable in 2017 with 2016. Industrial Inkjet revenue would have been higher by $3.4 million when considering out-of-period • Productivity Software revenue growth was 3% in 2017 compared with 2016. Productivity Software revenue is assumed to return to historical normalized growth rates during the forecast horizon. • Fiery revenue declined by 4% in 2017 primarily due to the leading printer manufacturers tightly managing their inventory levels in the first half of 2017, which decreased demand, partially offset by increased inventory levels and increased demand during the second half of 2017. This decrease was partially offset by post-acquisition FFPS revenue, which was acquired in January 2017, and a small amount of Generation Digital revenue, which was acquired in August 2017. Fiery revenue growth of 2% per year is assumed in the forecast horizon commencing in 2019 as printer distributor / manufacturer inventories and end user demand return to normal levels and APAC demand recovers. • Despite ongoing economic uncertainty, our reporting units’ revenue is assumed to grow at historical normalized rates between 2018 and 2023 for the following primary reasons: ¡ Our Industrial Inkjet revenue is positioned to outpace the market due to launch of the Nozomi corrugated packaging industrial digital inkjet printer and the ongoing transition from solvent-based to UV curable-based printing and from UV curing to UV/LED curing. This transition is expected to continue through the forecast horizon. ¡ Our acquisitions of Rialco in 2016 and Reggiani and Matan in 2015 will enable us to continue to achieve historical normalized Industrial Inkjet revenue growth rates through the forecast horizon. ¡ Our acquisitions of Escada and CRC in 2017, Optitex in 2016, and CTI and Shuttleworth in 2015 will enable us to continue to achieve historical normalized Productivity Software revenue growth rates through the forecast horizon. ¡ Our acquisition strategy in the Productivity Software reporting unit will enable us to achieve historical normalized revenue growth rates through the forecast horizon. Our intention is to continue to explore additional acquisition opportunities in this operating segment to further consolidate the business process automation and cloud-based order entry and order management software industries. • Other assumptions include: ¡ Long-term industry growth after 2023. ¡ Gross profit percentages will approximate historical average levels in the Industrial Inkjet, Productivity Software and Fiery reporting units. Our discounted cash flow projections are six-year six-year mid-year six-year We assess the impairment of identifiable intangibles and long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable or the life of the asset may need to be revised. Factors considered important that could trigger an impairment review include: • significant negative industry or economic trends, • significant decline in our stock price for a sustained period, • our market capitalization relative to net book value, • significant changes in the manner of our use of the acquired assets, • significant changes in the strategy for our overall business, and • our assessment of growth and profitability in each reporting unit over the coming years. Given the uncertainty of the economic environment and the potential impact on our business, there can be no assurance that our estimates and assumptions regarding the duration of the ongoing economic downturn, or the period or strength of recovery, made for purposes of our goodwill impairment testing at December 31, 2017 will prove to be accurate predictions of the future. If our assumptions regarding forecasted revenue or gross profit rates are not achieved, we may be required to record additional goodwill impairment charges in future periods relating to any of our reporting units, whether in connection with the next annual impairment testing in the fourth quarter of 2018 or prior to that, if any such change constitutes an interim triggering event. It is not possible to determine if any such future impairment charge would result or, if it does, whether such charge would be material. Long-Lived Assets We evaluate potential impairment with respect to long-lived assets whenever events or changes in circumstances indicate their carrying amount may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future cash flow the asset is expected to generate. An impairment loss is recorded for long-lived assets held-for-sale held-for-sale. We recorded an impairment loss of $0.9 million during the year ended December 31, 2017 related to the Meredith manufacturing facility and related land, For additional information, please refer to Note 15 – Property and Equipment, net, for details. There were no asset impairment charges recognized during the years ended December 31, 2016 and 2015. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Investments and Fair Value Measurements | Note 6: Investments and Fair Value Measurements We invest our excess cash on deposit with major banks in money market, U.S. Treasury and government-sponsored entity, corporate, municipal government, asset-backed, and mortgage-backed residential securities. By policy, we invest primarily in high-grade marketable securities. We are exposed to credit risk in the event of default by the financial institutions or issuers of these investments to the extent of amounts recorded in our Consolidated Balance Sheets. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Typically, the cost of these investments has approximated fair value. Marketable investments with a maturity greater than three months are classified as available-for-sale Available-for-sale Our available-for-sale Amortized cost Gross unrealized gains Gross Fair value December 31, 2017 U.S. Government and sponsored entities $ 59,824 $ — $ (660 ) $ 59,164 Corporate debt securities 79,356 — (450 ) 78,906 Municipal securities 382 — (2 ) 380 Asset-backed securities 9,808 44 (47 ) 9,805 Mortgage-backed securities—residential 445 — (3 ) 442 Total short-term investments $ 149,815 $ 44 $ (1,162 ) $ 148,697 December 31, 2016 U.S. Government and sponsored entities $ 70,893 $ 49 $ (348 ) $ 70,594 Corporate debt securities 198,166 102 (621 ) 197,647 Municipal securities 1,278 — (1 ) 1,277 Asset-backed securities 24,233 79 (17 ) 24,295 Mortgage-backed securities—residential 1,615 3 (3 ) 1,615 Total short-term investments $ 296,185 $ 233 $ (990 ) $ 295,428 The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of December 31, 2017 and 2016 are as follows (in thousands): Less than 12 Months More than 12 Months TOTAL December 31, 2017 Fair Value Unrealized Fair Unrealized Fair Value Unrealized U.S. Government and sponsored entities $ 23,023 $ (206 ) $ 35,989 $ (454 ) $ 59,012 $ (660 ) Corporate debt securities 45,857 (207 ) 32,634 (243 ) 78,491 (450 ) Municipal securities 378 (2 ) — — 378 (2 ) Asset-backed securities 6,779 (31 ) 2,947 (16 ) 9,726 (47 ) Mortgage-backed securities—residential 162 (2 ) 142 (1 ) 304 (3 ) Total $ 76,199 $ (448 ) $ 71,712 $ (714 ) $ 147,911 $ (1,162 ) December 31, 2016 U.S. Government and sponsored entities $ 39,810 $ (348 ) $ — $ — $ 39,810 $ (348 ) Corporate debt securities 133,382 (581 ) 13,158 (40 ) 146,540 (621 ) Municipal securities 1,268 (1 ) — — 1,268 (1 ) Asset-backed securities 4,540 (7 ) 4,611 (10 ) 9,151 (17 ) Mortgage-backed securities—residential 428 (1 ) 153 (2 ) 581 (3 ) Total $ 179,428 $ (938 ) $ 17,922 $ (52 ) $ 197,350 $ (990 ) For fixed income securities that have unrealized losses as of December 31, 2017, we have determined that we do not have the intent to sell any of these investments and it is not more likely than not that we will be required to sell any of these investments before recovery of the entire amortized cost basis. We have evaluated these fixed income securities and determined that no credit losses exist. Accordingly, management has determined that the unrealized losses on our fixed income securities as of December 31, 2017 were temporary in nature. Amortized cost and estimated fair value of investments at December 31, 2017 are summarized by maturity date as follows (in thousands): Amortized cost Fair value Mature in less than one year $ 43,862 $ 43,741 Mature in one to three years 105,953 104,956 Total short-term investments $ 149,815 $ 148,697 For the years ended December 31, 2017 and 2016, net realized gains of $0.3 and $0.4 million were recognized, which were comprised of $0.3 and $0.4 million in realized gains from sales of investments, respectively, partially offset by less than $0.1 million in realized losses. For the year ended December 31, 2015, net realized gains of $0.1 million were recognized. As of December 31, 2017, and 2016, net unrealized losses of $1.1 and $0.8 million, respectively, were included in OCI in the accompanying Consolidated Balance Sheets. Fair Value Measurements ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy as follows: Level 1: Inputs that are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2: Inputs that are other than quoted prices included within Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date for the duration of the instrument’s anticipated life or by comparison to similar instruments; and Level 3: Inputs that are unobservable or that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. These include management’s own judgments about market participant assumptions developed based on the best information available in the circumstances. We utilize the market approach to measure the fair value of our fixed income securities. The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of our fixed income securities is obtained using readily-available market prices from a variety of industry standard data providers, large financial institutions, and other third-party sources for the identical underlying securities. The fair value of our investments in certain money market funds is expected to maintain a Net Asset Value of $1 per share and, as such, is priced at the expected market price. We obtain the fair value of our Level 2 financial instruments from several third party asset managers, custodian banks, and accounting service providers. Independently, these service providers use professional pricing services to gather pricing data, which may include quoted market prices for identical or comparable instruments or inputs other than quoted prices that are observable either directly or indirectly. As part of this process, we utilized these pricing services to assist management in its pricing analysis and assessment of other-than-temporary impairment. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third party pricing service, the impairment analysis and related valuations represent conclusions of management and not conclusions or statements of any third party. Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of December 31, 2017 and 2016 in order of liquidity as follows (in thousands): Total Quoted Prices Significant Unobservable (Level 3) December 31, 2017 Assets: Money market funds $ 9,897 $ 9,897 $ — $ — U.S. Government and sponsored entities 59,164 33,261 25,903 — Corporate debt securities 78,906 — 78,906 — Municipal securities 380 — 380 — Asset-backed securities 9,805 — 9,754 51 Mortgage-backed securities—residential 442 — 442 — $ 158,594 $ 43,158 $ 115,385 $ 51 Liabilities: Contingent consideration, current and noncurrent $ 35,702 $ — $ — $ 35,702 Self-insurance 902 — — 902 $ 36,604 $ — $ — $ 36,604 December 31, 2016 Assets: Money market funds $ 23,575 $ 23,575 $ — $ — U.S. Government and sponsored entities 70,594 51,870 18,724 — Corporate debt securities 197,647 — 197,647 — Municipal securities 1,277 — 1,277 — Asset-backed securities 24,295 — 24,228 67 Mortgage-backed securities—residential 1,615 — 1,615 — $ 319,003 $ 75,445 $ 243,491 $ 67 Liabilities: Contingent consideration, current and noncurrent $ 56,463 $ — $ — $ 56,463 Self-insurance 1,542 — — 1,542 $ 58,005 $ — $ — $ 58,005 Money market funds have been classified as cash equivalents on the Consolidated Balance Sheets as of December 31, 2017 and 2016, respectively. Investments are generally classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency. Investments in U.S. Treasury obligations and overnight money market mutual funds have been classified as Level 1 because these securities are valued based on quoted prices in active markets or are actively traded at $1.00 Net Asset Value. There have been no transfers between Level 1 and 2 during the years ended December 31, 2017 and 2016. Government agency investments and corporate debt instruments, including investments in asset-backed and mortgage-backed securities, have generally been classified as Level 2 because markets for these securities are less active or valuations for such securities utilize significant inputs which are directly or indirectly observable. We hold asset-backed securities with income payments derived from and collateralized by a specified pool of underlying assets. Asset-backed securities in the portfolio are predominantly collateralized by credit cards and auto loans. We also had two asset-backed securities collateralized by residential mortgage loans, which have been fully reserved. Liabilities for Contingent Consideration Acquisition-related liabilities for contingent consideration (i.e., earnouts) are related to the purchase business combinations of Generation Digital and Escada in 2017; Optitex and Rialco in 2016; Shuttleworth, CTI, and Reggiani in 2015; DIMS, DirectSmile, and SmartLinc in 2014; Metrix and PrintLeader Software (“PrintLeader”) in 2013. The fair value of these earnouts is estimated to be $35.7 and $56.5 million as of December 31, 2017 and 2016, respectively, by applying the income approach in accordance with ASC 805-30-25-5. 820-10-35 The fair value of contingent consideration increased by $6.5 million, including $1.7 million of earnout interest accretion, related to all acquisitions during the year ended December 31, 2017. The Optitex, CTI and Rialco earnout performance probabilities increased while the Shuttleworth earnout performance probability decreased in 2017. The fair value of contingent consideration increased by $6.8 million, including $2.7 million of earnout interest accretion related to all acquisitions during the year ended December 31, 2016. The Rialco, Optitex, Reggiani, DirectSmile, and CTI earnout performance probabilities increased while the DIMS and Shuttleworth earnout performance probabilities decreased or were not achieved in 2016. In accordance with ASC 805-30-35-1, Earnout payments and settlements during the year ended December 31, 2017 of $21.5, $6.8, $1.3, and $1.2 million are primarily related to the previously accrued Reggiani, Optitex, Rialco, and Shuttleworth contingent consideration liabilities, respectively. Earnout payments during the year ended December 31, 2016 of $23.8, $3.6, $0.4, and $0.2 million are primarily related to the previously accrued Reggiani, DirectSmile, SmartLinc, and Metrix contingent consideration liabilities, respectively. Changes in the contingent liability for contingent consideration during the years ended December 31, 2017 and 2016 are summarized as follows Amount Fair value of contingent consideration at December 31, 2015 $ 54,796 Fair value of Rialco contingent consideration at March 1, 2016 2,109 Fair value of Optitex contingent consideration at June 16, 2016 22,300 Changes in valuation 6,813 Payments (28,111 ) Foreign currency adjustment (1,444 ) Fair value of contingent consideration at December 31, 2016 $ 56,463 Fair value of Generation Digital contingent consideration at August 14, 2017 3,600 Fair value of Escada contingent consideration at October 1, 2017 2,049 Escrow adjustment for Reggiani acquisition (4,711 ) Changes in valuation 6,472 Payments and settlements (30,924 ) Foreign currency adjustment 2,753 Fair value of contingent consideration at December 31, 2017 $ 35,702 A narrative description of the sensitivity of recurring fair value measurements to changes in unobservable inputs is required if a change in those inputs might result in a significantly higher or lower fair value measurement. Since the primary inputs to the fair value measurement of the contingent consideration liability are the probability-adjusted revenue and discount rate, we reviewed the sensitivity of the fair value measurement to changes in these inputs. We assessed the probability of achieving the revenue performance targets for the contingent consideration associated with each acquisition at percentage levels between 50% and 100% as of each respective acquisition date based on an assessment of the historical performance of each acquired entity, our current expectations of future performance, and other relevant factors. A change in probability-adjusted revenue of five percentage points from the level assumed in the current valuations would result in an increase in the fair value of contingent consideration of $2.0 million or a decrease of $2.5 million resulting in a corresponding adjustment to general and administrative expense. A change in the discount rate of one percentage point would result in an increase or decrease in the fair value of contingent consideration of $0.4 million. The potential undiscounted amount of future contingent consideration cash payments that we could be required to make related to our business acquisitions, beyond amounts currently accrued, is $12.0 million as of December 31, 2017. Fair Value of Derivative Instruments We utilize the income approach to measure the fair value of our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates, and forward prices, and are therefore classified as Level 2 measurements. The notional amount of our derivative assets and liabilities was $239.4 and $161.8 million as of December 31, 2017 and 2016, respectively. The fair value of our derivative assets and liabilities that were designated for cash flow hedge accounting treatment having notional amounts of $3.9 and $3.2 million as of December 31, 2017 and 2016, respectively, was not material. Fair Value of Convertible Senior Notes In September 2014, we issued $345 million aggregate principal amount of Notes. The Notes are carried at their original issuance value, net of unamortized debt discount, and are not marked to market each period. The fair value of the Notes as of December 31, 2017 was approximately $335 million and was considered a Level 2 fair value measurement. Fair value was estimated based upon actual quotations obtained at the end of the reporting period or the most recent date available. A substantial portion of the market value of our Notes in excess of the outstanding principal amount relates to the conversion premium. |
Convertible Senior Notes, Note
Convertible Senior Notes, Note Hedges, and Warrants | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Note Hedges, and Warrants | Note 7: Convertible Senior Notes, Note Hedges, and Warrants 0.75% Convertible Senior Notes Due 2019 In September 2014, we completed a private placement of $345 million principal amount of 0.75% Convertible Senior Notes due 2019 (“Notes”). The Notes were sold to the initial purchasers for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from this offering were approximately $336.3 million, after deducting the initial purchasers’ commissions and the offering expenses paid by us. We used approximately $29.4 million of the net proceeds to purchase the Note Hedges described below, net of the proceeds from the Warrant transactions also described below. The Notes are senior unsecured obligations of EFI with interest payable semiannually in arrears on March 1 and September 1 of each year, commencing March 1, 2015. The Notes are not callable and will mature on September 1, 2019, unless previously purchased or converted in accordance with their terms prior to such date. Holders of the Notes who convert in connection with a “fundamental change,” as defined in the indenture governing the Notes (“Indenture”), may require us to purchase for cash all or any portion of their Notes at a purchase price equal to 100 percent of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any. The initial conversion rate is 18.9667 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $52.72 per share of common stock. Upon conversion of the Notes, holders will receive cash, shares of common stock or a combination thereof, at our election. Our intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the principal amount, we would deliver shares of our common stock for our conversion obligation in excess of the aggregate principal amount. As of December 31, 2017, none of the conditions allowing holders of the Notes to convert had been met. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a Note. Holders may convert their Notes only under the following circumstances: • if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (“Notes Measurement Period”) in which the “trading price” (as the term is defined in the Indenture) per $1,000 principal amount of notes for each trading day of such Notes Measurement Period was less than 98% of the product of the last reported stock price on such trading day and the conversion rate on each such trading day; • upon the occurrence of specified corporate events; or • at any time on or after March 1, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date. We separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Notes as a whole. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes using the effective interest method with an effective interest rate of 4.98% per annum (5.46% inclusive of debt issuance costs). The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated the total transaction costs incurred by the Notes issuance to the liability and equity components based on their relative values. Issuance costs of $7.0 million attributable to the $281.4 million liability component are being amortized to expense over the term of the Notes, and issuance costs of $1.6 million attributable to the $63.6 million equity component were offset against the equity component in stockholders’ equity. Additionally, we recorded a deferred tax liability of $23.7 million on the debt discount, which is not deductible for tax purposes. The Notes consist of the following at December 31, 2017 and 2016 (in thousands): 2017 2016 Liability component $ 345,000 $ 345,000 Debt discount, net of amortization (23,178 ) (36,115 ) Debt issuance costs, net of amortization (2,865 ) (4,401 ) Net carrying amount $ 318,957 $ 304,484 Equity component $ 63,643 $ 63,643 Less: debt issuance costs allocated to equity (1,582 ) (1,582 ) Net carrying amount $ 62,061 $ 62,061 Interest expense recognized related to the Notes during the years ended December 31, 2017, 2016, and 2015 was as follows (in thousands): 2017 2016 2015 0.75% coupon $ 2,580 $ 2,588 $ 2,595 Amortization of debt issuance costs 1,536 1,350 1,396 Amortization of debt discount 12,937 12,400 11,667 Interest expense on Convertible Senior Notes $ 17,053 $ 16,338 $ 15,658 Note Hedges We paid an aggregate of $63.9 million in convertible note hedge transactions with respect to our common stock (“Note Hedges”) in September 2014. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are intended to offset the potential dilution upon conversion and/or offset any cash payments we are required to make in excess of the principal amount upon conversion of the Notes in the event that the market value per share of our common stock, as measured under the terms of the Note Hedges, is greater than the strike price of the Note Hedges. The strike price of the Note Hedges initially corresponds to the conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion price of the Notes. The Note Hedges are separate transactions and are not part of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. Warrants Concurrently with entering into the Note Hedges, we separately entered into warrant transactions (“Warrants”), whereby we sold warrants to acquire shares of our common stock at a strike price of $68.86 per share. We received aggregate proceeds of $34.5 million from the sale of the Warrants. If the average market value per share of our common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on our earnings per share. The Warrants are separate transactions and are not part of the Notes or the Note Hedges and are accounted for as a component of additional paid-in |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8: Commitments and Contingencies Contingent Consideration We are required to make payments to the former stockholders of acquired companies based on the achievement of specified performance targets as more fully explained in Note 6—Investments and Fair Value Measurements. Purchase Commitments We subcontract with other companies to manufacture our products. During the normal course of business, our subcontractors procure components based on orders placed by us. If we cancel all or part of our orders, we may still be liable to the subcontractors for the cost of the components they purchased to manufacture our products. We periodically review the potential liability compared to the adequacy of the related allowance. Lease Commitments As of December 31, 2017, we lease certain of our current facilities and vehicles under noncancellable operating lease agreements. We are required to pay property taxes, insurance, and nominal maintenance costs for certain of these facilities and vehicles and any increases over the base year of these expenses on the remainder of our facilities and vehicle leases. Future minimum lease payments under noncancellable operating leases, including build-to-suit Fiscal Year Future Minimum Future Minimum 2018 $ 9,114 $ 434 2019 7,574 231 2020 7,415 27 2021 6,028 — 2022 4,225 — Thereafter 32,268 — Total $ 66,624 $ 692 Facilities rent expense was approximately $8.1, $8.8, and $8.0 million for the years ended December 31, 2017, 2016, and 2015, respectively. Vehicle rent expense was approximately $2.8, $2.8, and $2.5 million for the years ended December 31, 2017, 2016, and 2015, respectively. Guarantees and Product Warranties Guarantees must be disclosed upon issuance and a liability recognized for the fair value of obligations we assume under such guarantees in accordance with ASC 460, Guarantees, which applies to both general guarantees and product warranties. Our Industrial Inkjet printers are generally accompanied by a 13-month 450-30, The changes in product warranty reserve for the years ended December 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Balance at January 1, $ 10,319 $ 9,635 Liability assumed upon acquiring FFPS 10,362 — Provisions, net of releases 13,487 12,715 Settlements (17,833 ) (12,031 ) Balance at December 31, $ 16,335 $ 10,319 Indemnifications In the normal course of business and in an effort to facilitate the sales of our products, we sometimes indemnify other parties, including customers, lessors, and parties to other transactions with us. When we indemnify these parties, typically those provisions protect other parties against losses arising from our infringement of third party intellectual property rights or other claims made by third parties arising from the use or distribution of our products. Those provisions often contain various limitations including limits on the amount of protection provided. As permitted under Delaware law, pursuant to our bylaws, charter, and indemnification agreements with our current and former executive officers, directors, and general counsel, we are required, subject to certain limited qualifications, to indemnify our executive officers, directors, and general counsel for certain events or occurrences while the executive officer, director, or general counsel is or was serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the executive officer’s, director’s, or general counsel’s lifetime. The maximum potential future payments we may be obligated to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that limits our exposure and may enable us to recover a portion of any future amounts paid. Legal Proceedings We may be involved, from time to time, in a variety of claims, lawsuits, investigations, or proceedings relating to contractual disputes, securities laws, intellectual property rights, employment, or other matters that may arise in the normal course of business. We assess our potential liability in each of these matters by using the information available to us. We develop our views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and various combinations of appropriate litigation and settlement strategies. We accrue estimated losses from contingencies if a loss is deemed probable and can be reasonably estimated. As of December 31, 2017, we are subject to the matters discussed below. MDG Matter EFI acquired Matan in 2015 from sellers (the “2015 Sellers”) that acquired MDG from other sellers in 2001 (the “2001 Sellers”). The 2001 Sellers have asserted a claim against the 2015 Sellers and Matan asserting that they are entitled to a portion of the 2015 Sellers’ proceeds from EFI’s acquisition. The 2015 Sellers dispute any such claim and have fully indemnified EFI against the 2001 Sellers’ claim. Although we are fully indemnified and we do not believe that it is probable that we will incur a loss, it is reasonably possible that our financial statements could be materially affected by an unfavorable resolution of this matter. Accordingly, it is reasonably possible that we could incur a material loss in this matter. We estimate the range of loss to be between one dollar and $10.1 million. If we incur a loss in this matter, it will be offset by a receivable of an equal amount representing a claim for indemnification against the escrow account established in connection with the Matan acquisition. Purported Class Action Lawsuit On August 10, 2017, a putative class action was filed against the Company and its two named executive officers in the United States District Court for the District of New Jersey, captioned Pipitone v. Electronics For Imaging, Inc 2:17-cv-05992 At this time, we do not believe it is probable that we will incur a material loss in this matter. However, it is reasonably possible that our financial statements could be materially affected by an unfavorable resolution of this matter. Because this matter is in the preliminary stages, we are not yet in a position to estimate the amount or range of reasonably possible loss that may be incurred. Shareholder Derivative Lawsuit On August 22, 2017, a shareholder derivative complaint was filed in the Superior Court of the State of California for the County of Alameda captioned Schiffmiller v. Gecht Pipitone At this time, we do not believe it is probable that we will incur a material loss in this matter. However, it is reasonably possible that our financial statements could be materially affected by an unfavorable resolution of this matter. Because this matter has been stayed pending resolution of the Pipitone Other Matters As of December 31, 2017, we were subject to various other claims, lawsuits, investigations, and proceedings in addition to the matters discussed above. There is at least a reasonable possibility that additional losses may be incurred in excess of the amounts that we have accrued. However, we believe that these claims are not material to our financial statements or the range of reasonably possible losses is not reasonably estimable. Litigation is inherently unpredictable, and while we believe that we have valid defenses with respect to legal matters pending against us, our financial statements could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies or because of the diversion of management’s attention and the incurrence of significant expenses. |
Common Stock Repurchase Program
Common Stock Repurchase Programs | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock Repurchase Programs | Note 9: Common Stock Repurchase Programs On November 9, 2015, the board of directors approved the repurchase of $150 million of outstanding common stock commencing January 1, 2016. On September 11, 2017, the board of directors approved the repurchase of an additional $125 million for our share repurchase program commencing September 11, 2017. At that time, $28.8 million remained available for repurchase under the 2015 authorization. The 2017 authorization thereby increased the repurchase authorization to $153.8 million of our common stock. This authorization expires December 31, 2018. Under these publicly announced plans, we repurchased 2.4 and 1.8 million shares for an aggregate purchase price of $91.4 and $74.2 million during the years ended December 31, 2017 and 2016, respectively. Our employees have the option to surrender shares of common stock to satisfy their tax withholding obligations that arise on the vesting of RSUs. In connection with stock option exercises, certain employees can surrender shares to satisfy the exercise price of certain stock options and any tax withholding obligations incurred in connection with such exercises. Employees surrendered 0.2 million shares for an aggregate purchase price of $10.5 and $9.1 million during the years ended December 31, 2017 and 2016, respectively These repurchased and surrendered shares reduce shares outstanding and are recorded as treasury stock under the cost method thereby reducing stockholders’ equity by the cost of the repurchased shares. Our buyback program is limited by SEC regulations and is subject to compliance with our insider trading policy. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 10: Derivatives and Hedging We are exposed to market risk and foreign currency exchange risk from changes in foreign currency exchange rates, which could affect operating results, financial position, and cash flows. We manage our exposure to these risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are used to hedge monetary assets and liabilities, intercompany balances, trade receivables, anticipated cash flows, and to reduce earnings and cash flow volatility resulting from shifts in foreign currency exchange rates. Our objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not have any leveraged derivatives, nor do we use derivative contracts for speculative purposes. ASC 815 requires the fair value of all derivative instruments, including those embedded in other contracts, to be recorded as assets or liabilities in our Consolidated Balance Sheet. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities. Our exposures are primarily related to non-U.S. non-U.S. By their nature, derivative instruments involve, to varying degrees, elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange movement is expected to offset the market risk of the underlying transactions, assets, and liabilities being hedged (i.e., operating expense exposure in Indian rupees; the collection of trade receivables denominated in currencies other than their respective reporting entity’s functional currency, and the settlement of intercompany balances denominated in currencies other than their functional currency). Under our master netting agreements with our foreign currency derivative counterparties, we are allowed to net transactions of the same currency with a single net amount payable by one party to the other. The derivatives held by us are not subject to any credit contingent features negotiated with these counterparties. We are not required to pledge cash collateral related to these foreign currency derivatives because, by policy, we deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Cash Flow Hedges Foreign currency derivative contracts with notional amounts of $3.9 and $3.2 million and net asset/liability amounts that are immaterial have been designated as cash flow hedges of our Indian rupee operating expense exposure at December 31, 2017 and 2016. The changes in fair value of these contracts are reported as a component of OCI and reclassified to operating expense in the periods of payment of the hedged operating expenses. The ineffective portion of the derivative hedging gain or loss, as well as changes in the derivative time value (which is excluded from the assessment of hedge effectiveness), are recognized as a component of interest income and other income (expense), net. Balance Sheet Hedges Forward contracts not designated as hedging instruments with notional amounts of $235.5 and $158.7 million are used to hedge foreign currency balance sheet exposures at December 31, 2017 and 2016, respectively. They are not designated for hedge accounting treatment since there is a natural offset for the remeasurement of the underlying foreign currency denominated asset or liability. We recognize changes in the fair value of non-designated |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11: Income Taxes The components of income (loss) before income taxes for the years ended December 31, 2017, 2016, and 2015 are as follows (in thousands): 2017 2016 2015 U.S. $ (27,926 ) $ 8,254 $ 9,311 Foreign 40,056 30,394 26,257 Total $ 12,130 $ 38,648 $ 35,568 The provision for (benefit from) income taxes for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 Current: U.S. Federal $ 6,897 $ (7,593 ) $ 3,755 State (2,926 ) 662 1,813 Foreign 14,751 11,721 5,798 Total current 18,722 4,790 11,366 Deferred: U.S. Federal 15,304 (4,276 ) (3,119 ) State 732 (567 ) (583 ) Foreign (7,283 ) (6,248 ) (4,295 ) Total deferred 8,753 (11,091 ) (7,997 ) Provision for (benefit from) income taxes $ 27,475 $ (6,301 ) $ 3,369 The reconciliation of the income tax provision (benefit) computed at the federal statutory rate to the actual tax provision (benefit) for the years ended December 31, 2017, 2016, and 2015 is as follows (in thousands): 2017 2016 2015 Tax provision at federal statutory rate $ 4,246 35.0 % $ 13,527 35.0 % $ 12,449 35.0 % State income taxes, net of federal benefit (1,426 ) (11.8 ) 62 0.2 800 2.2 Research and development credits (1,508 ) (12.4 ) (2,627 ) (6.8 ) (4,217 ) (11.9 ) Effect of foreign operations (1,344 ) (11.1 ) (3,320 ) (8.5 ) (3,412 ) (9.5 ) Deemed repatriation transition tax 16,976 139.8 — — — — Provision for remeasuring deferred tax balances 10,450 86.1 — — — — Reduction in accrual for estimated potential tax assessments (1,676 ) (13.7 ) (15,404 ) (39.9 ) (4,808 ) (13.4 ) Non-deductible 718-740 1,249 10.3 1,288 3.3 3,244 9.1 Domestic manufacturing deduction — — (831 ) (2.2 ) (878 ) (2.5 ) Meals and entertainment 500 4.1 475 1.2 474 1.3 % Other 8 0.1 529 1.4 (283 ) (0.8 ) Provision for (benefit from) income taxes $ 27,475 226.4 % $ (6,301 ) (16.3 )% $ 3,369 9.5 % On December 22, 2017, the 2017 Tax Act was enacted by the U.S. government. The 2017 Tax Act made broad and complex changes to the U.S. tax code that impact the year ended December 31, 2017, including, but not limited to the deemed repatriation transition tax and the remeasurement of U.S. deferred tax assets and liabilities as a result of the reduction of the U.S. corporate rate from 35% to 21%. The enactment of the 2017 Tax Act requires companies, under ASC 740, to recognize the effects of changes in tax law and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The effects of these changes in tax law are recorded as a component of our tax provision, regardless of the category of pre-tax The SEC issued SAB 118, which allows us to record a provisional estimate of the income tax effects of the 2017 Tax Act in the period in which we can make a reasonable estimate of its effects. We have recorded a $27.5 million tax charge in the year ended December 31, 2017 as a provisional estimate. This includes an estimated charge of $17.0 million related to the deemed repatriation transition tax, which is comprised of a gross transition tax of $27.0 million offset by foreign tax credits of $10.0 million. In addition, we have recorded a $10.5 million charge related to the remeasurement of U.S. deferred tax assets and liabilities. While we have calculated a reasonable estimate of the impact of the U.S. tax rate reduction and the amount of the deemed repatriation transition tax, we are gathering additional information to refine and finalize our calculation of the impacts of the 2017 Tax Act on our U.S. deferred tax assets and liabilities, the deemed repatriation transition tax, and other provisions associated with the 2017 Tax Act. As we obtain additional information, we will record adjustments in subsequent periods, and will finalize the calculation of the income tax effects of the 2017 Tax Act in the fourth quarter of 2018, or in an earlier quarter if our analysis is complete. The 2017 Tax Act also created a minimum tax on certain foreign earnings, also known as the GILTI provision, commencing in the year ending December 31, 2018. Because whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on not only our current structure and estimated future results of global operations, but also our intent and ability to modify our structure and/or our business, we are not yet able to provide a reasonable estimate of the effect of this provision of the 2017 Tax Act. Any subsequent adjustment to the deferred tax amounts related to GILTI (or other computations) will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. During the year ended December 31, 2017, we recognized a $3.5 million tax benefit (including state tax benefit) from the release of previously unrecognized tax benefits due to the expiration of U.S. federal, state, and foreign statutes of limitations. We earn a significant amount of our operating income outside the U.S., which is deemed to be permanently reinvested in foreign jurisdictions. Of the income generated in foreign jurisdictions with tax rates materially lower than the statutory U.S. tax rate of 35%, most is earned in the Netherlands, Spain, U.K., Italy, Israel, and the Cayman Islands. Our effective tax rate could fluctuate significantly and be adversely impacted if anticipated earnings in the Netherlands, Spain, U.K., Italy, Israel, and the Cayman Islands are proportionally lower than current projections and earnings in all other jurisdictions are proportionally higher than current projections. While we currently do not foresee a need to repatriate the earnings of foreign operations, should we require more capital in the U.S. than is generated by our U.S. operations, we may elect to repatriate funds held in our foreign jurisdictions or raise capital in the U.S. through debt or equity issuances. These alternatives could result in higher effective tax rates, the cash payments of taxes and/or increased interest expense. As of December 31, 2017, we have permanently reinvested $214.9 million of unremitted foreign earnings. Due to the changes resulting from the enactment of the 2017 Tax Act, we will not be subject to U.S. federal income tax on dividends received from our foreign subsidiaries commencing January 1, 2018. We are evaluating the potential foreign and U.S. state income tax liabilities that would result from future repatriations, if any, and how the 2017 Tax Act will impact our current permanent reinvestment assertion. We expect to complete this analysis and the impact, if any, which the 2017 Tax Act may have on our indefinite reinvestment assertion in the fourth quarter of 2018, or in an earlier quarter if our analysis is complete. In Altera Corp.v. Commissioner, the U.S Tax Court issued an opinion on July 27, 2015, related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. To date, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation in intercompany cost-sharing arrangements from its regulations. Due to the uncertainty related to the status of the current regulations and the ultimate outcome of the appeal, we have not recorded any benefit as of December 31, 2017 in our Consolidated Statement of Operations. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements. The tax effects of temporary differences that give rise to deferred tax assets (liabilities) as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Tax credit carryforwards $ 62,096 $ 63,985 Net operating loss carryforwards 9,066 10,055 Reserves and accruals not currently deductible for tax purposes 8,785 14,079 Stock-based compensation 3,432 8,487 Deferred revenue 1,332 1,642 Other 6,374 6,971 Gross deferred tax assets 91,085 105,219 Depreciation and amortization (11,075 ) (17,845 ) State Taxes (1,073 ) (2,092 ) Gross deferred tax liabilities (12,148 ) (19,937 ) Deferred tax valuation allowance (45,506 ) (42,406 ) Net deferred tax assets $ 33,431 $ 42,876 We have $13.7 million ($49.5 million for state tax purposes) and $36.3 million ($38.0 million for state tax purposes) of loss and credit carryforwards at December 31, 2017 for U.S. federal tax purposes. A majority of these federal and state losses and credits will expire between 2022 and 2027. A significant portion of these net operating loss and credit carryforwards relate to recent acquisitions. Utilization of these loss and credit carryforwards will be subject to an annual limitation under the Internal Revenue Code (“IRC”). We also have a valuation allowance related to California and Luxembourg deferred tax assets. We assess the likelihood that our deferred tax assets will be recovered from future taxable income by considering both positive and negative evidence relating to their recoverability. If we believe that recovery of these deferred tax assets is not more likely than not, we establish a valuation allowance. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we considered all available evidence, including recent operating results, projections of future taxable income, our ability to utilize loss and credit carryforwards, and the feasibility of tax planning strategies. Other than valuation allowances on deferred tax assets related to California, Luxembourg, Israel, Netherlands, and Turkey deferred tax assets that are not likely to be realized based on the size of the net operating loss and research and development credits being generated, we have determined that it is more likely than not that we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we will include an expense within the tax benefit in the Consolidated Statement of Operations in the period in which such determination is made. A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2015 to December 31, 2017 is as follows (in millions): Federal, State, Accrued Gross Balance at January 1, 2015 $ 34.2 $ 0.8 $ 35.0 Additions for tax positions of prior years 14.1 0.2 14.3 Additions for tax positions related to 2015 4.7 — 4.7 Reductions due to lapse of applicable statute of limitations (6.9 ) (0.5 ) (7.4 ) Balance at December 31, 2015 $ 46.1 $ 0.5 $ 46.6 Additions for tax positions of prior years 1.8 0.2 2.0 Additions for tax positions related to 2016 3.9 — 3.9 Reductions due to lapse of applicable statute of limitations (16.4 ) (0.2 ) (16.6 ) Balance at December 31, 2016 $ 35.4 $ 0.5 $ 35.9 Additions for tax positions of prior years 1.7 0.3 2.0 Additions for tax positions related to 2017 4.5 — 4.5 Reductions due to lapse of applicable statute of limitations (4.1 ) (0.1 ) (4.2 ) Balance at December 31, 2017 $ 37.5 $ 0.7 $ 38.2 As of December 31, 2017, 2016, and 2015, gross unrecognized benefits that would affect the effective tax rate if recognized were $33.9, $32.0, and $43.5 million, respectively, offset by deferred tax benefits of $0.4, $1.1, and $1.0 million related to the federal tax effect of state income taxes for the same periods. Over the next twelve months, our existing tax positions will continue to generate increased liabilities for unrecognized tax benefits. It is reasonably possible that our gross unrecognized tax benefits will decrease up to $5.5 million in the next twelve months. These adjustments, if recognized, would positively impact our effective tax rate, and would be recognized as additional tax benefits in our Consolidated Statements of Operations. In accordance with ASU 2013-11, We recognize potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. At December 31, 2017, 2016, and 2015, we have accrued $0.7, $0.5, and $0.5 million, respectively, for potential payments of interest and penalties. In accordance with ASU 2016-09, We are subject to examination by the Internal Revenue Service (“IRS”) for the 2014-2016 tax years, state tax jurisdictions for the 2013-2016 tax years, the Netherlands tax authority for the 2014-2016 tax years, the Spanish tax authority for the 2013-2016 tax years, the Israel tax authority for the 2014-2016 tax years, and the Italian tax authority for the 2013-2016 tax years |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Note 12: Employee Benefit Plans Equity Incentive Plans As of December 31, 2017, we had outstanding equity awards under our 2017 Equity Incentive Plan and our 2009 Stock Plan. No awards may be granted under our 2009 Stock Plan after June 7, 2017. Our primary equity incentive plans are summarized as follows: 2017 Equity Incentive Plan Our stockholders approved the 2017 Equity Incentive Plan (“2017 Plan”) on June 7, 2017, which includes: • 1,200,000 shares of our common stock reserved for issuance pursuant to such plan; • 1,593,660 common stock shares that were available for future grants under the 2009 Equity Incentive Award Plan (“Prior Plan”) immediately prior to termination of authority to grant new awards under the Prior Plan on June 7, 2017; • shares subject to stock options granted under the Prior Plan and outstanding as of June 7, 2017, which expire, or for any reason are cancelled or terminated, after that date without being exercised; and • shares subject to restricted stock unit awards granted under the 2009 Plan that are outstanding and unvested as of June 7, 2017 which are forfeited, terminated, cancelled, or otherwise reacquired after that date without having become vested. The 2017 Plan provides for grants of stock options (both incentive and nonqualified stock options), restricted stock, stock units, stock bonuses, performance stock, stock appreciation rights, performance stock units, phantom stock, dividend equivalent rights or cash awards. Options and awards generally vest over a period of one to four years from the date of grant and generally expire seven to ten years from the date of the grant. The terms of the 2017 Plan provide that an option price shall not be less than 100% of fair value on the date of the grant. Our board of directors may grant a stock bonus or stock unit award under the 2017 Plan in lieu of all or a portion of any cash bonus that a participant would have otherwise received for the related performance period. The shares of common stock covered by the 2017 Plan may be treasury shares, authorized but unissued shares, or shares purchased in the open market. If an award under the 2017 Plan is forfeited (including a reimbursement of a non-vested The 2017 Plan is administered by the Compensation Committee of the Board of Directors (“Committee”). The Committee has the exclusive authority to administer the 2017 Plan, including the power to (i) designate participants under the 2017 Plan, (ii) determine the types of awards granted to participants under the 2017 Plan, the number of such awards, and the number of shares of our common stock that is subject to such awards, (iii) determine and interpret the terms and conditions of any awards under the 2017 Plan, including the vesting schedule, exercise price, whether to settle or accept the payment of any exercise price, in cash, common stock, other awards, or other property, and whether an award may be cancelled, forfeited, or surrendered, (iv) prescribe the form of each award agreement, and (v) adopt rules for the administration, interpretation, and application of the 2017 Plan. Persons eligible to participate in the 2017 Plan include all of our employees, directors, and consultants, as determined by the Committee. As of December 31, 2017, approximately 3,900 employees and consultants and 5 non-employee There were 1.0 million shares outstanding and 1.9 million shares available for grant under the 2017 Plan as of December 31, 2017. 2009 Stock Plan With the adoption of the 2017 Plan, no additional awards may be granted under the 2009 Stock Plan (“2009 Plan”). The 2009 Plan provided for grants of stock options (both incentive and nonqualified stock options), restricted stock awards, stock appreciation rights, performance shares, performance stock units, dividend equivalents, stock payments, deferred stock, RSUs, and performance-based awards. Options and awards generally vest over a period of one to four years from the date of grant and generally expire seven to ten years from the date of the grant. The terms of the 2009 Plan provide that an option price shall not be less than 100% of fair value on the date of the grant. Our board of directors could grant a stock bonus or stock unit award under the 2009 Plan in lieu of all or a portion of any cash bonus that a participant would have otherwise received for the related performance period. The shares of common stock covered by the 2009 Plan may be treasury shares, authorized but unissued shares, or shares purchased in the open market. If an award under the 2009 Plan is forfeited, terminated, cancelled, or otherwise reacquired, any shares of common stock subject to the award may be used again for new grants under the 2017 Plan. There were 1.3, 2.4, and 2.3 million shares outstanding under the 2009 Plan as of December 31, 2017, 2016, and 2015, respectively. Amended and Restated 2000 Employee Stock Purchase Plan As most recently amended on June 4, 2013, our stockholders approved the Amended and Restated 2000 Employee Stock Purchase Plan that increased the number of shares authorized for issuance pursuant to such plan by 2 million shares. The share increase was intended to ensure that we continue to have a sufficient reserve of common stock available under the ESPP to provide our eligible employees with the opportunity to acquire our common stock through participation in a payroll deduction-based ESPP designed to operate in compliance with Section 423 of the IRC. The ESPP does not provide for an automatic increase in the number of shares reserved for issuance under the ESPP. The ESPP is qualified under Section 423 of the IRC. Eligible employees may contribute from one to ten percent of their base compensation. Employees are not able to purchase more than the number of shares having a value greater than $25,000 in any calendar year, as measured at the beginning of the offering period under the ESPP. The purchase price shall be the lesser of 85% of the fair value of the stock, either on the offering date or on the purchase date. The offering period shall not exceed 27 months beginning with the offering date. The ESPP provides for offerings of four consecutive, overlapping six-month There were 0.3 million shares issued under the ESPP at an average purchase price of $35.18, $32.88, and $31.66 during each of the years ended December 31, 2017, 2016, and 2015, respectively. As of December 31, 2017, there was $1.9 million of total unrecognized compensation cost related to stock-based compensation arrangements granted under the ESPP, which is expected to be recognized over a period of 1.8 years. At December 31, 2017, 2016, and 2015, there were 0.9, 1.2, and 1.5 million shares, respectively, of our common stock reserved for issuance under the ESPP. Employee 401(k) Plan We sponsor a 401(k) Savings Plan (“401(k) Plan”) that provides retirement and incidental benefits for our U.S. employees. Employees may contribute from 1% to 75% of their annual compensation to the 401(k) Plan, limited to a maximum annual amount as set periodically by the IRS. We match 50% of U.S. employee contributions, up to a maximum of the first 4% of the employee’s compensation contributed to the plan, subject to IRS limitations. All matching contributions vest over four years starting with the hire date of the individual employee. Our matching contributions to the 401(k) Plan totaled $2.3, $2.2, and $2.3 million during the years ended December 31, 2017, 2016, and 2015, respectively. The employees’ contributions and our contributions are invested in mutual funds managed by a fund manager, or in self-directed retirement plans. Valuation and Expense Information under ASC 718 We account for stock-based payment awards in accordance with ASC 718, which requires the measurement and recognition of compensation expense for all equity awards granted to our employees and directors, including employee stock options, RSUs, and ESPP purchase rights related to all stock-based compensation plans based on the fair value of such awards on the date of grant. We amortize stock-based compensation cost on a graded vesting basis over the vesting period reduced by actual forfeitures, after assessing the probability of achieving the requisite performance criteria with respect to performance-based awards. Stock-based compensation cost is recognized over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. Prior to adoption of ASU 2016-09 We use the BSM option pricing model to value stock-based compensation for stock options. We value market-based awards using a Monte Carlo valuation model. We value RSUs at the market price on the date of grant. Stock-based compensation expense related to stock options, RSUs, ESPP purchase rights, and stock options under ASC 718 for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 RSUs $ 21,887 $ 28,952 $ 29,671 ESPP purchase rights 4,645 2,795 4,003 Employee stock options — 79 397 Total stock-based compensation 26,532 31,826 34,071 Income tax benefit (8,188 ) (10,342 ) (9,436 ) Stock-based compensation expense, net of tax $ 18,344 $ 21,484 $ 24,635 Valuation Assumptions for Stock Options and ESPP Purchases The BSM model determines the fair value of stock options based on the stock price on the date of grant and assumptions including volatility, expected term, and interest rates. Expected volatility is based on the historical volatility of our stock over a preceding period commensurate with the expected term of the stock option. The expected term is based on management’s consideration of the historical life of the stock options, the vesting period of the stock options granted, and the contractual period of the stock options granted. The risk-free interest rate for the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since we do not pay dividends and have no current plans to do so in the future. Stock options were not granted during the years ended December 31, 2017, 2016, and 2015. The estimated weighted average fair value per share of ESPP purchase rights issued and the assumptions used to estimate fair value for the years ended December 31, 2017, 2016, and 2015 are as follows: 2017 2016 2015 Weighted average fair value per share $ 12.09 $ 10.69 $ 10.28 Expected volatility 24% - 28 % 22% - 32 % 19% - 28 % Risk-free interest rate 0.7% - 1.3 % 0.4% - 0.8 % 0.1% - 0.7 % Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Stock Option Activity Stock options outstanding and exercisable, including performance-based and market-based options, as of December 31, 2017, 2016, and 2015 and activity for each of the years then ended are summarized as follows (in thousands, except weighted average exercise price and remaining contractual term): Shares Weighted Weighted Aggregate Options outstanding at January 1, 2015 566 $ 13.67 Options exercised (124 ) 15.35 Options outstanding at December 31, 2015 442 $ 13.20 Options forfeited and expired (12 ) 10.77 Options exercised (115 ) 11.64 Options outstanding at December 31, 2016 315 $ 13.86 1.46 $ 9,480 Options exercised (165 ) 12.45 Options outstanding at December 31, 2017 150 $ 15.43 1.27 $ 2,116 Options vested and expected to vest at December 31, 2017 150 $ 15.43 1.27 $ 2,116 Options exercisable at December 31, 2017 150 $ 15.43 1.27 $ 2,116 Aggregate stock option intrinsic value represents the difference between the closing price per share of our common stock on the last trading day of the fiscal period and the exercise price of the underlying awards for the options that were in the money at December 31, 2017, 2016, and 2015. The total intrinsic value of options exercised, determined as of the date of option exercise, was $5.3, $3.8, and $3.7 million for the years ended December 31, 2017, 2016, and 2015, respectively. There was no unrecognized compensation cost related to stock options expected to vest as of December 31, 2017. The weighted average exercise price ranges between $14.28 and $16.57. The weighted average remaining contractual term ranges between 0.86 and 1.68 years as of December 31, 2017. Non-vested Non-vested Non-vested non-vested Non-vested Non-vested Shares Weighted Non-vested 2,003 $ 35.91 Restricted stock granted 1,104 41.61 Restricted stock vested (925 ) 32.39 Restricted stock forfeited (368 ) 39.08 Non-vested 1,814 $ 40.53 Restricted stock granted 1,359 43.35 Restricted stock vested (787 ) 38.34 Restricted stock forfeited (303 ) 39.54 Non-vested 2,083 $ 43.34 Restricted stock granted 1,467 35.89 Restricted stock vested (761 ) 42.74 Restricted stock forfeited (510 ) 41.51 Non-vested 2,279 $ 39.16 Vested RSUs Performance-based RSUs that vested based on annual financial results are expensed in the period that the performance criteria were met. The grant date fair value of RSUs that vested during the years ended December 31, 2017, 2016, and 2015 were $42.74, $38.34, and $32.39 million, respectively. Aggregate intrinsic value of RSUs vested and expected to vest at December 31, 2017 was $62.7 million calculated as the closing price per share of our common stock on the last trading day of the fiscal period multiplied by 2.1 million RSUs vested and expected to vest at December 31, 2017. RSUs expected to vest represent time-based RSUs unvested and outstanding at December 31, 2017, and performance-based RSUs for which the requisite service period has not been rendered, but are expected to vest based on the achievement of performance conditions. There was approximately $34.3 million of unrecognized compensation costs related to RSUs expected to vest as of December 31, 2017. That cost is expected to be recognized over a weighted average period of 1.15 years. Performance-based and Market-based RSUs and Stock Options Performance-based and market-based RSUs included in the tables above as of December 31, 2017, 2016, and 2015, and activity for each of the years then ended, are summarized below (in thousands): Performance-based Market-based RSUs Stock RSUs Non-vested 852 16 34 Granted 569 — 18 Vested (284 ) — (3 ) Forfeited (217 ) — (26 ) Non-vested 920 16 23 Granted 821 — — Vested (226 ) (4 ) — Forfeited (250 ) (12 ) — Non-vested 1,265 — 23 Granted 675 — — Vested (284 ) — — Forfeited (447 ) — — Non-vested 1,209 — 23 Approximately 2% of the non-vested non-GAAP We use the BSM option pricing model to value performance-based awards. We use a Monte Carlo option pricing model to value market-based awards. The estimated grant date fair value per share of performance-based and market-based RSUs granted and the assumptions used to estimate grant date fair value for the years ended December 31, 2017, 2016, and 2015 are as follows: Performance-based Market-based RSUs RSUs Short-term Long-term Year ended December 31, 2017 Grants Grant date fair value per share $ 47.18 $ 33.43 Service period (years) 1.0 2.0 - 3.0 Year ended December 31, 2016 Grants Grant date fair value per share $ 39.79 $ 45.76 Service period (years) 1.0 2.0 - 3.0 Year ended December 31, 2015 Grants Grant date fair value per share $ 38.77 $ 42.82 $ 33.84 Service period (years) 1.0 2.0 - 3.0 Derived service period (years) 1.60 Implied volatility 30.0 % Risk-free interest rate 1.7 % Our performance-based RSUs generally vest when specified performance criteria are met based on bookings, revenue, cash provided by operating activities, non-GAAP non-GAAP non-GAAP Non-GAAP Non-GAAP Non-GAAP The grant date fair value per share determined in accordance with the BSM valuation model is being amortized over the service period of the performance-based awards. The probability of achieving the awards was determined based on review of the actual results achieved thus far by each business unit compared with the operating plan during the pertinent service period as well as the overall strength of the business unit. Stock-based compensation expense was adjusted based on this probability assessment. As actual results are achieved during the service period, the probability assessment is updated and stock-based compensation expense adjusted accordingly. Our stock compensation expense could change significantly in future periods if our probability assessments change significantly. Market-based awards that were granted in prior periods vest when our average closing stock price exceeds defined multiples of the closing stock price for 90 consecutive trading days. If these multiples were not achieved by the expiration date, the awards are forfeited. The grant date fair value is being amortized over the average derived service period of the awards. The average derived period and total fair value were determined using a Monte Carlo valuation model based on our assumptions, which include a risk-free interest rate and implied volatility. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Note 13: Restructuring and Other During the years ended December 31, 2017, 2016, and 2015, we continue to analyze our cost structure and re-align Restructuring and other costs for the years ended December 31, 2017, 2016, and 2015 were $7.6, $6.7, and $5.7 million, respectively. Restructuring and other costs include severance costs of $4.7, $4.1, and $3.0 million related to head count reductions of 144, 128, and 99 for the years ended December 31, 2017, 2016, and 2015, respectively. Severance costs include severance payments, related employee benefits, outplacement fees, recruiting, and employee relocation costs. Facilities relocation and downsizing expenses for the years ended December 31, 2017, 2016, and 2015 were $0.6, $0.5, and $0.9 million, respectively. Facilities restructuring and other expenses are primarily related to the relocation of certain manufacturing and administrative locations to consolidate, streamline, or improve operations. Integration expenses for the years ended December 31, 2017, 2016, and 2015 of $2.3, $2.1, and $1.8 million, respectively, were required to integrate our business acquisitions. Restructuring and other reserve activities for the years ended December 31, 2017 and 2016 are summarized as follows (in thousands): 2017 2016 Reserve balance at January 1 $ 1,824 $ 3,019 Restructuring charges 5,136 2,808 Other charges 2,424 3,921 Non-cash (264 ) (403 ) Cash payments (6,668 ) (7,521 ) Reserve balance at December 31 $ 2,452 $ 1,824 |
Segment Information, Geographic
Segment Information, Geographic Regions, and Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information, Geographic Regions, and Major Customers | Note 14: Segment Information, Geographic Regions, and Major Customers Operating Segments Operating segment information is required to be presented based on the internal reporting used by the chief operating decision making group (“CODM”) to allocate resources and evaluate operating segment performance. Our CODM is comprised of our Chief Executive Officer and Chief Financial Officer (“CODM group”). The CODM group is focused on assessment and resource allocation among the Industrial Inkjet, Productivity Software, and Fiery operating segments. Our operating segments are integrated through their reporting and operating structures, shared technology and practices, shared sales and marketing, shared back office support functions, and combined production facilities. Our enterprise management processes use financial information that is closely aligned with our three operating segments at the gross profit level. Relevant discrete financial information is prepared at the gross profit level for each of our three operating segments, which is used by the CODM group to allocate resources and assess the performance of each operating segment. We classify our revenue, operating segment profit (i.e., gross profit), assets, and liabilities in accordance with our operating segments as follows: Industrial Inkjet, Productivity Software, end-to-end Productivity Suite Packaging Suite, Corrugated Packaging Suite, Enterprise Commercial Print Suite, Publication Print Suite, Midmarket Print Suite, Quick Print Suite, in-plant Value Added Products, web-to-print, e-commerce, Fiery, Our CODM group evaluates the performance of our operating segments based on net sales and gross profit. Gross profit for each operating segment includes revenue from sales to third parties and related cost of revenue attributable to the operating segment. Cost of revenue for each operating segment excludes certain expenses managed outside the operating segments consisting primarily of stock-based compensation expense. Operating income is not reported by operating segment because operating expenses include significant shared expenses and other costs that are managed outside of the operating segments. Such operating expenses include various corporate expenses such as stock-based compensation, corporate sales and marketing, research and development, amortization of identified intangibles, various non-recurring Operating segment profit (i.e., gross profit), excluding stock-based compensation expense, for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 Industrial Inkjet Revenue $ 570,688 $ 562,583 $ 447,705 Gross profit 208,620 198,923 150,964 Gross profit percentages 36.6 % 35.4 % 33.7 % Productivity Software Revenue $ 156,561 $ 151,737 $ 135,350 Gross profit 114,460 114,179 99,278 Gross profit percentages 73.1 % 75.2 % 73.3 % Fiery Revenue $ 266,011 $ 277,745 $ 299,458 Gross profit 185,937 198,322 210,140 Gross profit percentages 69.9 % 71.4 % 70.2 % Operating segment profit (i.e., gross profit) for the years ended December 31, 2017, 2016, and 2015 is reconciled to the Consolidated Statements of Operations as follows (in thousands): 2017 2016 2015 Segment gross profit $ 509,017 $ 511,424 $ 460,382 Stock-based compensation expense (2,561 ) (2,784 ) (2,837 ) Other items excluded from segment profit — (475 ) (115 ) Gross profit $ 506,456 $ 508,165 $ 457,430 The Fiery gross profit percentage is impacted by $1.4 million during the year ended December 31, 2017, charged to cost of revenue, which reflects the cost of manufacturing plus a portion of the expected profit margin related to the acquired FFPS inventories. Inventory acquired in the acquisition of FFPS is required to be recorded at fair value rather than historical cost in accordance with ASC 805. This amount is not included in the financial information regularly reviewed by the CODM group as this acquisition-related charge is not indicative of the gross margin trends in the FFPS business. Excluding this charge, the Fiery gross profit percentage would be 70.4% for the year ended December 31, 2017. Tangible and intangible assets, net of liabilities, are summarized by operating segment as of December 31, 2017 and 2016 as follows (in thousands): Industrial Productivity Fiery Corporate and Total December 31, 2017 Goodwill $ 154,373 $ 174,644 $ 74,261 $ — $ 403,278 Identified intangible assets, net 66,547 36,379 20,082 — 123,008 Tangible assets, net of liabilities 221,933 (27,755 ) 11,286 49,561 255,025 Net tangible and intangible assets $ 442,853 $ 183,268 $ 105,629 $ 49,561 $ 781,311 December 31, 2016 Goodwill $ 141,068 $ 155,475 $ 63,298 $ — $ 359,841 Identified intangible assets, net 84,465 38,440 92 — 122,997 Tangible assets, net of liabilities 153,699 (27,646 ) 33,966 183,158 343,177 Net tangible and intangible assets $ 379,232 $ 166,269 $ 97,356 $ 183,158 $ 826,015 Corporate and unallocated assets consist of cash and cash equivalents, short-term investments, restricted investments and cash equivalents, corporate headquarters facility, convertible senior notes, net, imputed financing obligation related to build-to-suit Geographic Regions Our revenue originates in the U.S., China, the Netherlands, Germany, Italy, France, the U.K., Spain, Israel, Brazil, and Australia. We report revenue by geographic region based on ship-to Our revenue by ship-to 2017 2016 2015 Americas $ 487,968 $ 500,411 $ 473,599 EMEA 369,610 360,305 291,103 APAC 135,682 131,349 117,811 Total Revenue $ 993,260 $ 992,065 $ 882,513 Our tangible long-lived assets consist primarily of property and equipment, net, of $98.8 million. Of this amount, $77.7 million resides in the Americas, $19.1 million resides in EMEA, consisting primarily of Cretaprint and Reggiani equipment and leasehold improvements, and $2.0 million resides in APAC, consisting primarily of India leasehold improvements and equipment. Major Customers One customer, Xerox, provided 11% and 12% of our consolidated revenue for the years ended December 31, 2017 and 2015, respectively. No customer accounted for more than 10% of our revenue for the year ended December 31, 2016. No customer accounted for more than 10% of our net consolidated accounts receivables at December 31, 2017 and 2016. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 15: Property and Equipment, net Property and equipment, net, as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Land, buildings, and improvements (including build-to-suit $ 68,404 $ 67,841 Equipment and purchased software 93,849 86,665 Furniture and leasehold improvements 20,270 18,713 182,523 173,219 Less accumulated depreciation and amortization (83,761 ) (69,745 ) Property and equipment, net $ 98,762 $ 103,474 Depreciation expense was $16.8, $14.1, and $12.2 million for the years ended December 31, 2017, 2016, and 2015, respectively. Fremont, California. 15-year The leased facility was a cold shell requiring additional build-out build-out Monthly lease payments are allocated between the land element of the lease, which is accounted for as an operating lease, and the imputed financing obligation. The imputed financing obligation is being amortized in accordance with the effective interest method using the interest rate determined in accordance with the requirements of sale leaseback accounting. The imputed interest cost incurred during the construction period was capitalized as a component of the construction cost. As of December 31, 2017, the imputed financing obligation in connection with the facility was $13.9 million, including accrued interest, which is classified as a noncurrent imputed financing obligation in our Consolidated Balance Sheet. If the requirements of sale leaseback accounting are satisfied, or at the end of the initial lease term, we will reverse the net book value of the building and the corresponding imputed financing obligation. Eagan, Minnesota. 150-day Manchester, New Hampshire. On August 26, 2016, we entered into a six-year six-year six-year The funds pledged under the lease represent 115% of the total expenditures made by BTMU through December 31, 2017. The funds are invested in $32.5 million of cash and cash equivalents at December 31, 2017; and $5.1 and $1.2 million of U.S. government securities and cash equivalents, respectively at December 31, 2016, with a third party trustee and will be restricted during the construction period. Upon completion of construction, the funds will be released as cash and cash equivalents. The portion of released funds that represents 100% of the total expenditures made by BTMU will be deposited with BTMU and restricted as collateral until the end of the underlying lease period. The funds pledged as collateral are invested in cash equivalents as of December 31, 2017, and cash equivalents and short-term investments as of December 31, 2016, and are classified as restricted cash equivalents and investments on our Consolidated Balance Sheets. We have applied the accounting and disclosure requirements set forth in ASC 810-10 810-10. Meredith, New Hampshire. The fair value of the Meredith facility, based on expected sales proceeds, less cost to sell, is expected to be less than the carrying amount of the assets. As a result, we incurred an impairment loss of approximately $0.9 million, which has been recognized on our Consolidated Statements of Operations in the year ended December 31, 2017. |
License Agreement
License Agreement | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
License Agreement | Note 16: License Agreement On November 1, 2017 (“Effective Date”), we entered into an Agreement with Xeikon, which is a division of the Flint Group headquartered in Luxembourg to license the rights to the manufacturing, technology, marketing, and support of the Jetrion business. Pursuant to the Agreement, we provided Xeikon access to the Jetrion customer list and enabled Xeikon to assume the relationship with the third-party outsourcing company that manufactured Jetrion printers for us and resell the printers to our current customer base. Xeikon will purchase UV label ink exclusively from us and resell to both our current customer base as well as new Xeikon inkjet customers. Per the terms of the Agreement, we agreed to cease sales of Jetrion products for four years after the Effective Date. We received cash consideration of $2.0 million during 2017 followed by annual volume-based royalty payments based on Xeikon’s ink purchases from us through October 31, 2021. We determined the amount of the actual payments received in 2017 related to Jetrion customer list access, Jetrion trade name, and volume-based royalty payments. Access to the customer list is recognized immediately as other income in our Consolidated Statement of Operations. Trade name is recognized ratably over four years as other income in our Consolidated Statements of Operations. Volume-based royalty payments from Xeikon’s ink purchases are recognized as revenue ratably over four years. For the year ended December 31, 2017, we recognized $0.1 and $0.3 million of revenue and other income in our Consolidated Statements of Operations from the Agreement. SUPPLEMENTARY DATA |
Quarterly Consolidated Financia
Quarterly Consolidated Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Consolidated Financial Information | Unaudited Quarterly Consolidated Financial Information The following table presents our operating results for each of the quarters in the years ended December 31, 2017 and 2016. The information for each of these quarters is unaudited, but has been prepared on the same basis as our audited consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K. 10-K. 2017 (in thousands except per share data) Q1 Q2 Q3 Q4 Revenue $ 228,691 $ 247,047 $ 248,359 $ 269,163 Gross profit 123,530 127,252 127,458 128,216 Income from operations 8,143 7,991 7,397 4,016 Net income (loss) 4,787 2,759 3,454 (26,345 ) Net income (loss) per basic common share $ 0.10 $ 0.06 $ 0.07 $ (0.58 ) Net income (loss) per diluted common share $ 0.10 $ 0.06 $ 0.07 $ (0.58 ) 2016 (in thousands except per share data) Q1 Q2 Q3 Q4 Revenue $ 234,133 $ 245,650 $ 245,575 $ 266,707 Gross profit 118,397 125,047 125,194 139,527 Income from operations 6,969 11,709 9,410 27,731 Net income 2,103 5,235 17,662 19,949 Net income per basic common share $ 0.04 $ 0.11 $ 0.38 $ 0.43 Net income per diluted common share $ 0.04 $ 0.11 $ 0.37 $ 0.42 Income from operations decreased by $3.4 million during the quarter ended December 31, 2017, primarily because the estimated probability of achieving the Optitex earnout performance targets was increased, resulting in a $2.0 million increase in the related accrual during the quarter. Net loss during the quarter ended December 31, 2017, was further impacted by the $27.5 million tax charge related to the provisional estimate of the impact of the 2017 Tax Act as more fully explained in Note 11—Income Taxes. We identified certain errors at our Italian manufacturing subsidiary attributable to the valuation and classification of certain finished goods inventory during the year ended December 31, 2017. These errors resulted in an understatement of operating expenses during the quarter ended December 31, 2016, due to failure to properly impair and expense certain items, properly classify certain amounts included in inventories on the balance sheet, and appropriately depreciate those amounts. As a result, we corrected the accompanying unaudited quarterly consolidated financial information for the fourth quarter of 2016. The impact to gross margin, income from operations, and net income for the three months ended December 31, 2016 for this correction is a decrease of $0.5, $0.7, and $0.6 million, respectively, from amounts previously reported of $140.0, $28.5, and $20.5 million, respectively. Net income per diluted common share decreased by $0.01 per share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands) Balance Charged Charged to Deductions Balance at Year Ended December 31, 2017 Allowance for bad debts and sales-related allowances $ 23,330 $ 12,416 $ — $ (3,410 ) $ 32,336 Year Ended December 31, 2016 Allowance for bad debts and sales-related allowances 21,993 10,678 $ — (9,341 ) 23,330 Year Ended December 31, 2015 Allowance for bad debts and sales-related allowances 17,517 7,536 — (3,060 ) 21,993 |
The Company and Its Significa28
The Company and Its Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
The Company | The Company We are a world leader in customer-centric digital printing innovation focused on the transformation of the printing, packaging, ceramic tile decoration, and textile industries from the use of traditional analog based printing to digital on-demand Our products include industrial super-wide and wide format display graphics, corrugated packaging and display, textile, and ceramic tile decoration digital inkjet printers that utilize our digital ink, industrial digital inkjet printer parts, and professional services; print production workflow, web-to-print, on-demand Our product portfolio includes Industrial Inkjet including VUTEk display graphics super-wide and wide format, Nozomi corrugated packaging, Reggiani textile, Cretaprint ceramic tile decoration and building material industrial digital inkjet printers and ink; print production workflow, web-to-print, |
Correction of Prior Period Financial Information | Correction of Prior Period Financial Information We identified certain errors at our Italian manufacturing subsidiary attributable to the valuation and classification of certain finished goods inventory during the year ended December 31, 2017. The errors related to finished goods that should have been impaired and expensed in 2015, inventory utilized in research and development projects that expired and should have been expensed in 2016, and certain assets included in inventory that should have been capitalized and depreciated over their estimated useful lives. The preceding resulted in an understatement of cost of revenue in 2015 and operating expenses in 2016 due to failure to properly impair and expense certain items, properly classify certain amounts included in inventories on the balance sheet, and appropriately depreciate those amounts. As a result, we have corrected the accompanying consolidated balance sheet as of December 31, 2016 as follows: December 31, 2016 (in thousands) As Previously Adjustments As Adjusted Inventories $ 99,075 $ (2,737 ) $ 96,338 Property and equipment, net 103,304 170 103,474 Total assets 1,481,496 (2,567 ) 1,478,929 Deferred tax liabilities 16,351 (750 ) 15,601 Total liabilities 653,664 (750 ) 652,914 Accumulated other comprehensive loss (24,694 ) 119 (24,575 ) Retained earnings 419,825 (1,936 ) 417,889 Total shareholders’ equity 827,832 (1,817 ) 826,015 We consider this correction to previously issued financial statements to be immaterial. The impact to net income for the years ended December 31, 2016 and 2015 for this correction is a decrease of $0.6 and $1.3 million, respectively, from amounts previously reported of $45.5 and $33.5 million, respectively |
Out-of-Period Adjustments | Out-of-Period During the year ended December 31, 2017, we recorded out-of-period out-of-period |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of EFI and our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, comprehensive income, cash flows, and related disclosure of contingent assets and liabilities. We evaluate our estimates, including those related to revenue recognition, bad debts, inventory valuation and purchase commitment reserves, warranty obligations, litigation expenses, restructuring activities, fair value of financial instruments, stock-based compensation, income taxes, valuation of goodwill and intangible assets, business combinations, build-to-suit |
Cash, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents, and Short-term Investments We invest our excess cash on deposit with major banks in money market, U.S. Treasury and government-sponsored entity, corporate, municipal government, asset-backed, and mortgage-backed residential securities. By policy, we invest primarily in high-grade marketable securities. We are exposed to credit risk in the event of default by the financial institutions or issuers of these investments to the extent of amounts recorded in our Consolidated Balance Sheets. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Typically, the cost of these investments has approximated fair value. Marketable investments with a maturity greater than three months are classified as available-for-sale Available-for-sale We review investments in debt securities for other-than-temporary impairment whenever the fair value is less than the amortized cost and evidence indicates the investment’s carrying amount is not recoverable within a reasonable period of time. We assess the fair value of individual securities as part of our ongoing portfolio management. Our other-than-temporary assessment includes reviewing the length of time and extent to which fair value has been less than amortized cost; the seniority and durations of the securities; adverse conditions related to a security, industry, or sector; historical and projected issuer financial performance, credit ratings, issuer specific news; and other available relevant information. To determine whether an impairment is other-than-temporary, we consider whether we have the intent to sell the impaired security or if it will be more likely than not that we will be required to sell the impaired security before a market price recovery and whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. In determining whether a credit loss existed, we used our best estimate of the present value of cash flows expected to be collected from each debt security. For these cash flow estimates, including prepayment assumptions, we rely on data from widely accepted third party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries, and changes in value. Expected cash flows were discounted using the effective interest rate implicit in the securities. Based on this analysis, there were no other-than-temporary impairments, including credit-related impairments, during the years ended December 31, 2017, 2016, and 2015. We have determined that gross unrealized losses on short-term investments at December 31, 2017 and 2016 are temporary in nature because each investment meets our investment policy and credit quality requirements. We have the ability and intent to hold these investments until they recover their unrealized losses, which may not be until maturity. Evidence that we will recover our investments outweighs evidence to the contrary. We classify our investments as current or noncurrent based on the nature of the investments and their availability for use in current operations. |
Restricted Cash Equivalents and Investments | Restricted Cash Equivalents and Investments As explained further in Note 15—Property and Equipment, net, we have restricted cash equivalents and investments of $32.5 and $6.3 million as of December 31, 2017 and 2016 related to a lease with BTMU related to the construction of manufacturing and warehouse facilities in Manchester, New Hampshire, in our Industrial Inkjet operating segment. The funds pledged under the lease represent 115% of the total expenditures made by BTMU through December 31, 2017 and 2016. The funds are invested in $32.5 million of cash equivalents at December 31, 2017, and $5.1 and $1.2 million of U.S. government securities and cash equivalents at December 31, 2016, respectively, with a third party trustee, which are restricted during the construction period. Upon completion of construction, the funds will be released as cash and cash equivalents. The portion of released funds representing 100% of the total expenditures made by BTMU will be deposited with BTMU and restricted as collateral until the end of the underlying lease period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We assess the fair value of our financial instruments each reporting period. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued and other liabilities, approximate their respective fair values due to the short maturities of these financial instruments and because accounts receivable are reduced by an allowance for doubtful accounts. The fair value of our available-for-sale |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from product revenue, which includes hardware (DFEs, design-licensed solutions including upgrades, industrial digital inkjet printers including components replaced under maintenance agreements, and ink), software licensing and development, and royalties. We receive service revenue from software license and printer maintenance agreements, customer support, training, and consulting. We recognize revenue on the sale of DFEs, printers, and ink in accordance with the provisions of SAB 104, Revenue Recognition, and when applicable, ASC 605-25. Products generally must be shipped against written purchase orders. We use either a binding purchase order or signed contract as evidence of an arrangement. Sales to the leading printer manufacturers are generally evidenced by a master agreement governing the relationship together with a binding purchase order. Sales to our resellers are also evidenced by binding purchase orders or signed contracts and do not generally contain rights of return or price protection. Our arrangements generally do not include product acceptance clauses. When acceptance is required and not considered perfunctory, revenue is recognized when the product is accepted by the customer. Delivery of hardware generally is complete when title and risk of loss is transferred at point of shipment from manufacturing facilities, or when the product is delivered to the customer’s local common carrier. We also sell products and services using sales arrangements with terms resulting in different timing for revenue recognition as follows: • if the title and/or risk of loss is transferred at a location other than our manufacturing facility, revenue is recognized when title and risk of loss transfers to the customer, per the terms of the agreement; • if title is retained until payment is received, revenue is recognized when title is passed upon receipt of payment; • if the sales arrangement is classified as an operating lease, revenue is recognized ratably over the lease term; • if the sales arrangement is classified as a sales-type lease, revenue is recognized upon shipment; • if the sales arrangement is a fixed price for performance extending over a long period and our right to receive future payment depends on our future performance in accordance with these agreements, revenue is recognized under the percentage of completion method. We assess whether the fee is fixed or determinable based on the terms of the contract or purchase order. We assess collectibility based on various factors, including past transaction history with the customer, the creditworthiness of the customer, customer concentrations, current economic trends and macroeconomic conditions, changes in customer payment terms, the length of time receivables are past due, and significant one-time We hold certain products manufactured by us on a “bill and hold” basis for our customers’ convenience. Revenue is recognized for these “bill and hold” arrangements in accordance with SAB 104, which requires consideration of, among other things, whether the customer has made a fixed commitment to purchase the product; the existence of a substantial business purpose for the arrangement; the “bill and hold” arrangement is at the request of the customer; the scheduled delivery date must be reasonable and consistent with the buyer’s business purpose; title and risk of ownership must pass to the customer, including any decline in the market value of the product; the product is complete and ready for shipment; the product has been segregated from our inventory; payment terms for such arrangements have not been modified from our normal billing and credit terms; our custodial risks must be insurable and insured; and no further performance obligations by us exist. Extended procedures are not necessary to assure that there are no exceptions to the customer’s commitment to accept and pay for the product. There are no bill-and-hold We license our software primarily under perpetual licenses. Software revenue consists of licensing, post-contract customer support, and professional consulting. We apply the provisions of ASC 985-605, 605-25, We enter into contracts to sell our products and services. While the majority of our sales agreements contain standard terms and conditions, there are agreements containing multiple elements or non-standard Multiple-Deliverable Arrangements We recognize revenue in multiple element arrangements involving tangible products containing software and non-software 605-25. non-software non-software 985-605. We have calculated BESP for software licenses and non-software When historical data is unavailable to calculate and support the determination of BESP on a newly launched or customized product, then BESP of similar products is substituted for revenue allocation purposes. We offer customization for some of our products. Customization does not have a significant impact on the discounting or pricing of our products. We have insignificant transactions where tangible and software products are sold together in a bundled arrangement. Tangible products containing software and non-software 985-605 985-605. Non-software Multiple element arrangements containing only software elements remain subject to the provisions of ASC 985-605 985-605. Subscription Arrangements We have subscription arrangements where the customer pays a fixed fee and receives services over a period of time. We recognize subscription revenue ratably over the service period. Any up front setup fees associated with our subscription arrangements are recognized ratably, generally over one year. Any up front setup fees that are not associated with our subscription arrangements are recognized upon completion. Leasing Arrangements If the sales arrangement is classified as a sales-type lease, then revenue is recognized upon shipment. Leases that are not classified as sales-type leases are accounted for as operating leases with revenue recognized ratably over the lease term. A lease is classified as a sales-type lease with revenue recognized upon shipment if the lease is determined to be collectible and has no significant uncertainties and if any of the following criteria are satisfied: • present value of all minimum lease payments is greater than or equal to 90% of the fair value of the equipment at lease inception, • noncancellable lease term is greater than or equal to 75% of the economic life of the equipment, • bargain purchase option that allows the lessee to purchase the equipment below fair value, or • transfer of ownership to the lessee upon termination of the lease. Long-term Contracts Involving Substantial Customization We have established our ability to produce estimates sufficiently dependable to require that we follow the percentage of completion method with respect to fixed price contracts where we provide information technology system development and implementation services. Revenue on such fixed price contracts is recognized over the contract term based on the percentage of development and implementation services that are provided during the period compared with the total estimated development and implementation services to be provided over the entire contract using guidance from ASC 605-35, We recognize losses on long-term fixed price contracts in the period that the contractual loss becomes probable and estimable. We record amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are met. We record revenue that is earned and recognized in excess of amounts invoiced on fixed price contracts as trade receivables. Deferred Revenue and Related Deferred Costs Deferred revenue represents amounts received in advance for product support contracts, software customer support contracts, consulting and integration projects, or product sales. Product support contracts include stand-alone product support packages, routine maintenance service contracts, and upgrades or extensions to standard product warranties. We defer these amounts when we invoice the customer and then generally recognize revenue either ratably over the support contract life, upon performing the related services, under the percentage of completion method, or in accordance with our revenue recognition policy. Deferred cost of revenue related to unrecognized revenue on shipments to customers was $3.5 and $3.4 million as of December 31, 2017 and 2016, respectively, and is included in other current assets in our Consolidated Balance Sheets. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts billed to customers for shipping and handling costs are included in revenue. Shipping and handling costs are charged to cost of revenue as incurred. |
Allowance for Doubtful Accounts and Sales-related Allowances | Allowance for Doubtful Accounts and Sales-related Allowances We establish an allowance for doubtful accounts to ensure that trade receivables are not overstated due to uncollectibility. We record specific reserves for individual accounts when we become aware of specific customer circumstances, such as bankruptcy filings, deterioration in the customer’s operating results or financial position, or potential unfavorable outcomes from disputes with customers or vendors. We perform ongoing credit evaluations of the financial condition of our printer manufacturer, third-party distributor, reseller, and other customers and require collateral, such as letters of credit and bank guarantees, in certain circumstances. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. The need to write off a receivable balance depends on the age, size, and determination of collectibility of the receivable. Balances are written off when we deem it probable that the receivable will not be recovered. We make provisions for sales rebates and revenue adjustments based on analysis of current sales programs and revenue in accordance with our revenue recognition policy. |
Financing Receivables | Financing Receivables ASC 310, Receivables, requires disclosures regarding the credit quality of our financing receivables and allowance for credit losses including disclosure of credit quality indicators, past due information, and modifications of our financing receivables. Our financing receivables were $28.7 and $31.0 million consisting of $16.6 and $17.8 million of sales-type lease receivables, included within other current assets and other assets at December 31, 2017 and 2016, respectively, and $12.1 and $13.2 million of trade receivables having an original contractual maturity in excess of one year, included within accounts receivable, net of allowance, at December 31, 2017 and 2016, respectively. The trade receivables of $12.1 and $13.2 million having an original total contractual maturity in excess of one year, at December 31, 2017 and 2016, include $4.4 and $7.1 million, respectively, which are scheduled to be received in less than one year. The credit quality of financing receivables is evaluated on the same basis as trade receivables. We do not have material past due financing receivables. |
Concentration of Risk | Concentration of Risk We are exposed to credit risk in the event of default by any of our customers to the extent of amounts recorded in the Consolidated Balance Sheet. We perform ongoing evaluations of the collectibility of accounts receivable balances for our customers and maintain allowances for estimated credit losses. Actual losses have not historically been significant, but have risen over the past several years as our customer base has grown through acquisitions. Our Fiery products, which constitute approximately 27% of revenue for the year ended December 31, 2017, are primarily sold to a limited number of leading printer manufacturers. Although end customer and reseller channel preference for Fiery products drives demand, most Fiery revenue relies on these significant printer manufacturer / distributors to integrate Fiery technology into the design and development of their print engines. We expect that we will continue to depend on a relatively small number of leading printer manufacturers for a significant portion of our revenue, although their significance is expected to decline in future periods as our revenue increases from Industrial Inkjet and Productivity Software products. We generally have experienced longer accounts receivable collection cycles in our Industrial Inkjet and Productivity Software operating segments compared to our Fiery operating segment as, historically, the leading printer manufacturers have paid on a more timely basis. Down payments are generally required from Industrial Inkjet and Productivity Software customers as a means to ensure payment. Since Europe is composed of varied countries and regional economies, our European risk profile is somewhat more diversified due to the varying economic conditions among the countries. Approximately 32% of our receivables are with European customers as of December 31, 2017. Of this amount, 30% of our European receivables (10% of consolidated gross receivables) are in the higher risk southern European countries (mostly Italy, Spain, and Portugal) and Ireland. We rely on a limited number of suppliers for certain key components, including textile ink, and a few key contract manufacturers for our Fiery DFEs, and certain Industrial Inkjet subassemblies. Any disruption or termination of these arrangements could materially adversely affect our operating results. Many of our current Fiery and Productivity Software products include software that we license from Adobe. To obtain licenses from Adobe, Adobe requires that we obtain quality assurance approvals from them for our products that use Adobe software. |
Accounts Receivable Sales Arrangements | Accounts Receivable Sales Arrangements In accordance with ASC 860-20, We have facilities in the U.S. and Italy that enable us to sell to third parties, on an ongoing basis, certain trade receivables with recourse. The trade receivables sold with recourse are generally short-term receivables with payment due dates of less than 10 days from the date of sale, which are subject to a servicing obligation. Trade receivables sold under these facilities were $21.4 and $19.8 million during the years ended December 31, 2017 and 2016, respectively, which approximates the cash received. We have facilities in Spain and Italy that enable us to sell to third parties, on an ongoing basis, certain trade receivables without recourse. Trade receivables sold without recourse are generally short-term receivables with payment due dates of less than one year, which are secured by international letters of credit. Trade receivables sold under these facilities were $5.9 and $3.5 million during the years ended December 31, 2017 and 2016, respectively, which approximates the cash received. We report collections from the sale of trade receivables to third parties as operating cash flows in the Consolidated Statements of Cash Flows. |
Inventories | Inventories Inventories are generally stated at standard cost, which approximates the lower of actual cost, using the first-in, first-out Work-in-process We estimate potential future inventory obsolescence and purchase commitments to evaluate the need for inventory reserves. Current economic trends, changes in customer demand, product design changes, product life, demand, and the acceptance of our products are analyzed to evaluate the adequacy of such reserves. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: desktop and laptop computers (two years), computer server equipment (three years), software under perpetual licenses (three to five years), manufacturing equipment (seven years), testing and other equipment (three years), tooling (lesser of three years or the product life), research and development equipment with alternative future uses (three years), equipment leased to customers on operating leases (greater of three years or the lease term), furniture (five years), land improvements such as parking lots or sidewalks (seven years), leasehold improvements (the lease term), building improvements (five to ten years), building and improvements under a build-to-suit When assets are disposed, the asset and accumulated depreciation are removed from our records and the related gain or loss is recognized in our results of operations. Repairs and maintenance expenditures are expensed as incurred, unless they are considered to be improvements and extend the useful life of the property and equipment. |
Internal Use Software | Internal Use Software In accordance with ASC 350-40, Other—Internal-Use re-engineering, |
Goodwill | Goodwill Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. We perform our annual goodwill impairment analysis in the fourth quarter of each year or more frequently if we believe indicators of impairment exist. Triggering events that may require an interim impairment analysis include indicators such as adverse industry or economic trends, restructuring actions, significant changes in the manner of our use of the acquired assets, significant changes in the strategy for our overall business, lower projections of profitability, significant decline in our stock price for a sustained period, or a sustained decline in our market capitalization. According to the provisions of ASC 350-20-35, two-step |
Long-lived Assets, including Intangible Assets | Long-lived Assets, including Intangible Assets Purchased intangible assets are amortized on a straight-line basis over their economic lives of two to six years for developed technology, three to nine years for customer contracts/relationships, four to five years for covenants not to compete, and three to sixteen years for trademarks and trade names as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The useful lives of certain amortizable identifiable intangible assets were reduced during 2017 and 2016, respectively, based on a re-assessment We review the carrying values of long-lived assets whenever events and circumstances, such as reductions in demand, lower projections of profitability, significant changes in the manner of our use of acquired assets, or significant negative industry or economic trends, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. An asset is considered impaired if its carrying amount exceeds the undiscounted future cash flow the asset is expected to generate. If this review indicates that an impairment has occurred, the impaired asset is written down to its fair value, which is typically calculated using quoted market prices and/or discounted expected future cash flows. Our estimates regarding future anticipated net revenue and cash flows, the remaining economic life of the products and technologies, or both, may differ from those used to assess the recoverability of assets. In that event, impairment charges or shortened useful lives of certain long-lived assets may be required, resulting in charges to our Consolidated Statements of Operations when such determinations are made. An impairment loss is recorded for long-lived assets held-for-sale held-for-sale. We recorded an impairment loss of $0.9 million during the year ended December 31, 2017 related to the Meredith facility. For additional information, please refer to Note 15—Property and Equipment, net, for details. There were no asset impairment charges recognized during the years ended December 31, 2016 and 2015. |
Warranty Reserves | Warranty Reserves Our Industrial Inkjet printers are generally accompanied by a 13-month cost-per-claim, Warranty reserves were $16.3 and $10.3 million as of December 31, 2017 and 2016, respectively. |
Litigation Accruals | Litigation Accruals We may be involved, from time to time, in a variety of claims, lawsuits, investigations, or proceedings relating to contractual disputes, securities laws, intellectual property rights, employment, or other matters that may arise in the normal course of business. We assess our potential liability in each of these matters by using the information available to us. We develop our views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and various combinations of appropriate litigation and settlement strategies. We accrue estimated losses from contingencies if a loss is deemed probable and can be reasonably estimated. |
Restructuring Reserves | Restructuring Reserves Restructuring liabilities are established when the costs have been incurred. Severance and other employee separation costs are incurred when management commits to a plan of termination identifying the number of employees impacted, their termination dates, and the terms of their severance arrangements. The liability is accrued at the employee notification date unless service is required beyond the greater of 60 days or the legal notification period, in which case the liability is recognized ratably over the service period. Facility downsizing and closure costs are accrued at the earlier of the lessor notification date, if the lease agreement allows for early termination, or the cease use date. Relocation costs are incurred when the related relocation services are performed. Costs related to contracts without future benefit are incurred at the earlier of the cease use date or the contract cancellation date. |
Research and Development | Research and Development Research and development costs were $157.4, $151.4, and $141.4 million for the years ended December 31, 2017, 2016, and 2015, respectively. Research and development costs include salaries and benefits of employees performing research and development activities, supplies, and other expenses incurred from research and development efforts. We expense research and development costs associated with new software products as incurred until technological feasibility is established. To date, we have not capitalized research and development costs associated with software development as products and enhancements have generally reached technological feasibility, as defined by U.S. GAAP, and have been released for sale at substantially the same time. We have capitalized research and development equipment that has been acquired or constructed for research and development activities and has alternative future uses (in research and development projects or otherwise). Such research and development equipment is depreciated on a straight-line basis with a three year useful life. |
Advertising | Advertising Advertising costs are expensed as incurred. Total advertising and promotional expenses were $5.9, $4.6, and $4.3 million for the years ended December 31, 2017, 2016, and 2015, respectively. |
Income Taxes | Income Taxes We account for income taxes in accordance with the provisions of ASC 740, which requires that deferred tax assets and liabilities be determined based on the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. Accordingly, the tax bases of assets and liabilities reflect the impact of the tax reform legislation that was enacted on December 22, 2017. We estimate our actual current tax expense including permanent charges and benefits and the temporary differences resulting from differing treatment of items for tax and financial accounting purposes such as deferred revenue. These temporary differences result in deferred tax assets and liabilities, which are included in our Consolidated Balance Sheets. In some cases, provisional amounts were recorded based on reasonable estimates. We record the provisional amounts of the tax effects of the 2017 Tax Act in the first reporting period in which a reasonable estimate can be determined. SAB 118 provides that the measurement period may not extend beyond one year from the enactment date. We assess the likelihood that our deferred tax assets will be recovered from future taxable income by considering both positive and negative evidence relating to their recoverability. If we believe that recovery of these deferred tax assets is not more likely than not, we establish a valuation allowance. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we considered all available evidence, including recent operating results, projections of future taxable income, our ability to utilize loss and credit carryforwards, and the feasibility of tax planning strategies. Other than a valuation allowance related to realization of existing California, Luxembourg, Israel, Netherlands, and Turkey deferred tax assets, we have determined that it is more likely than not that we will realize the benefit related to all other deferred tax assets. To the extent we increase a valuation allowance, we include an expense in the Consolidated Statement of Operations in the period in which such determination is made. We account for uncertainty in income taxes by recognizing a tax position only when it is more likely than not that the tax position, based on its technical merits, will be sustained upon ultimate settlement with the applicable tax authority. The tax benefit to be recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with the applicable tax authority that has full knowledge of all relevant information. Tax benefits that are deemed to be less than fifty percent likely of being realized are recorded in noncurrent income taxes payable until the uncertainty has been resolved through either examination by the relevant taxing authority or expiration of the pertinent statutes of limitations. |
Business Combinations | Business Combinations We allocate the purchase price of acquired companies to the tangible and intangible assets acquired, including IPR&D, and liabilities assumed based on their estimated fair values. Such a valuation requires management to make significant estimates and assumptions, especially with respect to intangible assets. The results of operations for each acquisition are included in our financial statements from the date of acquisition. Our acquisitions are accounted for as purchase business combinations using the acquisition method of accounting in accordance with ASC 805. Key provisions of the acquisition method of accounting include the following: • one hundred percent of assets and liabilities of the acquired business, including goodwill, are recorded at fair value, regardless of the percentage of the business acquired; • contingent assets and liabilities are recognized at fair value at the acquisition date; • contingent consideration is recognized at fair value at the acquisition date with changes in fair value recognized in earnings as assumptions are updated or upon settlement; • IPR&D is recognized at fair value at the acquisition date subject to amortization after product launch or otherwise assessed for impairment; • acquisition-related transaction and restructuring costs are expensed as incurred; • reversals of valuation allowances related to acquired deferred tax assets and liabilities and changes to acquired income tax uncertainties are recognized in earnings; • when making adjustments to finalize preliminary accounting during the measurement period, which may be up to one year, we recognize measurement period adjustments in the reporting period in which the adjustment amounts are determined as required by ASU 2015-16, • upon final determination of the fair value of assets acquired and liabilities assumed during the measurement period, any subsequent adjustments are recorded in our Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, which requires stock-based compensation expense to be recognized based on the fair value of such awards on the date of grant. We amortize stock-based compensation expense on a graded vesting basis over the vesting period after assessing the probability of achieving the requisite performance criteria with respect to performance-based awards. Stock-based compensation expense is recognized over the requisite service period for each separately vesting tranche as though the award were, in substance, multiple awards. We account for forfeitures when they occur. Prior to adoption of ASU 2016-09 Our determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by volatility, expected term, and interest rate assumptions. Expected volatility is based on the historical volatility of our stock over a preceding period commensurate with the expected term of the option. The expected term is based on management’s consideration of the historical life of the options, the vesting period of the options granted, and the contractual period of the options granted. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since we do not pay dividends and have no current plans to do so in the future. |
Foreign Currency Translation | Foreign Currency Translation In preparing our consolidated financial statements, for subsidiaries that operate in a U.S. dollar functional currency environment, we remeasure balance sheet monetary items into U.S. dollars. Foreign currency assets and liabilities are remeasured from the transaction currency into the functional currency at current exchange rates, except for non-monetary For subsidiaries that operate in a local functional currency environment, all assets and liabilities are translated into U.S. dollars using current exchange rates, while revenue and expenses are translated using monthly exchange rates, which approximate the average exchange rates in effect during each period. Resulting translation adjustments are reported as a separate component of OCI, adjusted for deferred income taxes. The cumulative translation adjustment balance, net of tax, was an unrealized gain of $8.8 million at December 31, 2017, and an unrealized loss of $24.1 million at December 31, 2016. Based on our assessment of the salient economic indicators discussed in ASC 830-10-55-5, |
Computation of Net Income (Loss) Per Common Share | Net Income (Loss) per Common Share Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, non-vested non-vested Performance-based and market-based restricted stock and stock options that would be issuable if the end of the reporting period were the end of the vesting period, if the result would be dilutive, are assumed to be outstanding for purposes of determining net income (loss) per diluted common share as of the later of the beginning of the period or the grant date in accordance with ASC 260-10-45-48. |
Derivative Instruments and Risk Management | Derivative Instruments and Risk Management Our derivative instruments consist of foreign currency exchange contracts as described below: Cash Flow Hedges We utilize foreign currency exchange forward contracts to hedge foreign currency exchange exposures related to forecasted operating expenses denominated in Indian rupees. These derivative instruments are designated and qualify as cash flow hedges and in general, closely match the underlying forecasted transactions in duration. The changes in fair value of these contracts are reported as a component of OCI and reclassified to operating expense in the periods of payment of the hedged operating expenses. We measure the effectiveness of hedges of forecasted transactions by comparing the fair value of the designated foreign currency exchange forward purchase contracts with the fair values of the forecasted transactions. The ineffective portion of the derivative hedging gain or loss, as well as changes in the derivative time value (which is excluded from the assessment of hedge effectiveness), are recognized as a component of interest income and other income (expense), net. Balance Sheet Hedges We utilize foreign currency exchange forward and option contracts to hedge against the short-term impact of foreign currency exchange rate fluctuations related to certain foreign-currency-denominated monetary assets and liabilities, primarily consisting of hedges of British pound sterling, Brazilian real, Israeli shekel, Japanese yen, Chinese renminbi, and Euro-denominated intercompany balances; hedges of Brazilian real, British pound sterling, Australian dollar, Israeli shekel, and Euro-denominated trade receivables; and hedges of British pound sterling, Indian rupee, Israeli shekel, and Euro-denominated other net monetary assets. These derivative instruments are not designated for hedge accounting treatment since there is a natural offset for the remeasurement of the underlying foreign currency denominated asset or liability. We recognize changes in the fair value of non-designated Factors that could have an impact on the effectiveness of our balance sheet and cash flow hedging program include the accuracy of forecasts and the volatility of foreign currency markets. These programs reduce, but do not entirely eliminate, the impact of currency exchange movements. The maturities of these instruments are generally less than one year. Currently, we do not enter into any foreign exchange forward contracts to hedge exposures related to firm commitments or nonmarketable investments. We do not have any leveraged derivatives, nor do we use derivative contracts for speculative purposes. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities in the Consolidated Statements of Cash Flows. |
Variable Interest Entities | Variable Interest Entities In accordance with the Variable Interest Entities (“VIE”) sub-section |
Derivatives and Hedging | We are exposed to market risk and foreign currency exchange risk from changes in foreign currency exchange rates, which could affect operating results, financial position, and cash flows. We manage our exposure to these risks through our regular operating and financing activities and, when appropriate, through the use of derivative financial instruments. These derivative financial instruments are used to hedge monetary assets and liabilities, intercompany balances, trade receivables, anticipated cash flows, and to reduce earnings and cash flow volatility resulting from shifts in foreign currency exchange rates. Our objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not have any leveraged derivatives, nor do we use derivative contracts for speculative purposes. ASC 815 requires the fair value of all derivative instruments, including those embedded in other contracts, to be recorded as assets or liabilities in our Consolidated Balance Sheet. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities. Our exposures are primarily related to non-U.S. non-U.S. By their nature, derivative instruments involve, to varying degrees, elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange movement is expected to offset the market risk of the underlying transactions, assets, and liabilities being hedged (i.e., operating expense exposure in Indian rupees; the collection of trade receivables denominated in currencies other than their respective reporting entity’s functional currency, and the settlement of intercompany balances denominated in currencies other than their functional currency). Under our master netting agreements with our foreign currency derivative counterparties, we are allowed to net transactions of the same currency with a single net amount payable by one party to the other. The derivatives held by us are not subject to any credit contingent features negotiated with these counterparties. We are not required to pledge cash collateral related to these foreign currency derivatives because, by policy, we deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Cash Flow Hedges Foreign currency derivative contracts with notional amounts of $3.9 and $3.2 million and net asset/liability amounts that are immaterial have been designated as cash flow hedges of our Indian rupee operating expense exposure at December 31, 2017 and 2016. The changes in fair value of these contracts are reported as a component of OCI and reclassified to operating expense in the periods of payment of the hedged operating expenses. The ineffective portion of the derivative hedging gain or loss, as well as changes in the derivative time value (which is excluded from the assessment of hedge effectiveness), are recognized as a component of interest income and other income (expense), net. Balance Sheet Hedges Forward contracts not designated as hedging instruments with notional amounts of $235.5 and $158.7 million are used to hedge foreign currency balance sheet exposures at December 31, 2017 and 2016, respectively. They are not designated for hedge accounting treatment since there is a natural offset for the remeasurement of the underlying foreign currency denominated asset or liability. We recognize changes in the fair value of non-designated |
Segment Reporting | Operating segment information is required to be presented based on the internal reporting used by the chief operating decision making group (“CODM”) to allocate resources and evaluate operating segment performance. Our CODM is comprised of our Chief Executive Officer and Chief Financial Officer (“CODM group”). The CODM group is focused on assessment and resource allocation among the Industrial Inkjet, Productivity Software, and Fiery operating segments. Our operating segments are integrated through their reporting and operating structures, shared technology and practices, shared sales and marketing, shared back office support functions, and combined production facilities. Our enterprise management processes use financial information that is closely aligned with our three operating segments at the gross profit level. Relevant discrete financial information is prepared at the gross profit level for each of our three operating segments, which is used by the CODM group to allocate resources and assess the performance of each operating segment. |
Performance-based and market-based restricted stock [Member] | |
Computation of Net Income (Loss) Per Common Share | ASC 260-10-45-48. non-GAAP non-GAAP |
ASU 2016-18 Restricted Cash [Member] | |
Recent Accounting Pronouncements | Restricted Cash. 2016-18, beginning-of-period end-of-period ASU 2016-18 off-balance |
ASU 2016-13 Financial Instruments [Member] | |
Recent Accounting Pronouncements | Financial Instruments. 2016-13, available-for-sale available-for-sale ASU 2016-13 available-for-sale |
ASU 2017-05 Other Income [Member] | |
Recent Accounting Pronouncements | Nonfinancial Asset Derecognition. 2017-05, 2014-09) ASU 2017-05 |
ASU 2017-09 Sock Compensation: Modification Accounting [Member] | |
Recent Accounting Pronouncements | Stock Compensation Modification. 2017-09, ASU 2017-09 |
ASU 2017-01 Business Combinations [Member] | |
Recent Accounting Pronouncements | Definition of a Business. 2017-01, Under ASU 2017-01, Our consolidated financial statements may be impacted if an acquisition does not qualify as a business combination after ASU 2017-01 |
Tax Cuts and Jobs Act [Member] | |
Recent Accounting Pronouncements | Income Taxes. |
ASU 2015-11 Inventory Valuation [Member] | |
Recent Accounting Pronouncements | Inventory Valuation. 2015-11, ASU 2015-11 2015-11 |
ASU 2016-15 Statement of Cash Flows [Member] | |
Recent Accounting Pronouncements | Settlement of Convertible Debt. 2016-15, ASU 2016-15 |
ASU 2016-02 Lease Arrangements [Member] | |
Recent Accounting Pronouncements | Lease Arrangements. 2016-02, right-of-use right-to-use The recognition, measurement, and presentation of expenses and cash flows by a lessee will not be significantly changed from previous guidance. There will continue to be a differentiation between finance leases and operating leases. The criteria for determining whether a lease is a financing or operating lease will be substantially the same as existing guidance except that the “bright line” percentages have been removed. • For finance leases, interest is recognized on the lease liability separately from depreciation of the right-of-use • For operating leases, a lessee is required to recognize lease expense generally on a straight-line basis. All operating lease payments are classified as operating activities in the statement of cash flows. The current build-to-suit build-to-suit We have not quantified the impact, but the requirement to recognize a right-of-use |
ASU 2017-12 Hedge Accounting [Member] | |
Recent Accounting Pronouncements | Hedge Accounting. 2017-12, Our foreign currency derivative contracts include notional amounts of $3.9 million that have been designated as cash flow hedges of our Indian rupee operating expense exposure at December 31, 2017. Under current guidance, changes in the fair value of the effective portion of these contracts are reported as a component of OCI and reclassified to operating expense in the periods of payment of the hedged cash flows. The ineffective portion is recognized as a component of interest income and other income, net. Under the new guidance, the entire change in the fair value of hedging instruments designated as cash flow hedges that are included in the assessment of hedge effectiveness will be recorded in OCI. Those amounts are reclassified to earnings in the periods of payment in the same income statement line item as the hedged operating expenses. Upon adoption, a cumulative-effect adjustment will be required to charge the ineffective portion of derivative contracts designated as cash flow hedges existing at the date of adoption to accumulated OCI with a corresponding adjustment to the retained earnings as of the beginning of the fiscal year of the adoption. The new guidance continues to require an initial prospective quantitative hedge effectiveness assessment unless the hedging relationship qualifies for the critical-terms-match method or facts and circumstances method, which permit an assumption of perfect hedge effectiveness. After the initial quantitative assessment, the new guidance permits a qualitative ongoing effectiveness assessment for certain hedges if we can reasonably support an expectation of high effectiveness throughout the term of the hedge. The new guidance also requires additional disclosure related to the effect on the income statement of cash flow hedges. ASU 2017-12 |
ASU 2014-09 and ASU 2016-10 Revenue Recognition [Member] | |
Recent Accounting Pronouncements | Revenue Recognition. 2014-09, ASU 2016-10, ASU 2014-09 ASU 2014-09: (pre-tax) (pre-tax) The new standard requires comprehensive annual and interim disclosures regarding the nature, amount, timing, and uncertainty of recognized revenue, which will be provided in the year of adoption along with the impact on recognized revenue compared with revenue that would have been recognized under prior guidance. Qualitative and quantitative disclosures will be required regarding: • disaggregation of our current disclosures of revenue by segment and geographic area into categories that depict how revenue and cash flows are impacted by economic factors, • timing of recognition, contract duration, and sales channel, • billed and unbilled contracts with customers, including revenue and impairments recognized, disaggregation, and information about contract balances and performance obligations, • significant judgments and changes in judgments required to determine the transaction price, amounts allocated to performance obligations, and the timing for recognizing revenue resulting from the satisfaction of performance obligations, • assets recognized from the costs to obtain or fulfill a contract (e.g., commissions), and • bad debt provisions related to billed and unbilled receivables. We are assessing the full impact on our consolidated financial statements, systems, and controls upon adoption. |
The Company and Its Significa29
The Company and Its Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Correction of Prior Period Financial Information | December 31, 2016 (in thousands) As Previously Adjustments As Adjusted Inventories $ 99,075 $ (2,737 ) $ 96,338 Property and equipment, net 103,304 170 103,474 Total assets 1,481,496 (2,567 ) 1,478,929 Deferred tax liabilities 16,351 (750 ) 15,601 Total liabilities 653,664 (750 ) 652,914 Accumulated other comprehensive loss (24,694 ) 119 (24,575 ) Retained earnings 419,825 (1,936 ) 417,889 Total shareholders’ equity 827,832 (1,817 ) 826,015 |
Summary of Supplemental Cash Flow Information | Supplemental Disclosure of Cash Flow Information For the years ended December 31, (in thousands) 2017 2016 2015 Net cash paid for income taxes $ 23,279 $ 6,812 $ 8,512 Cash paid for interest expense $ 3,174 $ 2,975 $ 2,945 Acquisitions of businesses and technology: Cash paid for businesses and technology purchased, excluding contingent consideration $ 30,230 $ 21,560 $ 82,446 Cash acquired in business acquisitions (671 ) (1,628 ) (7,680 ) Net cash paid for business acquisitions $ 29,559 $ 19,932 $ 74,766 Common stock issued in connection with business acquisitions $ — $ 73 $ 36,567 Non-cash Non-cash $ 1,171 $ 3,059 $ 1,353 Property and equipment received, but not paid 681 1,257 1,684 $ 1,852 $ 4,316 $ 3,037 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the years ended December 31, 2017, 2016, and 2015 are reconciled as follows (in thousands, except for per share amounts): 2017 2016 2015 Basic net income (loss) per share: Net income (loss) available to common shareholders $ (15,345 ) $ 44,949 $ 32,199 Weighted average common shares outstanding 46,281 46,900 47,217 Basic net income (loss) per share $ (0.33 ) $ 0.96 $ 0.68 Dilutive net income (loss) per share: Net income (loss) available to common shareholders $ (15,345 ) $ 44,949 $ 32,199 Weighted average common shares outstanding 46,281 46,900 47,217 Dilutive stock options, restricted stock, and ESPP purchase rights — 897 933 Weighted average common shares outstanding for purposes of computing diluted net income (loss) per share 46,281 47,797 48,150 Dilutive net income (loss) per share $ (0.33 ) $ 0.94 $ 0.67 |
Summary of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Potential shares of common stock that were not included in the determination of diluted net income (loss) per share for the periods presented because the impact of including them would have been anti-dilutive or because their performance conditions have not been met, consisted of the following (in thousands): For the years ended December 31, 2017 2016 2015 Options 138 — — RSUs & PSUs 692 183 489 ESPP purchase rights 160 10 12 Total potential shares of common stock excluded from the computation of diluted earnings per share 990 193 501 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Discount Rate, Percentage of Project Tasks Completed and Tasks to be Completed | FFPS Matan Reggiani CTI Shuttleworth Discount rate for IPR&D 20 % 16 % 21 % 18 % 20 % IPR&D percent complete at acquisition date 63 % 33 % 70 % 75 % 17 % IPR&D percent complete at December 31, 2017 100 % 100 % 100 % 100 % 100 % Acquisition-date valuation (in thousands) $ 70 $ 3,190 $ 10,879 $ 150 $ 555 |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The allocation of the purchase price to the assets acquired and liabilities assumed (in thousands) with respect to each of these acquisitions at their respective acquisition dates is summarized as follows: 2017 Acquisitions Fiery Productivity Software FFPS Generation Digital CRC and Escada Weighted Purchase Weighted Purchase Weighted Purchase Purchasing agreement 10 years $ 9,330 — $ — — $ — Take-or-pay 4 years 9,000 — — — — Customer relationships — — 8 years 3,030 7-9 years 5,240 Existing technology 2 years 2,570 5 years 890 4-6 years 5,870 Trade names 5 years 1,020 5 years 290 4-5 years 850 IPR&D < one year 70 — — — — Backlog — — — — one year 191 Goodwill — 6,590 — 3,012 — 11,632 28,580 7,222 23,783 Net tangible assets (liabilities) (5,537 ) (298 ) (3,738 ) Total purchase price $ 23,043 $ 6,924 $ 20,045 2016 Acquisitions 2015 Acquisitions Industrial Inkjet Productivity Industrial Inkjet Productivity Rialco Optitex Matan Reggiani CTI and Weighted Purchase Weighted Purchase Weighted Purchase Weighted Purchase Weighted Purchase Customer relationships 6 years $ 2,512 3-4 years $ 8,890 6 years $ 6,630 4 years $ 12,187 3-4 years $ 5,001 Existing technology 5 years 846 5 years 7,760 5 years 8,790 4 years 33,118 5 years 5,634 Trade names 5 years 763 4 years 2,020 5 years 2,570 5 years 11,964 4 years 1,357 IPR&D — — — — — 3,190 — 10,879 — 705 Backlog < one year 56 < one year 370 < one year 70 < one year 704 < one year 132 Goodwill 1,426 28,147 26,609 61,341 17,790 5,603 47,187 47,859 130,193 30,619 Net tangible assets (liabilities) 5,177 (11,924 ) (4,945 ) (32,571 ) (3,611 ) Total purchase price $ 10,780 $ 35,263 $ 42,914 $ 97,622 $ 27,008 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Schedule of Inventories | Inventories as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Raw materials $ 57,061 $ 45,798 Work in process 9,792 7,362 Finished goods 58,960 43,178 Total $ 125,813 $ 96,338 |
Schedule of Accrued and Other Liabilities | Accrued and other liabilities as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Accrued compensation and benefits $ 29,113 $ 31,714 Contingent consideration—current 14,922 19,244 Warranty provision—current 12,931 10,054 Debt assumed through business acquisitions 11,101 98 Accrued royalty payments 4,903 4,994 Accrued litigation and consulting 4,277 1,916 Technology transfer 3,593 3,822 Hedging liability 3,281 258 Deferred rent 2,846 2,938 Sales tax liabilities 2,574 1,997 Restructuring and other 2,452 1,824 Other accrued liabilities 6,097 6,646 Total $ 98,090 $ 85,505 |
Schedule of Accumulated Other Comprehensive Income (Loss) | OCI classified within stockholders’ equity in our Consolidated Balance Sheets as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Net unrealized investment losses $ (697 ) $ (473 ) Currency translation gains (losses) 8,794 (24,111 ) Net unrealized gains on cash flow hedges 41 9 Total $ 8,138 $ (24,575 ) |
Goodwill and Long-Lived Intan33
Goodwill and Long-Lived Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Purchased Intangible Assets Resulting from Acquisitions | Our purchased intangible assets resulting from acquisitions are as follows (in thousands, except for weighted average useful life): December 31, 2017 December 31, 2016 Weighted Gross Accumulated Weighted Net carrying Gross carrying Accumulated Net carrying Goodwill — $ 403,278 $ — — $ 403,278 $ 359,841 $ — $ 359,841 Customer relationships and other 4.6 $ 95,862 $ (45,862 ) 3.6 $ 50,000 $ 88,557 $ (49,527 ) $ 39,030 Existing technology 4.1 196,693 (149,300 ) 2.9 47,393 173,543 (122,654 ) 50,889 Trademarks and trade names 4.9 72,048 (46,822 ) 5.5 25,226 67,701 (38,300 ) 29,401 IPR&D — 389 — — 389 3,677 — 3,677 Amortizable intangible assets 4.4 $ 364,992 $ (241,984 ) 3.8 $ 123,008 $ 333,478 $ (210,481 ) $ 122,997 |
Schedule of Future Amortization Expense | As of December 31, 2017, future estimated amortization expense for each of the next five years and thereafter related to the amortization of identified intangible assets is as follows (in thousands): For the years ended December 31, Future 2018 $ 43,652 2019 35,770 2020 19,331 2021 7,253 2022 5,003 Thereafter 11,999 $ 123,008 |
Schedule of Goodwill Rollforward | The goodwill rollforward for the years ended December 31, 2017 and 2016 is as follows (in thousands): Industrial Productivity Fiery Total Ending Balance, December 31, 2015 $ 142,183 $ 133,128 $ 63,482 $ 338,793 Additions (Rialco and Optitex acquisitions) $ 1,426 $ 28,147 $ — $ 29,573 Opening balance sheet adjustments (171 ) (663 ) — (834 ) Foreign currency adjustments (2,370 ) (5,137 ) (184 ) (7,691 ) Ending Balance, December 31, 2016 $ 141,068 $ 155,475 $ 63,298 $ 359,841 Additions (FFPS, Generation Digital, CRC, and Escada acquisitions) $ — $ 11,632 $ 9,602 $ 21,234 Opening balance sheet adjustments — 10 679 689 Foreign currency adjustments 13,305 7,527 682 21,514 Ending Balance, December 31, 2017 $ 154,373 $ 174,644 $ 74,261 $ 403,278 Accumulated Impairment as of December 31, 2017, recognized in 2008 $ 103,991 $ — $ — $ 103,991 |
Investments and Fair Value Me34
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Available-for-Sale Short-Term Investments | Our available-for-sale Amortized cost Gross unrealized gains Gross Fair value December 31, 2017 U.S. Government and sponsored entities $ 59,824 $ — $ (660 ) $ 59,164 Corporate debt securities 79,356 — (450 ) 78,906 Municipal securities 382 — (2 ) 380 Asset-backed securities 9,808 44 (47 ) 9,805 Mortgage-backed securities—residential 445 — (3 ) 442 Total short-term investments $ 149,815 $ 44 $ (1,162 ) $ 148,697 December 31, 2016 U.S. Government and sponsored entities $ 70,893 $ 49 $ (348 ) $ 70,594 Corporate debt securities 198,166 102 (621 ) 197,647 Municipal securities 1,278 — (1 ) 1,277 Asset-backed securities 24,233 79 (17 ) 24,295 Mortgage-backed securities—residential 1,615 3 (3 ) 1,615 Total short-term investments $ 296,185 $ 233 $ (990 ) $ 295,428 |
Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position | The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of December 31, 2017 and 2016 are as follows (in thousands): Less than 12 Months More than 12 Months TOTAL December 31, 2017 Fair Value Unrealized Fair Unrealized Fair Value Unrealized U.S. Government and sponsored entities $ 23,023 $ (206 ) $ 35,989 $ (454 ) $ 59,012 $ (660 ) Corporate debt securities 45,857 (207 ) 32,634 (243 ) 78,491 (450 ) Municipal securities 378 (2 ) — — 378 (2 ) Asset-backed securities 6,779 (31 ) 2,947 (16 ) 9,726 (47 ) Mortgage-backed securities—residential 162 (2 ) 142 (1 ) 304 (3 ) Total $ 76,199 $ (448 ) $ 71,712 $ (714 ) $ 147,911 $ (1,162 ) December 31, 2016 U.S. Government and sponsored entities $ 39,810 $ (348 ) $ — $ — $ 39,810 $ (348 ) Corporate debt securities 133,382 (581 ) 13,158 (40 ) 146,540 (621 ) Municipal securities 1,268 (1 ) — — 1,268 (1 ) Asset-backed securities 4,540 (7 ) 4,611 (10 ) 9,151 (17 ) Mortgage-backed securities—residential 428 (1 ) 153 (2 ) 581 (3 ) Total $ 179,428 $ (938 ) $ 17,922 $ (52 ) $ 197,350 $ (990 ) |
Amortized Cost and Estimated Fair Value of Investments | Amortized cost and estimated fair value of investments at December 31, 2017 are summarized by maturity date as follows (in thousands): Amortized cost Fair value Mature in less than one year $ 43,862 $ 43,741 Mature in one to three years 105,953 104,956 Total short-term investments $ 149,815 $ 148,697 |
Investments in Accordance with Fair Value Hierarchy | Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of December 31, 2017 and 2016 in order of liquidity as follows (in thousands): Total Quoted Prices Significant Unobservable (Level 3) December 31, 2017 Assets: Money market funds $ 9,897 $ 9,897 $ — $ — U.S. Government and sponsored entities 59,164 33,261 25,903 — Corporate debt securities 78,906 — 78,906 — Municipal securities 380 — 380 — Asset-backed securities 9,805 — 9,754 51 Mortgage-backed securities—residential 442 — 442 — $ 158,594 $ 43,158 $ 115,385 $ 51 Liabilities: Contingent consideration, current and noncurrent $ 35,702 $ — $ — $ 35,702 Self-insurance 902 — — 902 $ 36,604 $ — $ — $ 36,604 December 31, 2016 Assets: Money market funds $ 23,575 $ 23,575 $ — $ — U.S. Government and sponsored entities 70,594 51,870 18,724 — Corporate debt securities 197,647 — 197,647 — Municipal securities 1,277 — 1,277 — Asset-backed securities 24,295 — 24,228 67 Mortgage-backed securities—residential 1,615 — 1,615 — $ 319,003 $ 75,445 $ 243,491 $ 67 Liabilities: Contingent consideration, current and noncurrent $ 56,463 $ — $ — $ 56,463 Self-insurance 1,542 — — 1,542 $ 58,005 $ — $ — $ 58,005 |
Summary of Changes in Contingent Liability for Contingent Consideration | Changes in the contingent liability for contingent consideration during the years ended December 31, 2017 and 2016 are summarized as follows Amount Fair value of contingent consideration at December 31, 2015 $ 54,796 Fair value of Rialco contingent consideration at March 1, 2016 2,109 Fair value of Optitex contingent consideration at June 16, 2016 22,300 Changes in valuation 6,813 Payments (28,111 ) Foreign currency adjustment (1,444 ) Fair value of contingent consideration at December 31, 2016 $ 56,463 Fair value of Generation Digital contingent consideration at August 14, 2017 3,600 Fair value of Escada contingent consideration at October 1, 2017 2,049 Escrow adjustment for Reggiani acquisition (4,711 ) Changes in valuation 6,472 Payments and settlements (30,924 ) Foreign currency adjustment 2,753 Fair value of contingent consideration at December 31, 2017 $ 35,702 |
Convertible Senior Notes, Not35
Convertible Senior Notes, Note Hedges, and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The Notes consist of the following at December 31, 2017 and 2016 (in thousands): 2017 2016 Liability component $ 345,000 $ 345,000 Debt discount, net of amortization (23,178 ) (36,115 ) Debt issuance costs, net of amortization (2,865 ) (4,401 ) Net carrying amount $ 318,957 $ 304,484 Equity component $ 63,643 $ 63,643 Less: debt issuance costs allocated to equity (1,582 ) (1,582 ) Net carrying amount $ 62,061 $ 62,061 |
Summary of Interest Expense Recognized Related to Notes | Interest expense recognized related to the Notes during the years ended December 31, 2017, 2016, and 2015 was as follows (in thousands): 2017 2016 2015 0.75% coupon $ 2,580 $ 2,588 $ 2,595 Amortization of debt issuance costs 1,536 1,350 1,396 Amortization of debt discount 12,937 12,400 11,667 Interest expense on Convertible Senior Notes $ 17,053 $ 16,338 $ 15,658 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Product Warranty Reserve | Future minimum lease payments under noncancellable operating leases, including build-to-suit Fiscal Year Future Minimum Future Minimum 2018 $ 9,114 $ 434 2019 7,574 231 2020 7,415 27 2021 6,028 — 2022 4,225 — Thereafter 32,268 — Total $ 66,624 $ 692 |
Future Minimum Lease Payments under Non-Cancellable Operating Leases and Future Minimum Sublease Receipts | The changes in product warranty reserve for the years ended December 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Balance at January 1, $ 10,319 $ 9,635 Liability assumed upon acquiring FFPS 10,362 — Provisions, net of releases 13,487 12,715 Settlements (17,833 ) (12,031 ) Balance at December 31, $ 16,335 $ 10,319 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income (loss) before income taxes for the years ended December 31, 2017, 2016, and 2015 are as follows (in thousands): 2017 2016 2015 U.S. $ (27,926 ) $ 8,254 $ 9,311 Foreign 40,056 30,394 26,257 Total $ 12,130 $ 38,648 $ 35,568 |
Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 Current: U.S. Federal $ 6,897 $ (7,593 ) $ 3,755 State (2,926 ) 662 1,813 Foreign 14,751 11,721 5,798 Total current 18,722 4,790 11,366 Deferred: U.S. Federal 15,304 (4,276 ) (3,119 ) State 732 (567 ) (583 ) Foreign (7,283 ) (6,248 ) (4,295 ) Total deferred 8,753 (11,091 ) (7,997 ) Provision for (benefit from) income taxes $ 27,475 $ (6,301 ) $ 3,369 |
Reconciliation Between Income Tax Provision (Benefit) Computed at Federal Statutory Rate and Actual Tax Provision (Benefit) | The reconciliation of the income tax provision (benefit) computed at the federal statutory rate to the actual tax provision (benefit) for the years ended December 31, 2017, 2016, and 2015 is as follows (in thousands): 2017 2016 2015 Tax provision at federal statutory rate $ 4,246 35.0 % $ 13,527 35.0 % $ 12,449 35.0 % State income taxes, net of federal benefit (1,426 ) (11.8 ) 62 0.2 800 2.2 Research and development credits (1,508 ) (12.4 ) (2,627 ) (6.8 ) (4,217 ) (11.9 ) Effect of foreign operations (1,344 ) (11.1 ) (3,320 ) (8.5 ) (3,412 ) (9.5 ) Deemed repatriation transition tax 16,976 139.8 — — — — Provision for remeasuring deferred tax balances 10,450 86.1 — — — — Reduction in accrual for estimated potential tax assessments (1,676 ) (13.7 ) (15,404 ) (39.9 ) (4,808 ) (13.4 ) Non-deductible 718-740 1,249 10.3 1,288 3.3 3,244 9.1 Domestic manufacturing deduction — — (831 ) (2.2 ) (878 ) (2.5 ) Meals and entertainment 500 4.1 475 1.2 474 1.3 % Other 8 0.1 529 1.4 (283 ) (0.8 ) Provision for (benefit from) income taxes $ 27,475 226.4 % $ (6,301 ) (16.3 )% $ 3,369 9.5 % |
Tax Effects of Temporary Differences that Give Rise to Deferred Tax Assets (Liabilities) | The tax effects of temporary differences that give rise to deferred tax assets (liabilities) as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Tax credit carryforwards $ 62,096 $ 63,985 Net operating loss carryforwards 9,066 10,055 Reserves and accruals not currently deductible for tax purposes 8,785 14,079 Stock-based compensation 3,432 8,487 Deferred revenue 1,332 1,642 Other 6,374 6,971 Gross deferred tax assets 91,085 105,219 Depreciation and amortization (11,075 ) (17,845 ) State Taxes (1,073 ) (2,092 ) Gross deferred tax liabilities (12,148 ) (19,937 ) Deferred tax valuation allowance (45,506 ) (42,406 ) Net deferred tax assets $ 33,431 $ 42,876 |
Reconciliation of Change in Gross Unrecognized Tax Benefits | A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2015 to December 31, 2017 is as follows (in millions): Federal, State, Accrued Gross Balance at January 1, 2015 $ 34.2 $ 0.8 $ 35.0 Additions for tax positions of prior years 14.1 0.2 14.3 Additions for tax positions related to 2015 4.7 — 4.7 Reductions due to lapse of applicable statute of limitations (6.9 ) (0.5 ) (7.4 ) Balance at December 31, 2015 $ 46.1 $ 0.5 $ 46.6 Additions for tax positions of prior years 1.8 0.2 2.0 Additions for tax positions related to 2016 3.9 — 3.9 Reductions due to lapse of applicable statute of limitations (16.4 ) (0.2 ) (16.6 ) Balance at December 31, 2016 $ 35.4 $ 0.5 $ 35.9 Additions for tax positions of prior years 1.7 0.3 2.0 Additions for tax positions related to 2017 4.5 — 4.5 Reductions due to lapse of applicable statute of limitations (4.1 ) (0.1 ) (4.2 ) Balance at December 31, 2017 $ 37.5 $ 0.7 $ 38.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, ESPP purchase rights, and stock options under ASC 718 for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 RSUs $ 21,887 $ 28,952 $ 29,671 ESPP purchase rights 4,645 2,795 4,003 Employee stock options — 79 397 Total stock-based compensation 26,532 31,826 34,071 Income tax benefit (8,188 ) (10,342 ) (9,436 ) Stock-based compensation expense, net of tax $ 18,344 $ 21,484 $ 24,635 |
Schedule of ESPP Purchase Rights and Underlying Weighted Average Assumptions | Stock options were not granted during the years ended December 31, 2017, 2016, and 2015. The estimated weighted average fair value per share of ESPP purchase rights issued and the assumptions used to estimate fair value for the years ended December 31, 2017, 2016, and 2015 are as follows: 2017 2016 2015 Weighted average fair value per share $ 12.09 $ 10.69 $ 10.28 Expected volatility 24% - 28 % 22% - 32 % 19% - 28 % Risk-free interest rate 0.7% - 1.3 % 0.4% - 0.8 % 0.1% - 0.7 % Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 |
Schedule of Stock Options Outstanding and Exercisable | Stock options outstanding and exercisable, including performance-based and market-based options, as of December 31, 2017, 2016, and 2015 and activity for each of the years then ended are summarized as follows (in thousands, except weighted average exercise price and remaining contractual term): Shares Weighted Weighted Aggregate Options outstanding at January 1, 2015 566 $ 13.67 Options exercised (124 ) 15.35 Options outstanding at December 31, 2015 442 $ 13.20 Options forfeited and expired (12 ) 10.77 Options exercised (115 ) 11.64 Options outstanding at December 31, 2016 315 $ 13.86 1.46 $ 9,480 Options exercised (165 ) 12.45 Options outstanding at December 31, 2017 150 $ 15.43 1.27 $ 2,116 Options vested and expected to vest at December 31, 2017 150 $ 15.43 1.27 $ 2,116 Options exercisable at December 31, 2017 150 $ 15.43 1.27 $ 2,116 |
Schedule of Non-Vested RSUs | Non-vested Shares Weighted Non-vested 2,003 $ 35.91 Restricted stock granted 1,104 41.61 Restricted stock vested (925 ) 32.39 Restricted stock forfeited (368 ) 39.08 Non-vested 1,814 $ 40.53 Restricted stock granted 1,359 43.35 Restricted stock vested (787 ) 38.34 Restricted stock forfeited (303 ) 39.54 Non-vested 2,083 $ 43.34 Restricted stock granted 1,467 35.89 Restricted stock vested (761 ) 42.74 Restricted stock forfeited (510 ) 41.51 Non-vested 2,279 $ 39.16 |
Schedule of Performance-Based and Market-Based RSUs and Stock Options | Performance-based and Market-based RSUs and Stock Options Performance-based and market-based RSUs included in the tables above as of December 31, 2017, 2016, and 2015, and activity for each of the years then ended, are summarized below (in thousands): Performance-based Market-based RSUs Stock RSUs Non-vested 852 16 34 Granted 569 — 18 Vested (284 ) — (3 ) Forfeited (217 ) — (26 ) Non-vested 920 16 23 Granted 821 — — Vested (226 ) (4 ) — Forfeited (250 ) (12 ) — Non-vested 1,265 — 23 Granted 675 — — Vested (284 ) — — Forfeited (447 ) — — Non-vested 1,209 — 23 |
Schedule of Weighted Average Grant Date Fair Value Per Share of Performance-Based and Market-Based RSUs and Assumptions Used to Estimate Fair Value | The estimated grant date fair value per share of performance-based and market-based RSUs granted and the assumptions used to estimate grant date fair value for the years ended December 31, 2017, 2016, and 2015 are as follows: Performance-based Market-based RSUs RSUs Short-term Long-term Year ended December 31, 2017 Grants Grant date fair value per share $ 47.18 $ 33.43 Service period (years) 1.0 2.0 - 3.0 Year ended December 31, 2016 Grants Grant date fair value per share $ 39.79 $ 45.76 Service period (years) 1.0 2.0 - 3.0 Year ended December 31, 2015 Grants Grant date fair value per share $ 38.77 $ 42.82 $ 33.84 Service period (years) 1.0 2.0 - 3.0 Derived service period (years) 1.60 Implied volatility 30.0 % Risk-free interest rate 1.7 % |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Reserve Activities | Restructuring and other reserve activities for the years ended December 31, 2017 and 2016 are summarized as follows (in thousands): 2017 2016 Reserve balance at January 1 $ 1,824 $ 3,019 Restructuring charges 5,136 2,808 Other charges 2,424 3,921 Non-cash (264 ) (403 ) Cash payments (6,668 ) (7,521 ) Reserve balance at December 31 $ 2,452 $ 1,824 |
Segment Information, Geograph40
Segment Information, Geographic Regions, and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Segment Profit (Gross Profit), Excluding Stock-Based Compensation Expense by Segment | Operating segment profit (i.e., gross profit), excluding stock-based compensation expense, for the years ended December 31, 2017, 2016, and 2015 is summarized as follows (in thousands): 2017 2016 2015 Industrial Inkjet Revenue $ 570,688 $ 562,583 $ 447,705 Gross profit 208,620 198,923 150,964 Gross profit percentages 36.6 % 35.4 % 33.7 % Productivity Software Revenue $ 156,561 $ 151,737 $ 135,350 Gross profit 114,460 114,179 99,278 Gross profit percentages 73.1 % 75.2 % 73.3 % Fiery Revenue $ 266,011 $ 277,745 $ 299,458 Gross profit 185,937 198,322 210,140 Gross profit percentages 69.9 % 71.4 % 70.2 % |
Reconciliation of Operating Segment Gross Profit to Consolidated Statements of Operations | Operating segment profit (i.e., gross profit) for the years ended December 31, 2017, 2016, and 2015 is reconciled to the Consolidated Statements of Operations as follows (in thousands): 2017 2016 2015 Segment gross profit $ 509,017 $ 511,424 $ 460,382 Stock-based compensation expense (2,561 ) (2,784 ) (2,837 ) Other items excluded from segment profit — (475 ) (115 ) Gross profit $ 506,456 $ 508,165 $ 457,430 |
Tangible and Intangible Assets, Net of Liabilities, Summarized by Operating Segment | Tangible and intangible assets, net of liabilities, are summarized by operating segment as of December 31, 2017 and 2016 as follows (in thousands): Industrial Productivity Fiery Corporate and Total December 31, 2017 Goodwill $ 154,373 $ 174,644 $ 74,261 $ — $ 403,278 Identified intangible assets, net 66,547 36,379 20,082 — 123,008 Tangible assets, net of liabilities 221,933 (27,755 ) 11,286 49,561 255,025 Net tangible and intangible assets $ 442,853 $ 183,268 $ 105,629 $ 49,561 $ 781,311 December 31, 2016 Goodwill $ 141,068 $ 155,475 $ 63,298 $ — $ 359,841 Identified intangible assets, net 84,465 38,440 92 — 122,997 Tangible assets, net of liabilities 153,699 (27,646 ) 33,966 183,158 343,177 Net tangible and intangible assets $ 379,232 $ 166,269 $ 97,356 $ 183,158 $ 826,015 |
Revenue by Ship-to Destination | Our revenue by ship-to 2017 2016 2015 Americas $ 487,968 $ 500,411 $ 473,599 EMEA 369,610 360,305 291,103 APAC 135,682 131,349 117,811 Total Revenue $ 993,260 $ 992,065 $ 882,513 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, as of December 31, 2017 and 2016 are as follows (in thousands): 2017 2016 Land, buildings, and improvements (including build-to-suit $ 68,404 $ 67,841 Equipment and purchased software 93,849 86,665 Furniture and leasehold improvements 20,270 18,713 182,523 173,219 Less accumulated depreciation and amortization (83,761 ) (69,745 ) Property and equipment, net $ 98,762 $ 103,474 |
Quarterly Consolidated Financ42
Quarterly Consolidated Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Consolidated Financial Information | The following table presents our operating results for each of the quarters in the years ended December 31, 2017 and 2016. The information for each of these quarters is unaudited, but has been prepared on the same basis as our audited consolidated financial statements appearing elsewhere in this Annual Report on Form 10-K. 10-K. 2017 (in thousands except per share data) Q1 Q2 Q3 Q4 Revenue $ 228,691 $ 247,047 $ 248,359 $ 269,163 Gross profit 123,530 127,252 127,458 128,216 Income from operations 8,143 7,991 7,397 4,016 Net income (loss) 4,787 2,759 3,454 (26,345 ) Net income (loss) per basic common share $ 0.10 $ 0.06 $ 0.07 $ (0.58 ) Net income (loss) per diluted common share $ 0.10 $ 0.06 $ 0.07 $ (0.58 ) 2016 (in thousands except per share data) Q1 Q2 Q3 Q4 Revenue $ 234,133 $ 245,650 $ 245,575 $ 266,707 Gross profit 118,397 125,047 125,194 139,527 Income from operations 6,969 11,709 9,410 27,731 Net income 2,103 5,235 17,662 19,949 Net income per basic common share $ 0.04 $ 0.11 $ 0.38 $ 0.43 Net income per diluted common share $ 0.04 $ 0.11 $ 0.37 $ 0.42 |
The Company and Its Significa43
The Company and Its Significant Accounting Policies - Schedule of Correction of Prior Period Financial Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | $ 125,813 | $ 96,338 | ||
Property and equipment, net | 98,762 | 103,474 | ||
Total assets | 1,458,001 | 1,478,929 | ||
Deferred tax liabilities | 11,652 | 15,601 | ||
Total liabilities | 676,690 | 652,914 | ||
Accumulated other comprehensive loss | 8,138 | (24,575) | ||
Retained earnings | 402,544 | 417,889 | ||
Total shareholders' equity | $ 781,311 | 826,015 | $ 822,902 | $ 788,689 |
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 99,075 | |||
Property and equipment, net | 103,304 | |||
Total assets | 1,481,496 | |||
Deferred tax liabilities | 16,351 | |||
Total liabilities | 653,664 | |||
Accumulated other comprehensive loss | (24,694) | |||
Retained earnings | 419,825 | |||
Total shareholders' equity | 827,832 | |||
Adjustments [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | (2,737) | |||
Property and equipment, net | 170 | |||
Total assets | (2,567) | |||
Deferred tax liabilities | (750) | |||
Total liabilities | (750) | |||
Accumulated other comprehensive loss | 119 | |||
Retained earnings | (1,936) | |||
Total shareholders' equity | $ (1,817) |
The Company and Its Significa44
The Company and Its Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2014 | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Net income | $ (26,345,000) | $ 3,454,000 | $ 2,759,000 | $ 4,787,000 | $ 19,949,000 | $ 17,662,000 | $ 5,235,000 | $ 2,103,000 | $ (15,345,000) | $ 44,949,000 | $ 32,199,000 | |||
Revenue | 269,163,000 | 248,359,000 | 247,047,000 | 228,691,000 | 266,707,000 | 245,575,000 | 245,650,000 | 234,133,000 | 993,260,000 | 992,065,000 | 882,513,000 | |||
Gross profit | $ 128,216,000 | $ 127,458,000 | $ 127,252,000 | $ 123,530,000 | $ 139,527,000 | $ 125,194,000 | $ 125,047,000 | $ 118,397,000 | $ 506,456,000 | $ 508,165,000 | $ 457,430,000 | |||
Net loss per diluted common share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.42 | $ 0.37 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.94 | $ 0.67 | |||
Maturity of highly liquid investments | Three months or less | |||||||||||||
Maturity of marketable investments | Greater than three months | |||||||||||||
Other-than-temporary impairments, including credit-related impairments | $ 0 | $ 0 | $ 0 | |||||||||||
Restricted cash equivalents and investments | $ 32,531,000 | $ 6,252,000 | $ 32,531,000 | 6,252,000 | ||||||||||
Present value of minimum lease payments | 90.00% | |||||||||||||
Percentage of economic life of equipment | 75.00% | |||||||||||||
Deferred cost of revenue | 3,500,000 | 3,400,000 | $ 3,500,000 | 3,400,000 | ||||||||||
Financing receivables | 28,700,000 | 31,000,000 | $ 28,700,000 | $ 31,000,000 | ||||||||||
Products concentration | 10.00% | |||||||||||||
Amortization period of intangible assets | 4 years 4 months 24 days | |||||||||||||
Intangible amortization expense | $ 47,339,000 | $ 39,560,000 | 26,510,000 | |||||||||||
Long-lived asset impairment charges | 900,000 | 0 | 0 | |||||||||||
Warranty reserves | $ 16,335,000 | 10,319,000 | 16,335,000 | 10,319,000 | 9,635,000 | |||||||||
Research and development costs | [1] | 157,358,000 | 151,395,000 | 141,364,000 | ||||||||||
Advertising and promotional expenses | $ 5,900,000 | 4,600,000 | 4,300,000 | |||||||||||
Assets and liabilities of acquired business, including goodwill | 100.00% | 100.00% | ||||||||||||
Gains or losses resulting from foreign currency transactions | $ 1,600,000 | 3,800,000 | $ 4,200,000 | |||||||||||
Cumulated translation adjustment, net of tax, unrealized gain (loss) | $ 8,794,000 | $ (24,111,000) | $ 8,794,000 | $ (24,111,000) | ||||||||||
Interest rate of debt, stated percentage | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | |||||||||
Notional amount of derivative assets and liabilities | $ 239,400,000 | $ 161,800,000 | $ 239,400,000 | $ 161,800,000 | ||||||||||
Fiery [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue | 266,011,000 | 277,745,000 | $ 299,458,000 | |||||||||||
Gross profit | 1,400,000 | |||||||||||||
Industrial Inkjet [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue | $ 570,688,000 | 562,583,000 | 447,705,000 | |||||||||||
Accompanied limited warranty period | 13 months | |||||||||||||
Developed Technology [Member] | Intangible Assets, Amortization Period [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Impact of change in useful lives of intangible asset | $ 200,000 | 1,600,000 | ||||||||||||
Trademarks and Trade Names [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 4 years 10 months 25 days | |||||||||||||
Equipment Leased to Customers on Operating Leases [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Sales-Type Lease [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Financing receivables | 16,600,000 | 17,800,000 | $ 16,600,000 | 17,800,000 | ||||||||||
Trade Receivables with Original Maturities in Excess of One Year [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Financing receivables | 12,100,000 | 13,200,000 | 12,100,000 | 13,200,000 | ||||||||||
Trade Receivables with Original Maturities in Excess of One Year [Member] | Trade Receivables with Original Maturities in Excess of One Year [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Financing receivables | 4,400,000 | 7,100,000 | 4,400,000 | 7,100,000 | ||||||||||
Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Off Balance Sheet Financing - Synthetic Lease Arrangements [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Restricted cash equivalents and investments | $ 32,500,000 | $ 6,300,000 | $ 32,500,000 | $ 6,300,000 | ||||||||||
Percentage of funds pledge that are deposited in government securities | 115.00% | 115.00% | 115.00% | 115.00% | ||||||||||
Percentage of funds pledge that are deposited in cash equivalents | 100.00% | 100.00% | ||||||||||||
Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Off Balance Sheet Financing - Synthetic Lease Arrangements [Member] | Cash Equivalents [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Funds invested under lease | $ 32,500,000 | $ 1,200,000 | $ 32,500,000 | $ 1,200,000 | ||||||||||
Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Off Balance Sheet Financing - Synthetic Lease Arrangements [Member] | US Government Securities [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Funds invested under lease | 0 | 5,100,000 | $ 0 | 5,100,000 | ||||||||||
Desktop and Laptop Computers [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 2 years | |||||||||||||
Manufacturing Equipment [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 7 years | |||||||||||||
Testing and Other Equipment [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Research and Development Equipment [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Furniture [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 5 years | |||||||||||||
Land Improvements [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 7 years | |||||||||||||
Building under Build-to-Suit Lease [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 40 years | |||||||||||||
Building [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 40 years | |||||||||||||
Minimum [Member] | Fiery [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Limited warranty period | 12 months | |||||||||||||
Minimum [Member] | Developed Technology [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 2 years | |||||||||||||
Minimum [Member] | Customer Relationships [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 3 years | |||||||||||||
Minimum [Member] | Covenants Not to Compete [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 4 years | |||||||||||||
Minimum [Member] | Trademarks and Trade Names [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 3 years | |||||||||||||
Minimum [Member] | Internal Use Software [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Minimum [Member] | Computer Server Equipment [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Minimum [Member] | Software under Perpetual Licenses [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Minimum [Member] | Building Improvements [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 5 years | |||||||||||||
Maximum [Member] | Fiery [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Limited warranty period | 15 months | |||||||||||||
Maximum [Member] | Developed Technology [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 6 years | |||||||||||||
Maximum [Member] | Customer Relationships [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 9 years | |||||||||||||
Maximum [Member] | Covenants Not to Compete [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 5 years | |||||||||||||
Maximum [Member] | Trademarks and Trade Names [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization period of intangible assets | 16 years | |||||||||||||
Maximum [Member] | Internal Use Software [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 5 years | |||||||||||||
Maximum [Member] | Software under Perpetual Licenses [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 5 years | |||||||||||||
Maximum [Member] | Tooling [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 3 years | |||||||||||||
Maximum [Member] | Leasehold Improvements [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 5 years | |||||||||||||
Maximum [Member] | Building Improvements [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful lives | 10 years | |||||||||||||
European [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of total revenue | 32.00% | |||||||||||||
Higher Risk Southern European Countries [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of European receivables | 30.00% | |||||||||||||
Percentage of consolidated net receivables | 10.00% | |||||||||||||
Spain and Italy [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Trade receivables sold without recourse | $ 5,900,000 | 3,500,000 | ||||||||||||
United States [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Trade receivables sold with recourse | $ 21,400,000 | 19,800,000 | ||||||||||||
Fiery [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Products concentration | 0.27% | |||||||||||||
Fiery [Member] | Minimum [Member] | Industrial Inkjet [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Limited warranty period | 12 months | |||||||||||||
Fiery [Member] | Maximum [Member] | Industrial Inkjet [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Limited warranty period | 15 months | |||||||||||||
ASU 2015-11 Inventory Valuation [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Increase in inventory valuation | $ 1,200,000 | |||||||||||||
Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Cumulative effect of changes in retained earnings pre-tax offset by credit to deferred revenue | $ 1,700,000 | |||||||||||||
Deferred charge | 7,500,000 | |||||||||||||
Cumulative effect of changes in retained earnings | 4,300,000 | |||||||||||||
Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Cumulative effect of changes in retained earnings pre-tax offset by credit to deferred revenue | 2,300,000 | |||||||||||||
Deferred charge | 8,500,000 | |||||||||||||
Cumulative effect of changes in retained earnings | $ 5,300,000 | |||||||||||||
Designated as Cash Flow Hedges [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Notional amount of derivative assets and liabilities | 3,900,000 | 3,200,000 | 3,900,000 | 3,200,000 | ||||||||||
Out-of-Period Adjustment Related to Bill and Hold Transactions [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Net income | (300,000) | |||||||||||||
Revenue | (3,400,000) | |||||||||||||
Gross profit | $ (500,000) | |||||||||||||
Net loss per diluted common share | $ (0.01) | |||||||||||||
Out-of-Period Adjustment Related to Bill and Hold Transactions [Member] | Industrial Inkjet [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue | $ 3,400,000 | |||||||||||||
Foreign Exchange Contracts [Member] | Designated as Cash Flow Hedges [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Notional amount of derivative assets and liabilities | 3,900,000 | 3,200,000 | 3,900,000 | 3,200,000 | ||||||||||
Adjustments [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Net income | 600,000 | (600,000) | (1,300,000) | |||||||||||
Gross profit | $ 500,000 | |||||||||||||
Net loss per diluted common share | $ 0.01 | |||||||||||||
As Previously Reported [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Net income | $ 20,500,000 | $ 45,500,000 | $ 33,500,000 | |||||||||||
Gross profit | $ 140,000,000 | |||||||||||||
0.75% Convertible Senior Notes Due 2019 [Member] | ||||||||||||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt discount | $ 63,600,000 | $ 63,600,000 | ||||||||||||
Interest rate of debt, stated percentage | 0.75% | 0.75% | 0.75% | |||||||||||
Effective interest rate percentage | 4.98% | 4.98% | 4.98% | |||||||||||
Debt instrument, maturity date | Sep. 1, 2019 | |||||||||||||
[1] | Includes stock-based compensation expense as follows: 2017 2016 2015 Cost of revenue $ 2,561 $ 2,784 $ 2,837 Research and development 9,177 8,968 9,406 Sales and marketing 6,583 7,690 7,602 General and administrative 8,211 12,384 14,226 |
The Company and Its Significa45
The Company and Its Significant Accounting Policies - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Net cash paid for income taxes | $ 23,279 | $ 6,812 | $ 8,512 |
Cash paid for interest expense | 3,174 | 2,975 | 2,945 |
Acquisitions of businesses and technology: | |||
Cash paid for businesses and technology purchased, excluding contingent consideration | 30,230 | 21,560 | 82,446 |
Cash acquired in business acquisitions | (671) | (1,628) | (7,680) |
Net cash paid for business acquisitions | 29,559 | 19,932 | 74,766 |
Common stock issued in connection with business acquisitions | 73 | 36,567 | |
Non-cash investing and financing activities: | |||
Non-cash settlement of employee-related liabilities by issuing RSUs | 1,166 | 3,059 | 1,353 |
Property and equipment received, but not paid | 681 | 1,257 | 1,684 |
Total Non-cash investing and financing activities | $ 1,852 | $ 4,316 | $ 3,037 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic net income (loss) per share: | |||||||||||
Net income (loss) available to common shareholders | $ (26,345) | $ 3,454 | $ 2,759 | $ 4,787 | $ 19,949 | $ 17,662 | $ 5,235 | $ 2,103 | $ (15,345) | $ 44,949 | $ 32,199 |
Weighted average common shares outstanding | 46,281 | 46,900 | 47,217 | ||||||||
Basic net income (loss) per share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.43 | $ 0.38 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.96 | $ 0.68 |
Dilutive net income (loss) per share: | |||||||||||
Net income (loss) available to common shareholders | $ (26,345) | $ 3,454 | $ 2,759 | $ 4,787 | $ 19,949 | $ 17,662 | $ 5,235 | $ 2,103 | $ (15,345) | $ 44,949 | $ 32,199 |
Weighted average common shares outstanding | 46,281 | 46,900 | 47,217 | ||||||||
Dilutive stock options, restricted stock, and ESPP purchase rights | 897 | 933 | |||||||||
Weighted average common shares outstanding for purposes of computing diluted net income (loss) per share | 46,281 | 47,797 | 48,150 | ||||||||
Dilutive net income (loss) per share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.42 | $ 0.37 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.94 | $ 0.67 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 990 | 193 | 501 |
Employee Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 138 | ||
RSUs & PSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 692 | 183 | 489 |
ESPP Purchase Rights [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 160 | 10 | 12 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Post-acquisition revenue | $ 27.1 | $ 19.8 | |
Adjusted initial preliminary purchase price allocations | $ 0.7 | $ 0.8 | $ 3.8 |
Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 14.00% | 14.00% | 14.00% |
Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 30.00% | 30.00% | 30.00% |
Reggiani And Matan [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Post-acquisition revenue | $ 88.4 | ||
Business acquisition related costs | $ 2.1 | $ 2.2 | $ 5.5 |
FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 4.98% | ||
Asset volatility rate | 27.00% |
Business Acquisitions - 2017 Ac
Business Acquisitions - 2017 Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | $ 29,559 | $ 19,932 | $ 74,766 |
FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 4.98% | ||
FreeFlow Print Server [Member] | Fiery Operating Segment [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | $ 23,900 | ||
Acquisition date | Jan. 31, 2017 | ||
Incremental borrowing rate | 4.98% | ||
Total purchase price | $ 23,043 | ||
FreeFlow Print Server [Member] | Fiery Operating Segment [Member] | Paid at Closing [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | 5,900 | ||
FreeFlow Print Server [Member] | Fiery Operating Segment [Member] | Paid in July 2017 [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | 9,000 | ||
FreeFlow Print Server [Member] | Fiery Operating Segment [Member] | Payable in July 2018 [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | $ 9,000 | ||
CRC [Member] | Productivity Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquisition date | May 8, 2017 | ||
Generation Digital Solutions, Inc. [Member] | Fiery Operating Segment [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquisition date | Aug. 14, 2017 | ||
Total purchase price | $ 6,924 | ||
Cash consideration | $ 3,200 | ||
Length of earnout period | 6 months | ||
Fair value of earnout | $ 3,600 | ||
Contingent liabilities, current | 1,000 | ||
Contingent liabilities, noncurrent | $ 2,600 | ||
Generation Digital Solutions, Inc. [Member] | Fiery Operating Segment [Member] | Earnout [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 2.83% | ||
CRC and Escada [Member] | Productivity Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Businesses purchased, net of cash acquired | $ 19,500 | ||
Total purchase price | 20,045 | ||
Escada [Member] | Productivity Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of earnout | $ 2,100 | ||
Escada [Member] | Productivity Software [Member] | Earnout [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value discount rate | 2.97% |
Business Acquisitions - 2016 Ac
Business Acquisitions - 2016 Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 16, 2016 | Mar. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Businesses purchased, net of cash acquired | $ 29,559 | $ 19,932 | $ 74,766 | ||
Contingent consideration, current | 14,922 | $ 19,244 | |||
Contingent consideration, noncurrent | 20,800 | ||||
Rialco Limited [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Businesses purchased, net of cash acquired | $ 8,400 | ||||
Fair value of earnout | 3,400 | ||||
Contingent consideration, current | 1,300 | ||||
Contingent consideration, noncurrent | $ 2,100 | ||||
Rialco Limited [Member] | Earnout [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair value discount rate | 0.80% | ||||
Optitex Ltd [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Contingent consideration, current | $ 9,100 | ||||
Contingent consideration, noncurrent | 11,800 | ||||
Optitex Ltd [Member] | Productivity Software [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Businesses purchased, net of cash acquired | $ 11,600 | ||||
Fair value of earnout | $ 20,900 | ||||
Optitex Ltd [Member] | Earnout [Member] | Productivity Software [Member] | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair value discount rate | 3.39% |
Business Acquisitions - 2015 Ac
Business Acquisitions - 2015 Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | Jul. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Businesses purchased, net of cash acquired | $ 29,559 | $ 19,932 | $ 74,766 | |
Earnout payments | 30,924 | 28,111 | ||
Contingent consideration, current | 14,922 | $ 19,244 | ||
Contingent consideration, noncurrent | $ 20,800 | |||
Minimum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair value discount rate | 14.00% | 14.00% | 14.00% | |
Maximum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair value discount rate | 30.00% | 30.00% | 30.00% | |
Matan Digital Printers [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Businesses purchased, net of cash acquired | $ 38,900 | |||
CTI And Shuttleworth [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Businesses purchased, net of cash acquired | 9,700 | |||
Equity consideration to purchase business | $ 9,300 | |||
Shares issuance on purchase of business | 0.2 | |||
Contingent consideration, current | $ 3,400 | |||
Contingent consideration, noncurrent | 2,200 | |||
Fair value of earnout | $ 5,600 | |||
CTI And Shuttleworth [Member] | Minimum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair value discount rate | 0.60% | |||
CTI And Shuttleworth [Member] | Maximum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair value discount rate | 1.30% | |||
CTI [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquisition date | Oct. 6, 2015 | |||
Shuttleworth [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquisition date | Nov. 4, 2015 | |||
Earnout payments | $ 1,200 | |||
Reggiani [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquisition date | Jul. 1, 2015 | |||
Businesses purchased, net of cash acquired | $ 26,600 | |||
Equity consideration to purchase business | $ 26,900 | |||
Shares issuance on purchase of business | 0.6 | |||
Earnout payments | $ 21,500 | $ 23,800 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Discount Rate, Percentage of Project Tasks Completed and Tasks to be Completed (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
FreeFlow Print Server [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 4.98% |
IPR&D [Member] | FreeFlow Print Server [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 20.00% |
IPR&D percent complete at acquisition date | 63.00% |
IPR&D percent complete at December 31, 2017 | 100.00% |
Acquisition-date valuation (in thousands) | $ 70 |
IPR&D [Member] | Matan Digital Printers [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 16.00% |
IPR&D percent complete at acquisition date | 33.00% |
IPR&D percent complete at December 31, 2017 | 100.00% |
Acquisition-date valuation (in thousands) | $ 3,190 |
IPR&D [Member] | Reggiani [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 21.00% |
IPR&D percent complete at acquisition date | 70.00% |
IPR&D percent complete at December 31, 2017 | 100.00% |
Acquisition-date valuation (in thousands) | $ 10,879 |
IPR&D [Member] | CTI [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 18.00% |
IPR&D percent complete at acquisition date | 75.00% |
IPR&D percent complete at December 31, 2017 | 100.00% |
Acquisition-date valuation (in thousands) | $ 150 |
IPR&D [Member] | Shuttleworth [Member] | |
In Process Research And Development [Line Items] | |
Discount rate for IPR&D | 20.00% |
IPR&D percent complete at acquisition date | 17.00% |
IPR&D percent complete at December 31, 2017 | 100.00% |
Acquisition-date valuation (in thousands) | $ 555 |
Business Acquisitions - Allocat
Business Acquisitions - Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | $ 403,278 | $ 359,841 | $ 338,793 |
Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years | ||
Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 16 years | ||
Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 6,590 | ||
Purchase Price Allocation | 28,580 | ||
Net tangible assets (liabilities) | (5,537) | ||
Total purchase price | 23,043 | ||
Fiery Operating Segment [Member] | Generation Digital Solutions, Inc. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 3,012 | ||
Purchase Price Allocation | 7,222 | ||
Net tangible assets (liabilities) | (298) | ||
Total purchase price | 6,924 | ||
Productivity Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 174,644 | $ 155,475 | 133,128 |
Productivity Software [Member] | CRC and Escada [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 11,632 | ||
Purchase Price Allocation | 23,783 | ||
Net tangible assets (liabilities) | (3,738) | ||
Total purchase price | 20,045 | ||
Productivity Software [Member] | Optitex Ltd [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 28,147 | ||
Purchase Price Allocation | 47,187 | ||
Net tangible assets (liabilities) | (11,924) | ||
Total purchase price | 35,263 | ||
Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 26,609 | ||
Purchase Price Allocation | 47,859 | ||
Net tangible assets (liabilities) | (4,945) | ||
Total purchase price | 42,914 | ||
Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 17,790 | ||
Purchase Price Allocation | 30,619 | ||
Net tangible assets (liabilities) | (3,611) | ||
Total purchase price | 27,008 | ||
Industrial Inkjet [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | $ 154,373 | 141,068 | 142,183 |
Industrial Inkjet [Member] | Rialco Limited [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 1,426 | ||
Purchase Price Allocation | 5,603 | ||
Net tangible assets (liabilities) | 5,177 | ||
Total purchase price | 10,780 | ||
Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, Goodwill | 61,341 | ||
Purchase Price Allocation | 130,193 | ||
Net tangible assets (liabilities) | (32,571) | ||
Total purchase price | 97,622 | ||
Purchasing Agreement [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 10 years | ||
Purchase Price Allocation, intangible assets | $ 9,330 | ||
Take-or-Pay Contract [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Purchase Price Allocation, intangible assets | $ 9,000 | ||
Customer Relationships [Member] | Fiery Operating Segment [Member] | Generation Digital Solutions, Inc. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 8 years | ||
Purchase Price Allocation, intangible assets | $ 3,030 | ||
Customer Relationships [Member] | Productivity Software [Member] | CRC and Escada [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 5,240 | ||
Customer Relationships [Member] | Productivity Software [Member] | CRC and Escada [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 7 years | ||
Customer Relationships [Member] | Productivity Software [Member] | CRC and Escada [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 9 years | ||
Customer Relationships [Member] | Productivity Software [Member] | Optitex Ltd [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 8,890 | ||
Customer Relationships [Member] | Productivity Software [Member] | Optitex Ltd [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 3 years | ||
Customer Relationships [Member] | Productivity Software [Member] | Optitex Ltd [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Customer Relationships [Member] | Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 6,630 | ||
Customer Relationships [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 5,001 | ||
Customer Relationships [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 3 years | ||
Customer Relationships [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Customer Relationships [Member] | Industrial Inkjet [Member] | Rialco Limited [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 6 years | ||
Purchase Price Allocation, intangible assets | $ 2,512 | ||
Customer Relationships [Member] | Industrial Inkjet [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 6 years | ||
Customer Relationships [Member] | Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Purchase Price Allocation, intangible assets | $ 12,187 | ||
Existing Technology [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years | ||
Purchase Price Allocation, intangible assets | $ 2,570 | ||
Existing Technology [Member] | Fiery Operating Segment [Member] | Generation Digital Solutions, Inc. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 890 | ||
Existing Technology [Member] | Productivity Software [Member] | CRC and Escada [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 5,870 | ||
Existing Technology [Member] | Productivity Software [Member] | CRC and Escada [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Existing Technology [Member] | Productivity Software [Member] | CRC and Escada [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 6 years | ||
Existing Technology [Member] | Productivity Software [Member] | Optitex Ltd [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 7,760 | ||
Existing Technology [Member] | Productivity Software [Member] | Optitex Ltd [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Existing Technology [Member] | Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 8,790 | ||
Existing Technology [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 5,634 | ||
Existing Technology [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Existing Technology [Member] | Industrial Inkjet [Member] | Rialco Limited [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 846 | ||
Existing Technology [Member] | Industrial Inkjet [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Existing Technology [Member] | Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Purchase Price Allocation, intangible assets | $ 33,118 | ||
Trade Names [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 1,020 | ||
Trade Names [Member] | Fiery Operating Segment [Member] | Generation Digital Solutions, Inc. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 290 | ||
Trade Names [Member] | Productivity Software [Member] | CRC and Escada [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 850 | ||
Trade Names [Member] | Productivity Software [Member] | CRC and Escada [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Trade Names [Member] | Productivity Software [Member] | CRC and Escada [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Trade Names [Member] | Productivity Software [Member] | Optitex Ltd [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 2,020 | ||
Trade Names [Member] | Productivity Software [Member] | Optitex Ltd [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Trade Names [Member] | Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 2,570 | ||
Trade Names [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 1,357 | ||
Trade Names [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years | ||
Trade Names [Member] | Industrial Inkjet [Member] | Rialco Limited [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 763 | ||
Trade Names [Member] | Industrial Inkjet [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Trade Names [Member] | Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Purchase Price Allocation, intangible assets | $ 11,964 | ||
IPR&D [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 70 | ||
IPR&D [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 3,190 | ||
IPR&D [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 10,879 | ||
IPR&D [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 70 | ||
IPR&D [Member] | Fiery Operating Segment [Member] | FreeFlow Print Server [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
IPR&D [Member] | Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 3,190 | ||
IPR&D [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 705 | ||
IPR&D [Member] | Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 10,879 | ||
Backlog [Member] | Productivity Software [Member] | CRC and Escada [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 191 | ||
Backlog [Member] | Productivity Software [Member] | CRC and Escada [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
Backlog [Member] | Productivity Software [Member] | Optitex Ltd [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 370 | ||
Backlog [Member] | Productivity Software [Member] | Optitex Ltd [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
Backlog [Member] | Productivity Software [Member] | Matan Digital Printers [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | 70 | ||
Backlog [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 132 | ||
Backlog [Member] | Productivity Software [Member] | CTI And Shuttleworth [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
Backlog [Member] | Industrial Inkjet [Member] | Rialco Limited [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 56 | ||
Backlog [Member] | Industrial Inkjet [Member] | Rialco Limited [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
Backlog [Member] | Industrial Inkjet [Member] | Matan Digital Printers [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year | ||
Backlog [Member] | Industrial Inkjet [Member] | Reggiani [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Purchase Price Allocation, intangible assets | $ 704 | ||
Backlog [Member] | Industrial Inkjet [Member] | Reggiani [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | < one year |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 57,061 | $ 45,798 |
Work in process | 9,792 | 7,362 |
Finished goods | 58,960 | 43,178 |
Total | $ 125,813 | $ 96,338 |
Balance Sheet Components - Sc55
Balance Sheet Components - Schedule of Accrued and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | |||
Accrued compensation and benefits | $ 29,113 | $ 31,714 | |
Contingent consideration-current | 14,922 | 19,244 | |
Warranty provision-current | 12,931 | 10,054 | |
Debt assumed through business acquisitions | 11,101 | 98 | |
Accrued royalty payments | 4,903 | 4,994 | |
Accrued litigation and consulting | 4,277 | 1,916 | |
Technology transfer | 3,593 | 3,822 | |
Hedging liability | 3,281 | 258 | |
Deferred rent | 2,846 | 2,938 | |
Sales tax liabilities | 2,574 | 1,997 | |
Restructuring and other | 2,452 | 1,824 | $ 3,019 |
Other accrued liabilities | 6,097 | 6,646 | |
Total | $ 98,090 | $ 85,505 |
Balance Sheet Components - Sc56
Balance Sheet Components - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income [Abstract] | ||
Net unrealized investment losses | $ (697) | $ (473) |
Currency translation gains (losses) | 8,794 | (24,111) |
Net unrealized gains on cash flow hedges | 41 | 9 |
Total | $ 8,138 | $ (24,575) |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | ||
Reclassified amounts out of OCI, net of tax | $ (140) | $ (66) |
Goodwill and Long-Lived Intan58
Goodwill and Long-Lived Intangible Assets - Schedule of Purchased Intangible Assets Resulting from Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||
Weighted average useful life (years) | 4 years 4 months 24 days | ||
Gross carrying amount - Intangible assets | $ 364,992 | $ 333,478 | |
Accumulated amortization | $ (241,984) | (210,481) | |
Weighted remaining average useful life (years) | 3 years 9 months 18 days | ||
Net carrying amount - Intangible assets | $ 123,008 | 122,997 | |
Net carrying amount - Goodwill | $ 403,278 | 359,841 | $ 338,793 |
Customer Relationships and Other [Member] | |||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||
Weighted average useful life (years) | 4 years 7 months 6 days | ||
Gross carrying amount - Intangible assets | $ 95,862 | 88,557 | |
Accumulated amortization | $ (45,862) | (49,527) | |
Weighted remaining average useful life (years) | 3 years 7 months 6 days | ||
Net carrying amount - Intangible assets | $ 50,000 | 39,030 | |
Existing Technology [Member] | |||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||
Weighted average useful life (years) | 4 years 1 month 6 days | ||
Gross carrying amount - Intangible assets | $ 196,693 | 173,543 | |
Accumulated amortization | $ (149,300) | (122,654) | |
Weighted remaining average useful life (years) | 2 years 10 months 25 days | ||
Net carrying amount - Intangible assets | $ 47,393 | 50,889 | |
Trademarks and Trade Names [Member] | |||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||
Weighted average useful life (years) | 4 years 10 months 25 days | ||
Gross carrying amount - Intangible assets | $ 72,048 | 67,701 | |
Accumulated amortization | $ (46,822) | (38,300) | |
Weighted remaining average useful life (years) | 5 years 6 months | ||
Net carrying amount - Intangible assets | $ 25,226 | 29,401 | |
IPR&D [Member] | |||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||
Gross carrying amount - Intangible assets | 389 | 3,677 | |
Net carrying amount - Intangible assets | $ 389 | $ 3,677 |
Goodwill and Long-Lived Intan59
Goodwill and Long-Lived Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Intangible amortization expense | $ 47,339,000 | $ 39,560,000 | $ 26,510,000 | ||||||||
Impairment of intangible assets | 0 | 0 | 0 | ||||||||
Revenue | $ 269,163,000 | $ 248,359,000 | $ 247,047,000 | $ 228,691,000 | $ 266,707,000 | $ 245,575,000 | $ 245,650,000 | $ 234,133,000 | $ 993,260,000 | 992,065,000 | 882,513,000 |
Compound annual growth rate | 6.00% | ||||||||||
Estimated control premium rate | 8.80% | ||||||||||
Forecast horizon | 6 years | ||||||||||
Long-lived asset impairment charges | $ 900,000 | 0 | 0 | ||||||||
Out-of-Period Adjustment Related to Bill and Hold Transactions [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Revenue | $ (3,400,000) | ||||||||||
Goodwill Assessment [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Fair value related to goodwill assessment | 10.80% | ||||||||||
Industrial Inkjet [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Fair value of goodwill | $ 398,100,000 | $ 398,100,000 | |||||||||
Goodwill fair value in excess of carrying value percentage | 90.00% | 90.00% | |||||||||
Revenue | $ 570,688,000 | 562,583,000 | 447,705,000 | ||||||||
Industrial Inkjet [Member] | Out-of-Period Adjustment Related to Bill and Hold Transactions [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Revenue | 3,400,000 | ||||||||||
Productivity Software [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Fair value of goodwill | $ 78,700,000 | $ 78,700,000 | |||||||||
Goodwill fair value in excess of carrying value percentage | 43.00% | 43.00% | |||||||||
Revenue | $ 156,561,000 | 151,737,000 | 135,350,000 | ||||||||
Revenue growth rate | 3.00% | ||||||||||
Fiery [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Fair value of goodwill | $ 207,900,000 | $ 207,900,000 | |||||||||
Goodwill fair value in excess of carrying value percentage | 197.00% | 197.00% | |||||||||
Revenue | $ 266,011,000 | 277,745,000 | $ 299,458,000 | ||||||||
Revenue decline rate | 4.00% | ||||||||||
Revenue growth rate | 2.00% | ||||||||||
Long-term growth rate of calculated terminal values | 2.50% | ||||||||||
Industrial Inkjet And Productivity Software [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Long-term growth rate of calculated terminal values | 4.00% | ||||||||||
Intangible Assets, Amortization Period [Member] | Developed Technology [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Impact of change in useful life of intangible asset | $ 200,000 | $ 1,600,000 | |||||||||
Minimum [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Estimated useful lives | 2 years | ||||||||||
Revenue growth rate | 4.00% | ||||||||||
Fair value related to goodwill assessment | 14.00% | 14.00% | 14.00% | ||||||||
Maximum [Member] | |||||||||||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | |||||||||||
Estimated useful lives | 16 years | ||||||||||
Revenue growth rate | 12.00% | ||||||||||
Fair value related to goodwill assessment | 30.00% | 30.00% | 30.00% |
Goodwill and Long-Lived Intan60
Goodwill and Long-Lived Intangible Assets - Schedule of Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 43,652 | |
2,019 | 35,770 | |
2,020 | 19,331 | |
2,021 | 7,253 | |
2,022 | 5,003 | |
Thereafter | 11,999 | |
Net carrying amount - Intangible assets | $ 123,008 | $ 122,997 |
Goodwill and Long-Lived Intan61
Goodwill and Long-Lived Intangible Assets - Schedule of Goodwill Rollforward (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | ||
Beginning Balance | $ 359,841 | $ 338,793 |
Additions | 21,234 | 29,573 |
Opening balance sheet adjustments | 689 | (834) |
Foreign currency adjustments | 21,514 | (7,691) |
Ending Balance | 403,278 | 359,841 |
Accumulated Impairment, Ending Balance | 103,991 | |
Industrial Inkjet [Member] | ||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | ||
Beginning Balance | 141,068 | 142,183 |
Additions | 1,426 | |
Opening balance sheet adjustments | (171) | |
Foreign currency adjustments | 13,305 | (2,370) |
Ending Balance | 154,373 | 141,068 |
Accumulated Impairment, Ending Balance | 103,991 | |
Productivity Software [Member] | ||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | ||
Beginning Balance | 155,475 | 133,128 |
Additions | 11,632 | 28,147 |
Opening balance sheet adjustments | 10 | (663) |
Foreign currency adjustments | 7,527 | (5,137) |
Ending Balance | 174,644 | 155,475 |
Fiery [Member] | ||
Purchased Identified Intangible Assets resulting from Acquisitions [Line Items] | ||
Beginning Balance | 63,298 | 63,482 |
Additions | 9,602 | |
Opening balance sheet adjustments | 679 | |
Foreign currency adjustments | 682 | (184) |
Ending Balance | $ 74,261 | $ 63,298 |
Investments and Fair Value Me62
Investments and Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2017USD ($)Transactions$ / shares | Dec. 31, 2016USD ($)Transactions$ / shares | Dec. 31, 2015USD ($) | |
Investments And Fair Value Measurements [Line Items] | ||||
Maturity of highly liquid investments | Three months or less | |||
Maturity of marketable investments | Greater than three months | |||
Net unrealized gains (losses) on sale of securities included in other comprehensive income | $ 1,100,000 | $ 1,100,000 | $ 800,000 | |
Available-for-sale securities, net realized gains | 300,000 | 400,000 | $ 100,000 | |
Available-for-sale securities, realized gains | $ 300,000 | 400,000 | ||
Available-for-sale securities, realized losses | 0 | |||
Net Asset Value per share | $ / shares | $ 1 | $ 1 | ||
Transfers between Level 1 and 2 | Transactions | 0 | 0 | ||
Fair value of liability | $ 35,702,000 | $ 35,702,000 | $ 56,463,000 | $ 54,796,000 |
Contingent consideration, current | 14,922,000 | 14,922,000 | 19,244,000 | |
Contingent consideration, noncurrent | 20,800,000 | 20,800,000 | ||
Payments | 30,924,000 | 28,111,000 | ||
Increase in fair value of contingent consideration resulting from a change in discount rate | 2,000,000 | |||
Decrease in fair value of contingent consideration resulting from a change in discount rate | $ 2,500,000 | |||
Probability-adjusted revenue | 5.00% | |||
Percentage of increase or decrease in the fair value of contingent consideration | 1.00% | |||
Notional amount of derivative assets and liabilities | 239,400,000 | $ 239,400,000 | 161,800,000 | |
Increase in Fair Value [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Change in fair value of contingent consideration | 400,000 | |||
Decrease in Fair Value [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Change in fair value of contingent consideration | 400,000 | |||
Maximum Potential Payment [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 12,000,000 | |||
Designated as Cash Flow Hedges [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Notional amount of derivative assets and liabilities | 3,900,000 | 3,900,000 | 3,200,000 | |
Shuttleworth [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 1,200,000 | |||
Rialco Limited [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value of liability | 2,109,000 | |||
Contingent consideration, current | 1,300,000 | 1,300,000 | ||
Contingent consideration, noncurrent | 2,100,000 | 2,100,000 | ||
Payments | 1,300,000 | |||
Reggiani And Matan [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 21,500,000 | 23,800,000 | ||
Direct Smile [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 3,600,000 | |||
SmartLinc, Inc. [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 400,000 | |||
Metrix [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Payments | 200,000 | |||
Optitex Ltd and CTI [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Change in fair value of contingent consideration | 6,500,000 | |||
Rialco, Optitex, Reggiani, DirectSmile, and CTI [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Change in fair value of contingent consideration | 6,800,000 | |||
All Acquisitions [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Earnout interest accretion | 1,700,000 | 2,700,000 | ||
Optitex Ltd [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value of liability | $ 22,300,000 | |||
Contingent consideration, current | 9,100,000 | 9,100,000 | ||
Contingent consideration, noncurrent | 11,800,000 | 11,800,000 | ||
Change in fair value of contingent consideration | $ 2,000,000 | |||
Payments | $ 6,800,000 | |||
Earnout [Member] | Rialco Limited [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 0.80% | |||
Earnout Achievement Probability Minimum [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Probability of achieving revenue | 50.00% | 50.00% | 50.00% | |
Earnout Achievement Probability Maximum [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Probability of achieving revenue | 100.00% | 100.00% | 100.00% | |
Minimum [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 14.00% | 14.00% | 14.00% | |
Minimum [Member] | Monte Carlo Valuation Method [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 0.60% | 0.60% | ||
Minimum [Member] | Earnout [Member] | Probability-Adjusted Method [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 4.70% | 4.70% | ||
Maximum [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 30.00% | 30.00% | 30.00% | |
Maximum [Member] | Monte Carlo Valuation Method [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 4.98% | 4.98% | ||
Maximum [Member] | Earnout [Member] | Probability-Adjusted Method [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Fair value discount rate | 6.00% | 6.00% | ||
Money Market Funds [Member] | ||||
Investments And Fair Value Measurements [Line Items] | ||||
Net Asset Value per share | $ / shares | $ 1 | $ 1 | $ 1 |
Investments and Fair Value Me63
Investments and Fair Value Measurements - Available-for-Sale Short-Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 149,815 | $ 296,185 |
Gross unrealized gains | 44 | 233 |
Gross unrealized losses | (1,162) | (990) |
Fair value | 148,697 | 295,428 |
U.S. Government and Sponsored Entities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 59,824 | 70,893 |
Gross unrealized gains | 49 | |
Gross unrealized losses | (660) | (348) |
Fair value | 59,164 | 70,594 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 79,356 | 198,166 |
Gross unrealized gains | 102 | |
Gross unrealized losses | (450) | (621) |
Fair value | 78,906 | 197,647 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 382 | 1,278 |
Gross unrealized losses | (2) | (1) |
Fair value | 380 | 1,277 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 9,808 | 24,233 |
Gross unrealized gains | 44 | 79 |
Gross unrealized losses | (47) | (17) |
Fair value | 9,805 | 24,295 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 445 | 1,615 |
Gross unrealized gains | 3 | |
Gross unrealized losses | (3) | (3) |
Fair value | $ 442 | $ 1,615 |
Investments and Fair Value Me64
Investments and Fair Value Measurements - Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 76,199 | $ 179,428 |
Less than 12 Months, Unrealized Losses | (448) | (938) |
More than 12 Months, Fair Value | 71,712 | 17,922 |
More than 12 Months, Unrealized Losses | (714) | (52) |
Total, Fair Value | 147,911 | 197,350 |
Total, Unrealized Losses | (1,162) | (990) |
U.S. Government and Sponsored Entities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 23,023 | 39,810 |
Less than 12 Months, Unrealized Losses | (206) | (348) |
More than 12 Months, Fair Value | 35,989 | |
More than 12 Months, Unrealized Losses | (454) | |
Total, Fair Value | 59,012 | 39,810 |
Total, Unrealized Losses | (660) | (348) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 45,857 | 133,382 |
Less than 12 Months, Unrealized Losses | (207) | (581) |
More than 12 Months, Fair Value | 32,634 | 13,158 |
More than 12 Months, Unrealized Losses | (243) | (40) |
Total, Fair Value | 78,491 | 146,540 |
Total, Unrealized Losses | (450) | (621) |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 378 | 1,268 |
Less than 12 Months, Unrealized Losses | (2) | (1) |
Total, Fair Value | 378 | 1,268 |
Total, Unrealized Losses | (2) | (1) |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 6,779 | 4,540 |
Less than 12 Months, Unrealized Losses | (31) | (7) |
More than 12 Months, Fair Value | 2,947 | 4,611 |
More than 12 Months, Unrealized Losses | (16) | (10) |
Total, Fair Value | 9,726 | 9,151 |
Total, Unrealized Losses | (47) | (17) |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 162 | 428 |
Less than 12 Months, Unrealized Losses | (2) | (1) |
More than 12 Months, Fair Value | 142 | 153 |
More than 12 Months, Unrealized Losses | (1) | (2) |
Total, Fair Value | 304 | 581 |
Total, Unrealized Losses | $ (3) | $ (3) |
Investments and Fair Value Me65
Investments and Fair Value Measurements - Amortized Cost and Estimated Fair Value of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Mature in less than one year, Amortized cost | $ 43,862 | |
Mature in one to three years, Amortized cost | 105,953 | |
Amortized cost | 149,815 | $ 296,185 |
Mature in less than one year, Fair value | 43,741 | |
Mature in one to three years, Fair value | 104,956 | |
Total short-term investments, Fair value | $ 148,697 | $ 295,428 |
Investments and Fair Value Me66
Investments and Fair Value Measurements - Investments in Accordance with Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | $ 158,594 | $ 319,003 | |
Contingent consideration, current and noncurrent | 35,702 | 56,463 | $ 54,796 |
Self-insurance | 902 | 1,542 | |
Liabilities | 36,604 | 58,005 | |
Money Market Funds [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 9,897 | 23,575 | |
U.S. Government and Sponsored Entities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 59,164 | 70,594 | |
Corporate Debt Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 78,906 | 197,647 | |
Municipal Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 380 | 1,277 | |
Asset-Backed Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 9,805 | 24,295 | |
Mortgage-Backed Securities - Residential [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 442 | 1,615 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 43,158 | 75,445 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 9,897 | 23,575 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government and Sponsored Entities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 33,261 | 51,870 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 115,385 | 243,491 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Sponsored Entities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 25,903 | 18,724 | |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 78,906 | 197,647 | |
Significant Other Observable Inputs (Level 2) [Member] | Municipal Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 380 | 1,277 | |
Significant Other Observable Inputs (Level 2) [Member] | Asset-Backed Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 9,754 | 24,228 | |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities - Residential [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 442 | 1,615 | |
Unobservable Inputs (Level 3) [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | 51 | 67 | |
Contingent consideration, current and noncurrent | 35,702 | 56,463 | |
Self-insurance | 902 | 1,542 | |
Liabilities | 36,604 | 58,005 | |
Unobservable Inputs (Level 3) [Member] | Asset-Backed Securities [Member] | |||
Investments And Fair Value Measurements [Line Items] | |||
Total Investments | $ 51 | $ 67 |
Investments and Fair Value Me67
Investments and Fair Value Measurements - Summary of Changes in Fair Value Contingent Consideration (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Changes in valuation | $ 6,472 | $ 6,813 | |
Payments | (30,924) | (28,111) | |
Foreign currency adjustment | 2,753 | (1,444) | |
Fair value of contingent consideration | 35,702 | 56,463 | $ 54,796 |
Rialco Limited [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Payments | (1,300) | ||
Fair value of contingent consideration | $ 2,109 | ||
Date of acquisition agreement | Mar. 1, 2016 | ||
Optitex Ltd [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Payments | (6,800) | ||
Fair value of contingent consideration | $ 22,300 | ||
Date of acquisition agreement | Jun. 16, 2016 | ||
Generation Digital Solutions, Inc. [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Fair value of contingent consideration | $ 3,600 | ||
Date of acquisition agreement | Aug. 14, 2017 | ||
Escada [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Fair value of contingent consideration | $ 2,049 | ||
Date of acquisition agreement | Oct. 1, 2017 | ||
Reggiani [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Escrow adjustment for Reggiani acquisition | $ (4,711) | ||
Payments | $ (21,500) | $ (23,800) |
Investments and Fair Value Me68
Investments and Fair Value Measurements - Additional Information1 (Detail) - Convertible Senior Notes Due 2019 [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2014 |
Investments And Fair Value Measurements [Line Items] | ||
Aggregate principal amount of debt issued | $ 345 | |
Fair value of notes issued | $ 335 |
Convertible Senior Notes, Not69
Convertible Senior Notes, Note Hedges, and Warrants - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Interest rate of debt, stated percentage | 0.75% | 0.75% | 0.75% | |
Net carrying amount | $ 318,957,000 | $ 304,484,000 | ||
Aggregate amount paid for Note Hedges | $ 63,900,000 | |||
Proceeds from sale of warrants | 34,500,000 | |||
Liability Component [Member] | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | 318,957,000 | 304,484,000 | ||
Equity Component [Member] | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | 62,061,000 | 62,061,000 | ||
Equity Component Gross Value [Member] | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 63,643,000 | $ 63,643,000 | ||
0.75% Convertible Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | $ 345,000,000 | |||
Interest rate of debt, stated percentage | 0.75% | 0.75% | ||
Debt instrument, maturity year | 2,019 | |||
Net proceeds from issuance of debt | $ 336,300,000 | |||
Net proceeds used to purchase Note Hedges | $ 29,400,000 | |||
Debt instrument, description | The Notes are senior unsecured obligations of EFI with interest payable semiannually in arrears on March 1 and September 1 of each year, commencing March 1, 2015. The Notes are not callable and will mature on September 1, 2019, unless previously purchased or converted in accordance with their terms prior to such date. | |||
Conversion rate, number of share per $1,000 principal amount | 18.9667 | |||
Conversion rate, principal amount of Notes | $ 1,000 | |||
Initial conversion price | $ 52.72 | |||
Debt instrument, Conversion rate description | • if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (“Notes Measurement Period”) in which the “trading price” (as the term is defined in the Indenture) per $1,000 principal amount of Notes for each trading day of such Notes Measurement Period was less than 98% of the product of the last reported stock price on such trading day and the conversion rate on each such trading day; • upon the occurrence of specified corporate events; or • at any time on or after March 1, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date. | |||
Conversion threshold minimum stock price as a percentage of conversion price | 130.00% | |||
Effective interest rate percentage | 4.98% | 4.98% | ||
Deferred tax liability | $ 23,700,000 | |||
Common stock strike price per share | $ 68.86 | |||
0.75% Convertible Senior Notes Due 2019 [Member] | Debt Issuance Costs [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate percentage | 5.46% | |||
0.75% Convertible Senior Notes Due 2019 [Member] | Liability Component [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 7,000,000 | |||
0.75% Convertible Senior Notes Due 2019 [Member] | Equity Component [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 1,600,000 |
Convertible Senior Notes, Not70
Convertible Senior Notes, Note Hedges, and Warrants - Schedule of Convertible Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 318,957 | $ 304,484 |
Liability Component Gross Value [Member] | ||
Debt Instrument [Line Items] | ||
Liability component | 345,000 | 345,000 |
Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Debt discount, net of amortization | (23,178) | (36,115) |
Debt issuance costs, net of amortization | (2,865) | (4,401) |
Net carrying amount | 318,957 | 304,484 |
Equity Component Gross Value [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 63,643 | 63,643 |
Equity Component [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net of amortization | (1,582) | (1,582) |
Net carrying amount | $ 62,061 | $ 62,061 |
Convertible Senior Notes, Not71
Convertible Senior Notes, Note Hedges, and Warrants - Summary of Interest Expense Recognized Related to Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
0.75% coupon | $ 2,580 | $ 2,588 | $ 2,595 |
Amortization of debt issuance costs | 1,536 | 1,350 | 1,396 |
Amortization of debt discount | 12,937 | 12,400 | 11,667 |
Interest expense on Convertible Senior Notes | $ 17,053 | $ 16,338 | $ 15,658 |
Convertible Senior Notes, Not72
Convertible Senior Notes, Note Hedges, and Warrants - Summary of Interest Expense Recognized Related to Notes (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | |||
Interest rate of debt, stated percentage | 0.75% | 0.75% | 0.75% |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments under Non-Cancellable Operating Leases and Future Minimum Sublease Receipts (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018, Future Minimum Lease Payments | $ 9,114 |
2019, Future Minimum Lease Payments | 7,574 |
2020, Future Minimum Lease Payments | 7,415 |
2021, Future Minimum Lease Payments | 6,028 |
2022, Future Minimum Lease Payments | 4,225 |
Thereafter, Future Minimum Lease Payments | 32,268 |
Total, Future Minimum Lease Payments | 66,624 |
2018, Future Minimum Sublease Receipts | 434 |
2019, Future Minimum Sublease Receipts | 231 |
2020, Future Minimum Sublease Receipts | 27 |
2021, Future Minimum Sublease Receipts | 0 |
2022, Future Minimum Sublease Receipts | 0 |
Thereafter, Future Minimum Sublease Receipts | 0 |
Total, Future Minimum Sublease Receipts | $ 692 |
Commitments and Contingencies74
Commitments and Contingencies - Real Estate (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum [Member] | Matan Digital Printers [Member] | |||
Commitments And Contingencies [Line Items] | |||
Estimated material loss from outstanding claim in business acquisition | $ 1 | ||
Maximum [Member] | Matan Digital Printers [Member] | |||
Commitments And Contingencies [Line Items] | |||
Estimated material loss from outstanding claim in business acquisition | 10,100,000 | ||
Facilities [Member] | |||
Commitments And Contingencies [Line Items] | |||
Rent expenses | 8,100,000 | $ 8,800,000 | $ 8,000,000 |
Vehicle [Member] | |||
Commitments And Contingencies [Line Items] | |||
Rent expenses | $ 2,800,000 | $ 2,800,000 | $ 2,500,000 |
Fiery [Member] | Industrial Inkjet [Member] | Minimum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Limited warranty period | 12 months | ||
Fiery [Member] | Industrial Inkjet [Member] | Maximum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Limited warranty period | 15 months |
Commitments and Contingencies75
Commitments and Contingencies - Changes in Product Warranty Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning Balance | $ 10,319 | $ 9,635 |
Liability assumed upon acquiring FFPS | 10,362 | |
Provisions, net of releases | 13,487 | 12,715 |
Settlements | (17,833) | (12,031) |
Ending Balance | $ 16,335 | $ 10,319 |
Common Stock Repurchase Progr76
Common Stock Repurchase Programs - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 09, 2015 | |
Stock Repurchase Program [Line Items] | ||||
Aggregate purchase price | $ 101,844,000 | $ 83,291,000 | $ 76,447,000 | |
Share Repurchase Program 2013 [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Repurchase of common stock, authorized amount | $ 150,000,000 | |||
Aggregate shares repurchased | 2,400,000 | 1,800,000 | ||
Aggregate purchase price | $ 91,400,000 | $ 74,200,000 | ||
Net Share Settlement [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Aggregate shares repurchased | 200,000 | |||
Value of shares surrendered to satisfy tax withholding obligations | $ 9,100,000 | $ 10,500,000 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | $ 239,400,000 | $ 161,800,000 |
Designated as Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | 3,900,000 | 3,200,000 |
Brazilian Real, British Pound Sterling, Israeli Shekel, Australian dollar, Japanese Yen, Chinese renminbi and Euro Denominated Intercompany Balances [Member] | Not Designated for Hedge Accounting Treatment [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | 144,500,000 | 90,700,000 |
Brazilian Real, British Pound Sterling, Australian Dollar, Israeli Shekel, And Euro-Denominated Trade Receivables [Member] | Not Designated for Hedge Accounting Treatment [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | 44,400,000 | 39,800,000 |
British Pounds Sterling, Indian Rupee, and Euro-Denominated other net monetary assets. | Not Designated for Hedge Accounting Treatment [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | 46,600,000 | 28,200,000 |
Foreign Exchange Contracts [Member] | Designated as Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | 3,900,000 | 3,200,000 |
Forward Contracts [Member] | Not Designated for Hedge Accounting Treatment [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | $ 235,500,000 | $ 158,700,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (27,926) | $ 8,254 | $ 9,311 |
Foreign | 40,056 | 30,394 | 26,257 |
Income before income taxes | $ 12,130 | $ 38,648 | $ 35,568 |
Income Taxes - Provision for (B
Income Taxes - Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal | $ 6,897 | $ (7,593) | $ 3,755 |
State | (2,926) | 662 | 1,813 |
Foreign | 14,751 | 11,721 | 5,798 |
Total current | 18,722 | 4,790 | 11,366 |
U.S. Federal | 15,304 | (4,276) | (3,119) |
State | 732 | (567) | (583) |
Foreign | (7,283) | (6,248) | (4,295) |
Total deferred | 8,753 | (11,091) | (7,997) |
Provision for (benefit from) income taxes | $ 27,475 | $ (6,301) | $ 3,369 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Income Tax Provision (Benefit) Computed at Federal Statutory Rate and Actual Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at federal statutory rate | $ 4,246 | $ 13,527 | $ 12,449 |
State income taxes, net of federal benefit | (1,426) | 62 | 800 |
Research and development credits | (1,508) | (2,627) | (4,217) |
Effect of foreign operations | (1,344) | (3,320) | (3,412) |
Deemed repatriation transition tax | 16,976 | ||
Provision for remeasuring deferred tax balances | 10,450 | ||
Reduction in accrual for estimated potential tax assessments | (1,676) | (15,404) | (4,808) |
Non-deductible stock-based compensation pursuant to ASC 718-740 | 1,249 | 1,288 | 3,244 |
Domestic manufacturing deduction | (831) | (878) | |
Meals and entertainment | 500 | 475 | 474 |
Other | 8 | 529 | (283) |
Provision for (benefit from) income taxes | $ 27,475 | $ (6,301) | $ 3,369 |
Tax provision at federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | (11.80%) | 0.20% | 2.20% |
Research and development credits | (12.40%) | (6.80%) | (11.90%) |
Effect of foreign operations | (11.10%) | (8.50%) | (9.50%) |
Deemed repatriation transition tax | 139.80% | ||
Provision for remeasuring deferred tax balances | 86.10% | ||
Reduction in accrual for estimated potential tax assessments | (13.70%) | (39.90%) | (13.40%) |
Non-deductible stock-based compensation pursuant to ASC 718-740 | 10.30% | 3.30% | 9.10% |
Domestic manufacturing deduction | (2.20%) | (2.50%) | |
Meals and entertainment | 4.10% | 1.20% | 1.30% |
Other | 0.10% | 1.40% | (0.80%) |
Provision for (benefit from) income taxes | 226.40% | (16.30%) | 9.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||
U.S. Statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Tax charge | $ 27,500 | $ 27,500 | |||
Estimated charges related to deemed repatriation transition tax | 16,976 | ||||
Estimated charges related to remeasurement of U.S. deferred tax assets and liabilities | 10,450 | ||||
Estimated charges related to deemed repatriation transition tax, gross | 27,000 | ||||
Foreign tax credits | (1,344) | $ (3,320) | $ (3,412) | ||
Tax benefit from release of previously unrecognized tax benefits | 3,500 | ||||
Unremitted foreign earnings reinvested | 214,900 | 214,900 | |||
Unrecognized tax benefits that would affect the effective tax rate if recognized | 33,900 | 33,900 | 32,000 | 43,500 | |
Amounts netted against related deferred tax assets | 400 | 400 | 1,100 | 1,000 | |
Gross unrecognized tax benefits decrease in next 12 months | 5,500 | 5,500 | |||
Offset to deferred tax assets for unrecognized tax benefits | 16,900 | ||||
Estimated unrecognized tax benefits | 17,000 | 17,000 | |||
Accrued interest and penalties related to unrecognized tax benefits | 700 | $ 700 | 500 | $ 500 | |
Deferred tax assets related to excess tax benefits for federal research and development income tax credits | 2,200 | ||||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
U.S. Statutory income tax rate | 21.00% | ||||
RSU Forfeitures [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets for tax benefit on cumulative effect adjustment associated with change in accounting | $ 600 | ||||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Losses and credit expire | 2,022 | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Losses and credit expire | 2,027 | ||||
U.S. federal [Member] | |||||
Income Taxes [Line Items] | |||||
Loss carryforwards | 13,700 | $ 13,700 | |||
Credit carryforwards | 36,300 | 36,300 | |||
State [Member] | |||||
Income Taxes [Line Items] | |||||
Loss carryforwards | 49,500 | 49,500 | |||
Credit carryforwards | $ 38,000 | $ 38,000 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that Give Rise to Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Tax credit carryforwards | $ 62,096 | $ 63,985 |
Net operating loss carryforwards | 9,066 | 10,055 |
Reserves and accruals not currently deductible for tax purposes | 8,785 | 14,079 |
Stock-based compensation | 3,432 | 8,487 |
Deferred revenue | 1,332 | 1,642 |
Other | 6,374 | 6,971 |
Gross deferred tax assets | 91,085 | 105,219 |
Depreciation and amortization | (11,075) | (17,845) |
State Taxes | (1,073) | (2,092) |
Gross deferred tax liabilities | (12,148) | (19,937) |
Deferred tax valuation allowance | (45,506) | (42,406) |
Net deferred tax assets | $ 33,431 | $ 42,876 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Ending Balance | $ 17 | ||
Federal, State, and Foreign Tax [Member] | |||
Income Tax Contingency [Line Items] | |||
Beginning Balance | 35.4 | $ 46.1 | $ 34.2 |
Additions for tax positions of prior years | 1.7 | 1.8 | 14.1 |
Additions for tax positions | 4.5 | 3.9 | 4.7 |
Reductions due to lapse of applicable statute of limitations | (4.1) | (16.4) | (6.9) |
Ending Balance | 37.5 | 35.4 | 46.1 |
Accrued Interest and Penalties [Member] | |||
Income Tax Contingency [Line Items] | |||
Beginning Balance | 0.5 | 0.5 | 0.8 |
Additions for tax positions of prior years | 0.3 | 0.2 | 0.2 |
Reductions due to lapse of applicable statute of limitations | (0.1) | (0.2) | (0.5) |
Ending Balance | 0.7 | 0.5 | 0.5 |
Gross Unrecognized Income Tax Benefits [Member] | |||
Income Tax Contingency [Line Items] | |||
Beginning Balance | 35.9 | 46.6 | 35 |
Additions for tax positions of prior years | 2 | 2 | 14.3 |
Additions for tax positions | 4.5 | 3.9 | 4.7 |
Reductions due to lapse of applicable statute of limitations | (4.2) | (16.6) | (7.4) |
Ending Balance | $ 38.2 | $ 35.9 | $ 46.6 |
Income Taxes - Open Tax Years -
Income Taxes - Open Tax Years - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Earliest Tax Year [Member] | State Tax Jurisdictions [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,013 |
Earliest Tax Year [Member] | Internal Revenue Service [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,014 |
Earliest Tax Year [Member] | Netherlands Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,014 |
Earliest Tax Year [Member] | Spanish Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,013 |
Earliest Tax Year [Member] | Italian Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,013 |
Earliest Tax Year [Member] | Israel Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,014 |
Latest Tax Year [Member] | State Tax Jurisdictions [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Latest Tax Year [Member] | Internal Revenue Service [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Latest Tax Year [Member] | Netherlands Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Latest Tax Year [Member] | Spanish Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Latest Tax Year [Member] | Italian Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Latest Tax Year [Member] | Israel Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Open tax year | 2,016 |
Employee Benefit Plans - Equity
Employee Benefit Plans - Equity Incentive Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017EmployeePlanshares | Dec. 31, 2016shares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of prior equity incentive plans with outstanding equity awards | Plan | 0 | ||
2009 Equity Incentive Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of prior equity incentive plans with outstanding equity awards | Plan | 0 | ||
Shares outstanding | 1,300,000 | 2,400,000 | 2,300,000 |
2009 Equity Incentive Award Plan [Member] | Employees and Consultants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees eligible to participate in plan | Employee | 3,900 | ||
2009 Equity Incentive Award Plan [Member] | Non-Employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees eligible to participate in plan | Employee | 5 | ||
2009 Equity Incentive Award Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Expiration period | 7 years | ||
Option price as percentage of fair market value | 100.00% | ||
2009 Equity Incentive Award Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
2017 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares approved for issuance | 1,200,000 | ||
Common stock shares available for future grants | 1,900,000 | ||
Shares outstanding | 1,000,000 | ||
2009 Equity Incentive Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock shares available for future grants | 1,593,660 |
Employee Benefit Plans - Amende
Employee Benefit Plans - Amended and Restated 2000 Employee Stock Purchase Plan - Additional Information (Detail) - ESPP Purchase Rights [Member] - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 04, 2013 | |
Employee Stock Purchase Plan [Line Items] | ||||
Increase in the number of shares available to be sold under the ESPP | 2 | |||
Shares issued under the ESPP | 0.3 | 0.3 | 0.3 | |
Stock issued under ESPP, average purchase price | $ 35.18 | $ 32.88 | $ 31.66 | |
Total unrecognized compensation cost related to stock-based compensation arrangements granted under the ESPP | $ 1,900,000 | |||
Unrecognized compensation cost related to stock-based compensation arrangements granted under the ESPP, recognition period | 1 year 9 months 18 days | |||
Shares available for issuance under the ESPP | 0.9 | 1.2 | 1.5 | |
Minimum [Member] | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Percentage of employee contribution to plan from base salary | 1.00% | |||
Maximum value of shares employees can purchase | $ 25,000 | |||
Maximum [Member] | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Percentage of employee contribution to plan from base salary | 10.00% | |||
Option price as percentage of fair market value | 85.00% | |||
Maximum offering period | 27 months |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee 401(k) Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage employee contribution matched by the Company | 50.00% | ||
Maximum employee contribution matched by the Company | 4.00% | ||
401k vesting period | 4 years | ||
Employee contribution matched by the company | $ 2.3 | $ 2.2 | $ 2.3 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees contribution out of annual compensation | 1.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employees contribution out of annual compensation | 75.00% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 26,532 | $ 31,826 | $ 34,071 |
Income tax benefit | (8,188) | (10,342) | (9,436) |
Stock-based compensation expense, net of tax | 18,344 | 21,484 | 24,635 |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 21,887 | 28,952 | 29,671 |
ESPP Purchase Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 4,645 | 2,795 | 4,003 |
Employee Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense (benefit) | $ 79 | $ 397 |
Employee Benefit Plans - Valuat
Employee Benefit Plans - Valuation Assumptions for Stock Options and ESPP Purchase - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options granted | 0 | 0 | 0 |
Employee Benefit Plans - Sche90
Employee Benefit Plans - Schedule of ESPP Purchase Rights and Underlying Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 19.00% | ||
Risk-free interest rate | 0.10% | ||
Expected term (in years) | 6 months | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 28.00% | ||
Risk-free interest rate | 0.70% | ||
Expected term (in years) | 2 years | ||
ESPP Purchase Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share | $ 12.09 | $ 10.69 | $ 10.28 |
ESPP Purchase Rights [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 24.00% | 22.00% | |
Risk-free interest rate | 0.70% | 0.40% | |
Expected term (in years) | 6 months | 6 months | |
ESPP Purchase Rights [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 28.00% | 32.00% | |
Risk-free interest rate | 1.30% | 0.80% | |
Expected term (in years) | 2 years | 2 years |
Employee Benefit Plans - Sche91
Employee Benefit Plans - Schedule of Stock Options Outstanding and Exercisable (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares, Options outstanding, beginning balance | 315 | 12 | 566 |
Shares outstanding, Options forfeited and expired | (124) | ||
Shares outstanding, Options exercised | 165 | 115 | 442 |
Shares, Options outstanding, ending balance | 150 | 315 | 12 |
Weighted average exercise price, Options outstanding, beginning balance | $ 13.86 | $ 10.77 | $ 13.67 |
Shares outstanding, Options vested and expected to vest, ending balance | 150 | ||
Weighted average exercise price, Options forfeited and expired | 15.35 | ||
Shares outstanding, Options exercisable, ending balance | 150 | ||
Weighted average exercise price, Options exercised | $ 12.45 | 11.64 | 13.20 |
Weighted average exercise price, Options outstanding, ending balance | 15.43 | $ 13.86 | $ 10.77 |
Weighted average exercise price, Options vested and expected to vest, ending balance | 15.43 | ||
Weighted average exercise price, Options exercisable, ending balance | $ 15.43 | ||
Weighted average remaining contractual term (years), Options outstanding | 1 year 3 months 8 days | 1 year 5 months 16 days | |
Weighted average remaining contractual term (years), Options vested and expected to vest | 1 year 3 months 8 days | ||
Weighted average remaining contractual term (years), Options exercisable | 1 year 3 months 8 days | ||
Aggregate intrinsic value, Options outstanding | $ 2,116 | $ 9,480 | |
Aggregate intrinsic value, Options vested and expected to vest | 2,116 | ||
Aggregate intrinsic value, Options exercisable | $ 2,116 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Activity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 5,300,000 | $ 3,800,000 | $ 3,700,000 |
Unrecognized compensation cost related to stock options | $ 0 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price | $ 14.28 | ||
Weighted average remaining contractual term | 10 months 10 days | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price | $ 16.57 | ||
Weighted average remaining contractual term | 1 year 8 months 5 days |
Employee Benefit Plans - Non-Ve
Employee Benefit Plans - Non-Vested RSUs - Additional Information (Detail) - RSUs [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of restricted stock units granted | $ 35,890 | $ 43,350 | $ 41,610 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Employee Benefit Plans - Sche94
Employee Benefit Plans - Schedule of Non-Vested RSUs (Detail) - RSUs [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested Restricted Stock Units Activity [Line Items] | |||
Non-vested, beginning balance | 2,083 | 1,814 | 2,003 |
Shares, Restricted stock granted | 1,467 | 1,359 | 1,104 |
Shares, Restricted stock vested | (761) | (787) | (925) |
Shares, Restricted stock forfeited | (510) | (303) | (368) |
Non-vested, ending balance | 2,279 | 2,083 | 1,814 |
Weighted average grant date fair value, Non-vested, beginning balance | $ 43.34 | $ 40.53 | $ 35.91 |
Weighted average grant date fair value, Restricted stock granted | 35.89 | 43.35 | 41.61 |
Weighted average grant date fair value, Restricted stock vested | 42.74 | 38.34 | 32.39 |
Weighted average grant date fair value, Restricted stock forfeited | 41.51 | 39.54 | 39.08 |
Weighted average grant date fair value, Non-vested, ending balance | $ 39.16 | $ 43.34 | $ 40.53 |
Employee Benefit Plans - Vested
Employee Benefit Plans - Vested RSUs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 0 | 0 | 0 |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs vested during the year | $ 42,740 | $ 38,340 | $ 32,390 |
Aggregate intrinsic value of RSUs vested and expected to vest | $ 62,700 | ||
Number of RSUs vested and expected to vest | 2,100,000 | ||
Unrecognized compensation expense other than options | $ 34,300 | ||
Weighted average period of recognition of unrecognized compensation cost | 1 year 1 month 24 days | ||
Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested performance-based RSUs | 2.00% | ||
Options granted | 0 | 0 | 0 |
Market-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 0 | 0 | 0 |
Employee Benefit Plans - Sche96
Employee Benefit Plans - Schedule of Performance-Based and Market-Based RSUs and Stock Options (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options, Granted | 0 | 0 | 0 |
Performance-based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Options, Non-vested, beginning balance | 16,000 | 16,000 | |
Stock Options, Granted | 0 | 0 | 0 |
Stock Options, Vested | (4,000) | ||
Stock Options, Forfeited | (12,000) | ||
Stock Options, Non-vested, ending balance | 16,000 | ||
Performance-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, beginning balance | 1,265,000 | 920,000 | 852,000 |
RSUs, Granted | 675,000 | 821,000 | 569,000 |
RSUs, Vested | (284,000) | (226,000) | (284,000) |
RSUs, Forfeited | (447,000) | (250,000) | (217,000) |
Non-vested, ending balance | 1,209,000 | 1,265,000 | 920,000 |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, beginning balance | 23,000 | 23,000 | 34,000 |
RSUs, Granted | 18,000 | ||
RSUs, Vested | (3,000) | ||
RSUs, Forfeited | (26,000) | ||
Non-vested, ending balance | 23,000 | 23,000 | 23,000 |
Employee Benefit Plans - Sche97
Employee Benefit Plans - Schedule of Weighted Average Grant Date Fair Value Per Share of Performance-Based and Market-Based RSUs and Assumptions Used to Estimate Fair Value (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance-based RSUs [Member] | Short-term. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value per share | $ 47.18 | $ 39.79 | $ 38.77 |
Service period (years) | 1 year | 1 year | 1 year |
Performance-based RSUs [Member] | Long-term. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value per share | $ 33.43 | $ 45.76 | $ 42.82 |
Service period, lower range (years) | 2 years | 2 years | 2 years |
Service period, upper range (years) | 3 years | 3 years | 3 years |
Market-based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value per share | $ 33.84 | ||
Derived service period (years) | 1 year 7 months 6 days | ||
Implied volatility | 30.00% | ||
Risk-free interest rate | 1.70% |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Employees | Dec. 31, 2016USD ($)Employees | Dec. 31, 2015USD ($)Employees | |
Reorganizations [Abstract] | |||
Restructuring and other costs | $ 7,562 | $ 6,731 | $ 5,731 |
Severance charges | $ 4,700 | $ 4,100 | $ 3,000 |
Number of head count reductions | Employees | 144 | 128 | 99 |
Facilities relocation and downsizing expenses | $ 600 | $ 500 | $ 900 |
Integration expenses | $ 2,300 | $ 2,100 | $ 1,800 |
Restructuring and Other - Restr
Restructuring and Other - Restructuring and Other Reserve Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Reserve balance at January 1 | $ 1,824 | $ 3,019 |
Restructuring charges | 5,136 | 2,808 |
Other charges | 2,424 | 3,921 |
Non-cash restructuring and other | (264) | (403) |
Cash payments | (6,668) | (7,521) |
Reserve balance at December 31 | $ 2,452 | $ 1,824 |
Segment Information, Geograp100
Segment Information, Geographic Regions, and Major Customers - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | Segment | 3 | ||||||||||
Gross profit | $ 128,216 | $ 127,458 | $ 127,252 | $ 123,530 | $ 139,527 | $ 125,194 | $ 125,047 | $ 118,397 | $ 506,456 | $ 508,165 | $ 457,430 |
Property and equipment, net | $ 98,762 | $ 103,474 | $ 98,762 | $ 103,474 | |||||||
Customers providing more than 10% of revenues | 10.00% | ||||||||||
Accounts receivable of net consolidated receivable | 10.00% | 10.00% | 10.00% | 10.00% | |||||||
Fiery [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $ 1,400 | ||||||||||
Gross profit percentage excluding amount charged to cost of revenue | 70.40% | ||||||||||
Xerox [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customers providing more than 10% of revenues | 11.00% | 12.00% | |||||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property and equipment, net | $ 77,700 | $ 77,700 | |||||||||
Europe, Middle East, and Africa ("EMEA") [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property and equipment, net | 19,100 | 19,100 | |||||||||
Asia Pacific ("APAC") [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property and equipment, net | $ 2,000 | $ 2,000 |
Segment Information, Geograp101
Segment Information, Geographic Regions, and Major Customers - Summary of Operating Segment Profit (Gross Profit), Excluding Stock-Based Compensation Expense by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 269,163 | $ 248,359 | $ 247,047 | $ 228,691 | $ 266,707 | $ 245,575 | $ 245,650 | $ 234,133 | $ 993,260 | $ 992,065 | $ 882,513 |
Industrial Inkjet [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 570,688 | 562,583 | 447,705 | ||||||||
Gross profit | $ 208,620 | $ 198,923 | $ 150,964 | ||||||||
Gross profit percentages | 36.60% | 35.40% | 33.70% | ||||||||
Productivity Software [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 156,561 | $ 151,737 | $ 135,350 | ||||||||
Gross profit | $ 114,460 | $ 114,179 | $ 99,278 | ||||||||
Gross profit percentages | 73.10% | 75.20% | 73.30% | ||||||||
Fiery [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 266,011 | $ 277,745 | $ 299,458 | ||||||||
Gross profit | $ 185,937 | $ 198,322 | $ 210,140 | ||||||||
Gross profit percentages | 69.90% | 71.40% | 70.20% |
Segment Information, Geograp102
Segment Information, Geographic Regions, and Major Customers - Reconciliation of Operating Segment Gross Profit to Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Stock-based compensation expense | $ (26,532) | $ (31,826) | $ (34,071) | ||||||||
Gross profit | $ 128,216 | $ 127,458 | $ 127,252 | $ 123,530 | $ 139,527 | $ 125,194 | $ 125,047 | $ 118,397 | 506,456 | 508,165 | 457,430 |
Cost of Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Stock-based compensation expense | (2,561) | (2,784) | (2,837) | ||||||||
Material Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other items excluded from segment profit | (475) | (115) | |||||||||
Gross profit | 506,456 | 508,165 | 457,430 | ||||||||
Material Reconciling Items [Member] | Segment Profit [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment gross profit | 509,017 | 511,424 | 460,382 | ||||||||
Material Reconciling Items [Member] | Cost of Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Stock-based compensation expense | $ (2,561) | $ (2,784) | $ (2,837) |
Segment Information, Geograp103
Segment Information, Geographic Regions, and Major Customers - Tangible and Intangible Assets, Net of Liabilities, Summarized by Operating Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 403,278 | $ 359,841 | $ 338,793 | |
Identified intangible assets, net | 123,008 | 122,997 | ||
Tangible assets, net of liabilities | 255,025 | 343,177 | ||
Total stockholders' equity | 781,311 | 826,015 | 822,902 | $ 788,689 |
Industrial Inkjet [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 154,373 | 141,068 | 142,183 | |
Productivity Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 174,644 | 155,475 | 133,128 | |
Fiery [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 74,261 | 63,298 | $ 63,482 | |
Operating Segment [Member] | Industrial Inkjet [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 154,373 | 141,068 | ||
Identified intangible assets, net | 66,547 | 84,465 | ||
Tangible assets, net of liabilities | 221,933 | 153,699 | ||
Total stockholders' equity | 442,853 | 379,232 | ||
Operating Segment [Member] | Productivity Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 174,644 | 155,475 | ||
Identified intangible assets, net | 36,379 | 38,440 | ||
Tangible assets, net of liabilities | (27,755) | (27,646) | ||
Total stockholders' equity | 183,268 | 166,269 | ||
Operating Segment [Member] | Fiery [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 74,261 | 63,298 | ||
Identified intangible assets, net | 20,082 | 92 | ||
Tangible assets, net of liabilities | 11,286 | 33,966 | ||
Total stockholders' equity | 105,629 | 97,356 | ||
Corporate and Unallocated Net Assets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Tangible assets, net of liabilities | 49,561 | 183,158 | ||
Total stockholders' equity | $ 49,561 | $ 183,158 |
Segment Information, Geograp104
Segment Information, Geographic Regions, and Major Customers - Revenue by Ship-to Destination (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 269,163 | $ 248,359 | $ 247,047 | $ 228,691 | $ 266,707 | $ 245,575 | $ 245,650 | $ 234,133 | $ 993,260 | $ 992,065 | $ 882,513 |
Americas [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 487,968 | 500,411 | 473,599 | ||||||||
Europe, Middle East, and Africa ("EMEA") [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 369,610 | 360,305 | 291,103 | ||||||||
Asia Pacific ("APAC") [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 135,682 | $ 131,349 | $ 117,811 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land, buildings, and improvements (including build-to-suit lease) | $ 68,404 | $ 67,841 |
Equipment and purchased software | 93,849 | 86,665 |
Furniture and leasehold improvements | 20,270 | 18,713 |
Property, plant and equipment, gross | 182,523 | 173,219 |
Less accumulated depreciation and amortization | (83,761) | (69,745) |
Property and equipment, net | $ 98,762 | $ 103,474 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) | Apr. 13, 2017USD ($)ft²a | Aug. 26, 2016USD ($)ft²aRenewal_Options | Sep. 01, 2013USD ($)ft² | Dec. 31, 2017USD ($)ft²a | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation expense | $ 16,800,000 | $ 14,100,000 | $ 12,200,000 | |||
Imputed financing obligation | 13,944,000 | 14,152,000 | ||||
Assets held for sale | 4,200,000 | 3,781,000 | ||||
Minimum lease payments | 66,624,000 | |||||
Cost of manufacturing and warehouse facility under construction | 98,762,000 | 103,474,000 | ||||
Impairment loss | $ 900,000 | 0 | $ 0 | |||
Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Building Lease [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Lease term | 6 years | |||||
Area of real estate property | ft² | 225,000 | |||||
Minimum lease payments | $ 1,800,000 | |||||
Residual value guarantee percentage | 89.00% | |||||
Lease arrangement description | Upon completion of the initial six-year term, we have the option to renew the lease, purchase the facility, or return the facility to BTMU subject to an 89% residual value guarantee under which we would recognize additional rent expense in the form of a variable rent payment. | |||||
Construction period | 20 months | |||||
Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Building Lease [Member] | Industrial Inkjet [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Cost of manufacturing and warehouse facility under construction | $ 40,000,000 | |||||
Fremont Facility [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Imputed financing obligation | $ 13,900,000 | |||||
Fremont Facility [Member] | California [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Lease term | 15 years | |||||
Area of leased property | ft² | 59,000 | |||||
Lease commencement date | Sep. 1, 2013 | |||||
Lease base rent plus other charges and expenses | $ 18,500,000 | |||||
Build-out and structural improvements paid by lessor | 4,500,000 | |||||
Build out and tenant improvements paid by lessee | $ 5,300,000 | |||||
Property and equipment including capitalized interest | $ 10,000,000 | $ 10,300,000 | ||||
Eagan Facility [Member] | Minnesota [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Lease commencement date | Apr. 13, 2017 | |||||
Acres of land | a | 5.6 | |||||
Area of real estate property | ft² | 43,682 | |||||
Assets held for sale | $ 3,800,000 | |||||
Net book value of facility | 2,900,000 | |||||
Land | $ 900,000 | |||||
City of Manchester [Member] | Land Lease [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Lease term | 48 years 6 months | |||||
Lease commencement date | Aug. 26, 2016 | |||||
Acres of land | a | 16.9 | |||||
Number of renewal options for lease agreement | Renewal_Options | 2 | |||||
Minimum lease payments | $ 13,300,000 | |||||
Renewal term of lease | 5 years | |||||
Renewal term of lease | 3 years 6 months | |||||
City of Manchester [Member] | Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of funds pledged under operating lease | 115.00% | |||||
Percentage of funds deposited | 100.00% | 100.00% | ||||
City of Manchester [Member] | Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Cash and Cash Equivalents [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Funds pledged under lease | $ 32,500,000 | |||||
City of Manchester [Member] | Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | Cash Equivalents [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Funds pledged under lease | $ 1,200,000 | |||||
City of Manchester [Member] | Bank of Tokyo - Mitsubishi UFJ Leasing & Finance LLC [Member] | U.S. Government and Sponsored Entities [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Funds pledged under lease | 0 | $ 5,100,000 | ||||
Meredith [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Land | 600,000 | |||||
Impairment loss | 900,000 | |||||
Meredith [Member] | Sales Leaseback [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Assets held for sale | $ 5,100,000 | |||||
Meredith [Member] | Assets Held-for-Sale [Member] | New Hampshire [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Acres of land | a | 31.5 | |||||
Area of real estate property | ft² | 163,000 | |||||
Net book value of facility | $ 4,500,000 |
License Agreement - Additional
License Agreement - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
License Agreement [Line Items] | ||||||||||||
Amortization period of intangible assets | 4 years 4 months 24 days | |||||||||||
Revenue | $ 269,163 | $ 248,359 | $ 247,047 | $ 228,691 | $ 266,707 | $ 245,575 | $ 245,650 | $ 234,133 | $ 993,260 | $ 992,065 | $ 882,513 | |
Xeikon [Member] | ||||||||||||
License Agreement [Line Items] | ||||||||||||
Volume based payment tied to ink purchases | $ 2,000 | |||||||||||
Support services and license agreement, effective date | Nov. 1, 2017 | |||||||||||
Support services and license agreement, period | 4 years | |||||||||||
Support services and license agreement, description | On November 1, 2017 (“Effective Date”), we entered into an Agreement with Xeikon, which is a division of the Flint Group headquartered in Luxembourg to license the right to the manufacturing (technology) and support of the Jetrion business. Pursuant to the Agreement, we licensed the Jetrion customer list to Xeikon, which will enable Xeikon to assume the relationship with the third-party outsourcing company that manufactures Jetrion printers for us and resell the printers to our current customer base. Xeikon will purchase UV label ink exclusively from us and resell to both our current customer base as well as new Xeikon inkjet customers. Per the terms of the Agreement, we agreed to cease sales of Jetrion products for four years after the Effective Date. We received cash consideration of $2 million during 2017 followed by annual volume-based royalty payments based on Xeikon’s ink purchases from us through October 31, 2021. | |||||||||||
Revenue | $ 100 | |||||||||||
Other income | $ 300 | |||||||||||
Xeikon [Member] | Trade Names [Member] | ||||||||||||
License Agreement [Line Items] | ||||||||||||
Amortization period of intangible assets | 4 years |
Quarterly Consolidated Finan108
Quarterly Consolidated Financial Information - Schedule of Quarterly Consolidated Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 269,163 | $ 248,359 | $ 247,047 | $ 228,691 | $ 266,707 | $ 245,575 | $ 245,650 | $ 234,133 | $ 993,260 | $ 992,065 | $ 882,513 |
Gross profit | 128,216 | 127,458 | 127,252 | 123,530 | 139,527 | 125,194 | 125,047 | 118,397 | 506,456 | 508,165 | 457,430 |
Income from operations | 4,016 | 7,397 | 7,991 | 8,143 | 27,731 | 9,410 | 11,709 | 6,969 | 27,547 | 55,819 | 54,689 |
Net income | $ (26,345) | $ 3,454 | $ 2,759 | $ 4,787 | $ 19,949 | $ 17,662 | $ 5,235 | $ 2,103 | $ (15,345) | $ 44,949 | $ 32,199 |
Net income (loss) per basic common share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.43 | $ 0.38 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.96 | $ 0.68 |
Net income (loss) per diluted common share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.42 | $ 0.37 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.94 | $ 0.67 |
Quarterly Consolidated Finan109
Quarterly Consolidated Financial Information - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effect Of First Quarter Events [Line Items] | |||||||||||
Income from operations | $ 4,016 | $ 7,397 | $ 7,991 | $ 8,143 | $ 27,731 | $ 9,410 | $ 11,709 | $ 6,969 | $ 27,547 | $ 55,819 | $ 54,689 |
Tax charge | 27,500 | 27,500 | |||||||||
Gross margin | 128,216 | 127,458 | 127,252 | 123,530 | 139,527 | 125,194 | 125,047 | 118,397 | 506,456 | 508,165 | 457,430 |
Net income | $ (26,345) | $ 3,454 | $ 2,759 | $ 4,787 | $ 19,949 | $ 17,662 | $ 5,235 | $ 2,103 | $ (15,345) | $ 44,949 | $ 32,199 |
Net income per diluted common share | $ (0.58) | $ 0.07 | $ 0.06 | $ 0.10 | $ 0.42 | $ 0.37 | $ 0.11 | $ 0.04 | $ (0.33) | $ 0.94 | $ 0.67 |
Optitex Ltd [Member] | |||||||||||
Effect Of First Quarter Events [Line Items] | |||||||||||
Income from operations | $ (3,400) | ||||||||||
Fair value of contingent consideration increase (decrease) | $ 2,000 | ||||||||||
Adjustments [Member] | |||||||||||
Effect Of First Quarter Events [Line Items] | |||||||||||
Income from operations | $ 700 | ||||||||||
Gross margin | 500 | ||||||||||
Net income | $ 600 | $ (600) | $ (1,300) | ||||||||
Net income per diluted common share | $ 0.01 | ||||||||||
As Previously Reported [Member] | |||||||||||
Effect Of First Quarter Events [Line Items] | |||||||||||
Income from operations | $ 28,500 | ||||||||||
Gross margin | 140,000 | ||||||||||
Net income | $ 20,500 | $ 45,500 | $ 33,500 |
Schedule II - Valuation and 110
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |||
Balance at beginning of period | $ 23,330 | $ 21,993 | $ 17,517 |
Charged to revenue and expenses | 12,416 | 10,678 | 7,536 |
Charged to (from) other accounts | 0 | 0 | 0 |
Deductions | (3,410) | (9,341) | (3,060) |
Balance at end of period | $ 32,336 | $ 23,330 | $ 21,993 |