Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | 3D SYSTEMS CORP | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 910,638 | |
Trading Symbol | ddd | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 113,810,649 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 161,662 | $ 184,947 |
Accounts receivable, net of reserves — $11,424 (2017) and $12,920 (2016) | 124,581 | 127,114 |
Inventories, net of reserves — $12,206 (2017) and $14,770 (2016) | 105,105 | 103,331 |
Prepaid expenses and other current assets | 17,909 | 17,558 |
Total current assets | 409,257 | 432,950 |
Property and equipment, net | 84,803 | 79,978 |
Intangible assets, net | 122,594 | 121,501 |
Goodwill | 215,156 | 181,230 |
Long term deferred income tax asset | 7,958 | 8,123 |
Other assets, net | 25,862 | 25,371 |
Total assets | 865,630 | 849,153 |
Current liabilities: | ||
Current portion of capitalized lease obligations | 584 | 572 |
Accounts payable | 40,752 | 40,514 |
Accrued and other liabilities | 48,736 | 49,968 |
Customer deposits | 6,549 | 5,857 |
Deferred revenue | 45,079 | 33,494 |
Total current liabilities | 141,700 | 130,405 |
Long term portion of capitalized lease obligations | 7,454 | 7,587 |
Long term deferred income tax liability | 18,289 | 17,601 |
Other liabilities | 54,863 | 57,988 |
Total liabilities | 222,306 | 213,581 |
Redeemable noncontrolling interests | 8,872 | 8,872 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, authorized 220,000 shares; issued 115,419 (2017) and 115,113 (2016) | 115 | 115 |
Additional paid-in capital | 1,307,561 | 1,307,428 |
Treasury stock, at cost — 1,631 shares (2017) and 1,498 shares (2016) | (3,746) | (2,658) |
Accumulated deficit | (621,552) | (621,787) |
Accumulated other comprehensive loss | (44,874) | (53,225) |
Total 3D Systems Corporation stockholders' equity | 637,504 | 629,873 |
Noncontrolling interests | (3,052) | (3,173) |
Total stockholders' equity | 634,452 | 626,700 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 865,630 | $ 849,153 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Accounts receivable, reserves | $ 11,424 | $ 12,920 |
Inventories, reserves | $ 12,206 | $ 14,770 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 220,000,000 | 220,000,000 |
Common stock, shares issued | 115,419,000 | 115,113,000 |
Treasury stock, at cost, shares | 1,631,000 | 1,498,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||
Products | $ 94,730 | $ 90,964 |
Services | 61,701 | 61,591 |
Total revenue | 156,431 | 152,555 |
Cost of sales: | ||
Products | 44,748 | 44,161 |
Services | 31,497 | 30,881 |
Total cost of sales | 76,245 | 75,042 |
Gross profit | 80,186 | 77,513 |
Operating expenses: | ||
Selling, general and administrative | 66,405 | 73,967 |
Research and development | 22,852 | 20,305 |
Total operating expenses | 89,257 | 94,272 |
Loss from operations | (9,071) | (16,759) |
Interest and other income, net | (201) | (126) |
Loss before income taxes | (8,870) | (16,633) |
Provision for income taxes | 1,041 | 1,179 |
Net loss | (9,911) | (17,812) |
Less: net income (loss) attributable to noncontrolling interests | 60 | (24) |
Net loss attributable to 3D Systems Corporation | $ (9,971) | $ (17,788) |
Net loss per share available to common stockholders — basic and diluted | $ (0.09) | $ (0.16) |
Other comprehensive income (loss): | ||
Pension adjustments, net of taxes | $ 20 | $ (31) |
Foreign currency translation gain | 8,392 | 7,939 |
Total other comprehensive income | 8,412 | 7,908 |
Less foreign currency translation gain attributable to noncontrolling interests | 61 | 89 |
Other comprehensive income attributable to 3D Systems Corporation | 8,351 | 7,819 |
Comprehensive loss | (1,499) | (9,904) |
Less comprehensive income attributable to noncontrolling interests | 121 | 65 |
Comprehensive loss attributable to 3D Systems Corporation | $ (1,620) | $ (9,969) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Cash flows from operating activities: | |||
Net loss | $ (9,911) | $ (17,812) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 14,973 | 15,089 | |
Stock-based compensation | 7,131 | 11,667 | |
Provision for bad debts | 155 | 2,388 | |
Benefit of deferred income taxes | (1,069) | (1,092) | |
Changes in operating accounts, net of acquisitions: | |||
Accounts receivable | 5,336 | 21,544 | |
Inventories | (4,120) | (7,984) | |
Prepaid expenses and other current assets | 12 | (434) | |
Accounts payable | (643) | (5,956) | |
Accrued and other current liabilities | (2,849) | (4,056) | |
Deferred revenue | 11,218 | 11,019 | |
All other operating activities | (852) | (6,255) | |
Net cash provided by operating activities | 19,381 | 18,118 | |
Cash flows from investing activities: | |||
Cash paid for acquisitions, net of cash assumed | (34,291) | ||
Purchases of property and equipment | (5,620) | (4,246) | |
Additions to license and patent costs | (280) | (231) | |
Proceeds from disposition of property and equipment | 24 | ||
Net cash used in investing activities | (40,167) | (4,477) | |
Cash flows from financing activities: | |||
Payments on earnout consideration | (3,206) | ||
Repurchase of stock, net, and employer paid tax on employee awards | (1,088) | (810) | |
Repayment of capital lease obligations | (142) | (262) | |
Net cash used in financing activities | (4,436) | (1,072) | |
Effect of exchange rate changes on cash and cash equivalents | 1,937 | 1,562 | |
Net increase (decrease) in cash and cash equivalents | (23,285) | 14,131 | |
Cash and cash equivalents at the beginning of the period | 184,947 | 155,643 | |
Cash and cash equivalents at the end of the period | 161,662 | 169,774 | |
Supplemental Cash Flow Information: | |||
Cash interest payments | 200 | 214 | |
Cash income tax payments, net | 573 | 1,707 | |
Transfer of equipment from inventory to property and equipment, net | [1] | 5,379 | 5,760 |
Transfer of equipment to inventory from property and equipment, net | [2] | 718 | $ 1,779 |
Stock issued for acquisitions | $ 3,208 | ||
[1] | Inventory is transferred from inventory to property and equipment at cost when the Company requires additional machines for training or demonstration or for placement into on-demand parts manufacturing services locations. | ||
[2] | In general, an asset is transferred from property and equipment, net, into inventory at its net book value when the Company has identified a potential sale for a used machine. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Mar. 31, 2017 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid In Capital [Member] | Treasury Stock [Member] | Accumulated Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total 3D Systems Corporation Stockholders' Equity [Member] | Equity Attributable To Noncontrolling Interests [Member] | Total |
Balance, Value at Dec. 31, 2016 | $ 115 | $ 1,307,428 | $ (2,658) | $ (621,787) | $ (53,225) | $ 629,873 | $ (3,173) | $ 626,700 |
Balance, Shares at Dec. 31, 2016 | 115,113 | 1,498 | ||||||
Issuance (repurchase) of stock, Value | $ (1,088) | (1,088) | (1,088) | |||||
Issuance (repurchase) of stock, Shares | 114 | 133 | ||||||
Issuance of stock for acquisitions, Value | 3,208 | 3,208 | 3,208 | |||||
Issuance of stock for acquisitions, Shares | 192 | |||||||
Stock-based compensation expense, Value | 7,131 | 7,131 | 7,131 | |||||
Stock-based compensation expense, Shares | ||||||||
Net income (loss) | (9,971) | (9,971) | 60 | (9,911) | ||||
Pension adjustment | 20 | 20 | 20 | |||||
Foreign currency translation adjustment | 8,331 | 8,331 | 61 | 8,392 | ||||
Balance, Value at Mar. 31, 2017 | $ 115 | 1,307,561 | $ (3,746) | (621,552) | (44,874) | 637,504 | (3,052) | 634,452 |
Balance, Shares at Mar. 31, 2017 | 115,419 | 1,631 | ||||||
Cumulative impact of change in accounting policy | $ (10,206) | $ 10,206 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED STATEMENT OF EQUITY [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of 3D Systems Corporation and its subsidiaries (collectively, the “Company”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim reports. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“Form 10-K”) . In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments, consisting of adjustments of a normal recurring nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The results of operations for the quarter ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from those estimates and assumptions. Certain prior period amounts presented in the condensed consolidated financial statements and accompanying footnotes have been reclassified to conform to current year presentation. All amounts presented in the accompanying footnotes are presented in thousands, except for per share information. Recently Adopted Accounting Pronouncements In the first quarter of 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, “ Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting ”. The following summarizes the effects of the adoption on the Company’s unaudited condensed consolidated financial statements: Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The change was applied on a modified retrospective basis resulting in a cumulative effect adjustment to retained earnings of $10,206 as of January 1, 2017. Prior periods have not been adjusted. Statement of Cash Flows - The Company historically accounted for excess tax benefits related to share-based compensation on the Statement of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company has elected to adopt this portion of the standard on a prospective basis beginning in 2017. Prior periods have not been adjusted. Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies related to share-based compensation are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Prior periods have not been adjusted. Recently Issued Accounting Pronouncements In March 2017, the FASB issued ASU No. 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ” (“ASU 2017-07”), which standardizes the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The amendments in ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company will adopt ASU 2017-07 in the first quarter of 2018 and does not expect the implementation of this guidance to have a material effect on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”), which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating when it will adopt ASU 2017-04 and its impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ” (“ASU 2016-16”). ASU 2016-16 permits the recognition of income tax consequences related to an intra-entity transfer of an asset other than inventory when the transfer occurs. It is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-16 on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments ” (“ASU 2016-15”). With the objective of reducing the existing diversity in practice, ASU 2016-15 addresses the manner in which certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. The amendments should be applied retrospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company expects that the implementation of this guidance will not have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities arising from operating leases on the balance sheet. It is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Though still evaluating the impact of ASU 2016-02, the Company expects changes to its balance sheet due to the recognition of right-of-use assets and lease liabilities related to its real estate leases, but it does not anticipate material impacts to its results of operations or liquidity. In August 2015, the FASB issued ASU No. 2015-14, “ Revenue from Contracts with Customers: Deferral of the Effective Date ” (“ASU 2015-14”), a revision to Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers”, which was originally issued on May 28, 2014. For public business entities, certain not-for-profit entities, and certain employee benefit plans, the effective date was for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14 will defer these effective dates for all entities by one year. During 2016, the Company continued its evaluation of ASU 2014-09, including the expected impact on its business processes, systems and controls, and potential differences in the timing and/or method of revenue recognition for its contracts. The Company expects to complete its assessment of the cumulative effect of adopting ASU 2014-09 as well as the expected impact of adoption during 2017. The Company will continue its evaluation of ASU 2014-09, including how it may impact new contracts it receives as well as new or emerging interpretations of the standard, through the date of adoption. No other new accounting pronouncements, issued or effective during the first quarter of 2017, have had or are expected to have a significant impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | (2) Acquisitions On January 31, 2017 , the Company acquired 100 percent of the shares of Vertex-Global Holding B.V. (“Vertex”), a provider of dental materials worldwide under the Vertex and NextDent brands. The cash portion of the purchase price is included in cash paid for acquisitions, net of cash assumed, in the unaudited Condensed Consolidated Statement of Cash Flows. The share portion of the purchase price is included in issuance of stock for acquisitions in the unaudited Condensed Consolidated Statement of Equity. The operating results of Vertex have been included in the Company’s reported results since the closing date. The purchase price of the acquisition has been allocated to the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded as goodwill. The Company did not acquire any businesses in 2016. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Inventories | (3) Inventories Components of inventories, net , as of March 31, 2017 and December 31, 2016 were as follows: (in thousands) 2017 2016 Raw materials $ 38,651 $ 38,383 Work in process 4,143 3,109 Finished goods and parts 62,311 61,839 Inventories, net $ 105,105 $ 103,331 |
Property And Equipment
Property And Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property And Equipment [Abstract] | |
Property And Equipment | (4) Property and Equipment Property and equipment, net, as of March 31, 2017 and December 31, 2016 were as follows: (in thousands) 2017 2016 Useful Life (in years) Land $ 903 $ 903 N/A Building 11,122 11,122 25 - 30 Machinery and equipment 116,831 108,682 2 - 7 Capitalized software 8,709 8,651 3 - 5 Office furniture and equipment 3,507 3,130 1 - 5 Leasehold improvements 25,037 24,423 Life of lease (a) Rental equipment 452 144 5 Construction in progress 9,125 7,760 N/A Total property and equipment 175,686 164,815 Less: Accumulated depreciation and amortization (90,883) (84,837) Total property and equipment, net $ 84,803 $ 79,978 (a) Leasehold improvements are amortized on a straight-line basis over the shorter of (i) their estimated useful lives and (ii) the estimated or contractual life of the related lease. For the quarters ended March 31, 2017 and 2016 , depreciation expense on property and equipment was $ 5,873 and $6,000 , respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Intangible Assets | (5) Intangible Assets Intangible assets, net, other than goodwill , as of March 31, 2017 and December 31, 2016 were as follows: 2017 2016 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Useful Life (in years) Weighted Average Useful Life Remaining (in years) Intangible assets with finite lives: Patent costs $ 16,969 $ (6,337) $ 10,632 $ 16,263 $ (5,873) $ 10,390 1 - 20 9 Acquired technology 54,192 (31,125) 23,067 52,881 (27,543) 25,338 1 - 16 4 Acquired patents 16,982 (11,093) 5,889 17,047 (9,454) 7,593 1 - 6 4 Customer relationships 103,106 (49,576) 53,530 99,067 (46,252) 52,815 1 - 14 6 Trade secrets 19,254 (9,926) 9,328 19,530 (7,919) 11,611 7 4 Trade names 32,926 (16,936) 15,990 28,110 (16,015) 12,095 1 - 8 5 Other 23,971 (19,813) 4,158 22,953 (21,294) 1,659 2 - 4 2 Total intangible assets $ 267,400 $ (144,806) $ 122,594 $ 255,851 $ (134,350) $ 121,501 1 - 20 4 Amortization expense related to intangible assets was $ 8,832 and $ 8,819 for the quarters ended March 31, 2017 and 2016, respectively. |
Accrued And Other Liabilities
Accrued And Other Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Accrued And Other Liabilities [Abstract] | |
Accrued And Other Liabilities | (6) Accrued and Other Liabilities Accrued liabilities as of March 31, 2017 and December 31, 2016 were as follows: (in thousands) 2017 2016 Compensation and benefits $ 20,256 $ 22,771 Vendor accruals 8,531 8,231 Accrued professional fees 538 810 Accrued taxes 9,887 9,831 Royalties payable 2,417 2,092 Accrued interest 112 39 Accrued earnouts related to acquisitions 3,971 3,238 Accrued other 3,024 2,956 Total $ 48,736 $ 49,968 Other liabilities as of March 31, 2017 and December 31, 2016 were as follows: (in thousands) 2017 2016 Arbitration award $ 11,282 $ 11,282 Long term employee indemnity 11,974 11,152 Defined benefit pension obligation 7,742 7,613 Long term tax liability 7,190 7,183 Long term earnouts related to acquisitions 3,897 7,568 Long term deferred revenue 7,019 7,464 Other long term liabilities 5,759 5,726 Total $ 54,863 $ 57,988 |
Hedging Activities And Financia
Hedging Activities And Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Hedging Activities And Financial Instruments [Abstract] | |
Hedging Activities And Financial Instruments | (7) Hedging Activities and Financial Instruments The Company conducts business in various countries using both the functional currencies of those countries and other currencies to effect cross border transactions. As a result, the Company is subject to the risk that fluctuations in foreign exchange rates between the dates that those transactions are entered into and their respective settlement dates will result in a foreign exchange gain or loss. When practicable, the Company endeavors to match assets and liabilities in the same currency on its balance sheet and those of its subsidiaries in order to reduce these risks. When appropriate, the Company enters into foreign currency contracts to hedge exposures arising from those transactions. The Company has elected not to prepare and maintain the documentation to qualify for hedge accounting treatment under Accounting Standards Codification (“ASC”) 815, “ Derivatives and Hedging ,” and therefore, all gains and losses (realized or unrealized) are recognized in “ I nterest and other income , net” in the condensed consolidated statements of operations and comprehensive income (loss). Depending on their fair value at the end of the reporting period, derivatives are recorded either in prepaid expenses and other current assets or in accrued liabilities on the condensed consolidated balance sheet. The Company had $35,302 in notional foreign exchange contracts outstanding as of March 31, 2017, for which the fair value was not material. No foreign exchange contracts were outstanding as of December 31, 2016 . The Company translates foreign currency balance sheets from each international businesses' functional currency (generally the respective local currency) to U.S. dollars at end-of-period exchange rates, and statements of earnings at average exchange rates for each period. The resulting foreign currency translation adjustments are a component of other comprehensive income (loss). The Company does not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations' results into U.S. dollars. The impact of translating the Company’s non-U.S. operations’ revenue and earnings into U.S. dollars was not material to the Company’s results of operations for the quarters ended March 31, 2017 and 2016. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Borrowings [Abstract] | |
Borrowings | (8) Borrowings Credit Facility As of March 31, 2017, the Company had a $150,000 revolving, unsecured credit facility (the “Credit Agreement”) with a syndicate of banks, to be used for general corporate purposes and working capital needs. The Credit Agreement is scheduled to expire in October 2019 . The Credit Agreement includes provisions for the issuance of letters of credit and swingline loans and contains certain restrictive covenants, which include the maintenance of a maximum consolidated total leverage ratio. The Company was in compliance with those covenants at March 31, 2017 and December 31, 2016. There were no outstanding borrowings as of March 31, 2017 . Capitalized Lease Obligations The Company’s capitalized lease obligations primarily include a lease agreement that was entered into during 2006 with respect to the Company’s corporate headquarters located in Rock Hill, SC. Capitalized lease obligations decreased t o $ 8,038 at March 31, 2017 from $8,159 at December 31, 2016 , due to the normal scheduled timing of payments. |
Pension Benefits
Pension Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Pension Benefits [Abstract] | |
Pension Benefits | (9) Pension Benefits The components of the Company’s pension cost recognized in the condensed consolidated statements of operations and comprehensive income (loss) for the quarters ended March 31, 2017 and 2016 were as follows: Quarter Ended March 31, (in thousands) 2017 2016 Service cost $ 67 $ 83 Interest cost 65 73 Amortization of actuarial loss 58 32 Total periodic cost $ 190 $ 188 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | (10) Net Loss P er Share The Company computes basic loss per share using net loss attributable to 3D Systems Corporation and the weighted average number of common shares outstanding during the applicable period. Diluted loss per share incorporates the additional shares issuable upon assumed exercise of stock options and the release of restricted stock and restricted stock units , except in such case when their inclusion would be anti-dilutive . Quarter Ended March 31, (in thousands, except per share amounts) 2017 2016 Numerator: Net loss attributable to 3D Systems Corporation $ (9,971) $ (17,788) Denominator for basic and diluted net loss per share: Weighted average shares 111,289 112,197 Net loss per share — basic and diluted $ (0.09) $ (0.16) For the quarters ended March 31, 2017 and 2016, the effect of dilutive securities, including non-vested stock options and restricted stock awards/units, was excluded from the denominator for the calculation of diluted net loss per because the Company recognized a net loss for the period and their inclusion would be anti-dilutive . The effect of dilutive securities excluded was 5,503 weighted average shares and 88 weighted average shares for the quarters ended March 31, 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (11) Fair Value Measurements ASC 820, “ Fair Value Measurements and Disclosures ,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs that may be used to measure fair value: · Level 1 - Quoted prices in active markets for identical assets or liabilities; · Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or · Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, the above standard applies to cash equivalents and earnout consideration. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of March 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 24,133 $ — $ — $ 24,133 Earnout consideration (b) $ — $ — $ 7,868 $ 7,868 Fair Value Measurements as of December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 25,206 $ — $ — $ 25,206 Earnout consideration (b) $ — $ — $ 10,806 $ 10,806 (a) Cash equivalents include funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in the consolidated balance sheet. (b) The fair value of the earnout consideration, which is based on the present value of the expected future payments to be made to the sellers of the acquired businesses, was derived by analyzing the future performance of the acquired businesses using the earnout formula and performance targets specified in each purchase agreement and adjusting those amounts to reflect the ability of the acquired entities to achieve the stated targets. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The change in earnout consideration reflects a $3,206 payment, partially offset by $268 of accretion. The Company did not have any transfers of assets and liabilities between Level 1, Level 2 and Level 3 of the fair value measurement hierarchy during the quarter ended March 31, 2017 . In addition to the assets and liabilities included in the above table, certain of our assets and liabilities are to be initially measured at fair value on a non-recurring basis. This includes goodwill and other intangible assets measured at fair value for impairment assessment, in addition to redeemable noncontrolling interests. For additional discussion, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Significant Estimates” in our Form 10-K. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | (12) Income Taxes For the quarters ended March 31, 2017 and 2016, the Company recorded provisions of $ 1,041 and $1,179 , respectively, resulting in effective tax rate s of 11.7 % and 7.1 %, respectively. The Company has not provided for any taxes on the unremitted earnings of its foreign subsidiaries, as the Company intends to permanently reinvest all such earnings outside of the U.S. We believe a calculation of the deferred tax liability associated with these undistributed earnings is impracticable. Tax years 2003 through 2015 remain subject to examination by the U.S. Internal Revenue Service, with most of the years open to examination due to the generation and utilization of net operating losses. The Company files income tax returns (which are open to examination beginning in the year shown in parentheses) in Australia ( 2012 ) , Belgium ( 2013 ) , Brazil ( 2011 ) , China ( 2013 ) , France ( 2013 ), Germany ( 2013 ), India ( 2013 ), Israel ( 2012 ), Italy ( 2011 ), Japan ( 2012 ), Korea ( 2012 ), Mexico ( 2011 ), Netherlands ( 2011 ), Switzerland ( 2011 ), the United Kingdom ( 2015 ) and Uruguay ( 2011 ). |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Information [Abstract] | |
Segment Information | (13) Segment Information The Company operates in one reportable business segment. The Company conducts its business through various offices and facilities located throughout the Asia Pacific region (Australia, China, India, Japan and Korea), Europe (Belgium, France, Germany, Italy, the Netherlands, Switzerland and the United Kingdom), Israel, Latin America (Brazil, Mexico and Uruguay), Russia and the United States. The Company has historically disclosed summarized financial information for the geographic areas of operations as if they were segments in accordance with ASC 280, “ Segment Reporting .” Financial information concerning the Company’s geographical locations is based on the location of the selling entity. Such summarized financial information concerning the Company’s geographical operations is shown in the following tables: Quarter Ended March 31, (in thousands) 2017 2016 Revenue from unaffiliated customers: Americas $ 80,291 $ 83,490 Germany 19,816 18,882 Other EMEA 33,142 28,549 Asia Pacific 23,182 21,634 Total revenue $ 156,431 $ 152,555 Quarter Ended March 31, (in thousands) 2017 2016 Revenue by class of product and service: Products $ 51,906 $ 52,495 Materials 42,824 38,469 Services 61,701 61,591 Total revenue $ 156,431 $ 152,555 Quarter Ended March 31, 2017 Intercompany Sales to (in thousands) Americas Germany Other EMEA Asia Pacific Total Americas $ 361 $ 9,791 $ 2,954 $ 3,898 $ 17,004 Germany 16 — 1,815 2 1,833 Other EMEA 16,531 1,160 2,199 1,011 20,901 Asia Pacific 537 — 135 1,014 1,686 Total $ 17,445 $ 10,951 $ 7,103 $ 5,925 $ 41,424 Quarter Ended March 31, 2016 Intercompany Sales to (in thousands) Americas Germany Other EMEA Asia Pacific Total Americas $ 289 $ 6,201 $ 3,265 $ 2,956 $ 12,711 Germany 634 — 451 — 1,085 Other EMEA 13,169 833 881 1,161 16,044 Asia Pacific 1,030 — 3 891 1,924 Total $ 15,122 $ 7,034 $ 4,600 $ 5,008 $ 31,764 Quarter Ended March 31, (in thousands) 2017 2016 Income (loss) from operations: Americas $ (13,450) $ (14,186) Germany 2,057 1,011 Other EMEA (1,524) (8,118) Asia Pacific 4,341 5,182 Subtotal (8,576) (16,111) Intercompany elimination (495) (648) Total $ (9,071) $ (16,759) (in thousands) March 31, 2017 December 31, 2016 Assets: Americas $ 307,826 $ 345,412 Germany 42,788 40,547 Other EMEA 398,470 341,616 Asia Pacific 116,546 121,578 Total $ 865,630 $ 849,153 (in thousands) March 31, 2017 December 31, 2016 Cash and cash equivalents: Americas $ 79,057 $ 105,750 Germany 7,488 8,885 Other EMEA 42,735 35,992 Asia Pacific 32,382 34,320 Total $ 161,662 $ 184,947 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (14) Commitments and Contingencies The Company leases certain of its facilities and equipment under non-cancelable operating leases . For the quarters ended March 31, 2017 and 2016 , rent expense under operating leases was $ 3,682 and $ 3,256 , respectively. Certain of the Company’s acquisitions contain earnout provisions under which the sellers of the acquired businesses can earn additional amounts. The total liability recorded for these earnouts at March 31, 2017 and December 31, 2016 was $ 7,868 and $ 10,806 , respectively. See Note 6. Put Options Owners of interests in a certain subsidiary have the right in certain circumstances to require the Company to acquire either a portion of or all of the remaining ownership interests held by them. The owners’ ability to exercise any such “put option” right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise. In addition, these rights cannot be exercised prior to a specified exercise date. The exercise of these rights at their earliest contractual date would result in obligations of the Company to fund the related amounts in 2019. Management estimates, assuming that the subsidiary owned by the Company at March 31, 2017 , performs over the relevant future periods at its forecasted earnings levels, that these rights, if exercised, could require the Company, in future periods, to pay approximately $ 8,872 to the owners of such rights to acquire such ownership interests in the relevant subsidiary. This amount has been recorded as redeemable noncontrolling interests on the balance sheet at March 31, 2017 and December 31, 2016 . The ultimate amount payable relating to this transaction will vary because it is dependent on the future results of operations of the subject business. Litigation Securities and Derivative Litigation The Company and certain of its former executive officers have been named as defendants in a consolidated putative stockholder class action lawsuit pending in the United States District Court for the District of South Carolina. The consolidated action is styled KBC Asset Management NV v. 3D Systems Corporation, et al. , Case No. 0:15-cv-02393-MGL. The Amended Consolidated Complaint (the “Complaint”), which was filed on December 9, 2015, alleges that defendants violated the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder by making false and misleading statements and omissions and that the former officers are control persons under Section 20(a) of the Exchange Act. The Complaint was filed on behalf of stockholders who purchased shares of the Company’s common stock between October 29, 2013, and May 5, 2015 and seeks monetary damages on behalf of the purported class. Defendants filed a motion to dismiss the Complaint in its entirety on January 14, 2016, which was denied by Memorandum Opinion and Order dated July 25, 2016 (the “Order”). Defendants filed a motion for reconsideration of the Order on August 4, 2016, which was denied by Order dated February 24, 2017. Nine related derivative complaints have been filed by purported Company stockholders against certain of the Company’s former executive officers and members of its Board of Directors. The Company is named as a nominal defendant in all nine actions. The derivatives complaints are styled as follows: (1) Steyn v. Reichental, et al. , Case No. 2015-CP-46-2225, filed on July 27, 2015 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina (“Steyn”); (2) Piguing v. Reichental, et al. , Case No. 2015-CP-46-2396, filed on August 7, 2015 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina (“Piguing”); (3) Booth v. Reichental, et al. , Case No. 15-692-RGA, filed on August 6, 2015 in the United States District Court for the District of Delaware; (4) Nally v. Reichental, et al. , Case No. 15-cv-03756-MGL, filed on September 18, 2015 in the United States District Court for the District of South Carolina (“Nally”); (5) Gee v. Hull, et al. , Case No. BC-610319, filed on February 17, 2016 in the Superior Court for the State of California, County of Los Angeles (“Gee”); (6) Foster v. Reichental, et al. , Case No. 0:16-cv-01016-MGL, filed on April 1, 2016 in the United States District Court for the District of South Carolina (“Foster”); (7) Lu v. Hull, et al. , Case No. BC629730, filed on August 5, 2016 in the Superior Court for the State of California, County of Los Angeles (“Lu”); (8) Howes v. Reichental, et al. , Case No. 0:16-cv-2810-MGL, filed on August 11, 2016 in the United States District Court for the District of South Carolina (“Howes”); and (9) Ameduri v. Reichental, et al. , Case No. 0:16-cv-02995-MGL, filed on September 1, 2016 in the United States District Court for the District of South Carolina (“Ameduri”). Steyn and Piguing were consolidated into one action styled as In re 3D Systems Corp. Shareholder Derivative Litig. , Lead Case No. 2015-CP-46-2225 in the Court of Common Pleas for the 16th Judicial Circuit, County of York, South Carolina. Gee and Lu were consolidated into one action styled as Gee v. Hull, et al. , Case No. BC610319 in the Superior Court for the State of California, County of Los Angeles. Nally, Foster, Howes, and Ameduri were consolidated into one action in the United States District Court for the District of South Carolina with Nally as the lead consolidated case . The derivative complaints allege claims for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment and seek, among other things, monetary damages and certain corporate governance actions. All of the derivative complaints listed above have been stayed until the earlier of the close of discovery or the deadline for appealing a dismissal in the KBC Asset Management NV securities class action. The Company believes the claims alleged in the putative securities class action and the derivative lawsuits are without merit and intends to defend the Company and its officers and directors vigorously. Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. On August 23, 2013, Ronald Barranco, a former Company employee, filed two lawsuits against the Company and certain officers in the United States District Court for the District of Hawaii. The first lawsuit (“Barranco I”) is captioned Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, 3D Systems, Inc., and Damon Gregoire , Case No. CV 13-411 LEK RLP, and alleges seven causes of action relating to the Company’s acquisition of Print3D Corporation (of which Mr. Barranco was a 50% shareholder) and the subsequent employment of Mr. Barranco by the Company. The second lawsuit (“Barranco II”) is captioned Ronald Barranco v. 3D Systems Corporation, 3D Systems, Inc., Abraham Reichental, and Damon Gregoire , Case No. CV 13-412 LEK RLP, and alleges the same seven causes of action relating to the Company’s acquisition of certain website domains from Mr. Barranco and the subsequent employment of Mr. Barranco by the Company. Both Barranco I and Barranco II allege the Company breached certain purchase agreements in order to avoid paying Mr. Barranco additional monies pursuant to royalty and earn out provisions in the agreements. The Company and its officers timely filed responsive pleadings on October 22, 2013 seeking, inter alia , to dismiss Barranco I due to a mandatory arbitration agreement and for lack of personal jurisdiction and to dismiss Barranco II for lack of personal jurisdiction. With regard to Barranco I, the Hawaii district court, on February 28, 2014, denied the Company’s motion to dismiss and its motion to transfer venue to South Carolina for the convenience of the parties. However, the Hawaii court recognized that the plaintiff’s claims are all subject to mandatory and binding arbitration in Charlotte, North Carolina. Because the Hawaii court was without authority to compel arbitration outside of Hawaii, the court ordered that the case be transferred to the district court encompassing Charlotte (the United States District Court for the Western District of North Carolina) so that court could compel arbitration in Charlotte. On April 17, 2014, Barranco I was transferred in to the Western District of North Carolina. Plaintiff filed a demand for arbitration on October 29, 2014. On December 9, 2014, the Company filed its answer to plaintiff’s demand for arbitration. On February 2, 2015, plaintiff filed an amended demand that removed Mr. Gregoire as a defendant from the matter, and on February 4, 2015 the Company filed its amended answer. The parties selected an arbitrator and arbitration took place in June 2015 in Charlotte, North Carolina. On September 28, 2015, the arbitrator issued a final award in favor of Mr. Barranco with respect to two alleged breaches of contract and implied covenants arising out of the contract. The arbitrator found that the Company did not commit fraud or make any negligent misrepresentations to Mr. Barranco. Pursuant to the award, the Company is to pay approximately $11,282 , which includes alleged actual damages of $7,254 , fees and expenses of $2,318 and prejudgment interest of $1,710 . The Company disagrees with the single arbitrator’s findings and conclusions and believes the arbitrator’s decision exceeds his authority and disregards the applicable law. As an initial response, the Company filed a motion for modification on September 30, 2015, based on mathematical errors in the computation of damages and fees. On October 16, 2015, the arbitrator issued an order denying the Company’s motion and sua sponte issuing a modified final award in favor of Mr. Barranco in the same above-referenced amounts, but making certain substantive changes to the award, which changes the Company believes were improper and outside the scope of his authority and the American Arbitration Association rules. On November 20, 2015, the Company filed a motion to vacate the arbitration award in the federal court in the Western District of North Carolina. Claimants also filed a motion to confirm the arbitration award. A hearing was held on the motions on June 29, 2016 in federal court in the Western District of North Carolina. The court requested supplemental briefing by the parties, which briefs were filed on July 11, 2016. On August 31, 2016, the court issued an Order granting in part and denying in part Plaintiff’s motion to confirm the arbitration award and for judgment, entering judgment in the principal amount of the arbitration award and denying Plaintiff’s motion for fees and costs. The court denied the Company’s motion to vacate. On September 7, 2016, Plaintiff filed a motion to amend the judgment to include prejudgment interest. The Company opposed that motion and the parties submitted briefing, which is currently pending before the court. On September 28, 2016 the Company filed a motion to alter or amend the judgment. Plaintiff opposed the motion and the parties submitted briefing, which is currently pending before the court. Notwithstanding the Company’s right to appeal, given the arbitrator’s decision, the Company recorded an $11,282 expense provision for this matter in the quarter ended September 30, 2015. The provision is subject to adjustment based on the ultimate outcome of the Company’s appeal. If it is ultimately determined that money is owed following the full appellate process in federal court, the Company intends to fund any amounts to be paid from cash on hand. This amount has been classified as a long-term liability given the customary timeline of an appeals process. The Company will review this classification periodically. With regard to Barranco II, the Hawaii district court, on March 17, 2014, denied the Company’s motion to dismiss and its motion to transfer venue to South Carolina. However, the Hawaii court dismissed Count II in plaintiff’s complaint alleging breach of the employment agreement. The Company filed an answer to the complaint in the Hawaii district court on March 31, 2014. On November 19, 2014, the Company filed a motion for summary judgment on all claims which was heard on January 20, 2015. On January 30, 2015, the court entered an order granting in part and denying in Part the Company’s motion for summary judgment. The Order narrowed the plaintiff’s claim for breach of contract and dismissed the plaintiff’s claims for fraud and negligent misrepresentation. As a result, Messrs. Reichental and Gregoire were dismissed from the lawsuit. The case was tried to a jury in May 2016, and on May 27, 2016 the jury found that the Company was not liable for either breach of contract or breach of the implied covenant of good faith and fair dealing. Additionally, the jury found in favor of the Company on its counterclaim against Mr. Barranco and determined that Mr. Barranco violated his non-competition covenant with the Company. The Court is expected to order an accounting with respect to the counterclaim. The Company is involved in various other legal matters incidental to its business. Although the Company cannot predict the results of litigation with certainty, the Company believes that the disposition of these legal matters will not have a material adverse effect on its consolidated results of operations or consolidated financial position. Indemnification In the normal course of business, the Company periodically enters into agreements to indemnify customers or suppliers against claims of intellectual property infringement made by third parties arising from the use of the Company’s products. Historically, costs related to these indemnification provisions have not been significant, and the Company is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations. To the extent permitted under Delaware law, the Company indemnifies its directors and officers for certain events or occurrences while the director or officer is, or was, serving at the Company’s request in such capacity, subject to limited exceptions. The maximum potential amount of future payments the Company could be required to make under these indemnification obligations is unlimited; however, the Company has directors and officers insurance coverage that may enable the Company to recover future amounts paid, subject to a deductible and the policy limits. There is no assurance that the policy limits will be sufficient to cover all damages, if any . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | (15) Accumula ted Other Comprehensive Loss The changes in the balances of accumula ted other comprehensive loss by component are as follows: (in thousands) Foreign currency translation adjustment Defined benefit pension plan Total Balance at December 31, 2016 $ (50,450) $ (2,775) $ (53,225) Other comprehensive income 8,331 20 8,351 Balance at March 31, 2017 $ (42,119) $ (2,755) $ (44,874) The amounts presented above are included in other comprehensive income (loss) and are net of taxes. For additional information about foreign currency translation, see Note 7. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | (16) Noncontrolling Interests As of March 31, 2017 , the Company owned approximately 70% of the capital and voting rights of Robtec, a service bureau and distributor of 3D printing and scanning products. Robtec was acquired on November 25, 2014 . As of March 31, 2017 , the Company owned approximately 65% of the capital and voting rights of Easyway, a service bureau and distributor of 3D printing and scanning products in China. Easyway was acquired on April 2, 2016 . |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Basis Of Presentation [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In the first quarter of 2017, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, “ Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting ”. The following summarizes the effects of the adoption on the Company’s unaudited condensed consolidated financial statements: Forfeitures - Prior to adoption, share-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized only for share-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The change was applied on a modified retrospective basis resulting in a cumulative effect adjustment to retained earnings of $10,206 as of January 1, 2017. Prior periods have not been adjusted. Statement of Cash Flows - The Company historically accounted for excess tax benefits related to share-based compensation on the Statement of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company has elected to adopt this portion of the standard on a prospective basis beginning in 2017. Prior periods have not been adjusted. Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies related to share-based compensation are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Prior periods have not been adjusted. Recently Issued Accounting Pronouncements In March 2017, the FASB issued ASU No. 2017-07, “ Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ” (“ASU 2017-07”), which standardizes the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods. The amendments in ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company will adopt ASU 2017-07 in the first quarter of 2018 and does not expect the implementation of this guidance to have a material effect on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ” (“ASU 2017-04”), which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating when it will adopt ASU 2017-04 and its impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ” (“ASU 2016-16”). ASU 2016-16 permits the recognition of income tax consequences related to an intra-entity transfer of an asset other than inventory when the transfer occurs. It is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-16 on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments ” (“ASU 2016-15”). With the objective of reducing the existing diversity in practice, ASU 2016-15 addresses the manner in which certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. The amendments should be applied retrospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company expects that the implementation of this guidance will not have a material effect on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities arising from operating leases on the balance sheet. It is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. Though still evaluating the impact of ASU 2016-02, the Company expects changes to its balance sheet due to the recognition of right-of-use assets and lease liabilities related to its real estate leases, but it does not anticipate material impacts to its results of operations or liquidity. In August 2015, the FASB issued ASU No. 2015-14, “ Revenue from Contracts with Customers: Deferral of the Effective Date ” (“ASU 2015-14”), a revision to Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers”, which was originally issued on May 28, 2014. For public business entities, certain not-for-profit entities, and certain employee benefit plans, the effective date was for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14 will defer these effective dates for all entities by one year. During 2016, the Company continued its evaluation of ASU 2014-09, including the expected impact on its business processes, systems and controls, and potential differences in the timing and/or method of revenue recognition for its contracts. The Company expects to complete its assessment of the cumulative effect of adopting ASU 2014-09 as well as the expected impact of adoption during 2017. The Company will continue its evaluation of ASU 2014-09, including how it may impact new contracts it receives as well as new or emerging interpretations of the standard, through the date of adoption. No other new accounting pronouncements, issued or effective during the first quarter of 2017, have had or are expected to have a significant impact on the Company’s consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Components Of Inventories | (in thousands) 2017 2016 Raw materials $ 38,651 $ 38,383 Work in process 4,143 3,109 Finished goods and parts 62,311 61,839 Inventories, net $ 105,105 $ 103,331 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | (in thousands) 2017 2016 Useful Life (in years) Land $ 903 $ 903 N/A Building 11,122 11,122 25 - 30 Machinery and equipment 116,831 108,682 2 - 7 Capitalized software 8,709 8,651 3 - 5 Office furniture and equipment 3,507 3,130 1 - 5 Leasehold improvements 25,037 24,423 Life of lease (a) Rental equipment 452 144 5 Construction in progress 9,125 7,760 N/A Total property and equipment 175,686 164,815 Less: Accumulated depreciation and amortization (90,883) (84,837) Total property and equipment, net $ 84,803 $ 79,978 (a) Leasehold improvements are amortized on a straight-line basis over the shorter of (i) their estimated useful lives and (ii) the estimated or contractual life of the related lease. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Intangible Assets Other Than Goodwill | 2017 2016 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Useful Life (in years) Weighted Average Useful Life Remaining (in years) Intangible assets with finite lives: Patent costs $ 16,969 $ (6,337) $ 10,632 $ 16,263 $ (5,873) $ 10,390 1 - 20 9 Acquired technology 54,192 (31,125) 23,067 52,881 (27,543) 25,338 1 - 16 4 Acquired patents 16,982 (11,093) 5,889 17,047 (9,454) 7,593 1 - 6 4 Customer relationships 103,106 (49,576) 53,530 99,067 (46,252) 52,815 1 - 14 6 Trade secrets 19,254 (9,926) 9,328 19,530 (7,919) 11,611 7 4 Trade names 32,926 (16,936) 15,990 28,110 (16,015) 12,095 1 - 8 5 Other 23,971 (19,813) 4,158 22,953 (21,294) 1,659 2 - 4 2 Total intangible assets $ 267,400 $ (144,806) $ 122,594 $ 255,851 $ (134,350) $ 121,501 1 - 20 4 |
Accrued And Other Liabilities (
Accrued And Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accrued And Other Liabilities [Abstract] | |
Schedule Of Accrued Liabilities | (in thousands) 2017 2016 Compensation and benefits $ 20,256 $ 22,771 Vendor accruals 8,531 8,231 Accrued professional fees 538 810 Accrued taxes 9,887 9,831 Royalties payable 2,417 2,092 Accrued interest 112 39 Accrued earnouts related to acquisitions 3,971 3,238 Accrued other 3,024 2,956 Total $ 48,736 $ 49,968 |
Schedule Of Other Liabilities | (in thousands) 2017 2016 Arbitration award $ 11,282 $ 11,282 Long term employee indemnity 11,974 11,152 Defined benefit pension obligation 7,742 7,613 Long term tax liability 7,190 7,183 Long term earnouts related to acquisitions 3,897 7,568 Long term deferred revenue 7,019 7,464 Other long term liabilities 5,759 5,726 Total $ 54,863 $ 57,988 |
Pension Benfits (Tables)
Pension Benfits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Pension Benefits [Abstract] | |
Schedule Of Components Of Pension Cost | Quarter Ended March 31, (in thousands) 2017 2016 Service cost $ 67 $ 83 Interest cost 65 73 Amortization of actuarial loss 58 32 Total periodic cost $ 190 $ 188 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net Loss Per Share [Abstract] | |
Schedule Of Net Loss Per Share Reconciliation | Quarter Ended March 31, (in thousands, except per share amounts) 2017 2016 Numerator: Net loss attributable to 3D Systems Corporation $ (9,971) $ (17,788) Denominator for basic and diluted net loss per share: Weighted average shares 111,289 112,197 Net loss per share — basic and diluted $ (0.09) $ (0.16) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis | Fair Value Measurements as of March 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 24,133 $ — $ — $ 24,133 Earnout consideration (b) $ — $ — $ 7,868 $ 7,868 Fair Value Measurements as of December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 25,206 $ — $ — $ 25,206 Earnout consideration (b) $ — $ — $ 10,806 $ 10,806 (a) Cash equivalents include funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in the consolidated balance sheet. (b) The fair value of the earnout consideration, which is based on the present value of the expected future payments to be made to the sellers of the acquired businesses, was derived by analyzing the future performance of the acquired businesses using the earnout formula and performance targets specified in each purchase agreement and adjusting those amounts to reflect the ability of the acquired entities to achieve the stated targets. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The change in earnout consideration reflects a $3,206 payment, partially offset by $268 of accretion. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Information [Abstract] | |
Schedule Of Revenue From Unaffiliated Customers By Geographic Area, Product, And Service | Quarter Ended March 31, (in thousands) 2017 2016 Revenue from unaffiliated customers: Americas $ 80,291 $ 83,490 Germany 19,816 18,882 Other EMEA 33,142 28,549 Asia Pacific 23,182 21,634 Total revenue $ 156,431 $ 152,555 Quarter Ended March 31, (in thousands) 2017 2016 Revenue by class of product and service: Products $ 51,906 $ 52,495 Materials 42,824 38,469 Services 61,701 61,591 Total revenue $ 156,431 $ 152,555 |
Schedule Of Intercompany Sales By Geographic Area | Quarter Ended March 31, 2017 Intercompany Sales to (in thousands) Americas Germany Other EMEA Asia Pacific Total Americas $ 361 $ 9,791 $ 2,954 $ 3,898 $ 17,004 Germany 16 — 1,815 2 1,833 Other EMEA 16,531 1,160 2,199 1,011 20,901 Asia Pacific 537 — 135 1,014 1,686 Total $ 17,445 $ 10,951 $ 7,103 $ 5,925 $ 41,424 Quarter Ended March 31, 2016 Intercompany Sales to (in thousands) Americas Germany Other EMEA Asia Pacific Total Americas $ 289 $ 6,201 $ 3,265 $ 2,956 $ 12,711 Germany 634 — 451 — 1,085 Other EMEA 13,169 833 881 1,161 16,044 Asia Pacific 1,030 — 3 891 1,924 Total $ 15,122 $ 7,034 $ 4,600 $ 5,008 $ 31,764 |
Schedule Of Income (Loss) From Operations By Geographic Area | Quarter Ended March 31, (in thousands) 2017 2016 Income (loss) from operations: Americas $ (13,450) $ (14,186) Germany 2,057 1,011 Other EMEA (1,524) (8,118) Asia Pacific 4,341 5,182 Subtotal (8,576) (16,111) Intercompany elimination (495) (648) Total $ (9,071) $ (16,759) |
Schedule Of Cash And Cash Equivalents By Geographic Area | (in thousands) March 31, 2017 December 31, 2016 Assets: Americas $ 307,826 $ 345,412 Germany 42,788 40,547 Other EMEA 398,470 341,616 Asia Pacific 116,546 121,578 Total $ 865,630 $ 849,153 (in thousands) March 31, 2017 December 31, 2016 Cash and cash equivalents: Americas $ 79,057 $ 105,750 Germany 7,488 8,885 Other EMEA 42,735 35,992 Asia Pacific 32,382 34,320 Total $ 161,662 $ 184,947 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss By Component | (in thousands) Foreign currency translation adjustment Defined benefit pension plan Total Balance at December 31, 2016 $ (50,450) $ (2,775) $ (53,225) Other comprehensive income 8,331 20 8,351 Balance at March 31, 2017 $ (42,119) $ (2,755) $ (44,874) |
Basis Of Presentation (Details)
Basis Of Presentation (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Accounting Standards Update 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment to retained earnings | $ 10,206 |
Acquisitions (Details)
Acquisitions (Details) - item | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2017 | |
Business Acquisition [Line Items] | |||
Number of businesses acquired | 0 | ||
Vertex-Global Holding B.V. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jan. 31, 2017 | ||
Acquired ownership percentage | 100.00% | ||
Easyway [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Apr. 2, 2016 | ||
Acquired ownership percentage | 65.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 38,651 | $ 38,383 |
Work in process | 4,143 | 3,109 |
Finished goods and parts | 62,311 | 61,839 |
Inventories, net | $ 105,105 | $ 103,331 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property And Equipment [Abstract] | ||
Depreciation expense | $ 5,873 | $ 6,000 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 175,686 | $ 164,815 | |
Less: Accumulated depreciation and amortization | (90,883) | (84,837) | |
Total property and equipment, net | 84,803 | 79,978 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 903 | 903 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 11,122 | 11,122 | |
Machinery And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 116,831 | 108,682 | |
Capitalized Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 8,709 | 8,651 | |
Office Furniture And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 3,507 | 3,130 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 25,037 | 24,423 | |
Useful Life (in years) | [1] | Life of lease (a) | |
Rental Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 452 | 144 | |
Useful Life (in years) | 5 years | ||
Construction In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 9,125 | $ 7,760 | |
Minimum [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 25 years | ||
Minimum [Member] | Machinery And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 2 years | ||
Minimum [Member] | Capitalized Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 3 years | ||
Minimum [Member] | Office Furniture And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 1 year | ||
Maximum [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 30 years | ||
Maximum [Member] | Machinery And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 7 years | ||
Maximum [Member] | Capitalized Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 5 years | ||
Maximum [Member] | Office Furniture And Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life (in years) | 5 years | ||
[1] | Leasehold improvements are amortized on a straight-line basis over the shorter of (i) their estimated useful lives and (ii) the estimated or contractual life of the related lease. |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 8,832 | $ 8,819 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Accumulated Amortization | $ (144,806) | $ (134,350) |
Intangible assets, Gross | $ 267,400 | 255,851 |
Weighted average useful life remaining (in years) | 4 years | |
Patent Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 16,969 | 16,263 |
Intangible assets with finite lives: Accumulated Amortization | (6,337) | (5,873) |
Intangible assets with finite lives: Net | $ 10,632 | 10,390 |
Weighted average useful life remaining (in years) | 9 years | |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 54,192 | 52,881 |
Intangible assets with finite lives: Accumulated Amortization | (31,125) | (27,543) |
Intangible assets with finite lives: Net | $ 23,067 | 25,338 |
Weighted average useful life remaining (in years) | 4 years | |
Acquired Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 16,982 | 17,047 |
Intangible assets with finite lives: Accumulated Amortization | (11,093) | (9,454) |
Intangible assets with finite lives: Net | $ 5,889 | 7,593 |
Weighted average useful life remaining (in years) | 4 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 103,106 | 99,067 |
Intangible assets with finite lives: Accumulated Amortization | (49,576) | (46,252) |
Intangible assets with finite lives: Net | $ 53,530 | 52,815 |
Weighted average useful life remaining (in years) | 6 years | |
Trade Secrets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 19,254 | 19,530 |
Intangible assets with finite lives: Accumulated Amortization | (9,926) | (7,919) |
Intangible assets with finite lives: Net | $ 9,328 | 11,611 |
Weighted average useful life remaining (in years) | 4 years | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 32,926 | 28,110 |
Intangible assets with finite lives: Accumulated Amortization | (16,936) | (16,015) |
Intangible assets with finite lives: Net | $ 15,990 | 12,095 |
Weighted average useful life remaining (in years) | 5 years | |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 23,971 | 22,953 |
Intangible assets with finite lives: Accumulated Amortization | (19,813) | (21,294) |
Intangible assets with finite lives: Net | $ 4,158 | $ 1,659 |
Weighted average useful life remaining (in years) | 2 years | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Patent Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Acquired Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Trade Secrets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 7 years | |
Minimum [Member] | Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 1 year | |
Minimum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 20 years | |
Maximum [Member] | Patent Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 20 years | |
Maximum [Member] | Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 16 years | |
Maximum [Member] | Acquired Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 6 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 14 years | |
Maximum [Member] | Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 8 years | |
Maximum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets estimated useful lives | 4 years |
Accrued And Other Liabilities41
Accrued And Other Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued And Other Liabilities [Abstract] | ||
Compensation and benefits | $ 20,256 | $ 22,771 |
Vendor accruals | 8,531 | 8,231 |
Accrued professional fees | 538 | 810 |
Accrued taxes | 9,887 | 9,831 |
Royalties payable | 2,417 | 2,092 |
Accrued interest | 112 | 39 |
Accrued earnouts related to acquisitions | 3,971 | 3,238 |
Accrued other | 3,024 | 2,956 |
Total | $ 48,736 | $ 49,968 |
Accrued And Other Liabilities42
Accrued And Other Liabilities (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued And Other Liabilities [Abstract] | ||
Arbitration award | $ 11,282 | $ 11,282 |
Long term employee indemnity | 11,974 | 11,152 |
Defined benefit pension obligation | 7,742 | 7,613 |
Long term tax liability | 7,190 | 7,183 |
Long term earnouts related to acquisitions | 3,897 | 7,568 |
Long term deferred revenue | 7,019 | 7,464 |
Other long term liabilities | 5,759 | 5,726 |
Total | $ 54,863 | $ 57,988 |
Hedging Activities And Financ43
Hedging Activities And Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Hedging Activities And Financial Instruments [Abstract] | ||
Foreign currency contracts | $ 35,302 | $ 0 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Capitalized leases | $ 8,038 | $ 8,159 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Agreement aggregate principal amount | $ 150,000 | |
Debt maturity date | Oct. 31, 2019 | |
Credit Agreement outstanding borrowings | $ 0 |
Pension Benefits (Details)
Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Abstract] | ||
Service cost | $ 67 | $ 83 |
Interest cost | 65 | 73 |
Amortization of actuarial loss | 58 | 32 |
Total periodic cost | $ 190 | $ 188 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Loss Per Share [Abstract] | ||
Net loss attributable to 3D Systems Corporation | $ (9,971) | $ (17,788) |
Weighted average shares - denominator for basic net loss per share | 111,289 | 112,197 |
Net loss per share — basic and diluted | $ (0.09) | $ (0.16) |
Effect of dilutive securities excluded | $ 5,503 | $ 88 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value Measurements [Abstract] | |
Earnout accretion | $ 268 |
Deferred purchase payment provision | 3,206 |
Fair value of assets transferred from level 1 to level 2 | 0 |
Fair value of liabilities transferred from level 1 to level 2 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | $ 24,133 | $ 25,206 |
Earnout consideration | [2] | 7,868 | 10,806 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 24,133 | 25,206 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Earnout consideration | [2] | $ 7,868 | $ 10,806 |
[1] | Cash equivalents include funds held in money market instruments and are reported at their current carrying value, which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in the consolidated balance sheet. | ||
[2] | The fair value of the earnout consideration, which is based on the present value of the expected future payments to be made to the sellers of the acquired businesses, was derived by analyzing the future performance of the acquired businesses using the earnout formula and performance targets specified in each purchase agreement and adjusting those amounts to reflect the ability of the acquired entities to achieve the stated targets. Given the significance of the unobservable inputs, the valuations are classified in Level 3 of the fair value hierarchy. The change in earnout consideration reflects a $3,206 payment, partially offset by $268 of accretion. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Examination [Line Items] | ||
Provision (benefit) for income taxes | $ 1,041 | $ 1,179 |
Effective Income Tax Rate, Continuing Operations | 11.70% | 7.10% |
Australia Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,012 | |
Belgium Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,013 | |
Brazil Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
China Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,013 | |
France Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,013 | |
German Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,013 | |
India Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,013 | |
Israel Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,012 | |
Italy Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
Japan Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,012 | |
Korea Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,012 | |
Mexican Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
Netherlands Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
Switzerland Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
United Kingdom Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,015 | |
Uruguay Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,011 | |
U.S Federal Income Tax [Member] | Minimum [Member] | U.S. Internal Revenue Service [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,003 | |
U.S Federal Income Tax [Member] | Maximum [Member] | U.S. Internal Revenue Service [Member] | ||
Income Tax Examination [Line Items] | ||
Tax years subject to examination | 2,015 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Geographic Area) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Number of reportable segments | segment | 1 | |
Revenue from unaffiliated customers | $ 156,431 | $ 152,555 |
Operating Segments [Member] | Americas [Member] | ||
Revenue from unaffiliated customers | 80,291 | 83,490 |
Operating Segments [Member] | Germany [Member] | ||
Revenue from unaffiliated customers | 19,816 | 18,882 |
Operating Segments [Member] | Other EMEA [Member] | ||
Revenue from unaffiliated customers | 33,142 | 28,549 |
Operating Segments [Member] | Asia Pacific [Member] | ||
Revenue from unaffiliated customers | $ 23,182 | $ 21,634 |
Segment Information (Schedule51
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Product And Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | $ 156,431 | $ 152,555 |
Operating Segments [Member] | Products [Member] | ||
Revenue | 51,906 | 52,495 |
Operating Segments [Member] | Materials [Member] | ||
Revenue | 42,824 | 38,469 |
Operating Segments [Member] | Services [Member] | ||
Revenue | $ 61,701 | $ 61,591 |
Segment Information (Schedule52
Segment Information (Schedule Of Intercompany Sales By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Intercompany sales | $ 156,431 | $ 152,555 |
Intercompany Sales [Member] | ||
Intercompany sales | 41,424 | 31,764 |
Americas [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 17,445 | 15,122 |
Germany [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 10,951 | 7,034 |
Other EMEA [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 7,103 | 4,600 |
Asia Pacific [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 5,925 | 5,008 |
Americas [Member] | Operating Segments [Member] | ||
Intercompany sales | 80,291 | 83,490 |
Americas [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 17,004 | 12,711 |
Americas [Member] | Americas [Member] | Operating Segments [Member] | ||
Intercompany sales | 361 | 289 |
Americas [Member] | Germany [Member] | Operating Segments [Member] | ||
Intercompany sales | 9,791 | 6,201 |
Americas [Member] | Other EMEA [Member] | Operating Segments [Member] | ||
Intercompany sales | 2,954 | 3,265 |
Americas [Member] | Asia Pacific [Member] | Operating Segments [Member] | ||
Intercompany sales | 3,898 | 2,956 |
Germany [Member] | Operating Segments [Member] | ||
Intercompany sales | 19,816 | 18,882 |
Germany [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 1,833 | 1,085 |
Germany [Member] | Americas [Member] | Operating Segments [Member] | ||
Intercompany sales | 16 | 634 |
Germany [Member] | Other EMEA [Member] | Operating Segments [Member] | ||
Intercompany sales | 1,815 | 451 |
Germany [Member] | Asia Pacific [Member] | Operating Segments [Member] | ||
Intercompany sales | 2 | |
Other EMEA [Member] | Operating Segments [Member] | ||
Intercompany sales | 33,142 | 28,549 |
Other EMEA [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 20,901 | 16,044 |
Other EMEA [Member] | Americas [Member] | Operating Segments [Member] | ||
Intercompany sales | 16,531 | 13,169 |
Other EMEA [Member] | Germany [Member] | Operating Segments [Member] | ||
Intercompany sales | 1,160 | 833 |
Other EMEA [Member] | Other EMEA [Member] | Operating Segments [Member] | ||
Intercompany sales | 2,199 | 881 |
Other EMEA [Member] | Asia Pacific [Member] | Operating Segments [Member] | ||
Intercompany sales | 1,011 | 1,161 |
Asia Pacific [Member] | Operating Segments [Member] | ||
Intercompany sales | 23,182 | 21,634 |
Asia Pacific [Member] | Intercompany Sales [Member] | ||
Intercompany sales | 1,686 | 1,924 |
Asia Pacific [Member] | Americas [Member] | Operating Segments [Member] | ||
Intercompany sales | 537 | 1,030 |
Asia Pacific [Member] | Other EMEA [Member] | Operating Segments [Member] | ||
Intercompany sales | 135 | 3 |
Asia Pacific [Member] | Asia Pacific [Member] | Operating Segments [Member] | ||
Intercompany sales | $ 1,014 | $ 891 |
Segment Information (Schedule53
Segment Information (Schedule Of Income (Loss) From Operations By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income (loss) from operations | $ (9,071) | $ (16,759) |
Reportable Geographical Components [Member] | ||
Income (loss) from operations | (8,576) | (16,111) |
Intercompany Sales [Member] | ||
Income (loss) from operations | (495) | (648) |
Americas [Member] | Operating Segments [Member] | ||
Income (loss) from operations | (13,450) | (14,186) |
Germany [Member] | Operating Segments [Member] | ||
Income (loss) from operations | 2,057 | 1,011 |
Other EMEA [Member] | Operating Segments [Member] | ||
Income (loss) from operations | (1,524) | (8,118) |
Asia Pacific [Member] | Operating Segments [Member] | ||
Income (loss) from operations | $ 4,341 | $ 5,182 |
Segment Information (Schedule54
Segment Information (Schedule Of Assets By Geographic Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | $ 865,630 | $ 849,153 |
Operating Segments [Member] | Americas [Member] | ||
Assets | 307,826 | 345,412 |
Operating Segments [Member] | Germany [Member] | ||
Assets | 42,788 | 40,547 |
Operating Segments [Member] | Other EMEA [Member] | ||
Assets | 398,470 | 341,616 |
Operating Segments [Member] | Asia Pacific [Member] | ||
Assets | $ 116,546 | $ 121,578 |
Segment Information (Schedule55
Segment Information (Schedule Of Cash And Cash Equivalents By Geographic Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 161,662 | $ 184,947 | $ 169,774 | $ 155,643 |
Operating Segments [Member] | Americas [Member] | ||||
Cash and cash equivalents | 79,057 | 105,750 | ||
Operating Segments [Member] | Germany [Member] | ||||
Cash and cash equivalents | 7,488 | 8,885 | ||
Operating Segments [Member] | Other EMEA [Member] | ||||
Cash and cash equivalents | 42,735 | 35,992 | ||
Operating Segments [Member] | Asia Pacific [Member] | ||||
Cash and cash equivalents | $ 32,382 | $ 34,320 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | Sep. 28, 2015USD ($) | Aug. 23, 2013lawsuit | Mar. 31, 2017USD ($)lawsuit | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) |
Other Commitments [Line Items] | |||||
Rent expense under operating leases | $ 3,682 | $ 3,256 | |||
Total liabilities recorded for earnouts | $ 7,868 | $ 10,806 | |||
Number of stockholder class action lawsuits | lawsuit | 2 | 9 | |||
Provision for arbitration award | $ 11,282 | ||||
Redeemable noncontrolling interests | $ 8,872 | $ 8,872 | |||
Alleged actual damages | 7,254 | ||||
Fees and expenses | 2,318 | ||||
Prejudgment interest | $ 1,710 | ||||
Potential Future Payment [Member] | Put Option [Member] | |||||
Other Commitments [Line Items] | |||||
Aggregate amount to owner upon exercise | $ 8,872 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Beginning Balance | $ (53,225) |
Other comprehensive income | 8,351 |
Ending Balance | (44,874) |
Foreign Currency Translation Adjustment [Member] | |
Beginning Balance | (50,450) |
Other comprehensive income | 8,331 |
Ending Balance | (42,119) |
Defined Benefit Pension Plan [Member] | |
Beginning Balance | (2,775) |
Other comprehensive income | 20 |
Ending Balance | $ (2,755) |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Robtec [Member] | |
Business Acquisition [Line Items] | |
Acquired ownership percentage | 70.00% |
Acquisition date | Nov. 25, 2014 |
Easyway [Member] | |
Business Acquisition [Line Items] | |
Acquired ownership percentage | 65.00% |
Acquisition date | Apr. 2, 2016 |