Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-25426 | |
Entity Registrant Name | NATIONAL INSTRUMENTS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1871327 | |
Entity Address, Address Line One | 11500 North MoPac Expressway | |
Entity Address, City or Town | Austin, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78759 | |
City Area Code | 512 | |
Local Phone Number | 683-0100 | |
Trading Symbol | NATI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Common Stock, Shares Outstanding | 131,059,097 | |
Entity Central Index Key | 0000935494 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 222,773 | $ 259,386 |
Short-term investments | 209,416 | 271,396 |
Accounts receivable, net | 224,305 | 242,955 |
Inventories, net | 206,727 | 194,146 |
Prepaid expenses and other current assets | 66,313 | 54,337 |
Total current assets | 929,534 | 1,022,220 |
Property and equipment, net | 239,140 | 245,201 |
Goodwill | 259,430 | 264,530 |
Intangible assets, net | 91,162 | 110,783 |
Operating lease right-of-use assets | 63,766 | |
Other long-term assets | 45,289 | 28,501 |
Total assets | 1,628,321 | 1,671,235 |
Current liabilities: | ||
Accounts payable and accrued expenses | 56,839 | 48,388 |
Accrued compensation | 43,109 | 45,821 |
Deferred revenue - current | 124,386 | 127,288 |
Other lease liabilities - current | 14,038 | |
Other current liabilities | 22,761 | 25,913 |
Other taxes payable | 31,958 | 35,574 |
Total current liabilities | 293,091 | 282,984 |
Deferred income taxes | 25,949 | 25,457 |
Liability for uncertain tax positions | 7,631 | 9,775 |
Income tax payable - non-current | 67,046 | 74,546 |
Deferred revenue - non-current | 31,920 | 32,636 |
Operating lease liabilities - non-current | 33,112 | |
Other long-term liabilities | 7,411 | 7,479 |
Total liabilities | 466,160 | 432,877 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock: par value $0.01; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock: par value $0.01; 360,000,000 shares authorized; 131,059,097 shares and 132,655,941 shares issued and outstanding, respectively | 1,311 | 1,327 |
Additional paid-in capital | 939,121 | 897,544 |
Retained earnings | 245,465 | 356,418 |
Accumulated other comprehensive loss | (23,736) | (16,931) |
Total stockholders’ equity | 1,162,161 | 1,238,358 |
Total liabilities and stockholders’ equity | $ 1,628,321 | $ 1,671,235 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 360,000,000 | 360,000,000 |
Common stock, issued (in shares) | 131,059,097 | 132,655,941 |
Common stock, outstanding (in shares) | 131,059,097 | 132,655,941 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales: | ||||
Total net sales | $ 340,442 | $ 346,127 | $ 985,747 | $ 999,033 |
Cost of sales: | ||||
Total cost of sales | 85,915 | 89,015 | 245,756 | 245,698 |
Gross profit | 254,527 | 257,112 | 739,991 | 753,335 |
Operating expenses: | ||||
Sales and marketing | 113,922 | 118,220 | 352,340 | 365,474 |
Research and development | 66,558 | 66,170 | 200,981 | 194,921 |
General and administrative | 35,711 | 26,712 | 92,639 | 81,882 |
Gain on sale of assets | (26,842) | 0 | (26,842) | 0 |
Total operating expenses | 189,349 | 211,102 | 619,118 | 642,277 |
Operating income | 65,178 | 46,010 | 120,873 | 111,058 |
Other income: | ||||
Interest income | 1,930 | 1,539 | 6,187 | 3,845 |
Net foreign exchange loss | (378) | (956) | (1,623) | (2,082) |
Other gain, net | 697 | 1,782 | 815 | 169 |
Income before income taxes | 67,427 | 48,375 | 126,252 | 112,990 |
Provision for income taxes | 15,783 | 5,181 | 22,697 | 14,474 |
Net income | $ 51,644 | $ 43,194 | $ 103,555 | $ 98,516 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.33 | $ 0.79 | $ 0.75 |
Weighted average shares outstanding - basic (in shares) | 131,385 | 132,357 | 131,896 | 131,792 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.78 | $ 0.74 |
Weighted average shares outstanding - diluted (in shares) | 131,889 | 133,197 | 132,890 | 133,067 |
Dividends declared per share (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.75 | $ 0.69 |
Product | ||||
Net sales: | ||||
Total net sales | $ 305,247 | $ 310,216 | $ 882,747 | $ 897,355 |
Cost of sales: | ||||
Total cost of sales | 84,127 | 87,082 | 240,056 | 239,205 |
Software maintenance | ||||
Net sales: | ||||
Total net sales | 35,195 | 35,911 | 103,000 | 101,678 |
Cost of sales: | ||||
Total cost of sales | $ 1,788 | $ 1,933 | $ 5,700 | $ 6,493 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 51,644 | $ 43,194 | $ 103,555 | $ 98,516 |
Other comprehensive income (loss), before tax and net of reclassification adjustments: | ||||
Foreign currency translation adjustment | (8,500) | (1,359) | (9,303) | (7,360) |
Unrealized (loss) gain on securities available-for-sale | (419) | 154 | 1,494 | (404) |
Unrealized gain on derivative instruments | 1,627 | 1,359 | ||
Unrealized gain on derivative instruments | 3,316 | 11,578 | ||
Other comprehensive (loss) income, before tax | (7,292) | 2,111 | (6,450) | 3,814 |
Tax expense related to items of other comprehensive income | 414 | 720 | 355 | 2,479 |
Other comprehensive (loss) income, net of tax | (7,706) | 1,391 | (6,805) | 1,335 |
Comprehensive income | $ 43,938 | $ 44,585 | $ 96,750 | $ 99,851 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flow from operating activities: | ||
Net income | $ 103,555 | $ 98,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 54,546 | 53,735 |
Stock-based compensation | 38,054 | 27,492 |
Disposal gain on sale of assets | (26,842) | 0 |
Deferred income taxes | (1,461) | 732 |
Changes in operating assets and liabilities | (18,507) | 6,862 |
Net cash provided by operating activities | 149,345 | 187,337 |
Cash flow from investing activities: | ||
Capital expenditures | (47,183) | (27,373) |
Proceeds from sale of assets | 32,492 | 0 |
Capitalization of internally developed software | (7,179) | (13,152) |
Additions to other intangibles | (1,132) | (5,165) |
Acquisitions of equity-method investments | (13,670) | 0 |
Purchases of short-term investments | (141,074) | (172,462) |
Sales and maturities of short-term investments | 204,046 | 122,726 |
Net cash provided by (used in) investing activities | 26,300 | (95,426) |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock | 25,823 | 24,424 |
Repurchase of common stock | (137,171) | 0 |
Dividends paid | (99,083) | (91,034) |
Net cash used in financing activities | (210,431) | (66,610) |
Effect of exchange rate changes on cash | (1,827) | (4,084) |
Net change in cash and cash equivalents | (36,613) | 21,217 |
Cash and cash equivalents at beginning of period | 259,386 | 290,164 |
Cash and cash equivalents at end of period | $ 222,773 | $ 311,381 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional-Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | |
Beginning Balance (in shares) at Dec. 31, 2017 | 130,978,947 | |||||
Beginning Balance at Dec. 31, 2017 | $ 1,128,021 | $ 1,310 | $ 829,979 | $ 313,241 | $ (16,509) | |
Net income | 98,516 | 98,516 | ||||
Other comprehensive income (loss), net of tax | 1,335 | 1,335 | ||||
Issuance of common stock under employee plans (in shares) | 1,453,647 | |||||
Issuance of common stock under employee plans | 24,423 | $ 14 | 24,409 | |||
Stock-based compensation | 27,029 | 27,029 | ||||
Dividends paid | [1] | (91,034) | (91,034) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 132,432,594 | |||||
Ending Balance at Sep. 30, 2018 | 1,196,909 | $ 1,324 | 881,417 | 329,342 | (15,174) | |
Beginning Balance (in shares) at Jun. 30, 2018 | 132,208,105 | |||||
Beginning Balance at Jun. 30, 2018 | 1,165,678 | $ 1,322 | 864,314 | 316,607 | (16,565) | |
Net income | 43,194 | 43,194 | ||||
Other comprehensive income (loss), net of tax | 1,391 | 1,391 | ||||
Issuance of common stock under employee plans (in shares) | 224,489 | |||||
Issuance of common stock under employee plans | 7,802 | $ 2 | 7,800 | |||
Stock-based compensation | 9,303 | 9,303 | ||||
Dividends paid | [1] | (30,459) | (30,459) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 132,432,594 | |||||
Ending Balance at Sep. 30, 2018 | $ 1,196,909 | $ 1,324 | 881,417 | 329,342 | (15,174) | |
Beginning Balance (in shares) at Dec. 31, 2018 | 132,655,941 | 132,655,941 | ||||
Beginning Balance at Dec. 31, 2018 | $ 1,238,358 | $ 1,327 | 897,544 | 356,418 | (16,931) | |
Net income | 103,555 | 103,555 | ||||
Other comprehensive income (loss), net of tax | (6,805) | (6,805) | ||||
Issuance of common stock under employee plans (in shares) | 1,608,832 | |||||
Issuance of common stock under employee plans | 25,823 | $ 16 | 25,807 | |||
Stock-based compensation | 37,484 | 37,484 | ||||
Repurchase of common stock (in shares) | (3,205,676) | |||||
Repurchase of common stock | (137,171) | $ (32) | (21,714) | (115,425) | ||
Dividends paid | [1] | $ (99,083) | (99,083) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 131,059,097 | 131,059,097 | ||||
Ending Balance at Sep. 30, 2019 | $ 1,162,161 | $ 1,311 | 939,121 | 245,465 | (23,736) | |
Beginning Balance (in shares) at Jun. 30, 2019 | 131,884,775 | |||||
Beginning Balance at Jun. 30, 2019 | 1,174,574 | $ 1,319 | 924,801 | 264,484 | (16,030) | |
Net income | 51,644 | 51,644 | ||||
Other comprehensive income (loss), net of tax | (7,706) | (7,706) | ||||
Issuance of common stock under employee plans (in shares) | 230,400 | |||||
Issuance of common stock under employee plans | 8,178 | $ 3 | 8,175 | |||
Stock-based compensation | 13,284 | 13,284 | ||||
Repurchase of common stock (in shares) | (1,056,078) | |||||
Repurchase of common stock | (44,797) | $ (11) | (7,139) | (37,647) | ||
Dividends paid | [1] | $ (33,016) | (33,016) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 131,059,097 | 131,059,097 | ||||
Ending Balance at Sep. 30, 2019 | $ 1,162,161 | $ 1,311 | $ 939,121 | $ 245,465 | $ (23,736) | |
[1] | Cash dividends declared per share of common stock were $0.23 for the three months ended September 30, 2018, $0.69 for the nine months ended September 30, 2018. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.75 | $ 0.69 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018 , included in our annual report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"). In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly our financial position at September 30, 2019 and December 31, 2018 , the results of our operations and comprehensive income for three and nine months ended September 30, 2019 and 2018 , the cash flows for the nine months ended September 30, 2019 and 2018 and the statement of stockholder's equity for the three and nine months ended September 30, 2019. Our operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . These financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Gain on Sale of Assets During the three months ended September 30, 2019, we recognized a gain of $26.8 million from the sale of our 136,000 square foot office building and property located at 6504 Bridgepoint Parkway, Austin, Texas (the "Millennium Property"). At the time of sale, we did not occupy the building and had been leasing the building to third parties for several years. The disposal gain is presented as "Gain on sale of assets" in the Consolidated Statements of Income. Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board ("FASB") established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which supersedes ASC 840, Leases, and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. Topic 842, as amended (the "new lease standard"), establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new lease standard on January 1, 2019 and used the effective date as our date of initial adoption. Consequently, financial information will not be updated and the disclosures required under the new lease standard will not be provided for earlier periods. We have completed a qualitative and quantitative assessment of our lease portfolio, in which the new lease standard had a material impact on our consolidated balance sheet but did not have an impact on our consolidated income statement. Upon adoption, we recognized lease liabilities of approximately $ 52 million , with corresponding ROU assets of the same amount, based on the present value of the remaining minimum rental payments under current leasing standards for our existing operating leases. Additionally, we also reclassified approximately $ 19 million from "Property, plant and equipment, net" to "Operating lease right-of-use assets" related to prepaid leasehold land. The new lease standard provides a number of optional practical expedients in transition. We elected the "package of practical expedients", which permits us not to reassess under the new lease standard our prior conclusions about lease identification, lease classification and initial direct costs. The new lease standard also provides practical expedients for an entity's ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for our office leases. The cumulative effects of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of the new lease standard were as follows (in thousands): Balance at December 31, 2018 Adjustments Due to ASU 2016-02 Balance at January 1, 2019 Assets Property, plant and equipment, net $ 245,201 $ (18,606 ) $ 226,595 Operating lease right-of-use assets — $ 68,938 $ 68,938 Liabilities and Stockholders' Equity Operating lease liabilities, current — $ 18,597 $ 18,597 Operating lease liabilities, non-current — $ 33,853 $ 33,853 Other current liabilities $ 25,913 $ (2,118 ) $ 23,795 Other Recently Adopted Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU expands strategies that qualify for hedge accounting, changes how many hedging relationships are presented in the financial statements, and simplifies the application of hedge accounting in certain situations. On January 1, 2019, we adopted the guidance in ASU 2017-12. Adoption did not have a material impact on our financial statements. We continue to assess opportunities enabled by the new standard to expand our risk management strategies. In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to our financial reporting will be the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods. We adopted this new rule beginning with our financial reporting for the quarter ended March 31, 2019. In January 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which gives entities the option to reclassify to retained earnings tax effects resulting from the Tax Cuts and Jobs Act (the "Act") related to items that the FASB refers to as having been stranded in accumulated other comprehensive income ("OCI"). We adopted ASU 2018-02 effective January 1, 2019, and we did not elect the option to reclassify to retained earnings the tax effects resulting from the Act that are stranded in accumulated OCI. The adoption of the new guidance did not have a material effect on our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss model for accounts receivables and other financial instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. We do not plan to adopt the ASU earlier than our required effective date of January 1, 2020. We expect that the adoption of the ASU will not have a material impact on our financial statements. Summary of Significant Accounting Policies As discussed above, we adopted the new lease standard as of January 1, 2019. The impact of this new guidance on our accounting policies and financial statements is described below. Additionally, in the first quarter of 2019, we granted performance-based restricted stock units to certain executives under our 2015 Equity Incentive Plan ("PRSUs"). The PRSU awards granted during the nine months ended September 30, 2019 include a market condition as defined by ASC 718. The impact of the new equity awards on our accounting policies is described below. There were no other significant changes in our accounting policies during the nine months ended September 30, 2019 compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018. Stock-Based Compensation Stock-based compensation costs are based on the fair value on the date of grant for all restricted stock units ("RSUs") and on the date of enrollment for the employee stock purchase plan. We recognize compensation expense ratably over the requisite service period of the awards. PRSUs are RSU awards that vest based on a market condition. The market condition currently used is our stockholder return relative to the total stockholder return of the companies included in the Russell 2000 Index at the end of the three -year performance period. Up to 200% of the full target number of shares subject to each PRSU award are eligible to be earned after the completion of the three -year performance period based on our total stockholder return relative to the total stockholder return of the Russell 2000 Index. The fair values of RSUs, with service-based vesting conditions, are estimated using their market price on the date of grant. The fair values of rights under employee stock purchase plans are estimated using the Black-Scholes option-pricing model. The fair values of PRSUs are estimated using a Monte Carlo simulation. The determination of fair value of the PRSUs is affected by our stock price and a number of assumptions including the expected volatility, expected dividend yield and the risk-free interest rate. Our expected volatility at the date of grant was based on the historical volatilities of our stock and the companies included in the Russell 2000 Index over the performance period. Refer to Note 11 – Authorized shares of common and preferred stock and stock-based compensation plans for additional information on our equity-based compensation programs. Leases We determine whether an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current) on our consolidated balance sheet. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on their present value of the future minimum lease payments over the lease term at commencement date. As none of our leases provide an implicit rate we use our incremental borrowing rate based on the information available as of the commencement date. The operating lease ROU assets also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. For office leases, we account for the lease and non-lease components as a single lease component. For certain leases, such as equipment and vehicles, we account for the lease and non-lease components separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Refer to Note 8 - Leases for additional information on our leasing activities. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes RSUs, is computed using the treasury stock method. The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2019 and 2018 , are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) (Unaudited) (Unaudited) 2019 2018 2019 2018 Weighted average shares outstanding-basic 131,385 132,357 131,896 131,792 Plus: Common share equivalents RSUs 504 840 994 1,275 Weighted average shares outstanding-diluted 131,889 133,197 132,890 133,067 Stock awards to acquire 1,611,000 shares and 36,600 shares for the three months ended September 30, 2019 and 2018 , respectively, and 568,000 shares and 537,000 shares for the nine months ended September 30, 2019 and 2018 , respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Revenue is recognized upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of our products or services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Our typical performance obligations include the following: Performance Obligation When performance obligation is typically satisfied When payment is typically due How standalone selling price is typically estimated Product revenue Modular hardware When customer obtains control of the product (point-in-time) Within 30-90 days of shipment Observable in transactions without multiple performance obligations Software licenses When software media is delivered to customer or made available for download electronically, and the applicable license period has begun (point-in-time) Within 30-90 days of the beginning of license period Perpetual/Subscription licenses: Value relationships based on (i) the directly observable pricing of the license bundled with software maintenance and (ii) the directly observable pricing of software maintenance renewals, when they are sold on a standalone basis. Enterprise-wide term licenses: Residual method Extended hardware warranty Ratably over the course of the support contract (over time) Within 30-90 days of the beginning of the contract period Observable in renewal transactions Other related support offerings As work is performed (over time) or training course is delivered (point-in-time) Within 30-90 days of delivery Observable in transactions without multiple performance obligations Software maintenance revenue Software maintenance Ratably over the course of the support contract (over time) Within 30-90 days of the beginning of the contract period Observable in renewal transactions Disaggregation of Revenues We disaggregate revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time) and geographic region based on the billing location of the customer. The geographic regions that are tracked are the Americas (United States, Canada and Latin America), EMEIA (Europe, Middle East, India and Africa) and APAC (Australia, New Zealand, Southeast Asia, China, South Korea and Japan). Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Net sales: Point-in-Time Over Time Total Point-in-Time Over Time Total Americas $ 119,895 $ 23,222 $ 143,117 $ 118,725 $ 24,191 $ 142,916 EMEIA 75,443 20,247 95,690 79,952 19,461 99,413 APAC 92,794 8,841 101,635 95,837 7,961 103,798 Total net sales (1) $ 288,132 $ 52,310 $ 340,442 $ 294,514 $ 51,613 $ 346,127 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities for more information on the impact of our hedging activities on our results of operations Nine Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Net sales: Point-in-Time Over Time Total Point-in-Time Over Time Total Americas $ 325,349 $ 69,337 $ 394,686 $ 327,958 $ 64,471 $ 392,429 EMEIA 234,409 59,121 293,530 257,346 57,520 314,866 APAC 272,375 25,156 297,531 267,773 23,965 291,738 Total net sales (1) $ 832,133 $ 153,614 $ 985,747 $ 853,077 $ 145,956 $ 999,033 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities for more information on the impact of our hedging activities on our results of operations Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers, such as invoicing at the beginning of a subscription term with a portion of the revenue recognized ratably over the contract period, or to provide customers with financing, such as multi-year on-premises licenses that are invoiced annually with revenue recognized upfront. Changes in deferred revenue, current and long-term, during the nine months ended September 30, 2019 were as follows: Amount (In thousands) Deferred Revenue at December 31, 2018 $ 159,924 Deferral of revenue billed in current period, net of recognition 149,961 Recognition of revenue deferred in prior periods (150,762 ) Foreign currency translation impact (2,817 ) Balance as of September 30, 2019 (unaudited) $ 156,306 For the nine months ended September 30, 2019 , revenue recognized from performance obligations satisfied in prior periods (for example, due to changes in transaction price) was not material. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in "accounts receivable, net" on the consolidated balance sheet. Based on the nature of our contracts with customers, we do not typically recognize unbilled receivables related to revenues recognized in excess of amounts billed. For the nine months ended September 30, 2019 , amounts recognized related to unbilled receivables were not material. Unsatisfied Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, and excluding contracts where revenue is recognized as invoiced, was approximately $57 million as of September 30, 2019 . Since we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances. As of September 30, 2019 , we expect to recognize approximately 13% of the revenue related to these unsatisfied performance obligations during the remainder of 2019, 45% during 2020, and 42% thereafter. Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Capitalized incremental costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other long-term assets on our consolidated balance sheets. Practical Expedients As discussed in Note 1 - Basis of presentation and elsewhere in Note 2 - Revenue, we have elected the following practical expedients in accordance with the new revenue standard: • We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. • We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. • We do not consider the time value of money for contracts with original durations of one year or less. |
Short-term investments
Short-term investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Short-term investments | Short-term investments The following tables summarize unrealized gains and losses related to our short-term investments designated as available-for-sale: As of September 30, 2019 (In thousands) (Unaudited) Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 208,480 $ 1,072 $ (159 ) $ 209,393 Time deposits 23 — — 23 Total Short-term investments $ 208,503 $ 1,072 $ (159 ) $ 209,416 (In thousands) As of December 31, 2018 Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 235,045 $ 726 $ (1,298 ) $ 234,473 U.S. treasuries and agencies 36,932 2 (11 ) 36,923 Total Short-term investments $ 271,977 $ 728 $ (1,309 ) $ 271,396 The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale: As of September 30, 2019 (In thousands) (Unaudited) Adjusted Cost Fair Value Due in less than 1 year $ 69,120 $ 69,406 Due in 1 to 5 years 139,383 140,010 Total available-for-sale debt securities $ 208,503 $ 209,416 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 69,097 $ 69,383 Time deposits 23 23 Total available-for-sale debt securities $ 69,120 $ 69,406 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds $ 139,383 $ 140,010 Total available-for-sale debt securities $ 139,383 $ 140,010 Equity-Method Investments The carrying value of our equity method investments was $16 million |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements We define fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market that market participants may use when pricing the asset or liability. We follow a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value measurement is determined based on the lowest level input that is significant to the fair value measurement. The three values of the fair value hierarchy are the following: Level 1 – Quoted prices in active markets for identical assets or liabilities Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 – Inputs that are not based on observable market data Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Reporting Date Using (In thousands) (Unaudited) Description September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 106,327 $ 106,327 $ — $ — Short-term investments available for sale: Corporate notes and bonds 209,393 — 209,393 — Time deposits 23 23 — — Derivatives 15,597 — 15,597 — Total Assets $ 331,340 $ 106,350 $ 224,990 $ — Liabilities Derivatives $ (6,282 ) $ — $ (6,282 ) $ — Total Liabilities $ (6,282 ) $ — $ (6,282 ) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 62,094 $ 62,094 $ — $ — Corporate notes and bonds 9,979 — 9,979 — Short-term investments available for sale: Corporate bonds 234,473 — 234,473 — U.S. treasuries and agencies 36,923 — 36,923 — Derivatives 9,369 — 9,369 — Total Assets $ 352,838 $ 62,094 $ 290,744 $ — Liabilities Derivatives $ (1,483 ) $ — $ (1,483 ) $ — Total Liabilities $ (1,483 ) $ — $ (1,483 ) $ — We value our available-for-sale short-term investments based on pricing from third party pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. We classify all of our fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. We believe all of these sources reflect the credit risk associated with each of our available-for-sale short-term investments. Short-term investments available-for-sale consists of debt securities issued by states of the U.S. and political subdivisions of the U.S., corporate debt securities and debt securities issued by U.S. government organizations and agencies. All of our short-term investments available-for-sale have contractual maturities of less than 60 months . Derivatives include foreign currency forward contracts. Our foreign currency forward contracts are valued using an income approach (Level 2) based on the spot rate less the contract rate multiplied by the notional amount. We consider counterparty credit risk in the valuation of our derivatives. However, counterparty credit risk did not impact the valuation of our derivatives during the nine months ended September 30, 2019 . There were no transfers in or out of Level 1 or Level 2 during the nine months ended September 30, 2019 . As of September 30, 2019 , our short-term investments did not include sovereign debt from any country other than the United States. We did not have any items that were measured at fair value on a nonrecurring basis at September 30, 2019 and December 31, 2018 . The carrying value of net accounts receivable, accounts payable, and long-term debt contained in the consolidated balance sheets approximates fair value. |
Derivative instruments and hedg
Derivative instruments and hedging activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | Derivative instruments and hedging activities We recognize all of our derivative instruments as either assets or liabilities in our statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. We have operations in approximately 50 countries. Sales outside of the Americas accounted for approximately 58% and 59% of our net sales during the three months ended September 30, 2019 and 2018 , respectively, and approximately 60% and 61% of our net sales during the nine months ended September 30, 2019 and 2018 , respectively. Our activities expose us to a variety of market risks, including the effects of changes in foreign currency exchange rates. These financial risks are monitored and managed by us as an integral part of our overall risk management program. We maintain a foreign currency risk management strategy that uses derivative instruments (foreign currency forward contracts) to help protect our earnings and cash flows from fluctuations caused by the volatility in currency exchange rates. Movements in foreign currency exchange rates pose a risk to our operations and competitive position, in that exchange rate changes may affect our profitability and cash flow, and the business or pricing strategies of our non-U.S. based competitors. The vast majority of our foreign sales are denominated in the customers’ local currency. We purchase foreign currency forward contracts as hedges of forecasted sales that are denominated in foreign currencies and as hedges of foreign currency denominated financial assets or liabilities. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash inflows resulting from such sales or firm commitments will be adversely affected by changes in exchange rates. We also purchase foreign currency forward contracts as hedges of forecasted expenses that are denominated in foreign currencies. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash outflows resulting from foreign currency operating and cost of sales expenses will be adversely affected by changes in exchange rates. We designate foreign currency forward contracts as cash flow hedges of forecasted net sales or forecasted expenses. In addition, we hedge our foreign currency denominated balance sheet exposures using foreign currency forward contracts that are not designated as hedging instruments. None of our derivative instruments contain a credit-risk-related contingent feature. Cash flow hedges To help protect against the reduction in value caused by a fluctuation in foreign currency exchange rates of forecasted foreign currency cash flows resulting from international sales over the next one to three years, we have instituted a foreign currency cash flow hedging program. We hedge portions of our forecasted net sales and forecasted expenses denominated in foreign currencies with forward contracts. For forward contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the forward contracts designated as hedges. We purchase foreign currency forward contracts for up to 100% of our forecasted exposures in selected currencies (primarily in Euro, Japanese yen, Hungarian forint, British pound, Malaysian ringgit, Korean won and Chinese yuan) and limit the duration of these contracts to 40 months or less. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated OCI and reclassified into earnings in the same line item (net sales, operating expenses, or cost of sales) associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings or expenses during the current period and are classified as a component of “net foreign exchange loss.” Hedge effectiveness of foreign currency forwards designated as cash flow hedges are measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the forecasted transaction’s terminal value. We held forward contracts designated as cash flow hedges with the following notional amounts: (In thousands) US Dollar Equivalent As of September 30, 2019 As of December 31, (Unaudited) 2018 British pound $ 17,748 $ 9,948 Chinese yuan 52,937 45,520 Euro 158,214 134,654 Hungarian forint 102,732 35,384 Japanese yen 54,094 15,141 Korean won 9,401 8,331 Malaysian ringgit 28,258 27,778 Total forward contracts notional amount $ 423,384 $ 276,756 The contracts in the foregoing table had contractual maturities of 39 months or less and 24 months or less at September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 , we expect to reclassify $11.6 million of gains on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $1.9 million of losses on derivative instruments from accumulated OCI to cost of sales during the next twelve months when the hedged cost of sales are incurred and $1.3 million of losses on derivative instruments from accumulated OCI to operating expenses during the next twelve months when the hedged operating expenses occur. Expected amounts are based on derivative valuations at September 30, 2019 . Actual results may vary materially as a result of changes in the corresponding exchange rates subsequent to this date. The gains and losses recognized in earnings due to hedge ineffectiveness were not material for each of the nine months ended September 30, 2019 and 2018 and are included as a component of net income under the line item “net foreign exchange loss.” Other Derivatives Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge our foreign denominated net receivable or net payable positions to help protect against the change in value caused by a fluctuation in foreign currency exchange rates. We typically attempt to hedge up to 90% of our outstanding foreign denominated net receivables or net payables and typically limit the duration of these foreign currency forward contracts to approximately 90 days or less. The gain or loss on the derivatives as well as the offsetting gain or loss on the hedge item attributable to the hedged risk is recognized in current earnings under the line item “net foreign exchange loss.” As of September 30, 2019 and December 31, 2018 , we held foreign currency forward contracts that were not designated as hedging instruments with a notional amount of $47 million and $71 million , respectively. The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 , respectively. Asset Derivatives September 30, 2019 December 31, 2018 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 11,855 Prepaid expenses and other current assets $ 7,594 Foreign exchange contracts - LT forwards Other long-term assets 3,480 Other long-term assets 1,380 Total derivatives designated as hedging instruments $ 15,335 $ 8,974 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 262 Prepaid expenses and other current assets $ 395 Total derivatives not designated as hedging instruments $ 262 $ 395 Total derivatives $ 15,597 $ 9,369 Liability Derivatives September 30, 2019 December 31, 2018 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (3,461 ) Other current liabilities $ (662 ) Foreign exchange contracts - LT forwards Other long-term liabilities (2,362 ) Other long-term liabilities (191 ) Total derivatives designated as hedging instruments $ (5,823 ) $ (853 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (459 ) Other current liabilities $ (630 ) Total derivatives not designated as hedging instruments $ (459 ) $ (630 ) Total derivatives $ (6,282 ) $ (1,483 ) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for three months ended September 30, 2019 and 2018 , respectively: September 30, 2019 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 6,736 Net sales $ 3,291 Foreign exchange contracts - forwards (2,946 ) Cost of sales (176 ) Foreign exchange contracts - forwards (2,163 ) Operating expenses (112 ) Total $ 1,627 $ 3,003 September 30, 2018 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 3,569 Net sales $ 1,424 Foreign exchange contracts - forwards (96 ) Cost of sales 74 Foreign exchange contracts - forwards (157 ) Operating expenses 111 Total $ 3,316 $ 1,609 (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2019 September 30, 2018 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ 287 865 Total $ 287 $ 865 The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the nine months ended September 30, 2019 and 2018 , respectively: September 30, 2019 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 7,186 Net sales $ 7,687 Foreign exchange contracts - forwards (3,386 ) Cost of sales (217 ) Foreign exchange contracts - forwards (2,441 ) Operating expenses (158 ) Total 1,359 $ 7,312 September 30, 2018 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 16,128 Net sales $ (2,491 ) Foreign exchange contracts - forwards (2,422 ) Cost of sales 717 Foreign exchange contracts - forwards (2,128 ) Operating expenses 888 Total $ 11,578 $ (886 ) (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2019 September 30, 2018 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (82 ) 678 Total $ (82 ) $ 678 |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net consist of the following: September 30, 2019 December 31, (In thousands) (Unaudited) 2018 Raw materials $ 107,270 $ 98,346 Work-in-process 11,589 9,306 Finished goods 87,868 86,494 Total $ 206,727 $ 194,146 |
Intangible assets, net
Intangible assets, net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | Intangible assets, net Intangible assets at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 (In thousands) (Unaudited) December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 125,787 $ (64,710 ) $ 61,077 $ 123,842 $ (49,299 ) $ 74,543 Acquired technology 91,430 (86,676 ) 4,754 92,236 (84,962 ) 7,274 Patents 35,503 (23,213 ) 12,290 34,427 (21,725 ) 12,702 Other 44,251 (31,210 ) 13,041 46,437 (30,173 ) 16,264 Total $ 296,971 $ (205,809 ) $ 91,162 $ 296,942 $ (186,159 ) $ 110,783 Software development costs capitalized for the three months ended September 30, 2019 and 2018 were $2.8 million and $1.9 million , respectively, and related amortization expense was $7.1 million and $6.9 million , respectively. For the nine months ended September 30, 2019 and 2018 , capitalized software development costs were $7.5 million and $13.8 million , respectively, and related amortization expense was $20.9 million and $19.9 million , respectively. Capitalized software development costs for the three months ended September 30, 2019 and 2018 included costs related to stock-based compensation of $0.2 million and $0.1 million , respectively. For the nine months ended September 30, 2019 and 2018 , capitalized software development costs included costs related to stock-based compensation of $0.3 million and $0.6 million , respectively. The related amounts in the table above are net of fully amortized assets. Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three to six years. Acquired technology and other intangible assets are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally 10 to 17 years. Total intangible assets amortization expenses were $9.2 million and $9.0 million for the three months ended September 30, 2019 and 2018 , respectively, and $27.3 million and $26.4 million for the nine months ended September 30, 2019 and 2018 , respectively. Goodwill The carrying amount of goodwill as of September 30, 2019 , was as follows: Amount (In thousands) Balance as of December 31, 2018 $ 264,530 Foreign currency translation impact (5,100 ) Balance as of September 30, 2019 (unaudited) $ 259,430 The excess purchase price over the fair value of assets acquired is recorded as goodwill. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test is performed in the fourth quarter of each year. No impairment of goodwill was identified during the nine months ended September 30, 2019 or the twelve months ended December 31, 2018 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for corporate offices, automobiles, and certain equipment. Our leases have remaining terms of 1 year to 95 years , some of which may include options to extend the leases for up to 9 years , and some of which may include options to terminate the leases within 1 year. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Amounts related to finance lease activities and income from leasing activities were not material for the periods presented. The components of operating lease expense were as follows (unaudited): Three Months Ended Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating Lease Cost (a) $ 5,456 $ 16,951 (a) includes variable and short-term lease costs Supplemental cash flow information related to operating leases were as follows (unaudited): Three Months Ended Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,097 $ 13,071 Supplemental non-cash information: Operating lease right-of-use assets obtained in exchange for new operating lease obligations $ 750 $ 9,886 Maturities of lease liabilities as of September 30, 2019 were as follows (unaudited): (In thousands) Years ending December 31, Operating Leases 2019 (Excluding the nine months ended September 30, 2019) $ 4,590 2020 15,008 2021 10,176 2022 6,835 2023 5,272 Thereafter 13,649 Total future minimum lease payments 55,530 Less imputed interest (8,380 ) Total $ 47,150 Weighted Average Remaining Lease Term (years) Operating Leases 5.09 Weighted Average Discount Rate Operating Leases 5.1 % As of September 30, 2019, we have additional operating leases, that have not commenced during the period, which were not material. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. We had a valuation allowance of $ 80 million at September 30, 2019 and December 31, 2018 . A majority of the valuation allowance is related to the deferred tax assets of National Instruments Hungary Kft. (“NI Hungary”). We account for uncertainty in income taxes recognized in our financial statements using prescribed recognition thresholds and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on our tax returns. We had $7.6 million and $9.8 million of unrecognized tax benefits at September 30, 2019 and December 31, 2018 , respectively, all of which would affect our effective income tax rate if recognized. We recorded a gross increase in unrecognized tax benefits of $0.7 million and $1.1 million for the three and nine months ended September 30, 2019 , respectively, as a result of the tax positions taken during these and prior periods. We recorded a gross decrease in unrecognized tax benefits of $1.5 million and $3.6 million for the three and nine months ended September 30, 2019, respectively, as a result of closing open tax years. As of September 30, 2019 , it is reasonably possible that we will recognize tax benefits in the amount of $2.8 million in the next twelve months due to the closing of open tax years. The nature of the uncertainty is related to deductions taken on returns that have not been examined by the applicable tax authority. Our continuing policy is to recognize interest and penalties related to income tax matters in income tax expense. As of September 30, 2019 , we had approximately $0.6 million accrued for interest related to uncertain tax positions. The tax years 2012 through 2019 remain open to examination by the major taxing jurisdictions to which we are subject. Our provision for income taxes reflected an effective tax rate of 23% and 11% for the three months ended September 30, 2019 and 2018 , respectively, and 18% and 13% for the nine months ended September 30, 2019 and 2018 , respectively. For the three months ended September 30, 2019 , our effective tax rate was higher than the U.S. federal statutory rate of 21% as a result of state income taxes, the U.S. tax on global intangible low-taxed income, nondeductible officer compensation, and an adjustment to the one-time transition tax on deferred foreign income, offset by the research and development tax credit, an enhanced deduction for certain research and development expenses, a decrease in unrecognized tax benefits resulting from the closing of open tax years, and the deduction for foreign-derived deduction eligible income. For the nine months ended September 30, 2019, our effective tax rate was lower than the U.S. federal statutory rate of 21% as a result of an enhanced deduction for certain research and development expenses, a decrease in unrecognized tax benefits resulting from the closing of open tax years, the research and development tax credit, excess tax benefits from share-based compensation, a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit and the deduction for foreign-derived deduction eligible income, offset by state income taxes, the U.S. tax on global intangible low-taxed income, nondeductible officer compensation, and an adjustment to the one-time transition tax on deferred foreign income. For the three and nine months ended September 30, 2018 , our effective tax rate was lower than the U.S. federal statutory rate of 21% as a result of an enhanced deduction for certain research and development expenses, profits in foreign jurisdictions with reduced income tax rates, the research and development tax credit, excess tax benefits from share-based compensation, a tax benefit from disqualifying dispositions of equity awards that do not ordinarily result in a tax benefit, the deduction for foreign-derived deduction eligible income, and an adjustment to the one-time transition tax on deferred foreign income, offset by the U.S. tax on global intangible low-taxed income. Our earnings in Hungary are subject to a statutory tax rate of 9% . In addition, our research and development activities in Hungary benefit from a tax law in Hungary that provides for an enhanced deduction for qualified research and development expenses. The tax position of our Hungarian operations resulted in income tax benefits of $1.6 million and $2.6 million for the three months ended September 30, 2019 and 2018 , respectively, and $4.2 million and $7.1 million for the nine months ended September 30, 2019 and 2018 , respectively. Earnings from our operations in Malaysia are free of tax under a tax holiday effective January 1, 2013. This tax holiday expires in 2027. If we fail to satisfy the conditions of the tax holiday, this tax benefit may be terminated early. The income tax benefits of the tax holiday for the three and nine months ended September 30, 2019 were approximately $1.8 million and $3.1 million , respectively. The income tax benefits of the tax holiday for the three and nine months ended September 30, 2018 were approximately $0.8 million and $1.9 million , respectively. The impact of the tax holiday on a per share basis for each of the three and nine months ended September 30, 2019 was a benefit of $0.01 and $0.02 , respectively. The impact of the tax holiday on a per share basis for each of the three and nine months ended September 30, 2018 was a benefit of $0.01 . No other taxing jurisdictions had a significant impact on our effective tax rate. We have not entered into any advanced pricing or other agreements with the IRS with regard to any foreign jurisdictions. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive income | Comprehensive income Our comprehensive income is comprised of net income, foreign currency translation, unrealized gains and losses on forward contracts and securities classified as available-for-sale. The accumulated OCI, net of tax, for the nine months ended September 30, 2019 and 2018 , consisted of the following: September 30, 2019 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2018 $ (22,485 ) $ (1,308 ) 6,862 $ (16,931 ) Current-period other comprehensive (loss) income (9,303 ) 1,494 8,671 862 Reclassified from accumulated OCI into income — — (7,312 ) (7,312 ) Income tax expense (benefit) — (11 ) 366 355 Balance as of September 30, 2019 $ (31,788 ) $ 197 $ 7,855 $ (23,736 ) September 30, 2018 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2017 $ (12,717 ) $ (782 ) (3,010 ) $ (16,509 ) Current-period other comprehensive income (loss) (7,360 ) (404 ) 10,692 2,928 Reclassified from accumulated OCI into income — — 886 886 Income tax expense — 30 2,449 2,479 Balance as of September 30, 2018 $ (20,077 ) $ (1,216 ) $ 6,119 $ (15,174 ) |
Authorized shares of common and
Authorized shares of common and preferred stock and stock-based compensation plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Authorized shares of common and preferred stock and stock-based compensation plans | Authorized shares of common and preferred stock and stock-based compensation plans Authorized shares of common and preferred stock Following approval by the Company’s Board of Directors and stockholders, on May 14, 2013, the Company’s certificate of incorporation was amended to increase the authorized shares of common stock by 180,000,000 shares to a total of 360,000,000 shares. As a result of this amendment, the total number of shares which the Company is authorized to issue is 365,000,000 shares, consisting of (i) 5,000,000 shares of preferred stock, par value $0.01 per share, and (ii) 360,000,000 shares of common stock, par value $0.01 per share. Restricted stock plan Our stockholders approved our 2005 Incentive Plan (the “2005 Plan”) in May 2005. At the time of approval, 4,050,000 shares of our common stock were reserved for issuance under this plan, as well as the number of shares which had been reserved but not issued under our 1994 Incentive Plan (the “1994 Plan”) which terminated in May 2005, and any shares that returned to the 1994 Plan as a result of termination of options or repurchase of shares issued under such plan. The 2005 Plan, administered by the Compensation Committee of the Board of Directors, provided for granting of incentive awards in the form of restricted stock and RSUs to directors, executive officers and employees of the Company and its subsidiaries. Awards vest over a three , five or ten -year period, beginning on the date of grant. Vesting of ten -year awards may accelerate based on our previous year’s earnings and growth but ten -year awards cannot accelerate to vest over a period of less than five years. The 2005 Plan terminated on May 11, 2010, except with respect to outstanding awards previously granted thereunder. There were 3,362,304 shares of common stock that were reserved but not issued under the 2005 Plan as of May 11, 2010. Our stockholders approved our 2010 Incentive Plan (the “2010 Plan”) on May 11, 2010. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 3,362,304 shares of common stock that were reserved but not issued under the 1994 Plan and the 2005 Plan as of May 11, 2010, and any shares that are returned to the 1994 Plan and the 2005 Plan as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2010 Plan, administered by the Compensation Committee of the Board of Directors, provides for granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants and employees and consultants of any subsidiary. Awards vest over a three , five or ten -year period, beginning on the date of grant. Vesting of ten -year awards may accelerate based on our previous year’s earnings and growth but ten -year awards cannot accelerate to vest over a period of less than five years. The 2010 Plan terminated on May 12, 2015, except with respect to the outstanding awards previously granted thereunder. There were 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015. Our stockholders approved our 2015 Equity Incentive Plan (the “2015 Plan”) on May 12, 2015. At the time of approval, 3,000,000 shares of our common stock were reserved for issuance under this plan, as well as the 2,518,416 shares of common stock that were reserved but not issued under the 2010 Plan as of May 12, 2015, and any shares that were returned to the 1994, 2005, and the 2010 Plans as a result of the forfeiture or termination of options or RSUs or repurchase of shares issued under these plans. The 2015 Plan, administered by the Compensation Committee of the Board of Directors, provides for the granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants and employees and consultants of any subsidiary and such awards may be subject to performance-based vesting conditions. Awards vest over a three , four , five or ten -year period, beginning on the date of grant. Vesting of ten-year awards may accelerate based on our previous year’s earnings and growth but ten -year awards cannot accelerate to vest over a period of less than five years. There were 1,934,762 shares available for grant under the 2015 Plan at September 30, 2019 . During the nine months ended September 30, 2019 , we granted PRSUs to certain executives under our 2015 Plan. Refer to the "Summary of Significant Accounting Policies" in Note 1 - Basis of presentation for additional discussion regarding the impact of these grants on our accounting policies and related estimates. Employee stock purchase plan Our employee stock purchase plan permits substantially all domestic employees and employees of designated subsidiaries to acquire our common stock at a purchase price of 85% of the lower of the market price at the beginning or the end of the purchase period. The plan has quarterly purchase periods generally beginning on February 1, May 1, August 1 and November 1 of each year. Employees may designate up to 15% of their compensation for the purchase of common stock under this plan. On May 14, 2019, our stockholders approved an additional 3,000,000 shares for issuance under our employee stock purchase plan. At September 30, 2019 , we had 4,295,207 shares of common stock reserved for future issuance under this plan. We issued 699,837 shares under this plan in the nine months ended September 30, 2019 and the weighted average purchase price was $36.90 per share. During the nine months ended September 30, 2019 , we did not make any changes in accounting principles or methods of estimates with respect to such plan. Authorized Preferred Stock and Preferred Stock Purchase Rights Plan We have 5,000,000 authorized shares of preferred stock. On January 21, 2004, our Board of Directors designated 750,000 of these shares as Series A Participating Preferred Stock in conjunction with the adoption of a Preferred Stock Rights Agreement which expired on May 10, 2014. There were no shares of preferred stock issued and outstanding at September 30, 2019 . Stock repurchases and retirements From time to time, our Board of Directors has authorized various programs for our repurchase of shares of our common stock depending on market conditions and other factors. Under the current program, during the three months ended September 30, 2019, we repurchased 1,056,078 shares of our common stock at a weighted average price per share at $42.42 and during the nine months ended September 30, 2019, we repurchased 3,205,676 shares of our common stock at a weighted average price per share of $42.79 . We did not repurchase any shares during the nine months ended September 30, 2018 . At September 30, 2019 , there were 794,324 |
Segment and geographic informat
Segment and geographic information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and geographic information | Segment and geographic information We operate as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis. Since we operate in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements and the notes thereto. We sell our products in three geographic regions which consist of Americas, EMEIA and APAC. Our sales to these regions share similar economic characteristics, similar product mix, similar customers, and similar distribution methods. Revenue from the sale of our products, which are similar in nature, and software maintenance is reflected as total net sales in our Consolidated Statements of Income. (See Note 2 - Revenue of Notes to Consolidated Financial Statements for total net sales by the major geographic areas in which we operate). Based on the billing location of the customer, total sales outside the U.S. for the three months ended September 30, 2019 and 2018 were $208 million and $213 million , respectively, and $617 million and $635 million for the nine months ended September 30, 2019 and 2018 , respectively. Total property and equipment, net, outside the U.S. was $126 million as of September 30, 2019 and $132 million at December 31, 2018 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 9, 2013, we entered into a Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank (the “Lender”). The Loan Agreement provided for a $50 million unsecured revolving line of credit with a scheduled maturity date of May 9, 2018 (the “Original Maturity Date”). On October 29, 2015, we entered into a First Amendment to Loan Agreement (the “Amendment”) with the Lender, which amended our Loan Agreement to among other things, (i) increase the unsecured revolving line of credit from $50 million to $125 million , (ii) extend the Original Maturity Date of the line of credit from May 9, 2018 to October 29, 2020 (the "Amended Maturity Date"), and (iii) provide us with an option to request increases to the line of credit of up to an additional $25 million in the aggregate, subject to consent of the Lender and terms and conditions to be mutually agreed between us and the Lender. On April 27, 2018, we entered into a Second Amendment to Loan Agreement (the "Second Amendment") which amended the Loan Agreement, as amended by the Amendment to, among other things, (i) reduce the revolving line of credit from $125.0 million to $5.0 million , (ii) reduce the letter of credit sublimit under the line of credit from $10.0 million to $5.0 million and (iii) require us and our subsidiaries to comply with certain of the affirmative and negative covenants under the Loan Agreement only if loans are outstanding under the Loan Agreement or if we have not reimbursed any drawing under a letter of credit issued under the Loan Agreement within five business days following the request of the Lender. The loans bear interest, at our option, at a base rate determined in accordance with the Loan Agreement, plus a spread of 0.0% to 0.50% , or a LIBOR rate plus a spread of 1.13% to 2.00% , in each case with such spread determined based on a ratio of consolidated indebtedness to EBITDA, determined in accordance with the Loan Agreement. Principal, together with all accrued and unpaid interest, is due and payable on the Amended Maturity Date. We are also obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments at a rate of 0.18% to 0.30% , with such rate determined based on the ratio described above. The Loan Agreement contains customary affirmative and negative covenants. The affirmative covenants include, among other things, delivery of financial statements, compliance certificates and notices; payment of taxes and other obligations; maintenance of existence; maintenance of properties and insurance; and compliance with applicable laws and regulations. The negative covenants include, among other things, limitations on indebtedness, liens, mergers, consolidations, acquisitions and sales of assets, investments, changes in the nature of the business, affiliate transactions and certain restricted payments. The Loan Agreement also requires us to maintain a ratio of consolidated indebtedness to EBITDA equal to or less than 3.25 to 1.00 , and a ratio of consolidated EBITDA to interest expense greater than or equal to 3.00 to 1.00 , in each case determined in accordance with the Loan Agreement. As of September 30, 2019 , we were in compliance with all applicable covenants in the Loan Agreement. The Loan Agreement contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events, judgment defaults and change in control events, subject to grace periods in certain instances. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by us to be immediately due and payable and exercise other rights and remedies provided for under the Loan Agreement. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Loan Agreement at a per annum rate of interest equal to 2.00% above the otherwise applicable interest rate. Proceeds of loans made under the Loan Agreement may be used for working capital and other general corporate purposes. We may prepay the loans under the Loan Agreement in whole or in part at any time without premium or penalty. Certain of our existing and future material domestic subsidiaries are required to guaranty our obligations under the Loan Agreement. As of September 30, 2019 , we had no outstanding borrowings under this line of credit. During the three and nine months ended September 30, 2019 and September 30, 2018, we incurred no interest expense. As of September 30, 2019 and September 30, 2018 , the weighted-average interest rate on the revolving line of credit was 3.2% and 3.4% , respectively. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies We offer a one -year limited warranty on most hardware products which is included in the terms of sale of such products. We also offer optional extended warranties on our hardware products for which the related revenue is recognized ratably over the warranty period. Provision is made for estimated future warranty costs at the time of the sale for the estimated costs that may be incurred under the standard warranty. Our estimate is based on historical experience and product sales during the period. The warranty reserve for the nine months ended September 30, 2019 and 2018 was as follows: Nine Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Balance at the beginning of the period $ 3,173 $ 2,846 Accruals for warranties issued during the period 1,665 2,224 Accruals related to pre-existing warranties (441 ) 335 Settlements made (in cash or in kind) during the period (1,899 ) (2,235 ) Balance at the end of the period $ 2,498 $ 3,170 As of September 30, 2019 , we had non-cancelable purchase commitments with various suppliers of customized inventory and inventory components totaling approximately $6.4 million |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Since the first quarter of 2017, we have been taking steps to optimize our processes, reduce job duplication, evaluate where we should shift and centralize activities, improve efficiencies, and rebalance our resources on higher return activities. The timing and scope of our headcount reductions will vary. A summary of the charges in our consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2019 2018 2019 2018 Cost of sales $ — (179 ) $ — (150 ) Research and development 34 631 690 1,607 Sales and marketing 2,993 3,676 7,958 8,354 General and administrative 990 373 2,512 1,538 Total restructuring and other related costs $ 4,017 4,501 $ 11,160 11,349 A summary of balances and activity related to our restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2018 $ 3,506 Income statement expense 11,160 Cash payments (10,503 ) Balance as of September 30, 2019 $ 4,163 The restructuring liability of $4.2 million at September 30, 2019 relating to our restructuring activity is recorded in the “accrued compensation” line item of our consolidated balance sheet. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On October 23, 2019 , our Board of Directors declared a quarterly cash dividend of $0.25 per common share, payable on December 2, 2019 , to stockholders of record on November 11, 2019 . On October 23, 2019, our Board of Directors amended our stock repurchase program to increase the number of shares that may be repurchased by 3 million shares. |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Recently Adopted Accounting Pronouncements and Recent Accounting Guidance Not Yet Adopted | Other Recently Adopted Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU expands strategies that qualify for hedge accounting, changes how many hedging relationships are presented in the financial statements, and simplifies the application of hedge accounting in certain situations. On January 1, 2019, we adopted the guidance in ASU 2017-12. Adoption did not have a material impact on our financial statements. We continue to assess opportunities enabled by the new standard to expand our risk management strategies. In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to our financial reporting will be the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods. We adopted this new rule beginning with our financial reporting for the quarter ended March 31, 2019. In January 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which gives entities the option to reclassify to retained earnings tax effects resulting from the Tax Cuts and Jobs Act (the "Act") related to items that the FASB refers to as having been stranded in accumulated other comprehensive income ("OCI"). We adopted ASU 2018-02 effective January 1, 2019, and we did not elect the option to reclassify to retained earnings the tax effects resulting from the Act that are stranded in accumulated OCI. The adoption of the new guidance did not have a material effect on our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss model for accounts receivables and other financial instruments. This ASU requires instruments measured at amortized cost to be presented at the net amount expected to be collected. Entities are also required to record allowances for available-for-sale debt securities rather than reduce the carrying amount. We do not plan to adopt the ASU earlier than our required effective date of January 1, 2020. We expect that the adoption of the ASU will not have a material impact on our financial statements. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation costs are based on the fair value on the date of grant for all restricted stock units ("RSUs") and on the date of enrollment for the employee stock purchase plan. We recognize compensation expense ratably over the requisite service period of the awards. PRSUs are RSU awards that vest based on a market condition. The market condition currently used is our stockholder return relative to the total stockholder return of the companies included in the Russell 2000 Index at the end of the three -year performance period. Up to 200% of the full target number of shares subject to each PRSU award are eligible to be earned after the completion of the three -year performance period based on our total stockholder return relative to the total stockholder return of the Russell 2000 Index. |
Leases | Leases We determine whether an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities (current and non-current) on our consolidated balance sheet. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on their present value of the future minimum lease payments over the lease term at commencement date. As none of our leases provide an implicit rate we use our incremental borrowing rate based on the information available as of the commencement date. The operating lease ROU assets also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
Earnings Per Share | Earnings Per Share |
Revenue | Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to extended hardware and software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers, such as invoicing at the beginning of a subscription term with a portion of the revenue recognized ratably over the contract period, or to provide customers with financing, such as multi-year on-premises licenses that are invoiced annually with revenue recognized upfront. Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. Capitalized incremental costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other long-term assets on our consolidated balance sheets. Practical Expedients As discussed in Note 1 - Basis of presentation and elsewhere in Note 2 - Revenue, we have elected the following practical expedients in accordance with the new revenue standard: • We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. • We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. • We do not consider the time value of money for contracts with original durations of one year or less. Revenue Recognition Revenue is recognized upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of our products or services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Our typical performance obligations include the following: Performance Obligation When performance obligation is typically satisfied When payment is typically due How standalone selling price is typically estimated Product revenue Modular hardware When customer obtains control of the product (point-in-time) Within 30-90 days of shipment Observable in transactions without multiple performance obligations Software licenses When software media is delivered to customer or made available for download electronically, and the applicable license period has begun (point-in-time) Within 30-90 days of the beginning of license period Perpetual/Subscription licenses: Value relationships based on (i) the directly observable pricing of the license bundled with software maintenance and (ii) the directly observable pricing of software maintenance renewals, when they are sold on a standalone basis. Enterprise-wide term licenses: Residual method Extended hardware warranty Ratably over the course of the support contract (over time) Within 30-90 days of the beginning of the contract period Observable in renewal transactions Other related support offerings As work is performed (over time) or training course is delivered (point-in-time) Within 30-90 days of delivery Observable in transactions without multiple performance obligations Software maintenance revenue Software maintenance Ratably over the course of the support contract (over time) Within 30-90 days of the beginning of the contract period Observable in renewal transactions Disaggregation of Revenues |
Basis of presentation (Tables)
Basis of presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effects of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of the new lease standard were as follows (in thousands): Balance at December 31, 2018 Adjustments Due to ASU 2016-02 Balance at January 1, 2019 Assets Property, plant and equipment, net $ 245,201 $ (18,606 ) $ 226,595 Operating lease right-of-use assets — $ 68,938 $ 68,938 Liabilities and Stockholders' Equity Operating lease liabilities, current — $ 18,597 $ 18,597 Operating lease liabilities, non-current — $ 33,853 $ 33,853 Other current liabilities $ 25,913 $ (2,118 ) $ 23,795 |
Reconciliation Of The Denominators Used To Calculate Basic EPS And Diluted EPS | The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2019 and 2018 , are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (In thousands) (Unaudited) (Unaudited) 2019 2018 2019 2018 Weighted average shares outstanding-basic 131,385 132,357 131,896 131,792 Plus: Common share equivalents RSUs 504 840 994 1,275 Weighted average shares outstanding-diluted 131,889 133,197 132,890 133,067 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Total net sales based on the disaggregation criteria described above are as follows: Three Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Net sales: Point-in-Time Over Time Total Point-in-Time Over Time Total Americas $ 119,895 $ 23,222 $ 143,117 $ 118,725 $ 24,191 $ 142,916 EMEIA 75,443 20,247 95,690 79,952 19,461 99,413 APAC 92,794 8,841 101,635 95,837 7,961 103,798 Total net sales (1) $ 288,132 $ 52,310 $ 340,442 $ 294,514 $ 51,613 $ 346,127 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities for more information on the impact of our hedging activities on our results of operations Nine Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Net sales: Point-in-Time Over Time Total Point-in-Time Over Time Total Americas $ 325,349 $ 69,337 $ 394,686 $ 327,958 $ 64,471 $ 392,429 EMEIA 234,409 59,121 293,530 257,346 57,520 314,866 APAC 272,375 25,156 297,531 267,773 23,965 291,738 Total net sales (1) $ 832,133 $ 153,614 $ 985,747 $ 853,077 $ 145,956 $ 999,033 (1) Net sales contains hedging gains and losses, which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities for more information on the impact of our hedging activities on our results of operations |
Schedule of Changes in Deferred Revenue, Current and Non-Current | Changes in deferred revenue, current and long-term, during the nine months ended September 30, 2019 were as follows: Amount (In thousands) Deferred Revenue at December 31, 2018 $ 159,924 Deferral of revenue billed in current period, net of recognition 149,961 Recognition of revenue deferred in prior periods (150,762 ) Foreign currency translation impact (2,817 ) Balance as of September 30, 2019 (unaudited) $ 156,306 |
Short-term investments (Tables)
Short-term investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables summarize unrealized gains and losses related to our short-term investments designated as available-for-sale: As of September 30, 2019 (In thousands) (Unaudited) Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 208,480 $ 1,072 $ (159 ) $ 209,393 Time deposits 23 — — 23 Total Short-term investments $ 208,503 $ 1,072 $ (159 ) $ 209,416 (In thousands) As of December 31, 2018 Gross Gross Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Corporate bonds $ 235,045 $ 726 $ (1,298 ) $ 234,473 U.S. treasuries and agencies 36,932 2 (11 ) 36,923 Total Short-term investments $ 271,977 $ 728 $ (1,309 ) $ 271,396 |
Investments Classified by Contractual Maturity Date | The following tables summarize the contractual maturities of our short-term investments designated as available-for-sale: As of September 30, 2019 (In thousands) (Unaudited) Adjusted Cost Fair Value Due in less than 1 year $ 69,120 $ 69,406 Due in 1 to 5 years 139,383 140,010 Total available-for-sale debt securities $ 208,503 $ 209,416 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 69,097 $ 69,383 Time deposits 23 23 Total available-for-sale debt securities $ 69,120 $ 69,406 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds $ 139,383 $ 140,010 Total available-for-sale debt securities $ 139,383 $ 140,010 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at Reporting Date Using (In thousands) (Unaudited) Description September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 106,327 $ 106,327 $ — $ — Short-term investments available for sale: Corporate notes and bonds 209,393 — 209,393 — Time deposits 23 23 — — Derivatives 15,597 — 15,597 — Total Assets $ 331,340 $ 106,350 $ 224,990 $ — Liabilities Derivatives $ (6,282 ) $ — $ (6,282 ) $ — Total Liabilities $ (6,282 ) $ — $ (6,282 ) $ — (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and cash equivalents available for sale: Money Market Funds $ 62,094 $ 62,094 $ — $ — Corporate notes and bonds 9,979 — 9,979 — Short-term investments available for sale: Corporate bonds 234,473 — 234,473 — U.S. treasuries and agencies 36,923 — 36,923 — Derivatives 9,369 — 9,369 — Total Assets $ 352,838 $ 62,094 $ 290,744 $ — Liabilities Derivatives $ (1,483 ) $ — $ (1,483 ) $ — Total Liabilities $ (1,483 ) $ — $ (1,483 ) $ — |
Derivative instruments and he_2
Derivative instruments and hedging activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Notional Amounts of Derivative Instruments | We held forward contracts designated as cash flow hedges with the following notional amounts: (In thousands) US Dollar Equivalent As of September 30, 2019 As of December 31, (Unaudited) 2018 British pound $ 17,748 $ 9,948 Chinese yuan 52,937 45,520 Euro 158,214 134,654 Hungarian forint 102,732 35,384 Japanese yen 54,094 15,141 Korean won 9,401 8,331 Malaysian ringgit 28,258 27,778 Total forward contracts notional amount $ 423,384 $ 276,756 |
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheets | The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 , respectively. Asset Derivatives September 30, 2019 December 31, 2018 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 11,855 Prepaid expenses and other current assets $ 7,594 Foreign exchange contracts - LT forwards Other long-term assets 3,480 Other long-term assets 1,380 Total derivatives designated as hedging instruments $ 15,335 $ 8,974 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 262 Prepaid expenses and other current assets $ 395 Total derivatives not designated as hedging instruments $ 262 $ 395 Total derivatives $ 15,597 $ 9,369 Liability Derivatives September 30, 2019 December 31, 2018 (In thousands) (Unaudited) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (3,461 ) Other current liabilities $ (662 ) Foreign exchange contracts - LT forwards Other long-term liabilities (2,362 ) Other long-term liabilities (191 ) Total derivatives designated as hedging instruments $ (5,823 ) $ (853 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (459 ) Other current liabilities $ (630 ) Total derivatives not designated as hedging instruments $ (459 ) $ (630 ) Total derivatives $ (6,282 ) $ (1,483 ) |
Summary of Derivative Instruments, Gain (Loss) | The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the nine months ended September 30, 2019 and 2018 , respectively: September 30, 2019 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 7,186 Net sales $ 7,687 Foreign exchange contracts - forwards (3,386 ) Cost of sales (217 ) Foreign exchange contracts - forwards (2,441 ) Operating expenses (158 ) Total 1,359 $ 7,312 September 30, 2018 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 16,128 Net sales $ (2,491 ) Foreign exchange contracts - forwards (2,422 ) Cost of sales 717 Foreign exchange contracts - forwards (2,128 ) Operating expenses 888 Total $ 11,578 $ (886 ) (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2019 September 30, 2018 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (82 ) 678 Total $ (82 ) $ 678 The following tables present the effect of derivative instruments on our Consolidated Statements of Income for three months ended September 30, 2019 and 2018 , respectively: September 30, 2019 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 6,736 Net sales $ 3,291 Foreign exchange contracts - forwards (2,946 ) Cost of sales (176 ) Foreign exchange contracts - forwards (2,163 ) Operating expenses (112 ) Total $ 1,627 $ 3,003 September 30, 2018 (In thousands) (Unaudited) Derivatives in Cash Flow Hedging Relationship Gain or (Loss) Recognized in OCI on Derivative Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gain or (Loss) Reclassified from Accumulated OCI into Income Foreign exchange contracts - forwards $ 3,569 Net sales $ 1,424 Foreign exchange contracts - forwards (96 ) Cost of sales 74 Foreign exchange contracts - forwards (157 ) Operating expenses 111 Total $ 3,316 $ 1,609 (In thousands) Derivatives not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income September 30, 2019 September 30, 2018 (Unaudited) (Unaudited) Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ 287 865 Total $ 287 $ 865 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories, net consist of the following: September 30, 2019 December 31, (In thousands) (Unaudited) 2018 Raw materials $ 107,270 $ 98,346 Work-in-process 11,589 9,306 Finished goods 87,868 86,494 Total $ 206,727 $ 194,146 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 (In thousands) (Unaudited) December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 125,787 $ (64,710 ) $ 61,077 $ 123,842 $ (49,299 ) $ 74,543 Acquired technology 91,430 (86,676 ) 4,754 92,236 (84,962 ) 7,274 Patents 35,503 (23,213 ) 12,290 34,427 (21,725 ) 12,702 Other 44,251 (31,210 ) 13,041 46,437 (30,173 ) 16,264 Total $ 296,971 $ (205,809 ) $ 91,162 $ 296,942 $ (186,159 ) $ 110,783 |
Schedule of Goodwill | The carrying amount of goodwill as of September 30, 2019 , was as follows: Amount (In thousands) Balance as of December 31, 2018 $ 264,530 Foreign currency translation impact (5,100 ) Balance as of September 30, 2019 (unaudited) $ 259,430 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease expense were as follows (unaudited): Three Months Ended Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating Lease Cost (a) $ 5,456 $ 16,951 (a) includes variable and short-term lease costs Supplemental cash flow information related to operating leases were as follows (unaudited): Three Months Ended Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,097 $ 13,071 Supplemental non-cash information: Operating lease right-of-use assets obtained in exchange for new operating lease obligations $ 750 $ 9,886 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2019 were as follows (unaudited): (In thousands) Years ending December 31, Operating Leases 2019 (Excluding the nine months ended September 30, 2019) $ 4,590 2020 15,008 2021 10,176 2022 6,835 2023 5,272 Thereafter 13,649 Total future minimum lease payments 55,530 Less imputed interest (8,380 ) Total $ 47,150 Weighted Average Remaining Lease Term (years) Operating Leases 5.09 Weighted Average Discount Rate Operating Leases 5.1 % |
Comprehensive income (Tables)
Comprehensive income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Comprehensive Income (Loss) | The accumulated OCI, net of tax, for the nine months ended September 30, 2019 and 2018 , consisted of the following: September 30, 2019 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2018 $ (22,485 ) $ (1,308 ) 6,862 $ (16,931 ) Current-period other comprehensive (loss) income (9,303 ) 1,494 8,671 862 Reclassified from accumulated OCI into income — — (7,312 ) (7,312 ) Income tax expense (benefit) — (11 ) 366 355 Balance as of September 30, 2019 $ (31,788 ) $ 197 $ 7,855 $ (23,736 ) September 30, 2018 (Unaudited) (In thousands) Currency translation adjustment Investments Derivative instruments Accumulated other comprehensive income/(loss) Balance as of December 31, 2017 $ (12,717 ) $ (782 ) (3,010 ) $ (16,509 ) Current-period other comprehensive income (loss) (7,360 ) (404 ) 10,692 2,928 Reclassified from accumulated OCI into income — — 886 886 Income tax expense — 30 2,449 2,479 Balance as of September 30, 2018 $ (20,077 ) $ (1,216 ) $ 6,119 $ (15,174 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The warranty reserve for the nine months ended September 30, 2019 and 2018 was as follows: Nine Months Ended September 30, (In thousands) (Unaudited) 2019 2018 Balance at the beginning of the period $ 3,173 $ 2,846 Accruals for warranties issued during the period 1,665 2,224 Accruals related to pre-existing warranties (441 ) 335 Settlements made (in cash or in kind) during the period (1,899 ) (2,235 ) Balance at the end of the period $ 2,498 $ 3,170 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Related Costs | A summary of the charges in our consolidated statement of operations resulting from our restructuring activities is shown below: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) (Unaudited) (Unaudited) 2019 2018 2019 2018 Cost of sales $ — (179 ) $ — (150 ) Research and development 34 631 690 1,607 Sales and marketing 2,993 3,676 7,958 8,354 General and administrative 990 373 2,512 1,538 Total restructuring and other related costs $ 4,017 4,501 $ 11,160 11,349 |
Schedule of Restructuring Reserve | A summary of balances and activity related to our restructuring activity is shown below: Restructuring Liability (in thousands) Balance as of December 31, 2018 $ 3,506 Income statement expense 11,160 Cash payments (10,503 ) Balance as of September 30, 2019 $ 4,163 |
Basis of presentation - Narrati
Basis of presentation - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)ft²shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)ft²shares | Sep. 30, 2018USD ($)shares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gain on disposal of property, plant and equipment, net | $ 26,842 | $ 0 | $ 26,842 | $ 0 | ||
Operating lease liability | 47,150 | 47,150 | $ 52,000 | |||
Property and equipment, net | $ 239,140 | $ 239,140 | 226,595 | $ 245,201 | ||
Anti-dilutive securities excluded from the computation of diluted EPS (in shares) | shares | 1,611,000 | 36,600 | 568,000 | 537,000 | ||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property and equipment, net | (18,606) | |||||
Leaseholds and Leasehold Improvements | Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property and equipment, net | $ 19,000 | |||||
Millennium Property | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gain on disposal of property, plant and equipment, net | $ 26,800 | |||||
Area of property | ft² | 136 | 136 |
Basis of presentation - Schedul
Basis of presentation - Schedule of Effect From Topic 842 (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | $ 239,140 | $ 226,595 | $ 245,201 |
Operating lease right-of-use assets | 63,766 | 68,938 | |
Other lease liabilities - current | 14,038 | 18,597 | |
Operating lease liabilities - non-current | 33,112 | 33,853 | |
Other current liabilities | $ 22,761 | 23,795 | $ 25,913 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment, net | (18,606) | ||
Operating lease right-of-use assets | 68,938 | ||
Other lease liabilities - current | 18,597 | ||
Operating lease liabilities - non-current | 33,853 | ||
Other current liabilities | $ (2,118) |
Basis of presentation - Sched_2
Basis of presentation - Schedule of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Weighted average shares outstanding - basic (in shares) | 131,385,000 | 132,357,000 | 131,896,000 | 131,792,000 |
Plus: Common share equivalents | ||||
RSUs (in shares) | 504,000 | 840,000 | 994,000 | 1,275,000 |
Weighted average shares outstanding-diluted (in shares) | 131,889,000 | 133,197,000 | 132,890,000 | 133,067,000 |
Anti-dilutive securities excluded from the computation of diluted EPS (in shares) | 1,611,000 | 36,600 | 568,000 | 537,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 340,442 | $ 346,127 | $ 985,747 | $ 999,033 |
Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 288,132 | 294,514 | 832,133 | 853,077 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 52,310 | 51,613 | 153,614 | 145,956 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 143,117 | 142,916 | 394,686 | 392,429 |
Americas | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 119,895 | 118,725 | 325,349 | 327,958 |
Americas | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 23,222 | 24,191 | 69,337 | 64,471 |
EMEIA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 95,690 | 99,413 | 293,530 | 314,866 |
EMEIA | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 75,443 | 79,952 | 234,409 | 257,346 |
EMEIA | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 20,247 | 19,461 | 59,121 | 57,520 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 101,635 | 103,798 | 297,531 | 291,738 |
APAC | Point-in-Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 92,794 | 95,837 | 272,375 | 267,773 |
APAC | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 8,841 | $ 7,961 | $ 25,156 | $ 23,965 |
Revenue - Change in Deferred Re
Revenue - Change in Deferred Revenue (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Deferred revenue at December 31, 2018 | $ 159,924 |
Deferral of revenue billed in current period, net of recognition | 149,961 |
Recognition of revenue deferred in prior periods | (150,762) |
Foreign currency translation impact | (2,817) |
Deferred revenue as of September 30, 2019 | $ 156,306 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 57 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 13.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 45.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 42.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Extended Hardware And Software Maintenance | |
Disaggregation of Revenue [Line Items] | |
Revenue, Performance Obligation, Description of Timing | Payment terms and conditions vary by contract type, although payment is typically due within 30 to 90 days of contract inception. |
Short-term investments - Unreal
Short-term investments - Unrealized Gains And Losses Related To Cash, Cash Equivalents, And Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 208,503 | $ 271,977 |
Gross Unrealized Gain | 1,072 | 728 |
Gross Unrealized Loss | (159) | (1,309) |
Fair Value | 209,416 | 271,396 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 208,480 | 235,045 |
Gross Unrealized Gain | 1,072 | 726 |
Gross Unrealized Loss | (159) | (1,298) |
Fair Value | 209,393 | 234,473 |
U.S. treasuries and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 36,932 | |
Gross Unrealized Gain | 2 | |
Gross Unrealized Loss | (11) | |
Fair Value | $ 36,923 | |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 23 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 0 | |
Fair Value | $ 23 |
Short-term investments - Contra
Short-term investments - Contractual Maturities Of Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost, Due in less than 1 year | $ 69,120 | |
Fair Value, Due in less than 1 year | 69,406 | |
Adjusted Cost, Due in 1 to 5 years | 139,383 | |
Fair Value, Due in 1 to 5 years | 140,010 | |
Adjusted Cost | 208,503 | $ 271,977 |
Fair Value | 209,416 | 271,396 |
Carrying value of equity method investments | 16,000 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost, Due in less than 1 year | 69,097 | |
Fair Value, Due in less than 1 year | 69,383 | |
Adjusted Cost, Due in 1 to 5 years | 139,383 | |
Fair Value, Due in 1 to 5 years | 140,010 | |
Fair Value | 209,393 | $ 234,473 |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost, Due in less than 1 year | 23 | |
Fair Value, Due in less than 1 year | 23 | |
Adjusted Cost | 23 | |
Fair Value | $ 23 |
Fair value measurements - Sche
Fair value measurements - Schedule of Assets And Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Short-term investments available for sale: | |||||
Short-term investments available for sale | $ 209,416 | $ 209,416 | $ 271,396 | ||
Derivatives | 15,597 | 15,597 | 9,369 | ||
Total Assets | 331,340 | 331,340 | 352,838 | ||
Derivatives | (6,282) | (6,282) | (1,483) | ||
Total Liabilities | $ (6,282) | $ (6,282) | (1,483) | ||
Available-for-sale contractual maturity (in months) | 60 months | 60 months | |||
Gain on disposal of property, plant and equipment, net | $ 26,842 | $ 0 | $ 26,842 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Short-term investments available for sale: | |||||
Derivatives | 0 | 0 | 0 | ||
Total Assets | 106,350 | 106,350 | 62,094 | ||
Derivatives | 0 | 0 | 0 | ||
Total Liabilities | 0 | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | |||||
Short-term investments available for sale: | |||||
Derivatives | 15,597 | 15,597 | 9,369 | ||
Total Assets | 224,990 | 224,990 | 290,744 | ||
Derivatives | (6,282) | (6,282) | (1,483) | ||
Total Liabilities | (6,282) | (6,282) | (1,483) | ||
Significant Unobservable Inputs (Level 3) | |||||
Short-term investments available for sale: | |||||
Derivatives | 0 | 0 | 0 | ||
Total Assets | 0 | 0 | 0 | ||
Derivatives | 0 | 0 | 0 | ||
Total Liabilities | 0 | 0 | 0 | ||
Money Market Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 106,327 | 106,327 | 62,094 | ||
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 106,327 | 106,327 | 62,094 | ||
Money Market Funds | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 0 | 0 | 0 | ||
Money Market Funds | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 0 | 0 | 0 | ||
Corporate bonds | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 209,393 | 209,393 | 234,473 | ||
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 0 | 0 | 0 | ||
Corporate bonds | Significant Other Observable Inputs (Level 2) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 209,393 | 209,393 | 234,473 | ||
Corporate bonds | Significant Unobservable Inputs (Level 3) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 0 | 0 | 0 | ||
Time deposits | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 23 | 23 | |||
Time deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 23 | 23 | |||
Time deposits | Significant Other Observable Inputs (Level 2) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 0 | 0 | |||
Time deposits | Significant Unobservable Inputs (Level 3) | |||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | $ 0 | $ 0 | |||
U.S. treasuries and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 9,979 | ||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 36,923 | ||||
U.S. treasuries and agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 0 | ||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 0 | ||||
U.S. treasuries and agencies | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 9,979 | ||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | 36,923 | ||||
U.S. treasuries and agencies | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents available for sale | 0 | ||||
Short-term investments available for sale: | |||||
Short-term investments available for sale | $ 0 |
Derivative instruments and he_3
Derivative instruments and hedging activities - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)country | Sep. 30, 2018 | Sep. 30, 2019USD ($)country | Sep. 30, 2018 | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||||
Number of countries for which entity has operations | country | 50 | 50 | |||
Percentage of sales outside of the Americas during the period | 58.00% | 59.00% | 60.00% | 61.00% | |
Period of protection against the reduction in value caused by a fluctuation, minimum (in number of years) | 1 year | ||||
Period of protection against the reduction in value caused by a fluctuation, maximum (in number of years) | 3 years | ||||
Derivatives, contractual maturities (in months) | 39 months | 24 months | |||
Foreign currency forward contracts notional amount | $ 423,384,000 | $ 423,384,000 | $ 276,756,000 | ||
Cost of Sales | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings | (1,300,000) | ||||
Forward Contracts | Net Sales | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings | 11,600,000 | ||||
Forward Contracts | Operating Expenses | |||||
Derivative [Line Items] | |||||
Gains (losses) expected to be reclassified from AOCI to earnings | (1,900,000) | ||||
Other Derivatives | |||||
Derivative [Line Items] | |||||
Foreign currency forward contracts notional amount | $ 47,000,000 | $ 47,000,000 | $ 71,000,000 | ||
Maximum | Forward Contracts | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 100.00% | 100.00% | |||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 40 months | ||||
Maximum | Other Derivatives | |||||
Derivative [Line Items] | |||||
Percentage of derivative risk hedged | 90.00% | 90.00% | |||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 90 days |
Derivative instruments and he_4
Derivative instruments and hedging activities - Summary Of Notional Amounts Of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 423,384 | $ 276,756 |
British pound | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 17,748 | 9,948 |
Chinese yuan | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 52,937 | 45,520 |
Euro | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 158,214 | 134,654 |
Hungarian forint | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 102,732 | 35,384 |
Japanese yen | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 54,094 | 15,141 |
Korean won | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 9,401 | 8,331 |
Malaysian ringgit | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 28,258 | $ 27,778 |
Derivative instruments and he_5
Derivative instruments and hedging activities - Fair Value Of Derivative Instruments On Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 15,597 | $ 9,369 |
Derivative liability | (6,282) | (1,483) |
Derivatives Designated As Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15,335 | 8,974 |
Derivative liability | (5,823) | (853) |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 11,855 | 7,594 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (3,461) | (662) |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Long-Term | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 3,480 | 1,380 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contracts - Long-Term | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | (2,362) | (191) |
Derivatives Not Designated As Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 262 | 395 |
Derivative liability | (459) | (630) |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 262 | 395 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract - Short-Term | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ (459) | $ (630) |
Derivative instruments and he_6
Derivative instruments and hedging activities - Effect Of Derivative Instruments On Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivatives Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | $ 1,627 | $ 1,359 | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 3,003 | 7,312 | ||
Gain or (Loss) Recognized in OCI on Derivative | $ 3,316 | $ 11,578 | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 1,609 | (886) | ||
Derivatives Designated As Hedging Instruments | Foreign Exchange Forward | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | 6,736 | 7,186 | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 3,291 | 7,687 | ||
Gain or (Loss) Recognized in OCI on Derivative | 3,569 | 16,128 | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 1,424 | (2,491) | ||
Derivatives Designated As Hedging Instruments | Foreign Exchange Forward | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | (2,946) | (3,386) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | (176) | (217) | ||
Gain or (Loss) Recognized in OCI on Derivative | (96) | (2,422) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 74 | 717 | ||
Derivatives Designated As Hedging Instruments | Foreign Exchange Forward | Operating Expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) Recognized in OCI on Derivative | (2,163) | (2,441) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | (112) | (158) | ||
Gain or (Loss) Recognized in OCI on Derivative | (157) | (2,128) | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 111 | 888 | ||
Derivatives Not Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 287 | 865 | (82) | 678 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 287 | $ 865 | $ (82) | $ 678 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 107,270 | $ 98,346 |
Work-in-process | 11,589 | 9,306 |
Finished goods | 87,868 | 86,494 |
Total | $ 206,727 | $ 194,146 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 296,971 | $ 296,942 |
Accumulated Amortization | (205,809) | (186,159) |
Net Carrying Amount | 91,162 | 110,783 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 125,787 | 123,842 |
Accumulated Amortization | (64,710) | (49,299) |
Net Carrying Amount | 61,077 | 74,543 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 91,430 | 92,236 |
Accumulated Amortization | (86,676) | (84,962) |
Net Carrying Amount | 4,754 | 7,274 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,503 | 34,427 |
Accumulated Amortization | (23,213) | (21,725) |
Net Carrying Amount | 12,290 | 12,702 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44,251 | 46,437 |
Accumulated Amortization | (31,210) | (30,173) |
Net Carrying Amount | $ 13,041 | $ 16,264 |
Intangible assets, net - Narrat
Intangible assets, net - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 9,200,000 | $ 9,000,000 | $ 27,300,000 | $ 26,400,000 | |
Number of operating segments | segment | 1 | ||||
Number of reporting units | 1 | ||||
Goodwill impairment | $ 0 | $ 0 | |||
Capitalized Software Development Costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs capitalized | 2,800,000 | 1,900,000 | 7,500,000 | 13,800,000 | |
Amortization expense of capitalized software development costs | 7,100,000 | 6,900,000 | 20,900,000 | 19,900,000 | |
Costs related to stock based compensation | $ 200,000 | $ 100,000 | $ 300,000 | $ 600,000 | |
Minimum | Capitalized Software Development Costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 3 years | ||||
Minimum | Acquired Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 3 years | ||||
Minimum | Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 10 years | ||||
Maximum | Capitalized Software Development Costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 6 years | ||||
Maximum | Acquired Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 8 years | ||||
Maximum | Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets amortization period (in years) | 17 years |
Intangible assets, net - Sche_2
Intangible assets, net - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2018 | $ 264,530 |
Foreign currency translation impact | (5,100) |
September 30, 2019 | $ 259,430 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense and Other Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating leases, weighted average remaining lease term (in years) | 5 years 1 month 2 days | 5 years 1 month 2 days |
Operating lease, termination period (in years) | 1 year | |
Operating lease cost | $ 5,456 | $ 16,951 |
Operating cash flows from operating leases | 4,097 | 13,071 |
Operating lease right-of-use assets obtained in exchange for new operating lease obligations | $ 750 | $ 9,886 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, weighted average remaining lease term (in years) | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, weighted average remaining lease term (in years) | 95 years | 95 years |
Operating lease, renewal term (in years) | 9 years | 9 years |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (Excluding the nine months ended September 30, 2019) | $ 4,590 | |
2020 | 15,008 | |
2021 | 10,176 | |
2022 | 6,835 | |
2023 | 5,272 | |
Thereafter | 13,649 | |
Total future minimum lease payments | 55,530 | |
Less imputed interest | (8,380) | |
Total | $ 47,150 | $ 52,000 |
Operating leases, weighted average remaining lease term (in years) | 5 years 1 month 2 days | |
Operating lease, weighted average discount rate (as a percent) | 5.10% |
Income taxes (Details)
Income taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | $ 80 | $ 80 | $ 80 | ||
Unrecognized tax benefits | 7.6 | 7.6 | $ 9.8 | ||
Gross increase in unrecognized tax benefits, current period | 0.7 | 1.1 | |||
Unrecognized tax benefits, decrease resulting from current period tax positions and change in tax code | 1.5 | 3.6 | |||
Reasonable possibility of future tax benefits | 2.8 | 2.8 | |||
Accrued interest related to uncertain tax positions | $ 0.6 | $ 0.6 | |||
Effective income tax rate | 23.00% | 11.00% | 18.00% | 13.00% | |
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Hungary statutory tax rate | 9.00% | ||||
Income tax benefit of tax holiday (in usd per share) | $ 0.01 | $ 0.02 | |||
Hungary | |||||
Operating Loss Carryforwards [Line Items] | |||||
Foreign income tax benefit | $ 1.6 | $ 2.6 | $ 4.2 | $ 7.1 | |
Malaysia | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit of tax holiday, amount | $ 1.8 | $ 0.8 | $ 3.1 | $ 1.9 | |
Income tax benefit of tax holiday (in usd per share) | $ 0.01 | $ 0.01 |
Comprehensive income (Details)
Comprehensive income (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,238,358 | $ 1,128,021 |
Current-period other comprehensive (loss) income | 862 | 2,928 |
Reclassified from accumulated OCI into income | (7,312) | 886 |
Income tax expense (benefit) | 355 | 2,479 |
Ending Balance | 1,162,161 | 1,196,909 |
Currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (22,485) | (12,717) |
Current-period other comprehensive (loss) income | (9,303) | (7,360) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
Ending Balance | (31,788) | (20,077) |
Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,308) | (782) |
Current-period other comprehensive (loss) income | 1,494 | (404) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax expense (benefit) | (11) | 30 |
Ending Balance | 197 | (1,216) |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 6,862 | |
Current-period other comprehensive (loss) income | 8,671 | |
Reclassified from accumulated OCI into income | (7,312) | |
Income tax expense (benefit) | 366 | |
Ending Balance | 7,855 | |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (3,010) | |
Current-period other comprehensive (loss) income | 10,692 | |
Reclassified from accumulated OCI into income | 886 | |
Income tax expense (benefit) | 2,449 | |
Ending Balance | 6,119 | |
Accumulated other comprehensive income/(loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (16,931) | (16,509) |
Ending Balance | $ (23,736) | $ (15,174) |
Authorized shares of common a_2
Authorized shares of common and preferred stock and stock-based compensation plans (Details) - $ / shares | May 14, 2013 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | May 09, 2017 | May 12, 2015 | May 11, 2010 | May 31, 2005 | Jan. 21, 2004 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional number of shares reserved for issuance (in shares) | 180,000,000 | |||||||||
Common stock, authorized (in shares) | 360,000,000 | 360,000,000 | 360,000,000 | 360,000,000 | ||||||
Common and preferred stock shares authorized (in shares) | 365,000,000 | 365,000,000 | ||||||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Number of shares reserved for issuance | 2,518,416 | 3,362,304 | ||||||||
Preferred stock, issued (in shares) | 0 | 0 | 0 | |||||||
Preferred stock, outstanding (in shares) | 0 | 0 | 0 | |||||||
Common stock repurchased (in shares) | 1,056,078 | 3,205,676 | 0 | |||||||
Common stock repurchased, average cost per share | $ 42.42 | $ 42.79 | ||||||||
Authorized common stock available for repurchase (in shares) | 794,324 | 794,324 | ||||||||
Incentive Plan (2005) | Restricted Stock Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 4,050,000 | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Three year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Five year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 5 years | |||||||||
Incentive Plan (2005) | Restricted Stock Plan | Ten year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 10 years | |||||||||
Incentive Plan (2010) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 2,518,416 | |||||||||
Incentive Plan (2010) | Restricted Stock Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | 3,000,000 | |||||||||
Incentive Plan (2010) | Restricted Stock Plan | Three year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | |||||||||
Incentive Plan (2010) | Restricted Stock Plan | Five year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 5 years | |||||||||
Incentive Plan (2010) | Restricted Stock Plan | Ten year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 10 years | |||||||||
Incentive Plan (2015) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance | 3,000,000 | |||||||||
Shares available for grant under 2015 restricted stock plan (in shares) | 1,934,762 | 1,934,762 | ||||||||
Incentive Plan (2015) | Restricted Stock Plan | Three year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | |||||||||
Incentive Plan (2015) | Restricted Stock Plan | Five year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 5 years | |||||||||
Incentive Plan (2015) | Restricted Stock Plan | Ten year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 10 years | |||||||||
Incentive Plan (2015) | Restricted Stock Plan | Four year vesting period | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 4 years | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | 3,000,000 | |||||||||
Percentage of the lower of the market related to purchase of common stock | 85.00% | 85.00% | ||||||||
Maximum employee subscription rate | 15.00% | 15.00% | ||||||||
Common stock reserved for future issuance under employee stock purchase plan (in shares) | 4,295,207 | 4,295,207 | ||||||||
Shares issued under employee stock purchase plan (in shares) | 699,837 | |||||||||
Weighted average purchase price of employees' purchase rights (in usd per share) | $ 36.90 | |||||||||
Series A Preferred Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Preferred stock, authorized (in shares) | 750,000 |
Segment and geographic inform_2
Segment and geographic information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segmentregion | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Number of geographic regions company operates in | region | 3 | |||||
Total revenue | $ 340,442 | $ 346,127 | $ 985,747 | $ 999,033 | ||
Property and equipment, net | 239,140 | 239,140 | $ 226,595 | $ 245,201 | ||
Outside The United States | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total revenue | 208,000 | $ 213,000 | 617,000 | $ 635,000 | ||
Property and equipment, net | $ 126,000 | $ 126,000 | $ 132,000 |
Debt (Details)
Debt (Details) - USD ($) | Apr. 27, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 26, 2018 | Oct. 29, 2015 | May 09, 2013 |
Line of Credit Facility [Line Items] | ||||||||
Unsecured revolving line of credit | $ 50,000,000 | |||||||
Loan agreement term | 5 days | |||||||
Ratio of consolidated indebtedness to earnings before interest, taxes, depreciation and amortization, maximum allowed | 3.25 | |||||||
Ratio of consolidated earnings before interest, taxes, depreciation and amortization expense, minimum allowed | 3 | |||||||
Interest rate in event of default | 2.00% | |||||||
Outstanding borrowing on line of credit | $ 0 | $ 0 | ||||||
Interest expense | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Weighted average interest rate | 3.20% | 3.40% | 3.20% | 3.40% | ||||
First Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unsecured revolving line of credit | $ 125,000,000 | |||||||
Optional credit line increase | $ 25,000,000 | |||||||
Second Amendment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unsecured revolving line of credit | $ 5,000,000 | $ 125,000,000 | ||||||
Letter of credit sublimit | $ 5,000,000 | $ 10,000,000 | ||||||
Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Quarterly commitment fee | 0.18% | |||||||
Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Quarterly commitment fee | 0.30% | |||||||
Base Rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable interest rate spread | 0.00% | |||||||
Base Rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable interest rate spread | 0.50% | |||||||
London Interbank Offered Rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable interest rate spread | 1.13% | |||||||
London Interbank Offered Rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable interest rate spread | 2.00% |
Commitments and contingencies -
Commitments and contingencies - Schedule Of Warranty Reserve (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 3,173 | $ 2,846 |
Accruals for warranties issued during the period | 1,665 | 2,224 |
Accruals related to pre-existing warranties | (441) | 335 |
Settlements made (in cash or in kind) during the period | (1,899) | (2,235) |
Balance at the end of the period | $ 2,498 | $ 3,170 |
Commitments and contingencies_2
Commitments and contingencies - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Limited warranty on most hardware products (in number of years) | 1 year |
Non-cancelable purchase commitments | $ 6.4 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | $ 4,017 | $ 4,501 | $ 11,160 | $ 11,349 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | 0 | (179) | 0 | (150) |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | 34 | 631 | 690 | 1,607 |
Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | 2,993 | 3,676 | 7,958 | 8,354 |
General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related costs | $ 990 | $ 373 | $ 2,512 | $ 1,538 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Balance as of December 31, 2018 | $ 3,506 | |||
Income statement expense | $ 4,017 | $ 4,501 | 11,160 | $ 11,349 |
Cash payments | (10,503) | |||
Balance as of September 30, 2019 | $ 4,163 | $ 4,163 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Restructuring and Related Activities [Abstract] | ||
Restructuring accrual | $ 4,163 | $ 3,506 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Oct. 23, 2019$ / sharesshares |
Subsequent Event [Line Items] | |
Dividend payable (in dollars per share) | $ / shares | $ 0.25 |
Stock repurchase program, authorized to be repurchased (in shares) | shares | 3,000,000 |
Uncategorized Items - nati09302
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,619,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,619,000 |