Document and Enitity Informatio
Document and Enitity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 02, 2019 | |
Document Entity Information [Abstract] | ||
Entity Registrant Name | ADVANCED ENERGY INDUSTRIES INC | |
Entity Central Index Key | 0000927003 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 38,235,782 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 351,149 | $ 349,301 |
Marketable securities | 2,516 | 2,470 |
Accounts and other receivable, net of allowances of $2,851 and $1,748 respectively | 102,405 | 100,442 |
Inventories | 99,070 | 97,987 |
Income taxes receivable | 1,945 | 2,220 |
Other current assets | 11,309 | 10,173 |
Current assets from discontinued operations | 4,872 | 5,855 |
Total current assets | 573,266 | |
Deposits and other assets | 9,378 | 6,874 |
Property and equipment, net | 31,058 | 31,269 |
Operating lease right-of-use assets | 35,654 | 0 |
Goodwill | 101,306 | 101,900 |
Intangible assets, net | 52,858 | 54,910 |
Deferred income tax assets | 47,513 | 47,099 |
Non-current assets from discontinued operations | 5,917 | 5,984 |
TOTAL ASSETS | 856,950 | 816,484 |
CURRENT LIABILITIES: | ||
Accounts payable | 44,028 | 39,646 |
Income taxes payable | 12,584 | 13,258 |
Accrued payroll and employee benefits | 16,528 | 21,775 |
Customer deposits and other | 5,510 | 7,345 |
Customer deposits and other | 7,298 | 0 |
Other accrued expenses | 21,848 | 22,999 |
Current liabilities from discontinued operations | 4,254 | 5,286 |
Total current liabilities | 112,050 | |
Operating Lease, Liability, Noncurrent | 29,596 | 0 |
LONG-TERM LIABILITIES: | ||
Deferred income tax liabilities | 6,592 | 6,988 |
Uncertain tax positions | 9,987 | 14,318 |
Long term deferred revenue | 28,148 | 29,108 |
Other long-term liabilities | 37,947 | 37,744 |
Non-current liabilities from discontinued operations | 10,486 | 10,715 |
Total liabilities | 234,806 | |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value, 1,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 70,000 shares authorized; 38,716 and 39,604 issued and outstanding, respectively | 38 | 38 |
Additional paid-in capital | 98,910 | 97,418 |
Retained earnings | 528,153 | 512,783 |
Advanced Energy stockholders’ equity | (5,477) | (3,449) |
Advanced Energy stockholders’ equity | 621,624 | 606,790 |
Noncontrolling interest | 520 | 512 |
Total stockholders’ equity | 622,144 | 607,302 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 856,950 | $ 816,484 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowances | $ 2,115 | $ 1,856 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 38,236,000 | 38,164,000 |
Common stock, shares outstanding (in shares) | 38,236,000 | 38,164,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Sales: | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 140,743 | $ 195,617 |
Cost of sales: | ||
Total cost of sales | 75,003 | 91,972 |
Gross profit | 65,740 | 103,645 |
Operating expenses: | ||
Research and development | 21,289 | 17,637 |
Selling, general and administrative | 29,014 | 28,648 |
Amortization of intangible assets | 1,973 | 1,257 |
Restructuring Charges | 1,673 | 0 |
Total operating expenses | 53,949 | 47,542 |
Operating income | 11,791 | 56,103 |
Other income (expense), net | 743 | 26 |
Income from continuing operations, before income taxes | 12,534 | 56,129 |
Provision (benefit) for income taxes | (2,853) | 9,759 |
Income from continuing operations | 15,387 | 46,370 |
Income (loss) from discontinued operations, net of income taxes | (9) | 140 |
Net income | 15,378 | 46,510 |
Income from continuing operations attributable to noncontrolling interest | 8 | 31 |
Net income attributable to Advanced Energy Industries, Inc. | $ 15,370 | $ 46,479 |
Basic weighted-average common shares outstanding | 38,198 | 39,619 |
Diluted weighted-average common shares outstanding | 38,426 | 39,995 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.40 | $ 1.17 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.40 | 1.16 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 |
Earnings Per Share, Basic | 0.40 | 1.17 |
Earnings Per Share, Diluted | $ 0.40 | $ 1.16 |
Product [Member] | ||
Sales: | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 112,112 | $ 171,209 |
Cost of sales: | ||
Total cost of sales | 60,801 | 79,806 |
Service [Member] | ||
Sales: | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 28,631 | 24,408 |
Cost of sales: | ||
Total cost of sales | $ 14,202 | $ 12,166 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 15,378 | $ 46,510 |
Foreign currency translation | (1,975) | 2,472 |
Minimum benefit retirement liability | 53 | 168 |
Comprehensive income | 13,350 | 48,814 |
Comprehensive income attributable to noncontrolling interest | 8 | 31 |
Comprehensive income attributable to Advanced Energy Industries, Inc. | $ 13,342 | $ 48,783 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 15,378 | $ 46,510 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Income (loss) from discontinued operations, net of income taxes | (9) | 140 |
Income from continuing operations, net of income taxes | 15,387 | 46,370 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,181 | 2,861 |
Stock-based compensation expense | 3,199 | 4,494 |
Provision for deferred income taxes | (649) | 0 |
Net loss on disposal of assets | (6) | (138) |
Changes in operating assets and liabilities, net of assets acquired: | ||
Accounts and other receivable, net | (2,416) | (17,457) |
Inventories | (1,243) | (17,113) |
Other current assets | (4,295) | 364 |
Accounts payable | 4,546 | 11,932 |
Other liabilities and accrued expenses | (7,165) | (2,346) |
Income taxes | (4,696) | 5,642 |
Net cash provided by operating activities from continuing operations | 6,855 | 34,885 |
Net cash used in operating activities from discontinued operations | (1,409) | (1,784) |
Net cash provided by operating activities | 5,446 | 33,101 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired | 0 | (6,072) |
Purchases of property and equipment | (2,436) | (3,923) |
Net cash used in investing activities from continuing operations | (2,436) | (9,995) |
Net cash used in investing activities from discontinued operations | 0 | 0 |
Net cash used in investing activities | (2,436) | (9,995) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Purchase and retirement of common stock | 0 | 12,750 |
Net payments related to stock-based award activities | (1,707) | (4,032) |
Net cash used in financing activities from continuing operations | (1,707) | (16,782) |
Net cash used in financing activities from discontinued operations | 0 | 0 |
Net cash used in financing activities | (1,707) | (16,782) |
EFFECT OF CURRENCY TRANSLATION ON CASH | (566) | 167 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 737 | 6,491 |
CASH AND CASH EQUIVALENTS, beginning of period | 354,552 | 415,037 |
CASH AND CASH EQUIVALENTS, end of period | 355,289 | 421,528 |
Less cash and cash equivalents from discontinued operations | 4,140 | 7,654 |
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period | 351,149 | 413,874 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 56 | 56 |
Cash paid for income taxes | 2,371 | 3,404 |
Cash received for refunds of income taxes | 61 | 95 |
Cash held in banks outside the United States | $ 174,980 | $ 320,753 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Foreign Currency Translation | Minimum Benefit Retirement Liability | Retained Earnings | Non-controlling Interest |
Adoption of new accounting standards | $ 19,706 | $ 0 | |||||
Beginning Balance at Dec. 31, 2017 | 520,641 | $ 40 | $ 184,843 | $ 4,695 | $ (2,162) | $ 333,225 | 0 |
Beginning Balance (in shares) at Dec. 31, 2017 | 39,604,000 | ||||||
Non-controlling interest from acquisition | 431 | 431 | |||||
Stock issued from equity plans (in shares) | 113,000 | ||||||
Stock issued from equity plans | (4,127) | $ 0 | (4,127) | 0 | 0 | 0 | |
Stock-based compensation | 4,494 | $ 0 | 4,494 | 0 | 0 | 0 | |
Stock buyback (in shares) | 181,000 | ||||||
Stock buyback | 12,750 | $ 0 | 12,750 | 0 | 0 | 0 | |
Foreign currency translation | 2,472 | 0 | 0 | 2,472 | 0 | 0 | |
Minimum benefit retirement liability | 168 | 0 | 0 | 0 | 168 | 0 | |
Net income | 46,479 | 0 | 0 | 0 | 0 | 46,479 | |
Net Income, Non-controlling Interest | 46,510 | 31 | |||||
Total comprehensive income (loss) | 48,783 | $ 0 | 0 | 2,472 | (168) | 46,479 | |
Total comprehensive income (loss), Non-controlling interest | 48,814 | 31 | |||||
Ending Balance (in shares) at Mar. 31, 2018 | 39,536,000 | ||||||
Ending Balance at Mar. 31, 2018 | 577,209 | $ 40 | 172,460 | 7,167 | (2,330) | 399,410 | 462 |
Beginning Balance at Dec. 31, 2018 | $ 607,302 | $ 38 | 97,418 | (590) | (2,859) | 512,783 | 512 |
Beginning Balance (in shares) at Dec. 31, 2018 | 38,164,000 | 38,164,000 | |||||
Stock issued from equity plans (in shares) | 72,000 | ||||||
Stock issued from equity plans | $ (1,707) | $ 0 | (1,707) | 0 | 0 | 0 | |
Stock-based compensation | 3,199 | 0 | 3,199 | 0 | 0 | 0 | |
Stock buyback | 0 | ||||||
Foreign currency translation | (1,975) | 0 | 0 | (1,975) | 0 | 0 | |
Minimum benefit retirement liability | 53 | 0 | 0 | 0 | 53 | 0 | |
Net income | 15,370 | 0 | 0 | 0 | 0 | 15,370 | |
Net Income, Non-controlling Interest | 15,378 | 8 | |||||
Total comprehensive income (loss) | 13,342 | $ 0 | 0 | (1,975) | (53) | 15,370 | |
Total comprehensive income (loss), Non-controlling interest | $ 13,350 | 8 | |||||
Ending Balance (in shares) at Mar. 31, 2019 | 38,236,000 | 38,236,000 | |||||
Ending Balance at Mar. 31, 2019 | $ 622,144 | $ 38 | $ 98,910 | $ (2,565) | $ (2,912) | $ 528,153 | $ 520 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies and Estimates | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Advanced Energy Industries, Inc., a Delaware corporation, and its wholly-owned subsidiaries ("we," "us," "our," "Advanced Energy," or the "Company") design, manufacture, sell and support precision power products that transform, refine, and modify the raw electrical power from the utility and convert it into various types of highly-controllable usable power that is predictable, repeatable and customizable. Our power solutions enable innovation in complex semiconductor and thin film plasma processes such as dry etch, strip, chemical and physical deposition, high and low voltage applications such as process control, analytical instrumentation and medical equipment, and in temperature-critical thermal applications such as material and chemical processing. We also supply related instrumentation products for advanced temperature measurement and control, electrostatic instrumentation products for test and measurement applications, and gas sensing and monitoring solutions for multiple industrial markets. Our network of global service support centers provides local repair and field service capability in key regions as well as provide upgrades and refurbishment services, and sales of used equipment to businesses that use our products. As of December 31, 2015, we discontinued our Inverter production, engineering, and sales product line. As such, all Inverter revenues, costs, assets and liabilities are reported in Discontinued Operations for all periods presented herein, and we currently report as a single unit. See Note 4. Discontinued Operations for more information. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company as of March 31, 2019 , and the results of our operations and cash flows for the three months ended March 31, 2019 and 2018 . The Unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other financial information filed with the SEC. Estimates and Assumptions The preparation of our Consolidated Financial Statements in conformity with U.S. GAAP requires us to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We believe that the significant estimates, assumptions, and judgments when accounting for items and matters such as allowances for doubtful accounts, excess and obsolete inventory, warranty reserves, right-of-use assets and related liabilities, acquisitions, asset valuations, asset life, depreciation, amortization, recoverability of assets, impairments, deferred revenue, stock option and restricted stock grants, taxes, and other provisions are reasonable, based upon information available at the time they are made. Actual results may differ from these estimates, making it possible that a change in these estimates could occur in the near term. Critical Accounting Policies Our accounting policies are described in our audited Consolidated Financial Statements and Notes contained in our Annual Report on Form 10-K for the year ended December 31, 2018 . See Note 16. Leases for the updated policies related to the implementation of ASU 2016-02, "Leases (Topic 842)." New Accounting Standards From time to time, the Financial Accounting Standards Board ("FASB") or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification ("ASC") are communicated through issuance of an Accounting Standards Update ("ASU"). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on the Consolidated Financial Statements upon adoption. Recently issued accounting pronouncements not yet adopted In June 2016, The FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)", Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This ASU changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. We are currently assessing the impact ASU 2016-13 will have on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)" ("ASU 2018-13"). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. ASU 2018-13 is effective for fiscal years ending after December 15, 2019 and shall be applied to all periods presented on a retrospective basis. Early adoption is permitted. We are currently assessing and do not believe ASU 2018-13 will have a significant impact on our fair value measurements disclosure requirements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)" ("ASU 2018-14"). ASU 2018-14 eliminates requirements for certain disclosures and requires additional disclosures under defined benefit pension plans and other post-retirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and shall be applied to all periods presented on a retrospective basis. Early adoption is permitted. We are currently assessing and do not believe ASU 2018-14 will have a significant impact on our defined benefit plan disclosure requirements. Recently adopted accounting pronouncements In February 2018, the FASB issued ASU 2018-02, "Income Statement—Reporting Comprehensive Income" to give companies the option to reclassify the income tax effects on items within accumulated other comprehensive income resulting from the Tax Act to retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. We adopted ASU 2018-02 during the first quarter of fiscal year 2019 which did not have an impact on our Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718)", Improvements to Non-employee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. We adopted ASU 2018-07 during the first quarter of fiscal year 2019 which did not have an impact on our Consolidated Financial Statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815)", Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). This ASU simplifies certain aspects of hedge accounting and results in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and the interim periods within those fiscal years. We adopted ASU 2017-12 during the first quarter of fiscal year 2019 using the modified retrospective basis. The adoption of the provisions of ASU 2017-12 did not materially impact the company's Consolidated Balance Sheet or Statement of Operations. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," to increase transparency and comparability among organizations by recognizing lease right-of-use assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within the year of adoption. We adopted ASU 2016-02 using the modified retrospective approach and recorded $38.2 million of operating lease right-of-use assets and $38.4 million of operating lease liabilities as the cumulative-effect in the first quarter of fiscal year 2019. The adoption of ASU 2016-02 did not materially impact the company's Consolidated Statement of Operations or Consolidated Statement of Cash Flows for the period ended March 31, 2019 . |
Business Acquisition (Notes)
Business Acquisition (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITIONS LumaSense Technologies Holdings, Inc. In September 2018, Advanced Energy acquired LumaSense Technologies Holdings, Inc. ("LumaSense"), a privately held company with primary operations in Santa Clara, California, Frankfurt, Germany, and Ballerup, Denmark for a net purchase price of $84.7 million in cash. The components of the fair value of the total consideration transferred for our acquisition is as follows: LumaSense Cash paid for acquisition $ 94,946 Cash acquired (10,262 ) Total fair value of consideration transferred $ 84,684 The following table summarizes estimated fair values of the assets acquired and liabilities assumed from our acquisition: LumaSense Accounts and other receivable, net $ 7,167 Inventories 9,372 Property and equipment 1,353 Goodwill 48,032 Intangible assets 26,000 Deferred income tax assets 8,116 Other assets 5,126 Total assets acquired 105,166 Accounts payable 5,734 Deferred income tax liabilities 7,984 Other liabilities 6,764 Total liabilities assumed 20,482 Total fair value of net assets acquired $ 84,684 A summary of the intangible assets acquired, amortization method and estimated useful lives are as follows: LumaSense Amortization Method Useful Life Technology $ 20,000 Straight-line 10 Customer relationships 6,000 Straight-line 10 Total $ 26,000 Goodwill and intangible assets are recorded in the functional currency of the entity and are subject to changes due to translation at each balance sheet date. The goodwill represents expected operating synergies from combining operations with the acquired companies and the estimated value associated with the enhancements to our comprehensive product lines. Advanced Energy is in the process of finalizing the assessment of fair value for the assets acquired and liabilities assumed related to the LumaSense acquisition. Pro forma results for Advanced Energy Inc. giving effect to the LumaSense Technologies Holdings, Inc. Transaction The following unaudited pro forma financial information presents the combined results of operations of Advanced Energy Inc. and LumaSense as if the acquisitions had been completed as of the beginning of the prior fiscal year, or January 1, 2018. The unaudited pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place on January 1, 2018, nor are they indicative of future results. The unaudited pro forma financial information for the three months ended March 31, 2019 includes Advanced Energy's results, including the post-acquisition results of LumaSense, since September 1, 2018. The unaudited pro forma financial information for the three months ended March 31, 2018 combines Advanced Energy's results with the pre-acquisition results of LumaSense for that period. The unaudited pro forma results for the three months ended March 31, 2019 and 2018 are as follows: March 31, 2019 March 31, 2018 As reported Pro forma As reported Pro forma Total sales 140,743 140,743 195,617 210,465 Net income attributable to Advanced Energy Industries, Inc. 15,370 15,491 46,479 46,310 Earnings per share: Basic earnings per share $ 0.40 $ 0.41 $ 1.17 $ 1.17 Diluted earnings per share $ 0.40 $ 0.40 $ 1.16 $ 1.16 The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisitions been completed as of January 1, 2018. These adjustments including amortization charges for acquired intangible assets, adjustments for acquisition transaction costs and amortization of purchased gross profit. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above. LumaSense’s operating results have been included in the Advanced Energy's operating results for the periods subsequent to the completion of the acquisition on September 1, 2018. LumaSense contributed total sales of $12.0 million and a net income of $0.9 million for the three months ended March 31, 2019 . |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue Recognition We recognize revenue when we have satisfied our performance obligations which typically occurs when control of the products or services have been transferred to our customers. The transaction price is based upon the standalone selling price. In most transactions, we have no obligations to our customers after the date products are shipped, other than pursuant to warranty obligations. Shipping and handling fees billed to customers, if any, are recognized as revenue. The related shipping and handling costs are recognized in cost of sales. Support services include warranty and non-warranty repair services, upgrades, and refurbishments on the products we sell. Repairs that are covered under our standard warranty do not generate revenue. Practical Expedients We expense incremental costs of obtaining contracts when the amortization period of the costs is less than 1 year. These costs are included in selling, general, and administrative expenses. Nature of goods and services Products Advanced Energy provides highly-engineered, mission-critical, precision power conversion, measurement and control solutions to our global customers. We design, manufacture, sell and support precision power products that transform electrical power into various usable forms. Our power conversion products refine, modify and control the raw electrical power from a utility and convert it into power that is predictable, repeatable and customizable. Our products enable thin film manufacturing processes such as plasma enhanced chemical and physical deposition and etch for various semiconductor and industrial products, industrial thermal applications for material and chemical processes, and specialty power for critical industrial technology applications. We also supply thermal instrumentation products for advanced temperature measurement and control in these markets. Our products are designed to enable new process technologies, improve productivity, and lower the cost of ownership for our customers. We also provide repair and maintenance services for all our products. We principally serve original equipment manufacturers ("OEM") and end customers in the semiconductor, flat panel display, high voltage, solar panel, and other industrial capital equipment markets. Our products are used in diverse markets, applications, and processes including the manufacture of capital equipment for semiconductor device manufacturing, thin film applications for thin film renewables and architectural glass, and for other thin film applications including flat panel displays, and industrial coatings. Services Our global support services group offers warranty and after-market repair services in the regions in which we operate, providing us with preventive maintenance opportunities. Our customers continue to pursue low cost of ownership of their capital equipment and are increasingly sensitive to the costs of system downtime. They expect that suppliers offer comprehensive local repair service and customer support. To meet these market requirements, we maintain a worldwide support organization comprising of both direct and indirect activities, through partnership with local distributors, primarily in the United States ("U.S."), the People’s Republic of China ("PRC"), Japan, South Korea, Taiwan, Germany, Singapore and United Kingdom. As part of our ongoing service business, we satisfy our service obligations under preventative maintenance contracts and extended warranties which had previously been offered on our discontinued inverter products. Any up-front fees received for extended warranties or maintenance plans are deferred. Revenue under these arrangements is recognized ratably over the underlying terms as we do not have historical information which would allow us to project the estimated service usage pattern at this time. We have deferred revenue related to our extended warranties and service contracts totaling $32.5 million as of March 31, 2019 and $33.4 million as of December 31, 2018 . We are expected to recognize between $0.1 million and $3.5 million per year through 2034. Disaggregation of Revenue The following table presents our net sales by product line: Three Months Ended March 31, 2019 2018 Semiconductor capital market $ 67,514 $ 136,010 Industrial technology capital market 44,598 35,199 Global support 28,631 24,408 Total $ 140,743 $ 195,617 The following table presents our net sales by geographic region: Three Months Ended March 31, 2019 2018 Sales to external customers: United States $ 57,875 41.1 % $ 107,267 54.8 % Other North American countries 631 0.4 630 0.3 North America 58,506 41.5 107,897 55.1 Republic of Korea 13,800 9.8 24,893 12.7 People's Republic of China 15,474 11.0 11,870 6.1 Taiwan 11,621 8.3 7,540 3.9 Singapore 6,105 4.3 13,632 7.0 Other Asian countries 11,435 8.1 8,229 4.2 Asia 58,435 41.5 66,164 33.9 Germany 7,573 5.4 8,261 4.2 Other European countries 15,853 11.3 13,188 6.7 Europe 23,426 16.7 21,449 10.9 Other Countries 376 0.3 107 0.1 Total $ 140,743 100.0 % $ 195,617 100.0 % |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS In December 2015, we completed the wind down of engineering, manufacturing and sales of our solar inverter product line (the "inverter business"). Accordingly, the results of our inverter business have been reflected as " Income (loss) from discontinued operations, net of income taxes " on our Consolidated Statements of Operations for all periods presented herein. The effect of our sales of extended inverter warranties to our customers continues to be reflected in deferred revenue in our Consolidated Balance Sheets. Deferred revenue for extended inverter warranties and the associated costs of warranty service will be reflected in Sales and Cost of goods sold, respectively, from continuing operations in future periods in our Consolidated Statement of Operations, as the deferred revenue, is earned and the associated services are rendered. Extended warranties related to the inverter product line are no longer offered. The significant items included in " Income (loss) from discontinued operations, net of income taxes " are as follows: Three Months Ended March 31, 2019 2018 Sales $ — $ — Cost of sales — 112 Total operating expense (benefit) — (61 ) Operating income (loss) from discontinued operations — (51 ) Other income (expense) (4 ) 124 Income (loss) from discontinued operations before income taxes (4 ) 73 Provision (benefit) for income taxes 5 (67 ) Income (loss) from discontinued operations, net of income taxes $ (9 ) $ 140 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: March 31, December 31, 2019 2018 Cash and cash equivalents $ 4,140 $ 5,251 Other current assets 430 406 Inventories 302 198 Current assets of discontinued operations $ 4,872 $ 5,855 Other assets $ — $ 67 Deferred income tax assets 5,917 5,917 Non-current assets of discontinued operations $ 5,917 $ 5,984 Accounts payable and other accrued expenses $ 349 $ 350 Accrued warranty 3,905 4,936 Current liabilities of discontinued operations $ 4,254 $ 5,286 Accrued warranty $ 10,344 $ 10,429 Other liabilities 142 286 Non-current liabilities of discontinued operations $ 10,486 $ 10,715 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table sets out the tax expense and the effective tax rate for our income from continuing operations: Three Months Ended March 31, 2019 2018 Income from continuing operations, before income taxes $ 12,534 $ 56,129 Provision (benefit) for income taxes (2,853 ) 9,759 Effective tax rate (22.8 )% 17.4 % Our effective tax rates differ from the U.S. federal statutory rate of 21% for the three months ended March 31, 2019 and 2018 , respectively, primarily due to the benefit of earnings in foreign jurisdictions which are subject to lower tax rates, partially offset by additional GILTI tax in the U.S. The effective tax rate for the first quarter of 2019 was lower than the same period in 2018 primarily due to the release of liabilities for uncertain tax positions in 2019 based on the completion of additional procedures during the quarter to support a change in facts with respect to a specific prior period position. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of our diluted EPS is similar to the computation of our basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if our outstanding stock options and restricted stock units had been converted to common shares, and if such assumed conversion is dilutive. The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Income from continuing operations $ 15,387 $ 46,370 Income from continuing operations attributable to noncontrolling interest 8 31 Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 15,379 $ 46,339 Basic weighted-average common shares outstanding 38,198 39,619 Assumed exercise of dilutive stock options and restricted stock units 228 376 Diluted weighted-average common shares outstanding 38,426 39,995 Continuing operations: Basic earnings per share $ 0.40 $ 1.17 Diluted earnings per share $ 0.40 $ 1.16 The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended March 31, 2019 2018 Restricted stock units 119 2 Stock Buyback In September 2015, our Board of Directors authorized a program to repurchase up to $150.0 million of our stock over a thirty-month period. In November 2017, our Board of Directors approved an extension of the share repurchase program to December 2019 from its original maturity of March 2018. In May 2018 our Board of Directors approved a $50 million increase in its authorization to repurchase shares of Company common stock under this same program. As of March 31, 2019 , we had $24.9 million remaining for the future repurchase of shares of our common stock. In order to execute the repurchase of shares of our common stock, the company periodically enters into stock repurchase agreements. During the three months ended March 31, 2019 and 2018 , the company has repurchased the following shares of common stock: Three Months Ended March 31, 2019 2018 Amount paid to repurchase shares $ — $ 12,750 Number of shares repurchased — 181 Average repurchase price per share $ — $ 70.47 There were no shares repurchased from related parties. All shares repurchased were recognized as a reduction to Additional paid-in capital. Repurchased shares were retired and assumed the status of authorized and unissued shares. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES AND ASSETS MEASURED AT FAIR VALUE Our investments with original maturities of more than three months at the time of purchase and that are intended to be held for no more than 12 months, are considered marketable securities available for sale. Our marketable securities consist of certificates of deposit as follows: March 31, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Total marketable securities $ 2,511 $ 2,516 $ 2,463 $ 2,470 The maturities of our marketable securities available for sale as of March 31, 2019 are as follows: Earliest Latest Certificates of deposit 4/10/2019 to 10/17/2019 The value and liquidity of the marketable securities we hold are affected by market conditions, as well as the ability of the issuers of such securities to make principal and interest payments when due, and the functioning of the markets in which these securities are traded. As of March 31, 2019 , we do not believe any of the underlying issuers of our marketable securities are at risk of default. The following tables present information about our marketable securities measured at fair value, on a recurring basis, as of March 31, 2019 and December 31, 2018 . The tables indicate the fair value hierarchy of the valuation techniques utilized to determine fair value. We did not have any financial liabilities measured at fair value, on a recurring basis, as of March 31, 2019 and December 31, 2018 . March 31, 2019 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,516 $ — $ 2,516 December 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,470 $ — $ 2,470 There were no transfers in or out of Level 1, 2, or 3 fair value measurements during the three months ended March 31, 2019 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We are impacted by changes in foreign currency exchange rates. We may manage these risks through the use of derivative financial instruments, primarily forward contracts with banks for one-month periods. These forward contracts manage the exchange rate risk associated with intercompany debt denominated in nonfunctional currencies. These derivative instruments are not designated as hedges; however, they do offset the fluctuations of our intercompany debt due to foreign exchange rate changes. We did not enter into any new foreign currency exchange forward contracts during the three months ended March 31, 2019 and 2018 . We did not have any currency exchange rate contracts outstanding as of March 31, 2019 and 2018 . During the three months ended March 31, 2019 and 2018 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended March 31, 2019 2018 Foreign currency loss from foreign currency exchange contracts $ — $ (750 ) These gains and losses were offset by corresponding gains and losses on the revaluation of the underlying intercompany debt and both are included as a component of Other income, net , in our Unaudited Condensed Consolidated Statements of Operations. |
Accounts and Other Receivables
Accounts and Other Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLE Accounts and other receivable are recorded at net realizable value. Components of accounts and other receivable, net of reserves, are as follows: March 31, December 31, 2019 2018 Amounts billed, net $ 87,607 $ 80,709 Unbilled receivables 14,798 19,733 Total receivables, net $ 102,405 $ 100,442 Amounts billed, net consist of amounts that have been invoiced to our customers in accordance with our terms and conditions and are shown net of an allowance for doubtful accounts. Unbilled receivables consist of amounts where we have satisfied our contractual obligations related to inventory stocking contracts with customers. Such amounts typically become billable to the customer upon their consumption of the inventory managed under the stocking contracts. We anticipate that substantially all unbilled receivables will be invoiced and collected over the next twelve months. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Our inventories are valued at the lower of cost or net realizable value and computed on a first-in, first-out (FIFO) basis. Components of inventories are as follows: March 31, December 31, 2019 2018 Parts and raw materials $ 75,870 $ 76,647 Work in process 9,286 6,644 Finished goods 13,914 14,696 Total $ 99,070 $ 97,987 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Property and equipment, net is comprised of the following: March 31, December 31, 2019 2018 Buildings and land $ 1,719 $ 1,737 Machinery and equipment 42,985 41,330 Computer and communication equipment 24,721 24,051 Furniture and fixtures 3,189 3,203 Vehicles 282 282 Leasehold improvements 20,487 20,593 Construction in process 1,113 867 94,496 92,063 Less: Accumulated depreciation (63,438 ) (60,794 ) Property and equipment, net $ 31,058 $ 31,269 Depreciation expense recorded in continuing operations and included in selling, general and administrative expense is as follows: Three Months Ended March 31, 2019 2018 Depreciation expense $ 2,208 $ 1,604 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following summarizes the changes in goodwill during the three months ended March 31, 2019 : Beginning Balance Effect of Changes in Exchange Rates Ending Balance March 31, 2019 $ 101,900 $ (594 ) $ 101,306 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following as of March 31, 2019 and December 31, 2018 : March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 39,730 $ (8,967 ) $ 30,763 Customer relationships 35,416 (14,241 ) 21,175 Trademarks and other 2,518 (1,598 ) 920 Total $ 77,664 $ (24,806 ) $ 52,858 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 39,879 $ (7,927 ) $ 31,952 Customer relationships 35,509 (13,484 ) 22,025 Trademarks and other 2,501 (1,568 ) 933 Total $ 77,889 $ (22,979 ) $ 54,910 Amortization expense related to intangible assets is as follows: Three Months Ended March 31, 2019 2018 Amortization expense $ 1,973 $ 1,257 Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2019 (remaining) $ 5,612 2020 6,842 2021 6,743 2022 6,486 2023 6,468 Thereafter 20,707 Total $ 52,858 |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS During 2018, we committed to a restructuring plan to optimize our manufacturing footprint and to improve our operating efficiencies and synergies related to our recent acquisitions. The table below summarizes the restructuring charges: Three Months Ended March 31, 2019 Cumulative Cost Through March 31, 2019 Severance and related charges $ 153 $ 4,392 Facility relocation and closure charges 1,520 1,520 Total restructuring charges $ 1,673 $ 5,912 The following table summarizes our restructuring liabilities at March 31, 2019 : Balance at December 31, 2018 Cost Incurred and Charged to Expense Cost Paid or Otherwise Settled Effect of Changes in Exchange Rates Balance at March 31, 2019 Total restructuring liabilities $ 3,806 $ 1,673 $ (2,360 ) $ (11 ) $ 3,108 As of December 31, 2018 and March 31, 2019 the accrued restructuring liabilities related primarily to severance and related charges. |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | WARRANTIES Provisions of our sales agreements include customary product warranties, ranging from 12 months to 24 months following installation. The estimated cost of our warranty obligation is recorded when revenue is recognized and is based upon our historical experience by product, configuration and geographic region. Our estimated warranty obligation is included in Other accrued expenses in our Consolidated Balance Sheets. Changes in our product warranty obligation are as follows: Three Months Ended March 31, 2019 2018 Balances at beginning of period $ 2,084 $ 2,312 Warranty liabilities acquired — 92 Increases to accruals 519 178 Warranty expenditures (345 ) (506 ) Effect of changes in exchange rates 6 8 Balances at end of period $ 2,264 $ 2,084 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES We lease manufacturing and office space under non-cancelable operating leases. Some of these leases contain provisions for landlord funded leasehold improvements which are recorded as right of use assets with related liabilities. Additionally, several existing operating leases had deferred rent balances under ASC 840 which resulted in adjusted right of use asset balances recorded upon adoption of ASC 842. Most leases include one or more options to renew. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease terms, along with the right-of-use assets ("ROU") and lease liabilities. In many cases, we have lease terms that are less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. Our leases do not provide an implicit rate. Accordingly, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. New leases are negotiated and executed to meet business objectives on an on-going basis. During the second fiscal quarter of 2019, we expect to record additional right of use assets and related liabilities for facilities in Metzingen, Germany and Denver, Colorado, USA. The lease in Metzingen commences on April 1, 2019 with a term of 3 years ; the right of use asset and liability recorded at commencement will be $1.2 million . The lease in Denver, Colorado is expected to commence in June 2019 with a term of 10 years ; the right of use asset and liability recorded at commencement will be $15.7 million . Maturities of our lease liabilities for all operating leases at March 31, 2019 are as follows: Year Ending December 31, 2019 (remaining) $ 6,003 2020 6,243 2021 5,937 2022 4,273 2023 2,974 Thereafter 17,928 Total lease payments $ 43,358 Less: Interest (6,464 ) Present value of lease liabilities $ 36,894 The weighted average remaining lease term and discount rate for all of our operating leases were as follows as of March 31, 2019 : Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating Leases 8.35 years 3.75 % Supplemental cash flow information related to our operating leases was as follows for the period ended March 31, 2019 : Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 2,891 |
Pension Liability (Notes)
Pension Liability (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension Liability | PENSION LIABILITY In connection with the acquisition of HiTek Power Group and LumaSense, we acquired the HiTek Power Limited Pension Scheme (the "HiTek Plan") and the LumaSense Technologies GmbH pension obligation (the "LumaSense Plan"), respectively. These plans are both closed to new participants. In order to measure the expense and related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. We are committed to make annual fixed payments of $0.9 million into the HiTek Plan through April 30, 2024, and then $1.8 million from May 1, 2024 through November 30, 2033. We are not currently committed to future payments to the LumaSense Plan. The net pension liability is included in Other long-term liabilities in our balance sheet as follows: March 31, December 31, 2019 2018 Pension liability $ 19,874 $ 19,266 The following table sets forth the components of net periodic pension cost for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Interest cost $ 199 $ 218 Expected return on plan assets (170 ) (161 ) Amortization of actuarial gains and losses 118 136 Net periodic pension cost $ 147 $ 193 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On May 4, 2017, the shareholders approved the Company's 2017 Omnibus Incentive Plan ("the 2017 Plan") and all shares that were then available for issuance under the 2008 Omnibus Incentive Plan are now available for issuance under the 2017 Plan. The 2017 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units (including deferred stock units), unrestricted stock, and dividend equivalent rights. Any of the awards issued under the 2017 Plan may be issued as performance-based awards to align compensation awards to the attainment of annual or long-term performance goals. As of March 31, 2019 , there were 3.1 million shares reserved and 2.3 million shares available for grant under the 2017 Plan. Restricted stock units ("RSU’s") are generally granted with a grant date fair value equal to the market price of our stock at the date of grant and with generally a three or four-year vesting schedule or performance-based vesting as determined at the time of grant. Stock option awards are generally granted with an exercise price equal to the market price of our stock at the date of grant and with either a three or four-year vesting schedule or performance-based vesting as determined at the time of grant. Stock option awards generally have a term of 10 years. We recognize stock-based compensation expense based on the fair value of the awards issued and the functional area of the employee receiving the award. Stock-based compensation for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Stock-based compensation expense $ 3,199 $ 4,494 Changes in the outstanding RSU awards during the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 352 $ 58.17 RSUs granted 331 $ 51.94 RSUs vested (96 ) $ 48.14 RSUs forfeited (10 ) $ 32.19 RSUs outstanding at end of period 577 $ 56.73 Changes in the outstanding stock option awards during the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Number of Options Weighted-Average Exercise Price per Share Options outstanding at beginning of period 230 $ 20.73 Options exercised (9 ) $ 10.50 Options expired (1 ) $ 7.69 Options outstanding at end of period 220 $ 21.21 Changes in the outstanding RSU awards during the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 352 $ 58.17 RSUs granted 331 $ 51.94 RSUs vested (96 ) $ 48.14 RSUs forfeited (10 ) $ 32.19 RSUs outstanding at end of period 577 $ 56.73 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We have firm purchase commitments and agreements with various suppliers to ensure the availability of components. The obligation as of March 31, 2019 is approximately $99.4 million . Our policy with respect to all purchase commitments is to record losses, if any, when they are probable and reasonably estimable. We continuously monitor these commitments for exposure to potential losses and will record a provision for losses when it is deemed necessary. We are involved in disputes and legal actions arising in the normal course of our business. There have been no material developments in legal proceedings in which we are involved during the three months ended March 31, 2019 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Members of our Board of Directors hold various executive positions and serve as directors at other companies, including companies that are our customers. During the three months ended March 31, 2019 , we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended March 31, 2019 2018 Sales to related parties $ 352 $ 73 Number of related party customers 1 1 Our accounts receivable balance from related party customers with outstanding balances as of March 31, 2019 and December 31, 2018 is as follows: March 31, December 31, 2019 2018 Accounts receivable from related parties $ 154 $ 109 Number of related party customers 1 1 |
Geographic and Customer Informa
Geographic and Customer Information Geographic and Customer Information (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Segment Reporting Disclosure [Text Block] | SIGNIFICANT CUSTOMER INFORMATION The following table summarizes sales, and percentages of sales, by customers that individually accounted for 10% or more of our sales for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 % of Total Sales 2018 % of Total Sales Applied Materials, Inc. $ 36,290 25.8 % $ 69,872 35.7 % LAM Research 19,667 14.0 % 39,726 20.3 % The following table summarizes the accounts receivable balances, and percentages of the total accounts receivable, for customers that individually accounted for 10% or more of accounts receivable as of March 31, 2019 and December 31, 2018 : March 31, December 31, 2019 2018 Applied Materials, Inc. $ 27,150 26.5 % $ 34,301 34.2 % LAM Research 11,941 11.7 % 12,181 12.1 % Our sales to Applied Materials, Inc. and LAM Research include precision power products used in semiconductor processing and solar and flat panel display. No other customer accounted for 10% or more of our sales or accounts receivable balances during these periods. |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY | CREDIT FACILITY The Company is party to a Loan Agreement, as amended (the "Loan Agreement") with Bank of America N.A. ("BA") which provides a revolving line of credit of up to $150.0 million subject to certain funding conditions. The Loan Agreement expires on July 28, 2022 . Interest on amounts drawn shall be paid quarterly based upon the LIBOR Daily Floating Rate then in effect, plus between one and one-quarter ( 1.25% ) and one and three-quarters ( 1.75% ) percentage points depending on the Funded Debt to EBITDA ratio. As of March 31, 2019 , the interest rate was 3.75% . The Loan Agreement also requires the Company to pay the lender on a quarterly basis an unused commitment fee based on credit availability. The obligations under the Loan Agreement are unsecured until the Funded Debt to EBITDA ratio exceeds 2.0 to 1.0, at which time the Company and certain affiliates’ tangible and intangible personal property will be subject to a first priority, perfected lien and security interest in favor of BA pursuant to a Security Agreement. As of March 31, 2019 , the Company is in compliance with all covenants required under the Loan Agreement. At March 31, 2019 our credit availability under the Loan Agreement was $150.0 million . Interest expense related to unused line of credit fees was as follows: Three Months Ended March 31, 2019 2018 Unused line of credit fees $ 56 $ 56 |
Revenue (Policies)
Revenue (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Our policy with respect to all purchase commitments is to record losses, if any, when they are probable and reasonably estimable. |
Basis of Presentation - (Tables
Basis of Presentation - (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of components of the fair value of total consideration transferred | The components of the fair value of the total consideration transferred for our acquisition is as follows: LumaSense Cash paid for acquisition $ 94,946 Cash acquired (10,262 ) Total fair value of consideration transferred $ 84,684 |
Schedule of estimated fair value of assets acquired and liabilities assumed | The following table summarizes estimated fair values of the assets acquired and liabilities assumed from our acquisition: LumaSense Accounts and other receivable, net $ 7,167 Inventories 9,372 Property and equipment 1,353 Goodwill 48,032 Intangible assets 26,000 Deferred income tax assets 8,116 Other assets 5,126 Total assets acquired 105,166 Accounts payable 5,734 Deferred income tax liabilities 7,984 Other liabilities 6,764 Total liabilities assumed 20,482 Total fair value of net assets acquired $ 84,684 |
Summary of intangible assets | A summary of the intangible assets acquired, amortization method and estimated useful lives are as follows: LumaSense Amortization Method Useful Life Technology $ 20,000 Straight-line 10 Customer relationships 6,000 Straight-line 10 Total $ 26,000 |
Unaudited pro forma information | The unaudited pro forma financial information for the three months ended March 31, 2019 includes |
Revenue Revenue by Product Line
Revenue Revenue by Product Line (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2019 2018 Product and service revenue recognized at point in time $ 139,840 $ 194,683 Extended warranty and service contracts recognized over time 903 934 Total $ 140,743 $ 195,617 The following table presents our net sales by geographic region: Three Months Ended March 31, 2019 2018 Sales to external customers: United States $ 57,875 41.1 % $ 107,267 54.8 % Other North American countries 631 0.4 630 0.3 North America 58,506 41.5 107,897 55.1 Republic of Korea 13,800 9.8 24,893 12.7 People's Republic of China 15,474 11.0 11,870 6.1 Taiwan 11,621 8.3 7,540 3.9 Singapore 6,105 4.3 13,632 7.0 Other Asian countries 11,435 8.1 8,229 4.2 Asia 58,435 41.5 66,164 33.9 Germany 7,573 5.4 8,261 4.2 Other European countries 15,853 11.3 13,188 6.7 Europe 23,426 16.7 21,449 10.9 Other Countries 376 0.3 107 0.1 Total $ 140,743 100.0 % $ 195,617 100.0 % The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2019 2018 Product and service revenue recognized at point in time $ 139,840 $ 194,683 Extended warranty and service contracts recognized over time 903 934 Total $ 140,743 $ 195,617 The following table presents our net sales by product line: Three Months Ended March 31, 2019 2018 Semiconductor capital market $ 67,514 $ 136,010 Industrial technology capital market 44,598 35,199 Global support 28,631 24,408 Total $ 140,743 $ 195,617 |
Revenue Revenue by Geographical
Revenue Revenue by Geographical Location (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2019 2018 Product and service revenue recognized at point in time $ 139,840 $ 194,683 Extended warranty and service contracts recognized over time 903 934 Total $ 140,743 $ 195,617 The following table presents our net sales by geographic region: Three Months Ended March 31, 2019 2018 Sales to external customers: United States $ 57,875 41.1 % $ 107,267 54.8 % Other North American countries 631 0.4 630 0.3 North America 58,506 41.5 107,897 55.1 Republic of Korea 13,800 9.8 24,893 12.7 People's Republic of China 15,474 11.0 11,870 6.1 Taiwan 11,621 8.3 7,540 3.9 Singapore 6,105 4.3 13,632 7.0 Other Asian countries 11,435 8.1 8,229 4.2 Asia 58,435 41.5 66,164 33.9 Germany 7,573 5.4 8,261 4.2 Other European countries 15,853 11.3 13,188 6.7 Europe 23,426 16.7 21,449 10.9 Other Countries 376 0.3 107 0.1 Total $ 140,743 100.0 % $ 195,617 100.0 % The following table presents our net sales by extended warranty and service contracts recognized over time and our product and service revenue recognized at a point in time: Three Months Ended March 31, 2019 2018 Product and service revenue recognized at point in time $ 139,840 $ 194,683 Extended warranty and service contracts recognized over time 903 934 Total $ 140,743 $ 195,617 The following table presents our net sales by product line: Three Months Ended March 31, 2019 2018 Semiconductor capital market $ 67,514 $ 136,010 Industrial technology capital market 44,598 35,199 Global support 28,631 24,408 Total $ 140,743 $ 195,617 |
Revenue 606 Financial Statement
Revenue 606 Financial Statement Impacts (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended March 31, 2019 2018 Sales $ — $ — Cost of sales — 112 Total operating expense (benefit) — (61 ) Operating income (loss) from discontinued operations — (51 ) Other income (expense) (4 ) 124 Income (loss) from discontinued operations before income taxes (4 ) 73 Provision (benefit) for income taxes 5 (67 ) Income (loss) from discontinued operations, net of income taxes $ (9 ) $ 140 Assets and Liabilities of discontinued operations within the Condensed Consolidated Balance Sheets are comprised of the following: March 31, December 31, 2019 2018 Cash and cash equivalents $ 4,140 $ 5,251 Other current assets 430 406 Inventories 302 198 Current assets of discontinued operations $ 4,872 $ 5,855 Other assets $ — $ 67 Deferred income tax assets 5,917 5,917 Non-current assets of discontinued operations $ 5,917 $ 5,984 Accounts payable and other accrued expenses $ 349 $ 350 Accrued warranty 3,905 4,936 Current liabilities of discontinued operations $ 4,254 $ 5,286 Accrued warranty $ 10,344 $ 10,429 Other liabilities 142 286 Non-current liabilities of discontinued operations $ 10,486 $ 10,715 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax expense and the effective tax rate for our income from continuing operations | The following table sets out the tax expense and the effective tax rate for our income from continuing operations: Three Months Ended March 31, 2019 2018 Income from continuing operations, before income taxes $ 12,534 $ 56,129 Provision (benefit) for income taxes (2,853 ) 9,759 Effective tax rate (22.8 )% 17.4 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS | The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Income from continuing operations $ 15,387 $ 46,370 Income from continuing operations attributable to noncontrolling interest 8 31 Income from continuing operations attributable to Advanced Energy Industries, Inc. $ 15,379 $ 46,339 Basic weighted-average common shares outstanding 38,198 39,619 Assumed exercise of dilutive stock options and restricted stock units 228 376 Diluted weighted-average common shares outstanding 38,426 39,995 Continuing operations: Basic earnings per share $ 0.40 $ 1.17 Diluted earnings per share $ 0.40 $ 1.16 |
Schedule of stock options and restricted units were excluded in the computation of diluted earnings per share because they were anti-dilutive | The following restricted stock units were excluded in the computation of diluted earnings per share because they were anti-dilutive: Three Months Ended March 31, 2019 2018 Restricted stock units 119 2 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31, 2019 and December 31, 2018 . The tables indicate the fair value hierarchy of the valuation techniques utilized to determine fair value. We did not have any financial liabilities measured at fair value, on a recurring basis, as of March 31, 2019 and December 31, 2018 . March 31, 2019 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,516 $ — $ 2,516 December 31, 2018 Level 1 Level 2 Level 3 Total Total marketable securities $ — $ 2,470 $ — $ 2,470 |
The composition of our marketable securities | Our marketable securities consist of certificates of deposit as follows: March 31, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Total marketable securities $ 2,511 $ 2,516 $ 2,463 $ 2,470 |
The maturities of our marketable securities available for sale | The maturities of our marketable securities available for sale as of March 31, 2019 are as follows: Earliest Latest Certificates of deposit 4/10/2019 to 10/17/2019 |
Derivative Financial Instrume_2
Derivative Financial Instruments Gains and Losses related to Foreign Currency Contracts (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | During the three months ended March 31, 2019 and 2018 the gains and losses recorded related to the foreign currency exchange contracts are as follows: Three Months Ended March 31, 2019 2018 Foreign currency loss from foreign currency exchange contracts $ — $ (750 ) |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Components of accounts and other receivable, net of reserves, are as follows: March 31, December 31, 2019 2018 Amounts billed, net $ 87,607 $ 80,709 Unbilled receivables 14,798 19,733 Total receivables, net $ 102,405 $ 100,442 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Our inventories are valued at the lower of cost or net realizable value and computed on a first-in, first-out (FIFO) basis. Components of inventories are as follows: March 31, December 31, 2019 2018 Parts and raw materials $ 75,870 $ 76,647 Work in process 9,286 6,644 Finished goods 13,914 14,696 Total $ 99,070 $ 97,987 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Details of property and equipment | Property and equipment, net is comprised of the following: March 31, December 31, 2019 2018 Buildings and land $ 1,719 $ 1,737 Machinery and equipment 42,985 41,330 Computer and communication equipment 24,721 24,051 Furniture and fixtures 3,189 3,203 Vehicles 282 282 Leasehold improvements 20,487 20,593 Construction in process 1,113 867 94,496 92,063 Less: Accumulated depreciation (63,438 ) (60,794 ) Property and equipment, net $ 31,058 $ 31,269 |
Depreciation expense recorded in continuing operations | Three Months Ended March 31, 2019 2018 Depreciation expense $ 2,208 $ 1,604 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the changes in goodwill | The following summarizes the changes in goodwill during the three months ended March 31, 2019 : Beginning Balance Effect of Changes in Exchange Rates Ending Balance March 31, 2019 $ 101,900 $ (594 ) $ 101,306 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | ntangible assets consisted of the following as of March 31, 2019 and December 31, 2018 : March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 39,730 $ (8,967 ) $ 30,763 Customer relationships 35,416 (14,241 ) 21,175 Trademarks and other 2,518 (1,598 ) 920 Total $ 77,664 $ (24,806 ) $ 52,858 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 39,879 $ (7,927 ) $ 31,952 Customer relationships 35,509 (13,484 ) 22,025 Trademarks and other 2,501 (1,568 ) 933 Total $ 77,889 $ (22,979 ) $ 54,910 |
Schedule of amortization expense relating to other intangible assets | Three Months Ended March 31, 2019 2018 Amortization expense $ 1,973 $ 1,257 |
Schedule of expected future amortization expense | Estimated amortization expense related to intangibles is as follows: Year Ending December 31, 2019 (remaining) $ 5,612 2020 6,842 2021 6,743 2022 6,486 2023 6,468 Thereafter 20,707 Total $ 52,858 |
Restructuring Costs Restructuri
Restructuring Costs Restructuring Cost Cumulative Table (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The table below summarizes the restructuring charges: Three Months Ended March 31, 2019 Cumulative Cost Through March 31, 2019 Severance and related charges $ 153 $ 4,392 Facility relocation and closure charges 1,520 1,520 Total restructuring charges $ 1,673 $ 5,912 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes our restructuring liabilities at March 31, 2019 : Balance at December 31, 2018 Cost Incurred and Charged to Expense Cost Paid or Otherwise Settled Effect of Changes in Exchange Rates Balance at March 31, 2019 Total restructuring liabilities $ 3,806 $ 1,673 $ (2,360 ) $ (11 ) $ 3,108 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Changes in accrued product warranties | Three Months Ended March 31, 2019 2018 Balances at beginning of period $ 2,084 $ 2,312 Warranty liabilities acquired — 92 Increases to accruals 519 178 Warranty expenditures (345 ) (506 ) Effect of changes in exchange rates 6 8 Balances at end of period $ 2,264 $ 2,084 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Maturities of lease liabilities | Maturities of our lease liabilities for all operating leases at March 31, 2019 are as follows: Year Ending December 31, 2019 (remaining) $ 6,003 2020 6,243 2021 5,937 2022 4,273 2023 2,974 Thereafter 17,928 Total lease payments $ 43,358 Less: Interest (6,464 ) Present value of lease liabilities $ 36,894 |
Additional lease information | Supplemental cash flow information related to our operating leases was as follows for the period ended March 31, 2019 : Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 2,891 The weighted average remaining lease term and discount rate for all of our operating leases were as follows as of March 31, 2019 : Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating Leases 8.35 years 3.75 % |
Pension Liability (Tables)
Pension Liability (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Funded Status [Table Text Block] | The net pension liability is included in Other long-term liabilities in our balance sheet as follows: March 31, December 31, 2019 2018 Pension liability $ 19,874 $ 19,266 |
Schedule of Net Benefit Costs [Table Text Block] | the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Interest cost $ 199 $ 218 Expected return on plan assets (170 ) (161 ) Amortization of actuarial gains and losses 118 136 Net periodic pension cost $ 147 $ 193 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of stock-based compensation | Stock-based compensation for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, 2019 2018 Stock-based compensation expense $ 3,199 $ 4,494 | |
Summary of stock option activity | Three Months Ended March 31, 2019 Number of RSUs Weighted-Average Grant Date Fair Value RSUs outstanding at beginning of period 352 $ 58.17 RSUs granted 331 $ 51.94 RSUs vested (96 ) $ 48.14 RSUs forfeited (10 ) $ 32.19 RSUs outstanding at end of period 577 $ 56.73 Changes in the outstanding stock option awards during the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Number of Options Weighted-Average Exercise Price per Share Options outstanding at beginning of period 230 $ 20.73 Options exercised (9 ) $ 10.50 Options expired (1 ) $ 7.69 Options outstanding at end of period 220 $ 21.21 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Members of our Board of Directors hold various executive positions and serve as directors at other companies, including companies that are our customers. During the three months ended March 31, 2019 , we engaged in the following transactions with companies related to members of our Board of Directors, as described below: Three Months Ended March 31, 2019 2018 Sales to related parties $ 352 $ 73 Number of related party customers 1 1 Our accounts receivable balance from related party customers with outstanding balances as of March 31, 2019 and December 31, 2018 is as follows: March 31, December 31, 2019 2018 Accounts receivable from related parties $ 154 $ 109 Number of related party customers 1 1 |
Geographic and Customer Infor_2
Geographic and Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Customer Information [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The following table summarizes sales, and percentages of sales, by customers that individually accounted for 10% or more of our sales for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 % of Total Sales 2018 % of Total Sales Applied Materials, Inc. $ 36,290 25.8 % $ 69,872 35.7 % LAM Research 19,667 14.0 % 39,726 20.3 % The following table summarizes the accounts receivable balances, and percentages of the total accounts receivable, for customers that individually accounted for 10% or more of accounts receivable as of March 31, 2019 and December 31, 2018 : March 31, December 31, 2019 2018 Applied Materials, Inc. $ 27,150 26.5 % $ 34,301 34.2 % LAM Research 11,941 11.7 % 12,181 12.1 % |
Basis of Presentation - Cumulat
Basis of Presentation - Cumulative Effect of Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Operating lease right-of-use assets | $ 35,654 | $ 0 | |
Operating Lease, Liability | $ 36,894 | ||
Accounting Standards Update 2016-02 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Operating lease right-of-use assets | $ 38,211 | ||
Operating Lease, Liability | $ 38,384 |
Business Acquisition - (Details
Business Acquisition - (Details) $ in Thousands | 1 Months Ended |
Sep. 30, 2018USD ($) | |
LumaSense Technology Holdings Inc. [Member] | |
Business Acquisition [Line Items] | |
Payments to Acquire Businesses, Gross | $ 94,946 |
Business Acquisition Considerat
Business Acquisition Consideration Transferred (Details) - LumaSense Technology Holdings Inc. [Member] $ in Thousands | 1 Months Ended |
Sep. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |
Cash paid for acquisition, net of working capital adjustments | $ 94,946 |
Cash acquired | (10,262) |
Total fair value of consideration transferred | $ 84,684 |
Business Acquisition Assets Acq
Business Acquisition Assets Acquired and Liabilities Assumed (Details) - LumaSense Technology Holdings Inc. [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Sep. 30, 2018 | Sep. 01, 2018 | |
Business Acquisition [Line Items] | ||
Assets acquired and liabilities assumed, net | $ 7,167 | |
Inventories | 9,372 | |
Property and equipment | 1,353 | |
Goodwill | 48,032 | |
Intangible assets | 26,000 | |
Deferred income tax assets | 8,116 | |
Other assets | 5,126 | |
Total assets acquired | 105,166 | |
Accounts payable | 5,734 | |
Deferred income tax liabilities | 7,984 | |
Other liabilities | 6,764 | |
Total liabilities assumed | 20,482 | |
Total fair value of consideration received | $ 84,684 | |
Tradename [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 20,000 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 6,000 |
Business Acquisition Intangible
Business Acquisition Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Sep. 01, 2018 | |
Tradename [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
LumaSense Technology Holdings Inc. [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | $ 26,000 | |
LumaSense Technology Holdings Inc. [Member] | Tradename [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | 20,000 | |
LumaSense Technology Holdings Inc. [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets: | $ 6,000 |
Business Acquisition Unaudited
Business Acquisition Unaudited Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Total sales, as reported | $ 140,743 | $ 195,617 |
Total sales, pro forma | 140,743 | 210,465 |
Net income attributable to Advanced Energy Industries, Inc, as reported. | 15,370 | 46,479 |
Net income attributable to Advanced Energy Industries, Inc., pro forma | $ 15,491 | $ 46,310 |
Earnings Per Share, Pro Forma [Abstract] | ||
Basic earnings per share, as reported | $ 0.40 | $ 1.17 |
Basic earnings per share, pro forma | 0.41 | 1.17 |
Diluted earnings per share, as reported | 0.40 | 1.16 |
Diluted earnings per share, pro forma | $ 0.40 | $ 1.16 |
Net income | $ 15,378 | $ 46,510 |
LumaSense Technology Holdings Inc. [Member] | ||
Business Acquisition, Pro Forma Information [Abstract] | ||
Total sales, as reported | 12,000 | |
Earnings Per Share, Pro Forma [Abstract] | ||
Net income | $ 900 |
Revenue - Extended Warranty Rev
Revenue - Extended Warranty Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 140,743 | $ 195,617 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 903 | 934 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 139,840 | $ 194,683 |
Revenue Revenue by product li_2
Revenue Revenue by product line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 140,743 | $ 195,617 |
CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 631 | 630 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 57,875 | 107,267 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58,506 | 107,897 |
CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,474 | 11,870 |
KOREA, REPUBLIC OF | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,800 | 24,893 |
TAIWAN, PROVINCE OF CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,621 | 7,540 |
SINGAPORE | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,105 | 13,632 |
Other Asian Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,435 | 8,229 |
Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 58,435 | 66,164 |
GERMANY | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,573 | 8,261 |
Other European Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,853 | 13,188 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 23,426 | 21,449 |
Other countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 376 | 107 |
Semiconductor Capital Marker [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 67,514 | 136,010 |
Industrial Power Capital Market [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 44,598 | 35,199 |
Global Support [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 28,631 | $ 24,408 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.40% | 0.30% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 41.10% | 54.80% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 41.50% | 55.10% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 9.80% | 12.70% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | KOREA, REPUBLIC OF | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 6.10% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | TAIWAN, PROVINCE OF CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 8.30% | 3.90% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | SINGAPORE | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 4.30% | 7.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Other Asian Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 8.10% | 4.20% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 41.50% | 33.90% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 5.40% | 4.20% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Other European Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 11.30% | 6.70% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 16.70% | 10.90% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Other countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 0.30% | 0.10% |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Millions | 192 Months Ended | ||
Dec. 31, 2034 | Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred Service Revenue | $ 32.5 | $ 33.4 | |
Minimum [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Recognition of Deferred Revenue, Expected Annual Amount | $ 0.1 | ||
Maximum [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Recognition of Deferred Revenue, Expected Annual Amount | $ 3.5 |
Discontinued Operations Stateme
Discontinued Operations Statement of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | $ 0 | $ 0 |
Cost of sales | 0 | 112 |
Total operating expense (benefit) | 0 | (61) |
Operating income (loss) from discontinued operations | 0 | (51) |
Other income (expense) | (4) | |
Other income (expense) | 124 | |
Provision (benefit) for income taxes | (4) | 73 |
Provision (benefit) for income taxes | 5 | (67) |
Income (loss) from discontinued operations, net of income taxes | $ (9) | $ 140 |
Discontinued Operations Assets
Discontinued Operations Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 4,140 | $ 5,251 | $ 7,654 |
Accounts and other receivables, net | 430 | 406 | |
Inventories | 302 | 198 | |
Current assets of discontinued operations | 4,872 | 5,855 | |
Other assets | 0 | 67 | |
Deferred income tax assets | 5,917 | 5,917 | |
Non-current assets of discontinued operations | 5,917 | 5,984 | |
Accounts payable and other accrued expenses | 349 | 350 | |
Accrued warranty | 3,905 | 4,936 | |
Current liabilities of discontinued operations | 4,254 | 5,286 | |
Accrued warranty | 10,344 | 10,429 | |
Other liabilities | 142 | 286 | |
Non-current liabilities of discontinued operations | $ 10,486 | $ 10,715 |
Income Taxes Schedule of tax ex
Income Taxes Schedule of tax expense and the effective tax rate for our income from continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income from continuing operations, before income taxes | $ 12,534 | $ 56,129 |
Provision (benefit) for income taxes | $ (2,853) | $ 9,759 |
Effective tax rate | (22.80%) | 17.40% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Details [Abstract] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Earnings Per Share Reconciliati
Earnings Per Share Reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations | $ 15,387 | $ 46,370 |
Income from continuing operations attributable to noncontrolling interest | 8 | 31 |
Income from continuing operations attributable to Advanced Energy Industries, Inc. | $ 15,379 | $ 46,339 |
Basic weighted-average common shares outstanding | 38,198 | 39,619 |
Assumed exercise of dilutive stock options and restricted stock units | 228 | 376 |
Diluted weighted-average common shares outstanding | 38,426 | 39,995 |
Income from Continuing Operations: | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.40 | $ 1.17 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.40 | $ 1.16 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of stock options and restricted units were excluded in the computation of diluted earnings per share because they were anti-dilutive (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted units excluded from the computation of diluted earnings per share because they were anti-dilutive | 119 | 2 |
Earnings Per Share Stock Buybac
Earnings Per Share Stock Buyback (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | May 03, 2018 | Sep. 16, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount | $ 150,000 | |||
StockRepurchaseProgramAuthorizedAmountIncreased | $ 50,000 | |||
Amount paid to repurchase shares | $ 0 | $ 12,750 | ||
Number of shares repurchased | 0 | 181 | ||
Average repurchase price per share | $ 0 | $ 70.47 | ||
Remaining authorized repurchase amount | $ 24,900 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | $ 2,516 | $ 2,470 |
Debt Securities, Available-for-sale, Amortized Cost | $ 2,511 | $ 2,463 |
Marketable Securities The matur
Marketable Securities The maturities of our marketable securities available for sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | $ 2,516 | $ 2,470 |
Debt Securities, Available-for-sale, Amortized Cost | $ 2,511 | $ 2,463 |
Certificates of Deposit [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Maturities of marketable securites, by date | Apr. 10, 2019 | |
Certificates of Deposit [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Maturities of marketable securites, by date | Oct. 17, 2019 |
Marketable Securities Compositi
Marketable Securities Composition of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities | $ 2,516 | $ 2,470 |
Debt Securities, Available-for-sale, Amortized Cost | $ 2,511 | $ 2,463 |
Marketable Securities Fair Valu
Marketable Securities Fair Value of our Marketable Securities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Assets, Fair Value Disclosure | $ 2,516 | $ 2,470 |
Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Assets, Fair Value Disclosure | 2,516 | 2,470 |
Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 16.3 | |
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 3.5 |
Derivative Financial Instrume_4
Derivative Financial Instruments Gain (loss) on foreign currency exchange contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Foreign Exchange [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (750) |
Accounts and Other Receivable_2
Accounts and Other Receivables Components of Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | $ 102,405 | $ 100,442 |
Amounts billed, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | 87,607 | 80,709 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables, net | $ 14,798 | $ 19,733 |
Inventories Components of inven
Inventories Components of inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Parts and raw materials | $ 75,870 | $ 76,647 |
Work in process | 9,286 | 6,644 |
Finished goods | 13,914 | 14,696 |
Inventory, Net | $ 99,070 | $ 97,987 |
Property and Equipment Details
Property and Equipment Details of property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 94,496 | $ 92,063 |
Less: Accumulated depreciation | (63,438) | (60,794) |
Property and equipment, net | 31,058 | 31,269 |
Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,719 | 1,737 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,985 | 41,330 |
Computer and Communication Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,721 | 24,051 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,189 | 3,203 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 282 | 282 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,487 | 20,593 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,113 | $ 867 |
Property and Equipment Deprecia
Property and Equipment Depreciation expense recorded in continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,208 | $ 1,604 |
Goodwill Schedule of the change
Goodwill Schedule of the changes in goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 101,900 |
Effect of Changes in Exchange Rates | (594) |
Ending Balance | $ 101,306 |
Intangible Assets Schedule of o
Intangible Assets Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 77,664 | $ 77,889 |
Finite-Lived Intangible Assets, Accumulated Amortization | (24,806) | (22,979) |
Finite-lived intangible assets, net | 52,858 | 54,910 |
Technology-based [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 39,730 | 39,879 |
Finite-Lived Intangible Assets, Accumulated Amortization | (8,967) | (7,927) |
Finite-lived intangible assets, net | 30,763 | 31,952 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 35,416 | 35,509 |
Finite-Lived Intangible Assets, Accumulated Amortization | (14,241) | (13,484) |
Finite-lived intangible assets, net | 21,175 | 22,025 |
Trademarks and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,518 | 2,501 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,598) | (1,568) |
Finite-lived intangible assets, net | $ 920 | $ 933 |
Intangible Assets Schedule of a
Intangible Assets Schedule of amortization expense relating to other intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 77,664 | $ 77,889 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (24,806) | (22,979) | |
Finite-lived intangible assets, net | 52,858 | 54,910 | |
Amortization expense | 1,973 | $ 1,257 | |
Technology Equipment [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 39,730 | 39,879 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (8,967) | (7,927) | |
Finite-lived intangible assets, net | $ 30,763 | $ 31,952 |
Intangible Assets Schedule of F
Intangible Assets Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 (remaining) | $ 5,612 | |
2017 | 6,842 | |
2018 | 6,743 | |
2019 | 6,486 | |
2020 | 6,468 | |
Thereafter | 20,707 | |
Finite-lived intangible assets, net | $ 52,858 | $ 54,910 |
Restructuring Costs Schedule of
Restructuring Costs Schedule of Restructuring Reserve by Cost Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 1,673 | $ 0 | $ 5,912 |
Severance and related charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 153 | 4,392 | |
Facility relocation and closure charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 1,520 | $ 1,520 |
Restructuring Costs Restructu_2
Restructuring Costs Restructuring liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 3,806 | ||
Cost incurred and charged to expense | 1,673 | $ 0 | $ 5,912 |
Cost paid or otherwise settled | 2,360 | ||
Effect of change in exchange rates | (11) | ||
Ending balance | 3,108 | 3,108 | |
Severance and related charges | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and charged to expense | 153 | 4,392 | |
Facility relocation and closure charges | |||
Restructuring Reserve [Roll Forward] | |||
Cost incurred and charged to expense | $ 1,520 | $ 1,520 |
Warranties Narrative (Details)
Warranties Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty Term | 12 months |
Maximum [Member] | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty Term | 24 months |
Warranties Changes in accrued p
Warranties Changes in accrued product warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balances at beginning of period | $ 2,084 | $ 2,312 |
Warranty liabilities acquired | 0 | 92 |
Increases to accruals | 519 | 178 |
Warranty expenditures | (345) | (506) |
Effect of changes in exchange rates | 6 | 8 |
Balances at end of period | $ 2,264 | $ 2,084 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use asset | $ 35,654 | $ 0 | ||
Operating Lease, Liability | $ 36,894 | |||
Metzingen, Germany [Member] | Subsequent Event [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 3 years | |||
Operating lease right-of-use asset | $ 1,200 | |||
Operating Lease, Liability | $ 1,200 | |||
Denver, Colorado [Member] | Subsequent Event [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 10 years | |||
Operating lease right-of-use asset | $ 15,700 | |||
Operating Lease, Liability | $ 15,700 |
Leases Operating lease maturity
Leases Operating lease maturity schedule (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019, remaining | $ 6,003 |
2020 | 6,243 |
2021 | 5,937 |
2022 | 4,273 |
2023 | 2,974 |
Thereafter | 17,928 |
Total lease payments | 43,358 |
Less: Interest | (6,464) |
Present value of lease liabilities | $ 36,894 |
Leases Additional lease cost in
Leases Additional lease cost information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted Average Remaining Lease Term | 8 years 4 months 6 days |
Weighted Average Discount Rate | 3.75% |
Operating cash outflow from operating leases | $ 2,891 |
Pension Liability (Details)
Pension Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 19,874 | $ 19,266 | |
Defined Benefit Plan, Interest Cost | 199 | $ 218 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (170) | (161) | |
Pension Cost (Reversal of Cost) | 147 | $ 193 | |
Payments through April 30, 2024 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 900 | ||
Payments from May 1, 2024 through November 30, 2033 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 1,800 |
Pension Liability Net Periodic
Pension Liability Net Periodic Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Postemployment Benefits [Abstract] | ||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ 170 | $ 161 |
Defined Benefit Plan, Interest Cost | 199 | 218 |
Defined Benefit Plan, Amortization of Gain (Loss) | 118 | 136 |
Pension Cost (Reversal of Cost) | $ 147 | $ 193 |
Pension Liability Net Pension L
Pension Liability Net Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 19,874 | $ 19,266 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of stock-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 3,199 | $ 4,494 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary of stock option activity (Details) - Time Based [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 220 | 230 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 21.21 | $ 20.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (9) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 10.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (1) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 7.69 |
Stock-Based Compensation Summ_2
Stock-Based Compensation Summary of non-vested Restricted Stock Units activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 51.94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 32.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 577 | 352 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 331 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 48.14 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (96) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (10) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 56.73 | $ 58.17 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) shares in Millions | Mar. 31, 2019shares |
2017 OMNIBUS Incentive Plan [Member] [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2019USD ($) |
Other Commitments [Line Items] | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 99.4 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Companies | Mar. 31, 2018Companies | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | 1 | 1 | |
Accounts Receivable, Related Parties | $ | $ 154 | $ 109 | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | 1 | 1 |
Related Party Transactions Sche
Related Party Transactions Schedule of related party transactions (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Companies | Mar. 31, 2018USD ($)Companies | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties | $ | $ 154 | $ 109 | |
Sales - related parties | $ | $ 352 | $ 73 | |
Related Party Transactions, Number of Companies | Companies | 1 | 1 | |
Management [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transactions, Number of Companies | Companies | 1 | 1 |
Geographic and Customer Infor_3
Geographic and Customer Information Significant Customer Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 140,743 | $ 195,617 | |
Applied Materials, Inc. [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.80% | 35.70% | |
Lam Research [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 20.30% | |
Accounts Receivable [Member] | Applied Materials, Inc. [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.50% | 34.20% | |
Concentration Risk, Amount | $ 27,150 | $ 34,301 | |
Accounts Receivable [Member] | Lam Research [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.70% | 12.10% | |
Concentration Risk, Amount | $ 11,941 | $ 12,181 | |
Product [Member] | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 112,112 | $ 171,209 | |
Product [Member] | Applied Materials, Inc. [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 36,290 | 69,872 | |
Product [Member] | Lam Research [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 19,667 | $ 39,726 |
Credit Facility (Details)
Credit Facility (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Interest Expense | $ 56 | $ 56 |
Bank of America N.A. [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 150,000 | |
Debt, Weighted Average Interest Rate | 3.75% | |
Funded Debt To EBITDA Ratio | 2 | |
London Interbank Offered Rate (LIBOR) [Member] | Bank of America N.A. [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Funded Debt To EBITDA Ratio [Member] | Bank of America N.A. [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |