Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34220 | |
Entity Registrant Name | 3D SYSTEMS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4431352 | |
City Area Code | 803 | |
Local Phone Number | 326-3900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | DDD | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 118,878,168 | |
Entity Central Index Key | 0000910638 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Address, Address Line One | 333 Three D Systems Circle | |
Entity Address, City or Town | Rock Hill | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29730 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 112,776 | $ 133,665 |
Accounts receivable, net of reserves — $9,013 (2020) and $8,762 (2019) | 108,769 | 109,408 |
Inventories | 113,240 | 111,106 |
Prepaid expenses and other current assets | 32,688 | 18,991 |
Total current assets | 367,473 | 373,170 |
Property and equipment, net | 89,373 | 92,940 |
Intangible assets, net | 43,788 | 48,338 |
Goodwill | 218,207 | 223,176 |
Right of use assets | 34,991 | 36,890 |
Deferred income tax asset | 5,040 | 5,408 |
Other assets, net | 24,840 | 27,390 |
Total assets | 783,712 | 807,312 |
Current liabilities: | ||
Current portion of long term debt | 2,506 | 2,506 |
Current right of use liabilities | 9,416 | 9,569 |
Accounts payable | 55,862 | 49,851 |
Accrued and other liabilities | 50,803 | 63,095 |
Customer deposits | 5,060 | 5,712 |
Deferred revenue | 42,659 | 32,231 |
Total current liabilities | 166,306 | 162,964 |
Long-term right of use liabilities | 33,880 | 35,402 |
Deferred income tax liability | 3,553 | 4,027 |
Other liabilities | 46,685 | 45,808 |
Total liabilities | 295,043 | 293,416 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock,$0.001 par value, authorized 220,000 shares; issued 121,661 (2020) and 121,266 (2019) | 121 | 120 |
Additional paid-in capital | 1,370,174 | 1,371,564 |
Treasury stock, at cost — 3,838 shares (2020) and 3,670 shares (2019) | (19,718) | (18,769) |
Accumulated deficit | (812,633) | (793,709) |
Accumulated other comprehensive loss | (49,275) | (37,047) |
Total 3D Systems Corporation stockholders' equity | 488,669 | 522,159 |
Noncontrolling interests | 0 | (8,263) |
Total stockholders’ equity | 488,669 | 513,896 |
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | 783,712 | 807,312 |
Long-term debt, net of deferred financing costs | $ 44,619 | $ 45,215 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 9,013 | $ 8,762 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 220,000,000 | 220,000,000 |
Common stock, shares issued (in shares) | 121,661,000 | 121,266,000 |
Treasury stock, at cost, shares (in shares) | 3,838,000 | 3,670,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 134,705 | $ 151,980 |
Cost of sales: | ||
Total cost of sales | 77,573 | 86,275 |
Gross profit | 57,132 | 65,705 |
Operating expenses: | ||
Selling, general and administrative | 56,106 | 65,107 |
Research and development | 19,244 | 21,903 |
Total operating expenses | 75,350 | 87,010 |
Loss from operations | (18,218) | (21,305) |
Interest and other (expense) income, net | (2,564) | (1,201) |
Loss before income taxes | (20,782) | (22,506) |
Benefit (provision) for income taxes | 1,858 | (1,844) |
Net loss | (18,924) | (24,350) |
Less: net income attributable to noncontrolling interests | 0 | 44 |
Net loss attributable to 3D Systems Corporation | $ (18,924) | $ (24,394) |
Net loss per share available to 3D Systems Corporation common stockholders - basic and diluted (in dollars per share) | $ (0.17) | $ (0.22) |
Products | ||
Revenue: | ||
Total revenue | $ 78,809 | $ 92,347 |
Cost of sales: | ||
Total cost of sales | 48,896 | 55,760 |
Services | ||
Revenue: | ||
Total revenue | 55,896 | 59,633 |
Cost of sales: | ||
Total cost of sales | $ 28,677 | $ 30,515 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (18,924) | $ (24,350) |
Other comprehensive income (loss), net of taxes: | ||
Pension adjustments | 164 | 92 |
Derivative financial instrument loss | (1,659) | 0 |
Foreign currency translation | (10,172) | (752) |
Total other comprehensive income (loss), net of taxes: | (11,667) | (660) |
Total comprehensive loss, net of taxes | (30,591) | (25,010) |
Comprehensive income attributable to noncontrolling interests | 0 | 24 |
Comprehensive loss attributable to 3D Systems Corporation | $ (30,591) | $ (25,034) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities: | |||
Net loss | $ (18,924) | $ (24,350) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 11,690 | 13,144 | |
Stock-based compensation | 6,312 | 6,706 | |
Provision for bad debts | 817 | 219 | |
Loss on the disposition of property, equipment and other assets | 137 | 0 | |
Provision for deferred income taxes | (106) | (498) | |
Impairment of assets | 1,100 | 180 | |
Changes in operating accounts: | |||
Accounts receivable | 1,568 | (2,928) | |
Inventories | (2,694) | (5,192) | |
Prepaid expenses and other current assets | (14,298) | 354 | |
Accounts payable | 6,616 | (11,987) | |
Deferred revenue and customer deposits | 10,242 | 11,811 | |
Accrued and other current liabilities | (8,068) | (5,531) | |
All other operating activities | 3,323 | 2,914 | |
Net cash used in operating activities | (2,285) | (15,158) | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (4,366) | (8,837) | |
Proceeds from sale of assets | 552 | 0 | |
Purchase of noncontrolling interest | (12,500) | (2,500) | |
Other investing activities | (284) | (37) | |
Net cash used in investing activities | (16,598) | (11,374) | |
Cash flows from financing activities: | |||
Proceeds from borrowings | 0 | 100,000 | |
Repayment of borrowings/long term debt | (627) | (25,000) | |
Proceeds from inventory financing agreements | 2,509 | 0 | |
Payments related to net-share settlement of stock based compensation | (949) | (483) | |
Other financing activities | 296 | (780) | |
Net cash provided by financing activities | 1,229 | 73,737 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,241) | 57 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (20,895) | 47,262 | |
Cash, cash equivalents and restricted cash at the beginning of the period | [1] | 134,617 | 110,919 |
Cash, cash equivalents and restricted cash at the end of the period | [1] | 113,722 | 158,181 |
Supplemental cash flow information | |||
Cash interest payments | 1,069 | 642 | |
Cash income tax payments, net | 1,832 | 4,862 | |
Transfer of equipment from inventory to property and equipment, net | [2] | 350 | 154 |
Noncash financing activity | |||
Purchase of noncontrolling interest | [3] | $ 0 | $ (11,000) |
[1] | The amounts for cash and cash equivalents shown above include restricted cash of $946 and $921 as of March 31, 2020 and 2019, respectively, and $952 and $921 as of December 31, 2019, and 2018, respectively, which were included in Other assets, net, in the condensed consolidated balance sheets. | ||
[2] | Inventory is transferred from inventory to property and equipment at cost when we require additional machines for training or demonstration or for placement into on demand manufacturing services locations. | ||
[3] | Purchase of noncontrolling interest to be paid in installments over a four-year period recorded to Accrued and other liabilities and Other liabilities on the condensed consolidated balance sheets. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Cash Flows [Abstract] | ||||
Restricted cash included in other assets | $ 946 | $ 952 | $ 921 | $ 921 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total 3D Systems Corporation Stockholders' Equity | Equity Attributable to Noncontrolling Interests |
Beginning Balance at Dec. 31, 2018 | $ 575,987 | $ 117 | $ 1,355,503 | $ (15,572) | $ (722,701) | $ (38,978) | $ 578,369 | $ (2,382) |
Issuance (repurchase) of stock | (483) | 1 | (484) | (483) | ||||
Acquisition of non-controlling interest | (13,342) | (7,526) | 256 | (7,270) | (6,072) | |||
Stock-based compensation expense | 6,706 | 6,706 | 6,706 | |||||
Net income (loss) | (24,350) | (24,394) | (24,394) | 44 | ||||
Pension adjustment | 92 | 92 | 92 | |||||
Derivative financial instrument loss | 0 | |||||||
Foreign currency translation adjustment | (752) | (732) | (732) | (20) | ||||
Ending Balance at Mar. 31, 2019 | $ 543,858 | 118 | 1,354,683 | (16,056) | (747,095) | (39,362) | 552,288 | (8,430) |
Common stock, par value (in dollars per share) | $ 0.001 | |||||||
Beginning Balance at Dec. 31, 2019 | $ 513,896 | 120 | 1,371,564 | (18,769) | (793,709) | (37,047) | 522,159 | (8,263) |
Issuance (repurchase) of stock | (948) | 1 | (949) | (948) | ||||
Acquisition of non-controlling interest | 0 | (7,702) | (561) | (8,263) | 8,263 | |||
Stock-based compensation expense | 6,312 | 6,312 | 6,312 | |||||
Net income (loss) | (18,924) | (18,924) | (18,924) | |||||
Pension adjustment | 164 | 164 | 164 | |||||
Derivative financial instrument loss | (1,659) | (1,659) | (1,659) | |||||
Foreign currency translation adjustment | (10,172) | (10,172) | (10,172) | |||||
Ending Balance at Mar. 31, 2020 | $ 488,669 | $ 121 | $ 1,370,174 | $ (19,718) | $ (812,633) | $ (49,275) | $ 488,669 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.001 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of 3D Systems Corporation and all majority-owned subsidiaries and entities in which a controlling interest is maintained (“3D Systems” or the “Company” or “we” or “us”). All significant intercompany transactions and balances have been eliminated in consolidation. A non-controlling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. We include noncontrolling interests as a component of total equity in the condensed consolidated balance sheets and the net income attributable to noncontrolling interests are presented as an adjustment from net loss used to arrive at net loss attributable to 3D Systems Corporation in the condensed consolidated statements of operations and comprehensive loss. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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 our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”). Our annual reporting period is the calendar year. 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, 2020 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. Our operations in Americas, EMEA and APAC expose us to risks associated with public health crises and epidemics/pandemics, such as the COVID-19 pandemic. While the COVID-19 pandemic has impacted the Company’s reported results for the first quarter, we are unable to predict the longer term impact that the pandemic may have on our business, results of operations, financial position or cash flows. The extent to which our operations may be impacted by the dynamic nature of the COVID-19 pandemic will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the outbreak and actions by government authorities to contain the outbreak or treat its impact. Furthermore, the impacts of a potential worsening of global economic conditions and the continued disruptions to, and volatility in the financial markets remain unknown. As a result of these matters, the Company experienced a triggering event in the current quarter and performed a quantitative analysis for potential impairment of its goodwill or long-lived asset balances. Based on currently available information and analysis as of March 31, 2020, the Company continues to believe the fair value of the reporting units exceeds their carrying values and the carrying value of our long-lived assets is recoverable. In the event that these matters are not satisfactorily resolved, the Company could experience another triggering event or impairment of its goodwill or long-lived asset balances in future periods. All dollar amounts presented in the accompanying footnotes are presented in thousands, except for per share information. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), as revised in July 2018, which provides guidance regarding the measurement of credit losses for financial assets and certain other instruments that are not accounted for at fair value through net income, including trade and other receivables, debt securities, net investment in sales type and direct financing leases, and off-balance sheet credit exposures. The new guidance requires companies to replace the current incurred loss impairment methodology with a methodology that measures all expected credit losses for financial assets based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted this guidance during the current period and the implementation did not have a material effect on our financial position or results of operations. 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 Company adopted this guidance during the current period and the implementation did not have a material effect on our financial position or results of operations. Accounting Standards Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes ,” which simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification 740, Income Taxes. It also clarifies certain aspects of the existing guidance to promote more consistent application. This standard is effective for calendar-year public business entities in 2021 and interim periods within that year, and early adoption is permitted. We are currently not early adopting and are in the process of evaluating the impact the new standard will have on our consolidated financial statements. No other new accounting pronouncements, issued or effective during 2020, have had or are expected to have a significant impact on our consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue | (2) Revenue We account for revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At March 31, 2020, we had $98,551 of outstanding performance obligations. We expect to recognize approximately 91 percent of our remaining performance obligations as revenue within the next twelve months, an additional 5 percent by the end of 2021 and the balance thereafter. See Note 13 for additional information related to revenue by reportable segment and major lines of business. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer deposits and deferred revenues (contract liabilities) on the condensed consolidated balance sheets. Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized at the time of invoicing, or unbilled receivables when revenue is recognized prior to invoicing. For most of our contracts, customers are invoiced when products are shipped or when services are performed resulting in billed accounts receivables for the remainder of the owed contract price. Unbilled receivables generally result from items being shipped where the customer has not been charged, but for which revenue had been recognized. In our on demand manufacturing business, customers may be required to pay in full before work begins on their orders, resulting in customer deposits. We typically bill in advance for installation, training and maintenance contracts as well as extended warranties, resulting in deferred revenue. Changes in contract asset and liability balances were not materially impacted by any other factors for the period ended March 31, 2020. Through March 31, 2020, we recognized revenue of $12,659 related to our contract liabilities at December 31, 2019 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | (3) Leases We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one one Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of the future lease payments. Certain of our leases include variable costs. Variable costs include non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the ROU asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the ROU asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. Components of lease cost (income) were as follows: (in thousands) Quarter ended March 31, 2020 Quarter Ended March 31, 2019 Operating lease cost $ 2,895 $ 3,789 Finance lease cost - amortization expense 204 206 Finance lease cost - interest expense 161 115 Short-term lease cost 27 24 Variable lease cost 914 — Sublease income (152) — Total $ 4,049 $ 4,134 Balance sheet classifications at March 31, 2020 and December 31, 2019 are summarized below: 2020 2019 (in thousands) Right of use assets Current right of use liabilities Long-term right of use liabilities Right of use assets Current right of use liabilities Long-term right of use liabilities Operating Leases $ 27,085 $ 8,544 $ 23,768 $ 28,571 $ 9,231 $ 24,835 Finance Leases 7,906 872 10,112 8,319 338 10,567 Total $ 34,991 $ 9,416 $ 33,880 $ 36,890 $ 9,569 $ 35,402 Our future minimum lease payments as of March 31, 2020 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows: March 31, 2020 (in thousands) Operating Leases Finance Leases Years ending March 31: 2021 $ 8,086 $ 1,153 2022 7,988 1,443 2023 6,699 1,446 2024 5,343 1,440 2025 3,781 1,392 Thereafter 6,633 8,017 Total lease payments 38,530 14,891 Less: imputed interest (6,218) (3,907) Present value of lease liabilities $ 32,312 $ 10,984 Supplemental cash flow information related to our operating leases for the periods ending March 31, 2020 and March 31, 2019 were as follows: (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 3,157 $ 3,857 Operating cash outflow from finance leases $ 139 $ 115 Financing cash (inflow) outflow from finance leases $ (296) $ 167 Weighted-average remaining lease terms and discount rate for our operating leases for the period ending March 31, 2020, were as follows: March 31, 2020 Operating Financing Weighted-average remaining lease term 5.1 years 10.2 years Weighted-average discount rate 6.49 % 6.01 % |
Leases | (3) Leases We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one one Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of the future lease payments. Certain of our leases include variable costs. Variable costs include non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the ROU asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the ROU asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term. Components of lease cost (income) were as follows: (in thousands) Quarter ended March 31, 2020 Quarter Ended March 31, 2019 Operating lease cost $ 2,895 $ 3,789 Finance lease cost - amortization expense 204 206 Finance lease cost - interest expense 161 115 Short-term lease cost 27 24 Variable lease cost 914 — Sublease income (152) — Total $ 4,049 $ 4,134 Balance sheet classifications at March 31, 2020 and December 31, 2019 are summarized below: 2020 2019 (in thousands) Right of use assets Current right of use liabilities Long-term right of use liabilities Right of use assets Current right of use liabilities Long-term right of use liabilities Operating Leases $ 27,085 $ 8,544 $ 23,768 $ 28,571 $ 9,231 $ 24,835 Finance Leases 7,906 872 10,112 8,319 338 10,567 Total $ 34,991 $ 9,416 $ 33,880 $ 36,890 $ 9,569 $ 35,402 Our future minimum lease payments as of March 31, 2020 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows: March 31, 2020 (in thousands) Operating Leases Finance Leases Years ending March 31: 2021 $ 8,086 $ 1,153 2022 7,988 1,443 2023 6,699 1,446 2024 5,343 1,440 2025 3,781 1,392 Thereafter 6,633 8,017 Total lease payments 38,530 14,891 Less: imputed interest (6,218) (3,907) Present value of lease liabilities $ 32,312 $ 10,984 Supplemental cash flow information related to our operating leases for the periods ending March 31, 2020 and March 31, 2019 were as follows: (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 3,157 $ 3,857 Operating cash outflow from finance leases $ 139 $ 115 Financing cash (inflow) outflow from finance leases $ (296) $ 167 Weighted-average remaining lease terms and discount rate for our operating leases for the period ending March 31, 2020, were as follows: March 31, 2020 Operating Financing Weighted-average remaining lease term 5.1 years 10.2 years Weighted-average discount rate 6.49 % 6.01 % |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Components of inventories at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 35,736 $ 42,066 Work in process 12,502 5,496 Finished goods and parts 65,002 63,544 Inventories $ 113,240 $ 111,106 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (5) Intangible Assets Intangible assets, net, other than goodwill, at March 31, 2020 and December 31, 2019 are summarized as follows: 2020 2019 (in thousands) Gross (a) Accumulated Amortization Net Gross (a) Accumulated Amortization Net Weighted Average Useful Life Remaining (in years) Intangible assets with finite lives: Customer relationships $ 102,920 $ (78,996) $ 23,924 $ 103,661 $ (77,021) $ 26,640 4 Acquired technology 53,665 (51,554) 2,111 54,378 (51,875) 2,503 1 Trade names 23,397 (19,086) 4,311 23,907 (19,133) 4,774 4 Patent costs 11,974 (9,607) 2,367 11,760 (9,535) 2,225 15 Trade secrets 19,530 (16,257) 3,273 19,494 (15,714) 3,780 2 Acquired patents 16,207 (14,954) 1,253 16,215 (14,706) 1,509 7 Other 25,664 (19,115) 6,549 26,256 (19,349) 6,907 1 Total intangible assets $ 253,357 $ (209,569) $ 43,788 $ 255,671 $ (207,333) $ 48,338 5 (a) Change in gross carrying amounts consists primarily of charges for license and patent costs and foreign currency translation. Amortization expense related to intangible assets was $4,402 and $5,520 for the quarters ended March 31, 2020 and March 31, 2019, respectively. |
Accrued And Other Liabilities
Accrued And Other Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued And Other Liabilities | (6) Accrued and Other Liabilities Accrued liabilities at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) 2020 2019 Compensation and benefits $ 18,281 $ 21,139 Vendor accruals 10,665 9,734 Payable to owners of redeemable noncontrolling interests — 10,000 Accrued taxes 8,661 9,840 Accrued other 5,159 4,223 Product warranty liability 2,677 2,908 Arbitration awards 2,256 2,256 Accrued professional fees 1,500 1,545 Royalties payable 1,604 1,450 Total $ 50,803 $ 63,095 Other liabilities at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) 2020 2019 Long term employee indemnity $ 13,021 $ 14,408 Long term tax liability 10,653 5,011 Defined benefit pension obligation 10,104 10,357 Long term deferred revenue 6,518 7,370 Other long term liabilities 6,389 8,662 Total $ 46,685 $ 45,808 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | (7) Borrowings Credit Facility We hold a 5-year $100,000 senior secured term loan facility (the “Term Facility”) and a 5-year $100,000 senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Senior Credit Facility”) that are intended to support working capital and general corporate purposes. The Senior Credit Facility is guaranteed by certain of our subsidiaries. The guarantors guarantee, among other things, all our obligations and each other guarantor's obligations under the Senior Credit Facility. From time to time, we may be required to cause additional domestic subsidiaries to become guarantors under the Senior Credit Facility. The Senior Credit Facility is scheduled to mature on February 26, 2024, at which time all amounts outstanding thereunder will be due and payable. However, the maturity date of the Revolving Facility may be extended at our election with the consent of the lenders subject to the terms set forth in the Senior Credit Facility. The Senior Credit Facility contains customary covenants, some of which require us to maintain certain financial ratios that determine the amounts available and terms of borrowings and events of default. We were in compliance with all covenants at March 31, 2020. The payment of dividends on our common stock is restricted under provisions of the Senior Credit Facility, which limits the amount of cash dividends that we may pay in any one fiscal year to $30,000. We currently do not pay, and have not paid, any dividends on our common stock, and currently intend to retain any future earnings for use in our business. Borrowings under the Senior Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. At March 31, 2020, our floating interest rate was 3.0%. Subject to certain terms and conditions contained in the Revolving Facility, we have the right to request up to four increases to the amount of the Revolving Facility in an aggregate amount not to exceed $100,000. We had a balance of $47,605 outstanding on the Term Facility at March 31, 2020, with $2,506 of principal payments due in the next twelve months. |
Hedging Activities and Financia
Hedging Activities and Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities and Financial Instruments | (8) Hedging Activities and Financial Instruments Derivatives Designated as Hedging Instruments On July 8, 2019, we entered into an interest rate swap contract, designated as a cash flow hedge, to minimize the risk associated with the variability of cash flows in interest payments from variable-rate debt due to fluctuations in the one-month USD-LIBOR, subject to a 0% floor, through February 26, 2024. Changes in the interest rate swap are expected to offset the changes in cash flows attributable to fluctuations of the one-month USD-LIBOR for the interest payments associated with our variable-rate debt. The notional amount and fair value of the derivative on our balance sheet at March 31, 2020 and December 31, 2019 are disclosed below: (in thousands) Balance Sheet location Notional amount Fair value 2020 Interest rate swap contract Other liabilities $ 40,000 $ (1,976) 2019 Interest rate swap contract Other liabilities $ 40,000 $ (318) Amounts released from Accumulated Other Comprehensive Loss (AOCL) and reclassified into “Interest and other expense, net” did not have a material impact on our condensed consolidated statements of operations and comprehensive loss for the quarter March 31, 2020. The net amount of AOCL expected to be reclassified to losses in the next 12 months is approximately $589. We did not have a similar instrument during the quarter ended March 31, 2019. Derivatives Not Designated as Hedging Instruments We conduct business in various countries using both the functional currencies of those countries and other currencies to effect cross border transactions. As a result, we are 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, we endeavor to match assets and liabilities in the same currency on our balance sheet and those of our subsidiaries in order to reduce these risks. When appropriate, we enter into foreign currency contracts to hedge exposures arising from those transactions. We have elected not to prepare and maintain the documentation to qualify for hedge accounting treatment under ASC 815, “ Derivatives and Hedging ,” and therefore, all gains and losses (realized or unrealized) are recognized in “Interest and other expense, net” in the condensed consolidated statements of operations and comprehensive 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. We had $100,403 and $102,407 in notional foreign exchange contracts outstanding as of March 31, 2020 and December 31, 2019, respectively. The fair values of these contracts were not material. |
Inventory Financing Agreements
Inventory Financing Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Inventory Financing Agreements | (9) Inventory Financing Agreements On December 1, 2018 and January 17, 2020, we entered into a Manufacturing Services Agreement and Amendment One to Manufacturing Services Agreement (together, the "Agreement"), with an assembling manufacturer to produce products on behalf of 3D Systems Corporation. During the current period, as part of the Agreement, we sold $12,100 of inventory to the assembling manufacturer that we have an obligation to repurchase. At March 31, 2020, we recorded a liability, obligation to repurchases inventory, included in "Accrued and other liabilities" on our condensed consolidated balance sheets for $2,271 related to the initial sale of inventory to the assembly manufacturer. The inventory sold consists of raw materials, packaging materials and consumables representing stock on hand related to certain product families for which the manufacturing has been outsourced to the assembling manufacturer. Although the assembling manufacturer holds legal title, we account for the inventory similar to a product financing arrangement; therefore, the inventories sold to the assembling manufacturer will continue to be included in "Inventories" on our condensed consolidated balance sheets until processed into finished goods and sold back to us. At March 31, 2020, inventory held at assemblers was $8,471. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | (10) Net Loss Per Share We compute 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) 2020 2019 Numerator for basic and diluted net loss per share: Net loss attributable to 3D Systems Corporation $ (18,924) $ (24,394) Denominator for basic and diluted net loss per share: Weighted average shares 114,590 113,267 Net loss per share - basic and diluted $ (0.17) $ (0.22) For the quarters ended March 31, 2020 and March 31, 2019, 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 share because we recognized a net loss for the period and their inclusion would be anti-dilutive. Dilutive securities excluded for the quarters ended March 31, 2020 and March 31, 2019 were 6,135 and 5,534, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [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. The above standard applies to cash equivalents, Israeli severance funds and derivatives. We utilize the market approach to measure fair value for 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, 2020 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 23,532 $ — $ — $ 23,532 Israeli severance funds (b) $ — $ 7,192 $ — $ 7,192 Derivative financial instruments (c) $ — $ (1,976) $ — $ (1,976) Fair Value Measurements as of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 20,869 $ — $ — $ 20,869 Israeli severance funds (b) $ — $ 7,449 $ — $ 7,449 Derivative financial instruments (c) $ — $ (318) $ — $ (318) (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) We partially fund a liability for our Israeli severance requirement through monthly deposits into fund accounts, the value of these contributions are recorded to non-current assets on the consolidated balance sheet. (c) Derivative instruments are reported based on published market prices for similar assets or are estimated based on published market prices for similar assets or are estimated based on observable inputs such as interest rates, yield curves, credit risks, spot and future commodity prices and spot and future exchange rates. See Note 8 for additional information on our derivative financial instruments. We 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, 2020. 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 the 2019 Form 10-K. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes We maintain the exception under ASC 740-270-30-36(b), "Accounting for Income Taxes", that jurisdictions do not have reliable estimates of ordinary income for the 2020 year due to the volatility in the industry. Based on the increased global financial uncertainty due to the COVID-19 pandemic and continued volatility in the industry, we have continued to use a year to date methodology in determining the quarterly effective tax rate for the quarter ended March 31, 2020. For the quarter ended March 31, 2020, we recorded a tax benefit of $1,858, resulting in an effective tax rate of 8.9%. For the quarter ended March 31, 2019, we recorded a tax expense of $1,844, resulting in an effective tax rate of 8.20%. The difference between the statutory rate and the effective rate is driven primarily by the valuation allowances in various jurisdictions, the foreign rate differential between the U.S. tax rate and foreign tax rates, and the change in U.S. tax law allowing for the carryback of certain U.S. net operating losses ("NOLs") as explained in the subsequent paragraph. In response to the global pandemic resulting from COVID-19, the U.S. government enacted tax legislation on March 27, 2020 under the Coronavirus Aid Relief, and Economic Security Act ("CARES Act"). This legislation allows us to carryback NOLs generated in the 2018 and 2019 tax years up to five years. We intend to carryback such NOLs to the 2013 and 2014 tax years and request a refund for cash taxes paid. During the current quarter, we recorded a tax receivable for the NOL carryback of $8,886. We also recorded the associated tax benefit of $3,175, which is net of recorded uncertain tax positions of $5,711. We have also assessed the non-income tax related provisions of the CARES Act and do not believe that they will have a material impact on our consolidated financial statements. Due to the one-time transition tax, the majority of our previously unremitted earnings have now been subjected to U.S. federal income tax, although, other additional taxes such as withholding tax could be applicable. We continue to assert that our foreign earnings are indefinitely reinvested in our overseas operations with the exception of Japan. The change in this assertion has no material effect. As such, we have not provided for any additional taxes on approximately $182,050 of unremitted earnings. We estimate the unrecognized deferred tax liability related to these earnings is approximately $20,804. Tax years 2013 and 2014 remain subject to examination by the IRS for certain tax credit carryforwards, while tax years 2016 through 2018 remain open to examination by the IRS. State income tax returns are generally subject to examination for a period of three to four years after filing the respective tax returns. We file income tax returns (which are open to examination beginning in the year shown in parentheses) in Australia (2015), Belgium (2016), Brazil (2014), China (2016), France (2016), Germany (2015), India (2014), Israel (2015), Italy (2014), Japan (2014), Korea (2014), Mexico (2014), Netherlands (2014), Switzerland (2014), the United Kingdom (2018) and Uruguay (2014). |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | (13) Segment Information We operate as one segment and conduct our business through various offices and facilities located throughout the Americas region (United States, Canada, Brazil, Mexico and Uruguay), EMEA region (Belgium, France, Germany, Israel, Italy, the Netherlands, Switzerland and the United Kingdom), and APAC region (Australia, China, India, Japan and Korea). We have 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 our geographical locations is based on the location of the selling entity. Quarter Ended March 31, (in thousands) 2020 2019 Revenue from unaffiliated customers: United States $ 61,987 $ 71,398 Other Americas 1,815 2,305 EMEA 56,467 59,644 Asia Pacific 14,436 18,633 Total revenue $ 134,705 $ 151,980 Quarter Ended March 31, (in thousands) 2020 2019 Revenue by class of product and service: Products $ 37,432 $ 50,917 Materials 41,377 41,430 Services 55,896 59,633 Total revenue $ 134,705 $ 151,980 Quarter ended March 31, 2020 Intercompany Sales to (in thousands) Americas EMEA Asia Pacific Total Americas $ 254 $ 9,980 $ 3,521 $ 13,755 EMEA 13,575 14,444 862 28,881 Asia Pacific 1,558 579 446 2,583 Total intercompany sales $ 15,387 $ 25,003 $ 4,829 $ 45,219 Quarter ended March 31, 2019 Intercompany Sales to (in thousands) Americas EMEA Asia Pacific Total Americas $ 446 $ 16,708 $ 3,837 $ 20,991 EMEA 16,678 6,936 1,572 25,186 Asia Pacific 745 21 801 1,567 Total intercompany sales $ 17,869 $ 23,665 $ 6,210 $ 47,744 Quarter Ended March 31, (in thousands) 2020 2019 (Loss) income from operations: Americas $ (22,087) $ (26,832) EMEA 2,228 2,917 Asia Pacific 1,641 2,610 Total $ (18,218) $ (21,305) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies We have an inventory purchase commitment with an assembling manufacturer, see Note 9. Litigation 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 us and certain of our 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 our acquisition of Print3D Corporation (of which Mr. Barranco was a 50% shareholder) and our subsequent employment of Mr. Barranco. 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 our acquisition of certain website domains from Mr. Barranco and our subsequent employment of Mr. Barranco. Both Barranco I and Barranco II allege we breached certain purchase agreements in order to avoid paying Mr. Barranco additional monies pursuant to royalty and earn out provisions in the agreements. With regard to Barranco I, the Hawaii district court, on February 28, 2014, denied our motion to dismiss and our motion to transfer venue to South Carolina for the convenience of the parties. However, the Hawaii court recognized that Barranco’s claims were all subject to mandatory and binding arbitration in Charlotte, North Carolina. The parties selected an arbitrator and arbitration took place in September 2015 in Charlotte, North Carolina. On September 28, 2015, the arbitrator issued a final award in favor of Barranco with respect to two alleged breaches of contract and implied covenants arising out of the contract. The arbitrator found that we did not commit fraud or make any negligent misrepresentations to Barranco. Pursuant to the award, we were directed 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. On August 3, 2018, following an unsuccessful appeal to the federal court in the Western District of North Carolina and the United States Court of Appeals for the Fourth Circuit, we paid $9,127 of the Barranco I judgment, net setoff. On September 28, 2018, the parties filed a Consent Stipulation Resolving Motion for Setoff of Judgment, stipulating that subject only to vacatur or amendment reducing the Barranco II judgment in Barranco’s appeal to the Ninth Circuit related to the Barranco II action discussed below, the Barranco II judgment in the amount of $2,182 was setoff against the Barranco I judgment (“Stipulated Setoff”). We paid Barranco the $101 balance remaining due after the Stipulated Setoff. With regard to Barranco II, the case was tried to a jury in Hawaii district court in May 2016, and on May 27, 2016 the jury found that we were not liable for either breach of contract or breach of the implied covenant of good faith and fair dealing. Additionally, the jury found in our favor on our counterclaim against Barranco and determined that Barranco violated his non-competition covenant with us. On March 30, 2018, the court entered Findings of Fact and Conclusions of Law and Order requiring Barranco to disgorge, and us recover, $523, representing all but four months of the full amount paid to Barranco as salary during his employment with us as well as a portion of the up front and buyout payments made to Barranco in connection with the purchase of certain web domains. In addition, the court ordered Barranco to pay pre-judgment interest to us to be calculated beginning as of his first breach of the non-competition covenant in August 2011. Judgment was entered thereafter on April 2, 2018. On September 13, 2018, the Hawaii district court entered its Amended Judgment in a Civil Case, awarding us a final amended judgment of $2,182. On September 19, 2018, Barranco filed an Amended Notice of Appeal. On January 13, 2019, Barranco filed Appellant’s Opening Brief in the Ninth Circuit. On March 15, 2019, we filed our Answering Brief. On April 14, 2019, Barranco filed his Reply Brief. Oral Arguments took place on October 24, 2019. On March 12, 2020, the Ninth Circuit affirmed the district court’s evidentiary rulings and reversed and vacated the monetary judgment in our favor on our breach of contract counterclaim. The formal mandate issued on April 17, 2020. On April 20, Barranco filed a Motion to Recall and Amend Mandate to Conform with Rule 37(b) in the Ninth Circuit. We filed an opposition brief on April 28 and the Ninth Circuit denied Barranco’s motion the same day. On April 21, 2020, the district court issued a Minute Order regarding issues on remand from the Ninth Circuit. The district court directed the parties to file simultaneous initial briefs on May 21 addressing what relief we are entitled to receive in light of the Ninth Circuit’s opinion. Both parties may file responsive briefs no later than June 19, 2020. Export Controls and Government Contracts Compliance Matter In October 2017, we received an administrative subpoena from the Bureau of Industry and Security of the Department of Commerce (“BIS”) requesting the production of records in connection with possible violations of U.S. export control laws, including with regard to our Quickparts.com, Inc. subsidiary. In addition, while collecting information responsive to the above-referenced subpoena, our internal investigation identified potential violations of the International Traffic in Arms Regulations (“ITAR”) administered by the Directorate of Defense Trade Controls of the Department of State (“DDTC”) and potential violations of the Export Administration Regulations administered by the BIS. On June 8, 2018 and thereafter, we submitted voluntary disclosures to BIS and DDTC identifying numerous potentially unauthorized exports of technical data. As part of our ongoing review of trade compliance risks and our cooperation with the government, on November 20, 2019, we submitted to the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) an initial notice of voluntary disclosure regarding potential violations of economic sanctions related to Iran. We are continuing to investigate this issue and will file a final disclosure with OFAC when our review is complete. We have and will continue to implement compliance enhancements to our export controls, trade sanctions, and government contracting compliance program to address the issues identified through our ongoing internal investigation and will cooperate with DDTC and BIS, as well as the U.S. Departments of Justice, Defense, Homeland Security and Treasury in their ongoing reviews of these matters. In addition, on July 19, 2019, we received a notice of immediate suspension of federal contracting from the United States Air Force, pending the outcome of an ongoing investigation. The suspension applied to 3D Systems, its subsidiaries and affiliates, and was related to the potential export controls violations involving our On Demand manufacturing business described above. Under the suspension, we were generally prohibited from receiving new federal government contracts or subcontracts from any executive branch agency as described in the provisions of 48 C.F.R Subpart 9.4 of the Federal Acquisition Regulation. The suspension allowed us to continue to perform current federal contracts, and also to receive awards of new subcontracts for items under $35 and for items considered commercially available off-the-shelf items. The Air Force lifted the suspension on September 6, 2019 following the execution of a two export controls compliance program. Although we cannot predict the ultimate resolution of these matters, we have incurred and expect to continue to incur significant legal costs and other expenses in connection with responding to the U.S. government agencies. Other We are involved in various other legal matters incidental to our business. Although we cannot predict the results of the litigation with certainty, we believe that the disposition of all these various other legal matters will not have a material adverse effect, individually or in the aggregate, on our consolidated results of operations, consolidated cash flows or consolidated financial position. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | (15) Noncontrolling Interests As of March 31, 2020, we owned 100% of the capital and voting rights of Robtec, a service bureau and distributor of 3D printing and scanning products in Brazil. Approximately 70% of the capital and voting rights of Robtec were acquired on November 25, 2014. On January 7, 2020, we made a payment equal to the redemption price of $10,000 and acquired the remaining 30% of the capital and voting rights. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements include the accounts of 3D Systems Corporation and all majority-owned subsidiaries and entities in which a controlling interest is maintained (“3D Systems” or the “Company” or “we” or “us”). All significant intercompany transactions and balances have been eliminated in consolidation. A non-controlling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. We include noncontrolling interests as a component of total equity in the condensed consolidated balance sheets and the net income attributable to noncontrolling interests are presented as an adjustment from net loss used to arrive at net loss attributable to 3D Systems Corporation in the condensed consolidated statements of operations and comprehensive loss. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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 our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”). Our annual reporting period is the calendar year. |
Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), as revised in July 2018, which provides guidance regarding the measurement of credit losses for financial assets and certain other instruments that are not accounted for at fair value through net income, including trade and other receivables, debt securities, net investment in sales type and direct financing leases, and off-balance sheet credit exposures. The new guidance requires companies to replace the current incurred loss impairment methodology with a methodology that measures all expected credit losses for financial assets based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted this guidance during the current period and the implementation did not have a material effect on our financial position or results of operations. 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 Company adopted this guidance during the current period and the implementation did not have a material effect on our financial position or results of operations. Accounting Standards Issued But Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes ,” which simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification 740, Income Taxes. It also clarifies certain aspects of the existing guidance to promote more consistent application. This standard is effective for calendar-year public business entities in 2021 and interim periods within that year, and early adoption is permitted. We are currently not early adopting and are in the process of evaluating the impact the new standard will have on our consolidated financial statements. No other new accounting pronouncements, issued or effective during 2020, have had or are expected to have a significant impact on our consolidated financial statements. |
Revenue Recognition | We account for revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Cost | Components of lease cost (income) were as follows: (in thousands) Quarter ended March 31, 2020 Quarter Ended March 31, 2019 Operating lease cost $ 2,895 $ 3,789 Finance lease cost - amortization expense 204 206 Finance lease cost - interest expense 161 115 Short-term lease cost 27 24 Variable lease cost 914 — Sublease income (152) — Total $ 4,049 $ 4,134 |
Balance Sheet Classifications | Balance sheet classifications at March 31, 2020 and December 31, 2019 are summarized below: 2020 2019 (in thousands) Right of use assets Current right of use liabilities Long-term right of use liabilities Right of use assets Current right of use liabilities Long-term right of use liabilities Operating Leases $ 27,085 $ 8,544 $ 23,768 $ 28,571 $ 9,231 $ 24,835 Finance Leases 7,906 872 10,112 8,319 338 10,567 Total $ 34,991 $ 9,416 $ 33,880 $ 36,890 $ 9,569 $ 35,402 |
Future Minimum Lease Payments - Finance Leases | Our future minimum lease payments as of March 31, 2020 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows: March 31, 2020 (in thousands) Operating Leases Finance Leases Years ending March 31: 2021 $ 8,086 $ 1,153 2022 7,988 1,443 2023 6,699 1,446 2024 5,343 1,440 2025 3,781 1,392 Thereafter 6,633 8,017 Total lease payments 38,530 14,891 Less: imputed interest (6,218) (3,907) Present value of lease liabilities $ 32,312 $ 10,984 |
Future Minimum Lease Payments - Operating Leases | Our future minimum lease payments as of March 31, 2020 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows: March 31, 2020 (in thousands) Operating Leases Finance Leases Years ending March 31: 2021 $ 8,086 $ 1,153 2022 7,988 1,443 2023 6,699 1,446 2024 5,343 1,440 2025 3,781 1,392 Thereafter 6,633 8,017 Total lease payments 38,530 14,891 Less: imputed interest (6,218) (3,907) Present value of lease liabilities $ 32,312 $ 10,984 |
Supplemental Cash Flow Information | Supplemental cash flow information related to our operating leases for the periods ending March 31, 2020 and March 31, 2019 were as follows: (in thousands) March 31, 2020 March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 3,157 $ 3,857 Operating cash outflow from finance leases $ 139 $ 115 Financing cash (inflow) outflow from finance leases $ (296) $ 167 Weighted-average remaining lease terms and discount rate for our operating leases for the period ending March 31, 2020, were as follows: March 31, 2020 Operating Financing Weighted-average remaining lease term 5.1 years 10.2 years Weighted-average discount rate 6.49 % 6.01 % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components Of Inventories | Components of inventories at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 35,736 $ 42,066 Work in process 12,502 5,496 Finished goods and parts 65,002 63,544 Inventories $ 113,240 $ 111,106 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Other Than Goodwill | Intangible assets, net, other than goodwill, at March 31, 2020 and December 31, 2019 are summarized as follows: 2020 2019 (in thousands) Gross (a) Accumulated Amortization Net Gross (a) Accumulated Amortization Net Weighted Average Useful Life Remaining (in years) Intangible assets with finite lives: Customer relationships $ 102,920 $ (78,996) $ 23,924 $ 103,661 $ (77,021) $ 26,640 4 Acquired technology 53,665 (51,554) 2,111 54,378 (51,875) 2,503 1 Trade names 23,397 (19,086) 4,311 23,907 (19,133) 4,774 4 Patent costs 11,974 (9,607) 2,367 11,760 (9,535) 2,225 15 Trade secrets 19,530 (16,257) 3,273 19,494 (15,714) 3,780 2 Acquired patents 16,207 (14,954) 1,253 16,215 (14,706) 1,509 7 Other 25,664 (19,115) 6,549 26,256 (19,349) 6,907 1 Total intangible assets $ 253,357 $ (209,569) $ 43,788 $ 255,671 $ (207,333) $ 48,338 5 (a) Change in gross carrying amounts consists primarily of charges for license and patent costs and foreign currency translation. |
Accrued And Other Liabilities (
Accrued And Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Liabilities | Accrued liabilities at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) 2020 2019 Compensation and benefits $ 18,281 $ 21,139 Vendor accruals 10,665 9,734 Payable to owners of redeemable noncontrolling interests — 10,000 Accrued taxes 8,661 9,840 Accrued other 5,159 4,223 Product warranty liability 2,677 2,908 Arbitration awards 2,256 2,256 Accrued professional fees 1,500 1,545 Royalties payable 1,604 1,450 Total $ 50,803 $ 63,095 |
Schedule Of Other Liabilities | Other liabilities at March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) 2020 2019 Long term employee indemnity $ 13,021 $ 14,408 Long term tax liability 10,653 5,011 Defined benefit pension obligation 10,104 10,357 Long term deferred revenue 6,518 7,370 Other long term liabilities 6,389 8,662 Total $ 46,685 $ 45,808 |
Hedging Activities and Financ_2
Hedging Activities and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Fair Value amount on Balance Sheet | The notional amount and fair value of the derivative on our balance sheet at March 31, 2020 and December 31, 2019 are disclosed below: (in thousands) Balance Sheet location Notional amount Fair value 2020 Interest rate swap contract Other liabilities $ 40,000 $ (1,976) 2019 Interest rate swap contract Other liabilities $ 40,000 $ (318) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Net Loss Per Share Reconciliation | Quarter Ended March 31, (in thousands, except per share amounts) 2020 2019 Numerator for basic and diluted net loss per share: Net loss attributable to 3D Systems Corporation $ (18,924) $ (24,394) Denominator for basic and diluted net loss per share: Weighted average shares 114,590 113,267 Net loss per share - basic and diluted $ (0.17) $ (0.22) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value On Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements as of March 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 23,532 $ — $ — $ 23,532 Israeli severance funds (b) $ — $ 7,192 $ — $ 7,192 Derivative financial instruments (c) $ — $ (1,976) $ — $ (1,976) Fair Value Measurements as of December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Description Cash equivalents (a) $ 20,869 $ — $ — $ 20,869 Israeli severance funds (b) $ — $ 7,449 $ — $ 7,449 Derivative financial instruments (c) $ — $ (318) $ — $ (318) (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) We partially fund a liability for our Israeli severance requirement through monthly deposits into fund accounts, the value of these contributions are recorded to non-current assets on the consolidated balance sheet. (c) Derivative instruments are reported based on published market prices for similar assets or are estimated based on published market prices for similar assets or are estimated based on observable inputs such as interest rates, yield curves, credit risks, spot and future commodity prices and spot and future exchange rates. See Note 8 for additional information on our derivative financial instruments. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Unaffiliated Customers by Product and Service | Quarter Ended March 31, (in thousands) 2020 2019 Revenue from unaffiliated customers: United States $ 61,987 $ 71,398 Other Americas 1,815 2,305 EMEA 56,467 59,644 Asia Pacific 14,436 18,633 Total revenue $ 134,705 $ 151,980 Quarter Ended March 31, (in thousands) 2020 2019 Revenue by class of product and service: Products $ 37,432 $ 50,917 Materials 41,377 41,430 Services 55,896 59,633 Total revenue $ 134,705 $ 151,980 |
Schedule of Intercompany Sales by Geographic Area | Quarter ended March 31, 2020 Intercompany Sales to (in thousands) Americas EMEA Asia Pacific Total Americas $ 254 $ 9,980 $ 3,521 $ 13,755 EMEA 13,575 14,444 862 28,881 Asia Pacific 1,558 579 446 2,583 Total intercompany sales $ 15,387 $ 25,003 $ 4,829 $ 45,219 Quarter ended March 31, 2019 Intercompany Sales to (in thousands) Americas EMEA Asia Pacific Total Americas $ 446 $ 16,708 $ 3,837 $ 20,991 EMEA 16,678 6,936 1,572 25,186 Asia Pacific 745 21 801 1,567 Total intercompany sales $ 17,869 $ 23,665 $ 6,210 $ 47,744 |
Schedule of Income (Loss) from Operations by Geographic Area | Quarter Ended March 31, (in thousands) 2020 2019 (Loss) income from operations: Americas $ (22,087) $ (26,832) EMEA 2,228 2,917 Asia Pacific 1,641 2,610 Total $ (18,218) $ (21,305) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue Recognition [Abstract] | |
Outstanding performance obligation | $ 98,551 |
Amounts included in contract liability at the beginning of period | $ 12,659 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a precentage) | 91.00% |
Performance obligations expected to be satisfied, expected timing | 12 months |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a precentage) | 5.00% |
Performance obligations expected to be satisfied, expected timing | 9 months |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 17 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,895 | $ 3,789 |
Finance lease cost - amortization expense | 204 | 206 |
Finance lease cost - interest expense | 161 | 115 |
Short-term lease cost | 27 | 24 |
Variable lease cost | 914 | 0 |
Sublease income | (152) | 0 |
Total | $ 4,049 | $ 4,134 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classifications (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating leases, ROU assets | $ 27,085 | $ 28,571 |
Right of use assets | 7,906 | 8,319 |
Right of use assets | 34,991 | 36,890 |
Operating leases, current ROU liabilities | 8,544 | 9,231 |
Current right of use liabilities | 872 | 338 |
Current right of use liabilities | 9,416 | 9,569 |
Operating leases, noncurrent ROU liabilities | 23,768 | 24,835 |
Long-term right of use liabilities | 10,112 | 10,567 |
Long-term right of use liabilities | $ 33,880 | $ 35,402 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 8,086 |
2022 | 7,988 |
2023 | 6,699 |
2024 | 5,343 |
2025 | 3,781 |
Thereafter | 6,633 |
Total lease payments | 38,530 |
Less: imputed interest | (6,218) |
Present value of lease liabilities | 32,312 |
Finance Leases | |
2021 | 1,153 |
2022 | 1,443 |
2023 | 1,446 |
2024 | 1,440 |
2025 | 1,392 |
Thereafter | 8,017 |
Total lease payments | 14,891 |
Less: imputed interest | (3,907) |
Present value of lease liabilities | $ 10,984 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflow from operating leases | $ 3,157 | $ 3,857 |
Operating cash outflow from finance leases | 139 | 115 |
Financing cash (inflow) outflow from finance leases | $ (296) | $ 167 |
Leases - Lease Weighted Average
Leases - Lease Weighted Average (Details) | Mar. 31, 2020 |
Weighted-average remaining lease term | |
Operating | 5 years 1 month 6 days |
Financing | 10 years 2 months 12 days |
Weighted-average discount rate | |
Operating | 6.49% |
Financing | 6.01% |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 42,066 | |
Work in process | 5,496 | |
Finished goods and parts | 63,544 | |
Inventories | $ 113,240 | $ 111,106 |
March 31, 2020 | ||
Inventory [Line Items] | ||
Raw materials | 35,736 | |
Work in process | 12,502 | |
Finished goods and parts | 65,002 | |
Inventories | $ 113,240 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory reserve | $ 12,832 | $ 12,812 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 4,402 | $ 5,520 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 253,357 | $ 255,671 |
Intangible assets with finite lives: Accumulated Amortization | (209,569) | (207,333) |
Intangible assets with finite lives: Net | $ 43,788 | 48,338 |
Weighted average useful life remaining (in years) | 5 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 102,920 | 103,661 |
Intangible assets with finite lives: Accumulated Amortization | (78,996) | (77,021) |
Intangible assets with finite lives: Net | $ 23,924 | 26,640 |
Weighted average useful life remaining (in years) | 4 years | |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 53,665 | 54,378 |
Intangible assets with finite lives: Accumulated Amortization | (51,554) | (51,875) |
Intangible assets with finite lives: Net | $ 2,111 | 2,503 |
Weighted average useful life remaining (in years) | 1 year | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 23,397 | 23,907 |
Intangible assets with finite lives: Accumulated Amortization | (19,086) | (19,133) |
Intangible assets with finite lives: Net | $ 4,311 | 4,774 |
Weighted average useful life remaining (in years) | 4 years | |
Patent costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 11,974 | 11,760 |
Intangible assets with finite lives: Accumulated Amortization | (9,607) | (9,535) |
Intangible assets with finite lives: Net | $ 2,367 | 2,225 |
Weighted average useful life remaining (in years) | 15 years | |
Trade secrets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 19,530 | 19,494 |
Intangible assets with finite lives: Accumulated Amortization | (16,257) | (15,714) |
Intangible assets with finite lives: Net | $ 3,273 | 3,780 |
Weighted average useful life remaining (in years) | 2 years | |
Acquired patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 16,207 | 16,215 |
Intangible assets with finite lives: Accumulated Amortization | (14,954) | (14,706) |
Intangible assets with finite lives: Net | $ 1,253 | 1,509 |
Weighted average useful life remaining (in years) | 7 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with finite lives: Gross | $ 25,664 | 26,256 |
Intangible assets with finite lives: Accumulated Amortization | (19,115) | (19,349) |
Intangible assets with finite lives: Net | $ 6,549 | $ 6,907 |
Weighted average useful life remaining (in years) | 1 year |
Accrued And Other Liabilities_2
Accrued And Other Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 18,281 | $ 21,139 |
Vendor accruals | 10,665 | 9,734 |
Payable to owners of redeemable noncontrolling interests | 0 | 10,000 |
Accrued taxes | 8,661 | 9,840 |
Accrued other | 5,159 | 4,223 |
Arbitration awards | 2,256 | 2,256 |
Product warranty liability | 2,677 | 2,908 |
Accrued professional fees | 1,500 | 1,545 |
Royalties payable | 1,604 | 1,450 |
Total | $ 50,803 | $ 63,095 |
Accrued And Other Liabilities_3
Accrued And Other Liabilities (Schedule Of Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Long term employee indemnity | $ 13,021 | $ 14,408 |
Long term tax liability | 10,653 | 5,011 |
Defined benefit pension obligation | 10,104 | 10,357 |
Long term deferred revenue | 6,518 | 7,370 |
Other long term liabilities | 6,389 | 8,662 |
Total | $ 46,685 | $ 45,808 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | Feb. 27, 2019USD ($)credit_increase | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | |||
Limit on annual cash dividends paid | $ 30,000,000 | ||
Current portion of long term debt | $ 2,506,000 | $ 2,506,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 16.00% | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit agreement term | 5 years | ||
Credit agreement, maximum borrowing capacity | $ 100,000,000 | ||
Number of credit increases | credit_increase | 4 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.00% | ||
Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Credit agreement term | 5 years | ||
Credit agreement, maximum borrowing capacity | $ 100,000,000 | ||
Outstanding borrowings | $ 47,605,000 |
Hedging Activities And Financ_3
Hedging Activities And Financial Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative financial instruments | $ (1,976,000) | $ (318,000) |
Net AOCL to be reclassified to losses in next 12 months | 589,000 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign currency contracts | 100,403,000 | 102,407,000 |
Level 2 | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative financial instruments | $ (1,976,000) | (318,000) |
Interest Rate Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Floor interest rate (as a percentage) | 0.00% | |
Notional interest rate contracts outstanding | $ 40,000,000 | $ 40,000,000 |
Inventory Financing Agreements
Inventory Financing Agreements (Details) - Supply And Offtake Agreements - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 17, 2020 |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Obligation to purchase inventory | $ 2,271 | $ 12,100 |
Inventory held at assemblers | 8,471 | |
Purchase commitment | $ 2,300 |
Net Loss Per Share (Schedule Of
Net Loss Per Share (Schedule Of Net Loss Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator for basic and diluted net loss per share: | ||
Net loss attributable to 3D Systems Corporation | $ (18,924) | $ (24,394) |
Denominator for basic and diluted net loss per share: | ||
Weighted average shares (in shares) | 114,590 | 113,267 |
Net loss per share — basic and diluted (in dollars per share) | $ (0.17) | $ (0.22) |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities excluded | $ 6,135 | $ 5,534 |
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, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 23,532 | $ 20,869 |
Israeli severance funds | 7,192 | 7,449 |
Derivative financial instruments | (1,976) | (318) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 23,532 | 20,869 |
Israeli severance funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Israeli severance funds | 7,192 | 7,449 |
Level 2 | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | (1,976) | (318) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Israeli severance funds | 0 | 0 |
Derivative financial instruments | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ (1,858) | $ 1,844 |
Effective income tax rate (as a percentage) | (8.90%) | 8.20% |
Unremitted earnings | $ 182,050 | |
Unrecognized deferred tax liability | 20,804 | |
Unrecognized Tax Benefits | 5,711 | |
Income Taxes Receivable | 8,886 | |
CARES Act tax benefit | $ 3,175 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Geographic Area) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Number of reportable segments | segment | 1 | |
Revenue from unaffiliated customers | $ 134,705 | $ 151,980 |
United States | ||
Revenue from unaffiliated customers | 61,987 | 71,398 |
Other Americas | ||
Revenue from unaffiliated customers | 1,815 | 2,305 |
EMEA | ||
Revenue from unaffiliated customers | 56,467 | 59,644 |
Asia Pacific | ||
Revenue from unaffiliated customers | $ 14,436 | $ 18,633 |
Segment Information (Schedule_2
Segment Information (Schedule Of Revenue From Unaffiliated Customers By Product And Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 134,705 | $ 151,980 |
Products | ||
Total revenue | 37,432 | 50,917 |
Materials | ||
Total revenue | 41,377 | 41,430 |
Services | ||
Total revenue | $ 55,896 | $ 59,633 |
Segment Information (Schedule_3
Segment Information (Schedule Of Intercompany Sales By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 134,705 | $ 151,980 |
Intercompany Sales | ||
Total revenue | 45,219 | 47,744 |
Americas | Intercompany Sales | ||
Total revenue | 15,387 | 17,869 |
EMEA | Intercompany Sales | ||
Total revenue | 25,003 | 23,665 |
Asia Pacific | Intercompany Sales | ||
Total revenue | 4,829 | 6,210 |
Americas | Intercompany Sales | ||
Total revenue | 13,755 | 20,991 |
Americas | Americas | Operating Segments | ||
Total revenue | 254 | 446 |
Americas | EMEA | Operating Segments | ||
Total revenue | 9,980 | 16,708 |
Americas | Asia Pacific | Operating Segments | ||
Total revenue | 3,521 | 3,837 |
EMEA | ||
Total revenue | 56,467 | 59,644 |
EMEA | Intercompany Sales | ||
Total revenue | 28,881 | 25,186 |
EMEA | Americas | Operating Segments | ||
Total revenue | 13,575 | 16,678 |
EMEA | EMEA | Operating Segments | ||
Total revenue | 14,444 | 6,936 |
EMEA | Asia Pacific | Operating Segments | ||
Total revenue | 862 | 1,572 |
Asia Pacific | ||
Total revenue | 14,436 | 18,633 |
Asia Pacific | Intercompany Sales | ||
Total revenue | 2,583 | 1,567 |
Asia Pacific | Americas | Operating Segments | ||
Total revenue | 1,558 | 745 |
Asia Pacific | EMEA | Operating Segments | ||
Total revenue | 579 | 21 |
Asia Pacific | Asia Pacific | Operating Segments | ||
Total revenue | $ 446 | $ 801 |
Segment Information (Schedule_4
Segment Information (Schedule Of Income (Loss) From Operations By Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loss from operations | $ (18,218) | $ (21,305) |
Reportable Geographical Components | ||
Loss from operations | (18,218) | (21,305) |
Americas | Operating Segments | ||
Loss from operations | (22,087) | (26,832) |
EMEA | Operating Segments | ||
Loss from operations | 2,228 | 2,917 |
Asia Pacific | Operating Segments | ||
Loss from operations | $ 1,641 | $ 2,610 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | Sep. 06, 2019 | Sep. 28, 2018USD ($) | Sep. 13, 2018USD ($) | Aug. 03, 2018USD ($) | Mar. 30, 2018USD ($) | Sep. 28, 2015USD ($) | Aug. 23, 2013lawsuit | Jul. 19, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||
Maximum of awards allowed to be received | $ 35,000 | |||||||
Agreement term (in years) | 2 years | |||||||
Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of stockholder class action lawsuits | lawsuit | 2 | |||||||
Percentage of ownership for officer (percent) | 50.00% | |||||||
Provision for arbitration award | $ 11,282,000 | |||||||
Amount awarded | $ 2,182,000 | 7,254,000 | ||||||
Fees and expenses | 2,318,000 | |||||||
Prejudgment interest | $ 1,710,000 | |||||||
Settlement paid | $ 101,000 | $ 9,127,000 | ||||||
Damages awarded to 3D Systems | $ 523,000 | |||||||
Judicial Ruling | Ronald Barranco and Print3D Corporation v. 3D Systems Corporation, et. al. | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount awarded | $ 2,182,000 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Thousands | Jan. 07, 2020 | Mar. 31, 2020 | Nov. 25, 2014 |
Business Acquisition [Line Items] | |||
Redemption price | $ 10,000 | ||
Robtec | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest, ownership percentage | 100.00% | ||
Robtec | |||
Business Acquisition [Line Items] | |||
Acquired ownership percentage | 30.00% | 70.00% |