Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 05, 2020 | Jun. 28, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-25426 | ||
Entity Registrant Name | NATIONAL INSTRUMENTS CORPORATION | ||
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 | ||
Title of 12(g) Security | Common Stock, $0.01 par value | ||
Trading Symbol | NATI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
Entity Public Float | $ 3,059,614,367 | ||
Entity Common Stock, Shares Outstanding | 130,760,076 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000935494 | ||
Current Fiscal Year End Date | --12-31 | ||
Documents Incorporated by Reference | Part III incorporates certain information by reference from the definitive proxy statement to be filed by the registrant for its Annual Meeting of Stockholders to be held on May 5, 2020 (the “Proxy Statement”). |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 194,616 | $ 259,386 |
Short-term investments | 237,983 | 271,396 |
Accounts receivable, net | 248,872 | 242,955 |
Inventories, net | 200,410 | 194,146 |
Prepaid expenses and other current assets | 65,477 | 54,337 |
Total current assets | 947,358 | 1,022,220 |
Property and equipment, net | 243,717 | 245,201 |
Goodwill | 262,242 | 264,530 |
Intangible assets, net | 84,083 | 110,783 |
Operating lease right-of-use assets | 70,407 | |
Other long-term assets | 44,082 | 28,501 |
Total assets | 1,651,889 | 1,671,235 |
Current liabilities: | ||
Accounts payable and accrued expenses | 52,192 | 48,388 |
Accrued compensation | 47,732 | 45,821 |
Deferred revenue - current | 131,445 | 127,288 |
Operating lease liabilities, current | 13,431 | |
Other taxes payable | 40,607 | 35,574 |
Other current liabilities | 20,716 | 25,913 |
Total current liabilities | 306,123 | 282,984 |
Deferred income taxes | 14,065 | 25,457 |
Income tax payable - non-current | 69,151 | 74,546 |
Liability for uncertain tax positions | 6,652 | 9,775 |
Deferred revenue - non-current | 33,480 | 32,636 |
Operating lease liabilities, non-current | 40,650 | |
Other long-term liabilities | 5,418 | 7,479 |
Total liabilities | 475,539 | 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; 130,504,535 and 132,655,941 shares issued and outstanding, respectively | 1,305 | 1,327 |
Additional paid-in capital | 953,578 | 897,544 |
Retained earnings | 242,537 | 356,418 |
Accumulated other comprehensive loss | (21,070) | (16,931) |
Total stockholders’ equity | 1,176,350 | 1,238,358 |
Total liabilities and stockholders’ equity | $ 1,651,889 | $ 1,671,235 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 360,000,000 | 360,000,000 |
Common stock, shares issued (in shares) | 130,504,535 | 132,655,941 |
Common stock, shares outstanding (in shares) | 130,504,535 | 132,655,941 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||
Total net sales | $ 1,353,215 | $ 1,359,132 | $ 1,289,386 |
Cost of sales: | |||
Total cost of sales | 336,891 | 333,727 | 328,324 |
Gross profit | 1,016,324 | 1,025,405 | 961,062 |
Operating expenses: | |||
Sales and marketing | 473,392 | 482,576 | 477,921 |
Research and development | 272,452 | 261,072 | 231,761 |
General and administrative | 122,768 | 108,878 | 105,602 |
Gain on sale of assets | (26,842) | 0 | 0 |
Total operating expenses | 841,770 | 852,526 | 815,284 |
Operating income | 174,554 | 172,879 | 145,778 |
Other income (expense): | |||
Interest income | 8,129 | 5,896 | 2,276 |
Net foreign exchange (loss) gain | (1,846) | (3,423) | 892 |
Other (expense) income, net | (293) | 1,101 | (1,566) |
Income before income taxes | 180,544 | 176,453 | 147,380 |
Provision for income taxes | 18,393 | 21,396 | 94,969 |
Net income | $ 162,151 | $ 155,057 | $ 52,411 |
Basic earnings per share (in dollars per share) | $ 1.23 | $ 1.17 | $ 0.40 |
Weighted average shares outstanding - basic (in shares) | 131,722 | 131,987 | 130,300 |
Diluted earnings per share (in dollars per share) | $ 1.22 | $ 1.16 | $ 0.40 |
Weighted average shares outstanding - diluted (in shares) | 132,734 | 133,274 | 131,387 |
Dividends declared per share (in dollars per share) | $ 1 | $ 0.92 | $ 0.84 |
Product | |||
Net sales: | |||
Total net sales | $ 1,215,014 | $ 1,220,027 | $ 1,173,476 |
Cost of sales: | |||
Total cost of sales | 329,364 | 325,208 | 318,863 |
Software maintenance | |||
Net sales: | |||
Total net sales | 138,201 | 139,105 | 115,910 |
Cost of sales: | |||
Total cost of sales | $ 7,527 | $ 8,519 | $ 9,461 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 162,151 | $ 155,057 | $ 52,411 |
Other comprehensive income, before tax and net of reclassification adjustments: | |||
Foreign currency translation adjustment | (3,346) | (9,768) | 24,470 |
Unrealized gain (loss) on securities available-for-sale | 1,141 | (378) | (120) |
Unrealized (loss) gain on derivative instruments | (2,629) | ||
Unrealized (loss) gain on derivative instruments | 12,525 | (9,488) | |
Other comprehensive income, before tax | (4,834) | 2,379 | 14,862 |
Tax (benefit) provision related to items of other comprehensive income | (695) | 2,801 | (3,250) |
Other comprehensive (loss) income, net of tax | (4,139) | (422) | 18,112 |
Comprehensive income | $ 158,012 | $ 154,635 | $ 70,523 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from operating activities: | |||
Net income | $ 162,151 | $ 155,057 | $ 52,411 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,541 | 70,667 | 72,695 |
Stock-based compensation | 51,438 | 37,616 | 29,145 |
Disposal gain on sale of assets | (26,842) | 0 | 0 |
Tax benefit from deferred income taxes | (12,680) | (11,738) | (5,774) |
Changes in operating assets and liabilities (net of effects of acquisitions): | |||
Accounts receivable | (7,193) | 8,446 | (15,269) |
Inventories | (6,773) | (10,642) | 10,154 |
Prepaid expenses and other assets | (7,926) | 12,628 | 1,971 |
Accounts payable and accrued expenses | 4,034 | (3,976) | 1,584 |
Deferred revenue | 5,579 | 19,061 | 1,791 |
Taxes, accrued compensation, and other current liabilities | (10,924) | (2,539) | 75,734 |
Net cash provided by operating activities | 224,405 | 274,580 | 224,442 |
Cash flow from investing activities: | |||
Capital expenditures | (60,857) | (34,659) | (30,256) |
Proceeds from sale of assets | 32,492 | 0 | 0 |
Capitalization of internally developed software | (9,065) | (14,208) | (41,662) |
Additions to other intangibles | (1,209) | (5,399) | (2,384) |
Acquisitions of equity-method investments | (13,670) | 0 | 0 |
Acquisitions, net of cash received | 0 | (5,534) | 0 |
Purchases of short-term investments | (185,267) | (313,726) | (87,735) |
Sales and maturities of short-term investments | 219,628 | 163,530 | 39,627 |
Net cash used in investing activities | (17,948) | (209,996) | (122,410) |
Cash flow from financing activities: | |||
Principal payments on revolving line of credit | 0 | 0 | (25,000) |
Proceeds from issuance of common stock | 33,191 | 31,601 | 29,094 |
Repurchase of common stock | (171,316) | 0 | 0 |
Dividends paid | (131,855) | (121,537) | (109,551) |
Other | (837) | (907) | (842) |
Net cash used in financing activities | (270,817) | (90,843) | (106,299) |
Effect of exchange rate changes on cash | (410) | (4,519) | 9,148 |
Net change in cash and cash equivalents | (64,770) | (30,778) | 4,881 |
Cash and cash equivalents at beginning of period | 259,386 | 290,164 | 285,283 |
Cash and cash equivalents at end of period | 194,616 | 259,386 | 290,164 |
Supplemental disclosures: | |||
Interest paid | 0 | 78 | 478 |
Income taxes paid | $ 46,096 | $ 32,786 | $ 38,033 |
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, 2016 | 129,202,979 | ||||
Beginning balance at Dec. 31, 2016 | $ 1,114,219 | $ 1,292 | $ 771,346 | $ 376,202 | $ (34,621) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 52,411 | 52,411 | |||
Other comprehensive income (loss), net of tax | 18,112 | 18,112 | |||
Issuance of common stock under employee plans, including tax benefits (in shares) | 1,775,968 | ||||
Issuance of common stock under employee plans, including tax benefits | 29,094 | $ 18 | 29,076 | ||
Stock-based compensation | 29,557 | 29,557 | |||
Dividends paid | (109,551) | (109,551) | |||
Ending balance (in shares) at Dec. 31, 2017 | 130,978,947 | ||||
Ending balance at Dec. 31, 2017 | 1,128,021 | $ 1,310 | 829,979 | 313,241 | (16,509) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 155,057 | 155,057 | |||
Other comprehensive income (loss), net of tax | (422) | (422) | |||
Issuance of common stock under employee plans, including tax benefits (in shares) | 1,676,994 | ||||
Issuance of common stock under employee plans, including tax benefits | 30,694 | $ 17 | 30,677 | ||
Stock-based compensation | 36,888 | 36,888 | |||
Dividends paid | $ (121,537) | (121,537) | |||
Ending balance (in shares) at Dec. 31, 2018 | 132,655,941 | 132,655,941 | |||
Ending balance at Dec. 31, 2018 | $ 1,238,358 | $ 1,327 | 897,544 | 356,418 | (16,931) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 162,151 | 162,151 | |||
Other comprehensive income (loss), net of tax | (4,139) | (4,139) | |||
Issuance of common stock under employee plans, including tax benefits (in shares) | 1,848,594 | ||||
Issuance of common stock under employee plans, including tax benefits | 32,354 | $ 18 | 32,336 | ||
Stock-based compensation | 50,797 | 50,797 | |||
Repurchase of common stock (in shares) | (4,000,000) | ||||
Repurchase of common stock | (171,316) | $ (40) | (27,099) | (144,177) | |
Dividends paid | $ (131,855) | (131,855) | |||
Ending balance (in shares) at Dec. 31, 2019 | 130,504,535 | 130,504,535 | |||
Ending balance at Dec. 31, 2019 | $ 1,176,350 | $ 1,305 | $ 953,578 | $ 242,537 | $ (21,070) |
Operations and summary of signi
Operations and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and summary of significant accounting policies | Operations and summary of significant accounting policies National Instruments Corporation (the "Company," "NI," "we," "us" or "our") is a Delaware corporation. We provide flexible application software and modular, multifunction hardware that users combine with industry-standard computers, networks and third-party devices to create automated test and automated measurement systems. Our software-centric approach helps our customers quickly and cost-effectively design, prototype and deploy custom-defined solutions for their design, control and test application needs. We offer hundreds of products used to create virtual instrumentation systems for general, commercial, industrial and scientific applications. Our products may be used in different environments, and consequently, specific application of our products is determined by the customer and often is not known to us. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles. Principles of consolidation The Consolidated Financial Statements include the accounts of National Instruments Corporation and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of estimates The preparation of our financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be materially different from the estimates. Gain on Sale of Assets During the twelve months ended December 31, 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. 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, in accordance with ASC 360 - Property, Plant and Equipment . Assets held-for-sale On December 2, 2019, we entered into a stock purchase agreement with Cadence Design Systems, Inc. ("Cadence") for Cadence to acquire AWR Corporation, our wholly owned subsidiary (the "Transaction"). The transaction closed on January 15, 2020. The purchase price for the Transaction was approximately $160 million in cash and we expect to recognize a gain on the divestment of approximately $123 million , net of taxes, during the first quarter of 2020. Approximately 110 AWR employees joined Cadence, effective as of the date of closing. AWR provides software products used by microwave and RF engineers to design wireless products for complex, high-frequency RF applications. The technology helps customers accelerate the design and product development cycle of systems used in communications, aerospace and defense, semiconductor, computer, and consumer electronics, by helping reduce the time it takes to go from concept to manufacturing. Assets held-for-sale as of December 31, 2019 were included within the following line items on our Consolidated Balance Sheets: Year Ended December 31, (In thousands) 2019 Assets Cash $ 6,015 Accounts receivable, net 9,544 Prepaids and other current assets 291 Property, plant and equipment, net 268 Goodwill 7,593 Intangibles, net 141 Operating lease right-of-use assets 461 Other long-term assets 119 Total Assets $ 24,432 Liabilities Accounts payable and accrued liabilities $ 1,030 Accrued compensation 1,474 Deferred revenue 17,851 Other current liabilities 503 Operating lease liabilities - non-current 290 Total Liabilities 21,148 Net Assets Classified as Held for Sale $ 3,284 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. Impact of adopting Topic 606 On January 1, 2018, we adopted the new revenue standard using the modified retrospective transition method. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical GAAP. A cumulative catch-up adjustment was recorded to beginning retained earnings to reflect the impact of all existing arrangements under the new revenue standard. The impact of adopting the new revenue standard for the year ended December 31, 2018 is further discussed under "Recently Adopted Accounting Pronouncements". Nature of Goods and Services We derive revenues from two primary sources: products and software maintenance. Product revenues are primarily generated from the sale of off-the-shelf modular test and measurement hardware components and related drivers, and application software licenses. Sales of most hardware components may also include optional extended hardware warranties, which typically provide additional service-type coverage for three years from the purchase date. Our software licenses typically provide for a perpetual right to use our software. We also offer some term-based software licenses that expire, which are referred to as subscription arrangements. We do not customize software for customers and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We sell our customer support contracts as a percentage of net software purchases to which the support is related. Revenues from offerings related to our hardware and software products such as extended hardware warranties, training, consulting and installation services are not significant and are presented within product revenues, as further discussed below. Software maintenance revenues consists of post-contract customer support that provides the customer with unspecified upgrades and technical support. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses are estimated based on our established pricing practices and maximize the use of observable inputs. Standalone selling prices of hardware products are typically estimated based on observable transactions when these services are sold on a standalone 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 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 Significant Judgments Judgment is required to determine the standalone selling price ("SSP") for each distinct performance obligation. We use a single amount to estimate SSP for items that are not sold separately, including perpetual and term licenses sold with software maintenance. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various products and services. Due to the various benefits from and the nature of our enterprise agreement program, judgment is required to assess the pattern of delivery, including the exercise pattern of certain benefits across our portfolio of customers. Additionally, whether a renewal option represents a distinct performance obligation could significantly impact the timing of revenue recognized. Our products are generally sold with a right of return which is accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. During the first quarter of 2018, we began to reclassify our allowance for sales returns to "other current liabilities" from "accounts receivable, net" due to the adoption of ASU 2014-09. Changes to our estimated variable consideration were not material for the periods presented. Contract Balances Timing of revenue recognition may differ from the timing of payment from customers. We record a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. 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 year ended December 31, 2019, amounts recognized related to unbilled receivables were not material. 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 efficient and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a maintenance service term with revenue recognized ratably over the contract period. Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts of $3.5 million at each of December 31, 2019 and 2018 . Our allowance for doubtful accounts is based on historical experience. We analyze historical bad debts, customer concentrations, customer creditworthiness and current economic trends when evaluating the adequacy of our allowance for doubtful accounts. (In thousands) Year Description Balance at Beginning of Period Provisions Write-Offs Balance at End of Period 2017 Allowance for doubtful accounts $ 1,867 $ 1,383 358 $ 2,892 2018 Allowance for doubtful accounts $ 2,892 $ 1,135 537 $ 3,490 2019 Allowance for doubtful accounts $ 3,490 $ 396 343 $ 3,543 Contract Liabilities We recognize contract liabilities, presented in our Consolidated Balance Sheet as "Deferred revenue" when we have an obligation to transfer goods or services to a customer for which we have received consideration (or an amount of consideration is due) from the customer. Refer to Note 2 - Revenue of Notes to Consolidated Financial Statements for additional information, including changes in our contract liability during the year ended December 31, 2019. Refund Liability A refund liability for estimated sales returns is made by reducing recorded revenue based on historical experience. We analyze historical returns, current economic trends and changes in customer demand of our products when evaluating the adequacy of our sales returns refund liability. Our sales return refund liability was $2.6 million and $2.3 million at December 31, 2019 and 2018 , respectively. As further discussed in Note 2 - Revenue, we adopted the new revenue standard on January 1, 2018 using the modified retrospective method. Under the modified retrospective method of adoption, we did not adjust our comparative periods to reflect the adoption of the new revenue standard. In accordance with the new revenue standard, our sales return refund liability as of December 31, 2019 and 2018 was presented in "Other Current Liabilities" on our balance sheet. 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 not material during the periods presented and are included in other long-term assets on our consolidated balance sheets. The net effect of capitalization and amortization of these costs was not material to our results of operating during the periods presented. Shipping and handling costs Our shipping and handling costs charged to customers are included in net sales, and the associated expense is recorded in cost of sales. Cash and cash equivalents Cash and cash equivalents include cash and highly liquid investments with maturities of three months or less at the date of acquisition. Investments We value our available-for-sale debt instruments 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 debt investments. Short-term investments consist of available-for-sale 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 short-term investments have contractual maturities of less than 60 months. Our investments in debt securities are classified as available-for-sale and accordingly are reported at fair value, with unrealized gains and losses reported as other comprehensive income, a component of stockholders’ equity. Unrealized losses are charged against income when a decline in fair value is determined to be other than temporary. Investments with maturities beyond one year are classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. The fair value of our short-term investments in debt securities at December 31, 2019 and December 31, 2018 was $238 million and $271 million , respectively. The decrease was due to the net sale of $34 million of short-term investments. We had $5 million U.S. dollar equivalent of corporate bonds that were denominated in Euro at December 31, 2019 . We follow the guidance provided by FASB ASC 320 to assess whether our investments with unrealized loss positions are other than temporarily impaired. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net, in our Consolidated Statements of Income. In addition, we from time to time make equity investments in non-publicly traded companies. Equity investments in which we do not have control but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Our proportionate share of income or loss is recorded in "Other income (expense), net "in the Consolidated Statement of Income. All other non-marketable equity investments do not have readily determinable fair values and are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. We periodically review our non-marketable equity investments for other-than-temporary declines in fair value and write-down specific investments to their fair values when we determine that an other-than-temporary decline has occurred. Our non-marketable equity investments were not material at December 31, 2019 and 2018. We did not identify or record any other-than-temporary impairments on our investment securities during 2019 , 2018 , and 2017 . Inventories, net Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using standard costs, which approximate the first-in first-out (“FIFO”) method. Cost includes the acquisition cost of purchased components, parts and subassemblies, in-bound freight costs, labor and overhead. Inventory is shown net of adjustment for excess and obsolete inventories of $15.5 million , $15.4 million and $16.4 million at December 31, 2019 , 2018 and 2017 , respectively. (In thousands) Year Description Balance at Beginning of Period Provisions Write-Offs Balance at End of Period 2017 Adjustment for excess and obsolete inventories $ 12,639 $ 7,130 3,322 $ 16,447 2018 Adjustment for excess and obsolete inventories $ 16,447 $ 7,870 8,932 $ 15,385 2019 Adjustment for excess and obsolete inventories $ 15,385 $ 6,046 5,942 $ 15,489 Property and equipment, net Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from twenty to forty years for buildings, and three to seven years for purchased internal use software and for equipment which are each included in furniture and equipment. Intangible assets, net We capitalize costs related to the development and acquisition of certain software products. Capitalization of costs begins when technological feasibility has been established and ends when the product is available for general release to customers. Technological feasibility for our products is established when the product is available for beta release. Amortization 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 . We use the services of outside counsel to search for, document, and apply for patents. Those costs, along with any filing or application fees, are capitalized. Costs related to patents which are abandoned are written off. Once a patent is granted, the patent costs are amortized ratably over the legal life of the patent, generally ten to seventeen years . Leasehold improvements are amortized over the shorter of the life of the lease or the asset. At each balance sheet date, the unamortized costs for all intangible assets are reviewed by management and reduced to net realizable value when necessary. Goodwill The excess purchase price over the fair value of net assets acquired is recorded as goodwill. We have one operating segment and one reporting unit. Goodwill is tested for impairment on an annual basis, in the fourth quarter of each year, 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. No impairment of goodwill was identified during our annual testing of goodwill performed as of November 30, 2019 and 2018 . Goodwill is deductible for tax purposes in certain jurisdictions. Concentrations of credit risk At December 31, 2019 , we had $ 433 million in cash, cash equivalents and short-term investments. Our cash and cash equivalent balances are held in numerous financial institutions throughout the world, including substantial amounts held outside of the U.S., however, the majority of our short-term investments that are located outside of the U.S. are denominated in the U.S. dollar with the exception of $5 million U.S. dollar equivalent of corporate bonds that are denominated in Euro. The most significant of our operating accounts was our Malaysian Citibank operating account which held approximately $13 million or 7% of our total cash and cash equivalents at a bank that carried Baa1/BBB+/A ratings at December 31, 2019 . The following table presents the geographic distribution of our cash, cash equivalents, and short-term investments as of December 31, 2019 (in millions): Domestic International Total Cash and Cash Equivalents $55.9 $138.7 $194.6 29% 71% Short-term Investments $164.3 $73.7 $238.0 69% 31% Cash, Cash Equivalents and Short-term Investments $220.2 $212.4 $432.6 51% 49% The goal of our investment policy is to manage our investment portfolio to preserve principal and liquidity while maximizing the return on our investment portfolio through the full investment of available funds. We place our cash investments in instruments that meet credit quality standards, as specified in our corporate investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. Our cash equivalents and short-term investments carried ratings from the major credit rating agencies that were in accordance with our corporate investment policy. Our investment policy allows investments in the following: government and federal agency obligations, repurchase agreements (“Repos”), certificates of deposit and time deposits, corporate obligations, medium term notes and deposit notes, commercial paper including asset-backed commercial paper (“ABCP”), puttable bonds, general obligation and revenue bonds, money market funds, taxable commercial paper, corporate notes/bonds, municipal notes, municipal obligations and tax exempt commercial paper. All such instruments must carry minimum ratings of A1/P1/F1, MIG1/VMIG1/SP1 and A2/A/A, as applicable, all of which are considered “investment grade”. Our investment policy for marketable securities requires that all securities mature in five years or less, with a weighted average maturity of no longer than 24 months with at least 10% maturing in 90 days or less. (See Note 3 – Short-term investments of Notes to Consolidated Financial Statements for further discussion and analysis of our investments). Concentration of credit risk with respect to trade accounts receivable is limited due to our large number of customers and their dispersion across many countries and industries. No single customer accounted for more than 3% of our sales for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The largest trade account receivable from any individual customer at December 31, 2019 was approximately $4.6 million . Key supplier risk Our manufacturing processes use large volumes of high-quality components and subassemblies supplied by outside sources. Several of these items are available through sole or limited sources. Supply shortages or quality problems in connection with these key items could require us to procure items from replacement suppliers, which would cause significant delays in fulfillment of orders and likely result in additional costs. In order to manage this risk, we maintain safety stock of some of these single sourced components and subassemblies and perform regular assessments of a suppliers' performance, grading key suppliers in critical areas such as quality and “on-time” delivery. Warranty reserve 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 limited warranty. Our estimate is based on historical experience and product sales during the period. The warranty reserve for the years ended December 31, 2019 , 2018 , and 2017 was as follows: (In thousands) 2019 2018 2017 Balance at the beginning of the year $ 3,173 $ 2,846 $ 2,686 Accruals for warranties issued during the year 2,356 3,026 2,644 Accruals related to pre-existing warranties (376 ) 389 274 Settlements made (in cash or in kind) during the year (2,592 ) (3,088 ) (2,758 ) Balance at the end of the year $ 2,561 $ 3,173 $ 2,846 Loss contingencies We accrue for probable losses from contingencies including legal defense costs, on an undiscounted basis , when such costs are considered probable of being incurred and are reasonably estimable. We periodically evaluate available information, both internal and external, relative to such contingencies and adjust this accrual as necessary. Advertising expense We expense costs of advertising as incurred. Advertising expense for the years ended December 31, 2019 , 2018 , and 2017 was $7 million , $8 million , and $11 million , respectively. Foreign currency translation The functional currency for our international sales operations is the applicable local currency. The assets and liabilities of these operations are translated at the rate of exchange in effect on the balance sheet date and sales and expenses are translated at average rates. The resulting gains or losses from translation are included in a separate component of other comprehensive income. Gains and losses resulting from re-measuring monetary asset and liability accounts that are denominated in a currency other than a subsidiary’s functional currency are included in net foreign exchange gain (loss) and are included in net income. Foreign currency hedging instruments All of our derivative instruments are recognized on the balance sheet at their fair value. We currently use foreign currency forward contracts to hedge our exposure to material foreign currency denominated receivables and forecasted foreign currency cash flows. On the date the derivative contract is entered into, we designate the derivative as a hedge of the variability of foreign currency cash flows to be received or paid (“cash flow” hedge) or as a hedge of our foreign denominated net receivable positions (“other derivatives”). Changes in the fair value of derivatives that are designated and qualify as cash flow hedges and that are deemed to be highly effective are recorded in other comprehensive income. These amounts are subsequently reclassified into earnings in the period during which the hedged transaction is realized. The gain or loss on the other derivatives as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in current earnings under the line item “Net foreign exchange gain (loss)”. We do not enter into derivative contracts for speculative purposes. We formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking various hedge transactions at the inception of the hedge. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the hedging instruments are highly effective in offsetting changes in cash flows of hedged items. We prospectively discontinue hedge accounting if (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item (forecasted transactions); or (2) the derivative is de-designated as a hedge instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued, the derivative is sold, and the resulting gains and losses are recognized immediately in earnings. 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 basis of assets and liabilities and their reported amounts. We account for GILTI in deferred taxes. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial position or our results of operations. In estimating future tax consequences, all expected future events are considered other than enactments of changes in tax laws or rates. 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. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. 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 include stock options and restricted stock units (“RSUs”), is computed using the treasury stock method. The reconciliation of the denominators used to calculate basic EPS and diluted EPS for years ended December 31, 2019 , 2018 , and 2017 are as follows: Years ended December 31, (In thousands) 2019 2018 2017 Weighted average shares outstanding-basic 131,722 131,987 130,300 Plus: Common share equivalents RSUs 1,012 1,287 1,087 Weighted average shares outstanding-diluted 132,734 133,274 131,387 Stock awards to acquire 94,206 shares, 11,352 shares, and 32,400 shares for the years ended December 31, 2019 , 2018 , and 2017 , respectively, were excluded in the computations of diluted EPS because the effect of including the stock awards would have been anti-dilutive. 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. 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 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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, Japan, South Korea, New Zealand, Southeast Asia and China). Total net sales based on the disaggregation criteria described above are as follows: Year Ended December 31, 2019 (In thousands) Net sales: Point-in-Time Over Time Total Americas $ 446,703 $ 91,976 $ 538,679 EMEIA 324,410 79,014 403,424 APAC 376,631 34,481 411,112 Total net sales (1) $ 1,147,744 $ 205,471 $ 1,353,215 (1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations Year Ended December 31, 2018 (In thousands) Net sales: Point-in-Time Over Time Total Americas $ 451,047 $ 87,341 $ 538,388 EMEIA 356,070 76,907 432,977 APAC 355,024 32,743 387,767 Total net sales (1) $ 1,162,141 $ 196,991 $ 1,359,132 (1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations Total net sales by the major geographic areas in which we operate, are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 (1) Net sales: Americas $ 538,679 $ 538,388 $ 504,626 EMEIA 403,424 432,977 408,625 APAC 411,112 387,767 376,135 Total $ 1,353,215 $ 1,359,132 $ 1,289,386 (1) As discussed in Note 1 - Operations and summary of significant accounting policies of Notes to Consolidated Financial Statements, prior periods have not been adjusted for adoption of ASU 2014-09 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 twelve months ended December 31, 2019 were as follows: Amount (In thousands) Deferred Revenue at January 1, 2019 $ 159,924 Deferral of revenue billed in current period, net of recognition 116,842 Recognition of revenue deferred in prior periods (111,417 ) Foreign currency translation impact (424 ) Balance as of December 31, 2019 $ 164,925 For the twelve months ended December 31, 2019 , revenue recognized from performance obligations related to 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 twelve months ended December 31, 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 $60.7 million as of December 31, 2019 . Since we typically invoice customers at contract inception, this amount is included in our current and non-current deferred revenue balances. As of December 31, 2019 , we expect to recognize approximately 49% of the revenue related to these unsatisfied performance obligations during 2020, 30% during 2021, and 21% thereafter. Practical Expedients As discussed in Note 1 - Operations and summary of significant accounting policies and elsewhere in Note 2 - Revenue of Notes to Consolidated Financial Statements, 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 | 12 Months Ended |
Dec. 31, 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: (In thousands) As of December 31, 2019 Adjusted Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Corporate bonds $ 237,423 $ 628 $ (68 ) $ 237,983 Short-term investments $ 237,423 $ 628 $ (68 ) $ 237,983 (In thousands) As of December 31, 2018 Adjusted Cost Gross Gross Unrealized Loss Fair Value Corporate bonds $ 235,045 $ 726 $ (1,298 ) $ 234,473 U.S. treasuries and agencies 36,932 2 (11 ) 36,923 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: (In thousands) As of December 31, 2019 Adjusted Cost Fair Value Due in less than 1 year $ 102,843 $ 103,239 Due in 1 to 5 years 134,580 134,744 Total available-for-sale debt securities $ 237,423 $ 237,983 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 102,843 $ 103,239 Total available-for-sale debt securities $ 102,843 $ 103,239 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds 134,580 134,744 Total available-for-sale debt securities $ 134,580 $ 134,744 Equity-Method Investments The carrying value of our equity method investments was $15 million as of December 31, 2019. Our proportionate share of the income from equity-method investments was not material for the periods presented. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 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: (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 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 $ 87,397 $ 87,397 $ — $ — Corporate notes and bonds 9,962 — 9,962 — Short-term investments available for sale: Corporate bonds 237,983 — 237,983 — Derivatives 8,209 — 8,209 — Total Assets $ 343,551 $ 87,397 $ 256,154 $ — Liabilities Derivatives $ (2,872 ) — (2,872 ) — Total Liabilities $ (2,872 ) $ — $ (2,872 ) $ — (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 short-term investments available-for-sale have contractual maturities of less than 60 months. Derivatives include foreign currency forward and option 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. Our foreign currency option contracts are valued using a market approach based on the quoted market prices which are derived from observable inputs including current and future spot rates, interest rate spreads as well as quoted market prices of similar instruments. 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 year ended December 31, 2019 . There were not any transfers in or out of Level 1 or Level 2 during the year ended December 31, 2019 . Our short-term investments do not include any foreign sovereign debt. The majority of our short-term investments that are located outside of the U.S. are denominated in the U.S. dollar with the exception of $5 million U.S. dollar equivalent of corporate bonds that are denominated in Euro. We did not have any items that were measured at fair value on a nonrecurring basis at December 31, 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 | 12 Months Ended |
Dec. 31, 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 45 countries. Sales outside of the Americas accounted for approximately 60% , 60% , and 61% of our net sales during the years ended December 31, 2019 , 2018 , and 2017 , 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, since 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 receivables. 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 revenue expenses will be adversely affected by changes in exchange rates. We designate foreign currency forward contracts as cash flow hedges of forecasted revenues 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 revenue 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, Malaysian ringgit, British pound, Chinese yuan, and Hungarian forint) 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 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. 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 with the following notional amounts: (In thousands) U.S. Dollar Equivalent As of December 31, 2019 As of December 31, 2018 Chinese yuan $ 32,970 $ 45,520 Euro 130,122 134,654 Japanese yen 53,527 15,141 Hungarian forint 95,228 35,384 British pound 13,988 9,948 Malaysian ringgit 32,725 27,778 Korean won $ 24,728 $ 8,331 Total forward contracts notional amount $ 383,288 $ 276,756 The contracts in the foregoing table had contractual maturities of 36 months or less as of December 31, 2019 and December 31, 2018 . At December 31, 2019 , we expect to reclassify $6.4 million of gains on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $0.8 million of losses on derivative instruments from accumulated OCI to cost of sales when the cost of sales are incurred and $0.6 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 December 31, 2019 . Actual results may vary 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 no t material for fiscal years 2019 , 2018 , and 2017 and are included as a component of net income. 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 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 . 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 gain (loss).” As of December 31, 2019 and December 31, 2018 , we held foreign currency forward contracts with a notional amount of $41 million and $71 million , respectively. The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets and the effect of derivative instruments on our Consolidated Statements of Income. Asset Derivatives December 31, 2019 December 31, 2018 (In thousands) 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 $ 7,039 Prepaid expenses and other current assets $ 7,594 Foreign exchange contracts - LT forwards Other long-term assets 970 Other long-term assets 1,380 Total derivatives designated as hedging instruments $ 8,009 $ 8,974 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 200 Prepaid expenses and other current assets $ 395 Total derivatives not designated as hedging instruments $ 200 $ 395 Total derivatives $ 8,209 $ 9,369 Liability Derivatives December 31, 2019 December 31, 2018 (In thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (2,089 ) Other current liabilities $ (662 ) Foreign exchange contracts - LT forwards Other long-term liabilities (351 ) Other long-term liabilities (191 ) Total derivatives designated as hedging instruments $ (2,440 ) $ (853 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (432 ) Other current liabilities $ (630 ) Total derivatives not designated as hedging instruments $ (432 ) $ (630 ) Total derivatives $ (2,872 ) $ (1,483 ) The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the years ended December 31, 2019 and 2018 , respectively: December 31, 2019 (In thousands) 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 $ (1,286 ) Net sales $ 11,709 Foreign exchange contracts - forwards (707 ) Cost of sales (482 ) Foreign exchange contracts - forwards (636 ) Operating expenses (383 ) Total $ (2,629 ) $ 10,844 December 31, 2018 (In thousands) 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 $ 17,422 Net sales $ (210 ) Foreign exchange contracts - forwards (2,591 ) Cost of sales 680 Foreign exchange contracts - forwards (2,306 ) Operating expenses 916 Total $ 12,525 $ 1,386 (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 December 31, 2019 December 31, 2018 Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (348 ) $ 343 Total $ (348 ) $ 343 Gains or losses recognized in OCI on our derivatives are reported net of gains or losses reclassified from accumulated OCI into income. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net at December 31, 2019 and December 31, 2018 consist of the following: (In thousands) December 31, 2019 December 31, 2018 Raw materials $ 110,078 $ 98,346 Work-in-process 10,613 9,306 Finished goods 79,719 86,494 Total $ 200,410 $ 194,146 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment at December 31, 2019 and December 31, 2018 , consist of the following: (In thousands) December 31, 2019 December 31, 2018 Land $ 12,366 $ 32,967 Buildings 219,473 218,289 Furniture and equipment 415,216 388,102 647,055 639,358 Accumulated depreciation (403,338 ) (394,157 ) Total, net $ 243,717 $ 245,201 Depreciation expense for the years ended December 31, 2019 , 2018 , and 2017 , was $38 million , $37 million and $40 million , respectively. |
Intangible assets and Goodwill
Intangible assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and Goodwill | Intangible assets and Goodwill Intangible assets at December 31, 2019 and December 31, 2018 are as follows: (In thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 132,789 $ (76,910 ) $ 55,879 $ 123,842 $ (49,299 ) $ 74,543 Acquired technology 91,900 (87,917 ) 3,983 92,236 (84,962 ) 7,274 Patents 35,609 (23,993 ) 11,616 34,427 (21,725 ) 12,702 Other 44,490 (31,885 ) 12,605 46,437 (30,173 ) 16,264 Total $ 304,788 $ (220,705 ) $ 84,083 $ 296,942 $ (186,159 ) $ 110,783 Software development costs capitalized in 2019 , 2018 , and 2017 were $10 million , $15 million , and $43 million , respectively, and related amortization expense was $28 million , $27 million , and $22 million , respectively. Capitalized software development costs for the years ended December 31, 2019 , 2018 , and 2017 included costs related to stock-based compensation of $0.5 million , $0.7 million and $1.8 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 $37 million , $35 million , and $34 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Capitalized software development costs, acquired technology, patents and other intangible assets had weighted-average useful lives of 2.3 years, 1.5 years, 4.9 years, and 5.1 years, respectively, as of December 31, 2019 . The estimated future amortization expense related to intangible assets as of December 31, 2019 was as follows: Amount (In thousands) 2020 $ 36,029 2021 25,463 2022 11,079 2023 4,324 2024 1,698 Thereafter 5,490 Total $ 84,083 Goodwill A reconciliation of the beginning and ending carrying amounts of goodwill is as follows: Amount (In thousands) Balance as of December 31, 2017 $ 266,783 Acquisitions 2,819 Foreign currency translation impact (5,072 ) Balance as of December 31, 2018 $ 264,530 Foreign currency translation impact (2,288 ) Balance as of December 31, 2019 $ 262,242 The excess purchase price over the fair value of assets acquired is recorded as goodwill. We have one operating segment and one reporting unit. 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 was performed as of November 30, 2019. No impairment of goodwill was identified during 2019 and 2018 . Goodwill is deductible for tax purposes in certain jurisdictions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 94 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: Twelve Months Ended (In thousands) December 31, 2019 Operating Lease Cost (a) $ 22,708 (a) includes variable and short-term lease costs Supplemental cash flow information related to operating leases were as follows: Twelve Months Ended (In thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating lease liabilities $ 20,919 Supplemental non-cash information: Operating lease right-of-use assets obtained in exchange for new operating lease obligations $ 18,938 Maturities of lease liabilities as of December 31, 2019 were as follows: (In thousands) Years ending December 31, Operating Leases 2020 $ 16,104 2021 12,752 2022 8,984 2023 7,415 2024 6,844 Thereafter 14,153 Total future minimum lease payments 66,252 Less imputed interest 12,171 Total $ 54,081 Weighted Average Remaining Lease Term (years) Operating Leases 5.3 Weighted Average Discount Rate Operating Leases 5.3 % As of December 31, 2019, we have additional operating leases, that have not commenced during the period, which were not material. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income before income taxes are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Domestic $ 98,476 $ 56,068 $ 46,308 Foreign 82,068 120,385 101,072 Total $ 180,544 $ 176,453 $ 147,380 The provision for income taxes charged to operations is as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Current tax expense: U.S. federal $ 18,212 $ 15,898 $ 91,043 State 2,705 2,963 348 Foreign 10,156 14,273 9,352 Total current $ 31,073 $ 33,134 $ 100,743 Deferred tax benefit: U.S. federal $ (9,168 ) $ (10,724 ) $ (4,796 ) State (1,218 ) 1,134 (151 ) Foreign (3,045 ) (2,148 ) (827 ) Total deferred $ (13,431 ) $ (11,738 ) $ (5,774 ) Change in valuation allowance 751 — — Total provision $ 18,393 $ 21,396 $ 94,969 Deferred tax liabilities (assets) at December 31, 2019 and 2018 were as follows: (In thousands) December 31, 2019 2018 Capitalized software $ 12,202 $ 16,756 Depreciation and amortization 11,756 12,964 Intangible assets 13,490 13,492 Right of use asset 9,833 — Unrealized gain on derivative instruments 1,176 1,871 Undistributed earnings of foreign subsidiaries 3,482 3,449 Gross deferred tax liabilities 51,939 48,532 Operating loss carryforwards (87,074 ) (83,013 ) Vacation and other accruals (4,979 ) (5,391 ) Inventory valuation and warranty provisions (2,317 ) (2,576 ) Doubtful accounts and sales provisions (860 ) (890 ) Unrealized exchange loss (1,052 ) (1,735 ) Deferred revenue (7,708 ) (8,199 ) Operating lease liabilities (10,426 ) — Accrued expenses (262 ) (848 ) Global intangible low-taxed income (3,444 ) (4,339 ) Stock-based compensation (5,809 ) (5,216 ) Research and development tax credit carryforward — (258 ) Capital loss carryforward — (250 ) Foreign tax credit carryforward (674 ) (42 ) Outside basis difference on asset held for sale (10,762 ) — Cumulative translation adjustment on undistributed earnings (985 ) (912 ) Other (2,072 ) (1,776 ) Gross deferred tax assets (138,424 ) (115,445 ) Valuation allowance 85,516 79,624 Net deferred tax liability $ (969 ) $ 12,711 A reconciliation of income taxes at the U.S. federal statutory income tax rate to our effective tax rate follows: Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21 % 21 % 35 % Foreign taxes greater (less) than federal statutory rate — (4 ) (12 ) Outside basis difference on asset held for sale (6 ) — — Research and development tax credits (3 ) (2 ) (3 ) Enhanced deduction for certain research and development expenses (3 ) (4 ) (3 ) State income taxes, net of federal tax benefit — 2 — Nondeductible officer compensation 1 — — Change in intercompany prepaid tax asset — (1 ) (2 ) Foreign-derived intangible income deduction (3 ) (1 ) — Global intangible low-taxed income inclusion ("GILTI") 1 2 — Amortization of intangible assets — — 1 Remeasurement of U.S. deferred tax balance — — (10 ) Transition tax on deferred foreign income 1 1 54 Global intangible low-taxed income deferred — (2 ) — Foreign tax on undistributed foreign earnings — (1 ) 3 Other 1 1 1 Effective tax rate 10 % 12 % 64 % The Tax Cuts and Jobs Act was enacted on December 22, 2017 (the "Act"). The Act reduced the US federal corporate tax rate from 35% to 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. In 2018 and 2017, we recorded tax expense related to the enactment-date effects of the Act that included recording the one-time transition tax liability related to undistributed earnings of certain foreign subsidiaries that were not previously taxed, adjusting deferred tax assets and liabilities and recognizing the effects of electing to account for GILTI in deferred taxes. As of December 31, 2017, we recognized a provisional amount of $69.9 million , which was included as a component of income tax expense from continuing operations. During 2018, we reduced the provisional amounts recorded at December 31, 2017 by $4.2 million and included these adjustments as a reduction of income tax expense from continuing operations. While we completed our accounting of the Tax Act in the fourth quarter of 2018 based on the regulatory guidance issued at that time, the Department of Treasury interpretive guidance initiatives are ongoing. The U.S. Treasury Department has issued final interpretive guidance relating to certain provisions of the Tax Act and proposed additional guidance related to the same provisions. We will account for the impact of additional guidance in the period in which any new guidance is released, if appropriate. During 2019, we recorded a $2.6 million net tax expense related to an increase in the 2017 one-time deemed repatriation tax on accumulated foreign earnings as a result of final tax regulations issued in 2019. As of December 31, 2019, we had federal tax credit carryforwards of $0.7 million which expire during the years 2021 to 2029. Certain of these carryforwards are subject to limitations following a change in ownership. We do not expect to utilize certain of these carryforwards and have recorded a valuation allowance of $0.6 million against those credits at December 31, 2019. As of December 31, 2019 , 14 of our subsidiaries had available, for income tax purposes, foreign net operating loss carryforwards of an aggregate of approximately $981 million , of which $973 million expires during the years 2020 to 2038 and $8 million of which may be carried forward indefinitely. Our tax valuation allowance relates primarily to our ability to realize certain of these foreign net operating loss carryforwards. Effective January 1, 2010, a new tax law in Hungary provided for an enhanced deduction for the qualified research and development expenses of NI Hungary Software and Hardware Manufacturing Kft. (“NI Hungary”). During the three months ended December 31, 2009, we obtained confirmation of the application of this new tax law for the qualified research and development expenses of NI Hungary. Based on the application of this new tax law to the qualified research and development expense of NI Hungary, we do not expect to have sufficient future taxable income in Hungary to realize the benefits of NI Hungary’s deferred tax assets. Therefore, we had a full valuation allowance against those assets at December 31, 2019 . Earnings from our operations in Malaysia are free of tax under a tax holiday effective January 1, 2013. This tax holiday expires in 2037. If we fail to satisfy the conditions of the tax holiday, this tax benefit may be terminated early. The tax holiday resulted in income tax benefits of $3.4 million and $4.0 million for the years ended December 31, 2019 and 2018 , respective1y. The impact of the tax holiday on a per share basis for each of the years ended December 31, 2019 and 2018 was a benefit of $0.03 per share. We have not provided for foreign withholding or distribution taxes on approximately $5.3 million of certain non-U.S. subsidiaries' undistributed earnings as of December 31, 2019. These earnings would become subject to withholding or distribution taxes of approximately $679,000 , if they were remitted to the parent company as dividends. We intend to permanently reinvest these undistributed earnings. 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. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: (In thousands) December 31, 2019 December 31, 2018 Balance at beginning of period $ 9,775 $ 10,158 Additions based on tax positions related to the current year 776 1,486 Reductions for tax positions of prior years — (1,208 ) Additions for tax positions of prior years 390 1,207 Reductions as a result of settlement with taxing authorities (725 ) — Reductions as a result of the closing of open tax periods (3,564 ) (1,868 ) Balance at end of period $ 6,652 $ 9,775 All of our unrecognized tax benefits at December 31, 2019 would affect our effective income tax rate if recognized. As of December 31, 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. We recognize interest and penalties related to income tax matters in income tax expense. During the years ended December 31, 2019 and 2018 , we recognized interest expense related to uncertain tax positions of approximately $0.4 million and $0.6 million , respectively. |
Comprehensive income
Comprehensive income | 12 Months Ended |
Dec. 31, 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 other comprehensive income, net of tax, for the years ended December 31, 2019 and 2018 , consisted of the following: December 31, 2019 (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 (3,346 ) 1,141 (13,473 ) (15,678 ) Reclassified from accumulated OCI into income — — 10,844 10,844 Income tax benefit (expense) — 82 613 695 Balance as of December 31, 2019 $ (25,831 ) $ (85 ) $ 4,846 $ (21,070 ) December 31, 2018 (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) (9,768 ) (378 ) 11,139 993 Reclassified from accumulated OCI into income — — 1,386 1,386 Income tax (expense) benefit — (148 ) (2,653 ) (2,801 ) Balance as of December 31, 2018 $ (22,485 ) $ (1,308 ) $ 6,862 $ (16,931 ) |
Authorized shares of common and
Authorized shares of common and preferred stock and stock-based compensation plans | 12 Months Ended |
Dec. 31, 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 unit plans 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, which terminated in May 2005 (The "1994 Plan"), 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 provided for the 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 the Company’s 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 1994 Plan and 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 forfeiture or termination of options or RSUs or repurchase of shares issued under those plans. The 2010 Plan provided for the granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. 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 the Company’s 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 outstanding awards previously granted there under. 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, 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 those plans. The 2015 Plan provides for the granting of incentive awards in the form of restricted stock and RSUs to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. 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 the Company’s previous year’s earnings and growth but ten -year awards cannot accelerate to vest over a period of less than five years . There were 1,920,771 shares available for grant under the 2015 Plan at December 31, 2019 . During the year ended December 31, 2019 , we did not make any changes in accounting principles or methods of estimates related to the 2010 and 2015 Plans. Transactions under our 2010 Plan and 2015 Plan are summarized as follows: RSUs Number of RSUs Weighted average grant price per share Outstanding at December 31, 2016 2,806,201 $ 28.76 Granted 1,205,920 $ 34.57 Earned (666,786 ) $ 28.05 Canceled (192,371 ) $ 29.73 Outstanding at December 31, 2017 3,152,964 $ 31.07 Granted 1,100,067 $ 48.42 Earned (823,816 ) $ 30.78 Canceled (250,679 ) $ 34.13 Outstanding at December 31, 2018 3,178,536 $ 36.91 Granted 1,306,387 $ 46.76 Earned (958,995 ) $ 35.86 Canceled (236,291 ) $ 38.82 Outstanding at December 31, 2019 3,289,637 $ 40.99 Total unrecognized stock-based compensation expense related to non-vested RSUs was approximately $151.6 million as of December 31, 2019 , related to 3,289,637 shares with a per share weighted average fair value of $40.99 . We anticipate this expense to be recognized over a weighted average period of approximately 2.89 years. 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, and at December 31, 2019 , we had 4,085,770 shares of common stock reserved for future issuance under this plan. We issued 909,274 shares under this plan in the year ended December 31, 2019 . The weighted average purchase price of the shares under this plan was $36.50 per share. The grant date fair value of the purchase rights was estimated using the Black-Scholes model with the following assumptions: 2019 2018 2017 Dividend yield 0.558 % 0.518 % 0.650 % Expected life 3 months 3 months 3 months Expected volatility 34 % 24 % 18 % Risk-free interest rate 2.32 % 1.39 % 0.48 % Weighted average, grant date fair value of purchase rights granted under the employee stock purchase plan are as follows: Number of Shares Weighted average fair value per share 2017 1,065,154 $ 6.80 2018 872,853 $ 8.97 2019 909,274 $ 9.40 During the year ended December 31, 2019 , we did not make any changes in accounting principles or methods of estimates with respect to the employee stock purchase 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 its adoption of a Preferred Stock Rights Agreement which expired on May 10, 2014. There were no shares of preferred stock issued and outstanding as of December 31, 2019 . Stock repurchases and retirements Our Board of Directors has authorized a program to repurchase shares of our common stock from time to time, depending on market conditions and other factors. On January 23, 2019, our Board of Directors amended our stock repurchase program to increase the number of shares that may be repurchased to 4,000,000 shares. On October 23, 2019, our Board of Directors amended our stock repurchase program to increase the number of shares that may be repurchased by 3,000,000 shares. Under the current program, during the three months ended December 31, 2019, we repurchased 794,324 shares of our common stock at a weighted average price per share at $42.98 and during the twelve months ended December 31, 2019, we repurchased 4,000,000 shares of our common stock at a weighted average price per share of $42.83 . We did not repurchase any shares during the twelve months ended December 31, 2018. At December 31, 2019 , there were 3,000,000 shares remaining available for repurchase under this program. This repurchase program does not have an expiration date. |
Employee retirement plan
Employee retirement plan | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee retirement plan | Employee retirement plan We have a defined contribution retirement plan pursuant to Section 401(k) of the Internal Revenue Code. Substantially all domestic employees with at least 30 days of continuous service are eligible to participate and may contribute up to 15% of their compensation to such plan. The Board of Directors has elected to make matching contributions equal to 50% of employee contributions, which could be applied to up to 8% of each participant’s compensation during 2019 , 2018 and 2017 . Employees are eligible for matching contributions after one year of continuous service. Company contributions vest immediately. Our policy prohibits participants from direct investment in shares of our common stock within the plan. Company contributions charged to expense were $9.6 million , $9.4 million and $9.5 million in 2019 , 2018 , and 2017 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment information | Segment 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 years ended December 31, 2019 , 2018 , and 2017 were $850 million , $859 million , and $816 million , respectively. Revenue and long-lived assets attributable to each individual foreign country outside the U.S. were not material. Total property and equipment, net, outside the U.S. for the years ended December 31, 2019 , 2018 , and 2017 were $130 million , $132 million , and $132 million |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 9, 2013, we entered into 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 “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 $50.0 million to $125.0 million , (ii) extend the Maturity Date of the line of credit from May 9, 2018 to October 29, 2020, and (iii) provide us with an option to request increases to the line of credit of up to an additional $25.0 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% to 0.5% , or a LIBOR rate plus a spread of 1.125% to 2.000% , 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 Maturity Date. We are also obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments at a rate of 0.175% to 0.300% , 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 December 31, 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 December 31, 2019 , we had no outstanding borrowings under this line of credit. During the years ended December 31, 2019 and 2018 , we incurred no interest expense. As of December 31, 2019 and 2018 , the weighted-average interest rate on the line of credit was 3.0% and 3.6% , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have commitments under non-cancelable operating leases primarily for office facilities throughout the world. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Future minimum lease payments as of December 31, 2019 , for each of the next five years are as follows: Amount (In thousands) 2020 $ 16,104 2021 12,752 2022 8,984 2023 7,415 2024 6,844 Thereafter 14,153 Total $ 66,252 Rent expense under operating leases was approximately $23 million for the year ended December 31, 2019 , $21 million for the year ended December 31, 2018 and $20 million for the year ended December 31, 2017 , respectively. As of December 31, 2019 , we had non-cancelable purchase commitments with various suppliers of customized inventory and inventory components totaling approximately $6.5 million over the next twelve months. As of December 31, 2019 , our outstanding guarantees for payment of customs and foreign grants were not material |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2019 | |
Litigation Settlement [Abstract] | |
Litigation | Litigation We are not currently a party to any material litigation. However, in the ordinary course of our business, we have in the past, are currently and will likely become involved in various legal proceedings, claims, and regulatory, tax or government inquiries and investigations, and could incur uninsured liability in any one or more of them. We also periodically receive notifications from various third parties related to alleged infringement of patents or intellectual property rights, commercial disputes or other matters. No assurances can be given with respect to the extent or outcome of any investigation, litigation or dispute. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Since the first quarter of 2017, we have reduced overall employee headcount by approximately 3% by the end of December 31, 2019, we have been taking steps to minimize job duplication or evaluate where we should shift and centralize activities, improve efficiencies, and rebalance our resources on higher return activities. The timing and scope of any future headcount reductions will vary. A summary of the charges in the consolidated statement of operations resulting from these restructuring activities is shown below: (In thousands) Years Ended 2019 2018 2017 Cost of sales $ — (150 ) 1,208 Research and development 3,888 1,890 2,990 Sales and marketing 13,300 10,655 10,968 General and administrative 2,877 1,702 1,898 Total restructuring and other related costs $ 20,065 14,097 17,064 Total restructuring and other charges incurred during the year ended December 31, 2019 related to this initiative were $20.1 million primarily related to employee severance costs. A summary of balance sheet activity during 2019 related to the restructuring activity is shown below: Restructuring Liability Balance as of December 31, 2018 $ 3,506 Income statement expense 20,065 Cash payments (14,044 ) Balance as of December 31, 2019 $ 9,527 The restructuring liability of $9.5 million at December 31, 2019 relating primarily to severance payments associated with the restructuring activity, is recorded in the “accrued compensation” line item of the consolidated balance sheet. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events On January 29, 2020 , our Board of Directors declared a quarterly cash dividend of $0.26 per common share, payable on March 9, 2020 , to stockholders of record on February 18, 2020 . On January 15, 2020, we closed on the sale of our wholly-owned subsidiary AWR Corporation to Cadence Design Systems Inc. for a total of approximately $160 million in cash. We expect to recognize a gain on the divestment of approximately $123 million |
Operations and summary of sig_2
Operations and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The Consolidated Financial Statements include the accounts of National Instruments Corporation and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of estimates | Use of estimates The preparation of our financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be materially different from the estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash and highly liquid investments with maturities of three months or less at the date of acquisition. |
Investments | Investments We value our available-for-sale debt instruments 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 debt investments. Short-term investments consist of available-for-sale 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 short-term investments have contractual maturities of less than 60 months. Our investments in debt securities are classified as available-for-sale and accordingly are reported at fair value, with unrealized gains and losses reported as other comprehensive income, a component of stockholders’ equity. Unrealized losses are charged against income when a decline in fair value is determined to be other than temporary. Investments with maturities beyond one year are classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. We follow the guidance provided by FASB ASC 320 to assess whether our investments with unrealized loss positions are other than temporarily impaired. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net, in our Consolidated Statements of Income. In addition, we from time to time make equity investments in non-publicly traded companies. Equity investments in which we do not have control but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Our proportionate share of income or loss is recorded in "Other income (expense), net "in the Consolidated Statement of Income. All other non-marketable equity investments do not have readily determinable fair values and are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. We periodically review our non-marketable equity investments for other-than-temporary declines in fair value and write-down specific investments to their fair values when we determine that an other-than-temporary decline has occurred. Our non-marketable equity investments were not material at December 31, 2019 and 2018. |
Inventories, net | Inventories, net Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using standard costs, which approximate the first-in first-out (“FIFO”) method. Cost includes the acquisition cost of purchased components, parts and subassemblies, in-bound freight costs, labor and overhead. |
Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from twenty to forty years for buildings, and three to seven years for purchased internal use software and for equipment which are each included in furniture and equipment. |
Intangible assets, net | Intangible assets, net We capitalize costs related to the development and acquisition of certain software products. Capitalization of costs begins when technological feasibility has been established and ends when the product is available for general release to customers. Technological feasibility for our products is established when the product is available for beta release. Amortization 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 . We use the services of outside counsel to search for, document, and apply for patents. Those costs, along with any filing or application fees, are capitalized. Costs related to patents which are abandoned are written off. Once a patent is granted, the patent costs are amortized ratably over the legal life of the patent, generally ten to seventeen years . Leasehold improvements are amortized over the shorter of the life of the lease or the asset. At each balance sheet date, the unamortized costs for all intangible assets are reviewed by management and reduced to net realizable value when necessary. |
Goodwill | Goodwill The excess purchase price over the fair value of net assets acquired is recorded as goodwill. We have one operating segment and one reporting unit. Goodwill is tested for impairment on an annual basis, in the fourth quarter of each year, 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. |
Concentrations of credit risk | The goal of our investment policy is to manage our investment portfolio to preserve principal and liquidity while maximizing the return on our investment portfolio through the full investment of available funds. We place our cash investments in instruments that meet credit quality standards, as specified in our corporate investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. Our cash equivalents and short-term investments carried ratings from the major credit rating agencies that were in accordance with our corporate investment policy. Our investment policy allows investments in the following: government and federal agency obligations, repurchase agreements (“Repos”), certificates of deposit and time deposits, corporate obligations, medium term notes and deposit notes, commercial paper including asset-backed commercial paper (“ABCP”), puttable bonds, general obligation and revenue bonds, money market funds, taxable commercial paper, corporate notes/bonds, municipal notes, municipal obligations and tax exempt commercial paper. All such instruments must carry minimum ratings of A1/P1/F1, MIG1/VMIG1/SP1 and A2/A/A, as applicable, all of which are considered “investment grade”. Our investment policy for marketable securities requires that all securities mature in five years or less, with a weighted average maturity of no longer than 24 months with at least 10% maturing in 90 days or less. (See Note 3 – Short-term investments of Notes to Consolidated Financial Statements for further discussion and analysis of our investments). |
Key supplier risk | Key supplier risk Our manufacturing processes use large volumes of high-quality components and subassemblies supplied by outside sources. Several of these items are available through sole or limited sources. Supply shortages or quality problems in connection with these key items could require us to procure items from replacement suppliers, which would cause significant delays in fulfillment of orders and likely result in additional costs. In order to manage this risk, we maintain safety stock of some of these single sourced components and subassemblies and perform regular assessments of a suppliers' performance, grading key suppliers in critical areas such as quality and “on-time” delivery. |
Warranty reserve | Warranty reserve 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 limited warranty. Our estimate is based on historical experience and product sales during the period. |
Loss contingencies | Loss contingencies We accrue for probable losses from contingencies including legal defense costs, on an undiscounted basis , when such costs are considered probable of being incurred and are reasonably estimable. We periodically evaluate available information, both internal and external, relative to such contingencies and adjust this accrual as necessary. |
Advertising expense | Advertising expense |
Foreign currency translation | Foreign currency translation The functional currency for our international sales operations is the applicable local currency. The assets and liabilities of these operations are translated at the rate of exchange in effect on the balance sheet date and sales and expenses are translated at average rates. The resulting gains or losses from translation are included in a separate component of other comprehensive income. Gains and losses resulting from re-measuring monetary asset and liability accounts that are denominated in a currency other than a subsidiary’s functional currency are included in net foreign exchange gain (loss) and are included in net income. |
Foreign currency hedging instruments | Foreign currency hedging instruments All of our derivative instruments are recognized on the balance sheet at their fair value. We currently use foreign currency forward contracts to hedge our exposure to material foreign currency denominated receivables and forecasted foreign currency cash flows. On the date the derivative contract is entered into, we designate the derivative as a hedge of the variability of foreign currency cash flows to be received or paid (“cash flow” hedge) or as a hedge of our foreign denominated net receivable positions (“other derivatives”). Changes in the fair value of derivatives that are designated and qualify as cash flow hedges and that are deemed to be highly effective are recorded in other comprehensive income. These amounts are subsequently reclassified into earnings in the period during which the hedged transaction is realized. The gain or loss on the other derivatives as well as the offsetting gain or loss on the hedged item attributable to the hedged risk is recognized in current earnings under the line item “Net foreign exchange gain (loss)”. We do not enter into derivative contracts for speculative purposes. We formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking various hedge transactions at the inception of the hedge. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the hedging instruments are highly effective in offsetting changes in cash flows of hedged items. We prospectively discontinue hedge accounting if (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item (forecasted transactions); or (2) the derivative is de-designated as a hedge instrument, because it is unlikely that a forecasted transaction will occur. When hedge accounting is discontinued, the derivative is sold, and the resulting gains and losses are recognized immediately in earnings. |
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 basis of assets and liabilities and their reported amounts. We account for GILTI in deferred taxes. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial position or our results of operations. In estimating future tax consequences, all expected future events are considered other than enactments of changes in tax laws or rates. 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. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. |
Earnings per share | 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 include stock options and restricted stock units (“RSUs”), is computed using the treasury stock method. |
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. 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 12 – Authorized shares of common and preferred stock and stock-based compensation plans for additional information on our equity-based compensation programs. |
Comprehensive income | Comprehensive income |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In 2016, the FASB established Topic 842, Leases, by issuing new lease accounting guidance which supersedes ASC 840, Leases, and requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. 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. We reclassified approximately $19 million from "Property, plant and equipment, net" to "Operating lease right-of-use assets" related to prepaid leasehold land. Other Recently Adopted Accounting Pronouncements We also adopted the following accounting pronouncement during 2019, which did not have a material impact on our financial statements: In January 2018, the FASB issued new guidance which gives entities the option to reclassify to retained earnings tax effects resulting from the Tax Act related to items that the FASB refers to as having been stranded in accumulated other comprehensive income ("OCI"). We adopted the new guidance effective January 1, 2019, and we did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in accumulated OCI. The adoption of this new guidance did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard impacts our accounting for allowances for doubtful accounts, available-for-sale securities and other assets subject to credit risk. In preparation for the adoption of this standard, we will update our credit loss models as needed. We have completed our analysis of the impact of this guidance and the adoption of this standard will not have a material impact on our consolidated financial statements. In 2018, the FASB issued new guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor (i.e., a service contract). Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those fiscal years. The adoption of this standard will not have a material impact on our consolidated financial statements. In 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for our annual reporting periods beginning after December 15, 2020, including interim reporting periods within those fiscal years. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. |
Operations and summary of sig_3
Operations and summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disposal Groups, Including Discontinued Operations | Assets held-for-sale as of December 31, 2019 were included within the following line items on our Consolidated Balance Sheets: Year Ended December 31, (In thousands) 2019 Assets Cash $ 6,015 Accounts receivable, net 9,544 Prepaids and other current assets 291 Property, plant and equipment, net 268 Goodwill 7,593 Intangibles, net 141 Operating lease right-of-use assets 461 Other long-term assets 119 Total Assets $ 24,432 Liabilities Accounts payable and accrued liabilities $ 1,030 Accrued compensation 1,474 Deferred revenue 17,851 Other current liabilities 503 Operating lease liabilities - non-current 290 Total Liabilities 21,148 Net Assets Classified as Held for Sale $ 3,284 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 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 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 |
Allowance for Doubtful Accounts | (In thousands) Year Description Balance at Beginning of Period Provisions Write-Offs Balance at End of Period 2017 Allowance for doubtful accounts $ 1,867 $ 1,383 358 $ 2,892 2018 Allowance for doubtful accounts $ 2,892 $ 1,135 537 $ 3,490 2019 Allowance for doubtful accounts $ 3,490 $ 396 343 $ 3,543 |
Adjustment for Excess and Obsolete Inventories | Inventory is shown net of adjustment for excess and obsolete inventories of $15.5 million , $15.4 million and $16.4 million at December 31, 2019 , 2018 and 2017 , respectively. (In thousands) Year Description Balance at Beginning of Period Provisions Write-Offs Balance at End of Period 2017 Adjustment for excess and obsolete inventories $ 12,639 $ 7,130 3,322 $ 16,447 2018 Adjustment for excess and obsolete inventories $ 16,447 $ 7,870 8,932 $ 15,385 2019 Adjustment for excess and obsolete inventories $ 15,385 $ 6,046 5,942 $ 15,489 |
Fair Value, Concentration of Risk | The following table presents the geographic distribution of our cash, cash equivalents, and short-term investments as of December 31, 2019 (in millions): Domestic International Total Cash and Cash Equivalents $55.9 $138.7 $194.6 29% 71% Short-term Investments $164.3 $73.7 $238.0 69% 31% Cash, Cash Equivalents and Short-term Investments $220.2 $212.4 $432.6 51% 49% |
Schedule of Product Warranty Liability | The warranty reserve for the years ended December 31, 2019 , 2018 , and 2017 was as follows: (In thousands) 2019 2018 2017 Balance at the beginning of the year $ 3,173 $ 2,846 $ 2,686 Accruals for warranties issued during the year 2,356 3,026 2,644 Accruals related to pre-existing warranties (376 ) 389 274 Settlements made (in cash or in kind) during the year (2,592 ) (3,088 ) (2,758 ) Balance at the end of the year $ 2,561 $ 3,173 $ 2,846 |
Reconciliation of the Denominators used to Calculate Basic and Diluted EPS | The reconciliation of the denominators used to calculate basic EPS and diluted EPS for years ended December 31, 2019 , 2018 , and 2017 are as follows: Years ended December 31, (In thousands) 2019 2018 2017 Weighted average shares outstanding-basic 131,722 131,987 130,300 Plus: Common share equivalents RSUs 1,012 1,287 1,087 Weighted average shares outstanding-diluted 132,734 133,274 131,387 |
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 New Lease Standard 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 Total Assets 245,201 50,332 295,533 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 Total Liabilities and Stockholders' Equity $ 25,913 $ 50,332 $ 76,245 Total Assets less Total Liabilities and Stockholders' Equity $ 219,288 $ — $ 219,288 |
Schedule of Prospective Adoption of New Accounting Pronouncements | The following tables present the amounts by which financial statement line items were affected during 2018 due to the adoption of the new revenue standard. Our historical net cash flows were not impacted by this accounting change. (In thousands) Balance at December 31, 2017 Adjustments Due to New Revenue Standard Balance at January 1, 2018 Balance Sheet Assets Accounts receivable, net 248,825 $ 2,399 251,224 Other long-term assets 32,553 1,065 33,618 Liabilities and Stockholders' Equity Deferred revenue - current 120,638 (9,067 ) 111,571 Deferred revenue - long-term 33,742 (997 ) 32,745 Other current liabilities 23,782 2,100 25,882 Deferred income taxes 33,609 1,771 35,380 Retained earnings 313,241 $ 9,657 322,898 The following tables present the amounts by which financial statement line items were affected in the year ended December 31, 2018 due to the adoption of the new revenue standard. Our historical net cash flows are not impacted by this accounting change. (In thousands) For the year ended December 31, 2018 Increase / (Decrease) Consolidated Statements of Income* Products 7,911 Total net sales 7,911 Operating Expenses (153) Operating Income 8,064 Provision for income taxes 1,299 Net income 6,765 * Excludes line items that were not materially affected by our adoption of the new revenue standard (In thousands) December 31, 2018 Increase / (Decrease) Consolidated Balance Sheet Assets Accounts receivable, net 2,093 Other long-term assets 1,220 Liabilities and Stockholders' Equity Deferred revenue - current (13,807) Deferred revenue - non-current (4,417) Other current liabilities 3,399 Deferred income taxes 1,771 Retained earnings 16,367 * Excludes line items that were not materially affected by our adoption of the new revenue standard |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Total net sales based on the disaggregation criteria described above are as follows: Year Ended December 31, 2019 (In thousands) Net sales: Point-in-Time Over Time Total Americas $ 446,703 $ 91,976 $ 538,679 EMEIA 324,410 79,014 403,424 APAC 376,631 34,481 411,112 Total net sales (1) $ 1,147,744 $ 205,471 $ 1,353,215 (1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations Year Ended December 31, 2018 (In thousands) Net sales: Point-in-Time Over Time Total Americas $ 451,047 $ 87,341 $ 538,388 EMEIA 356,070 76,907 432,977 APAC 355,024 32,743 387,767 Total net sales (1) $ 1,162,141 $ 196,991 $ 1,359,132 (1) Net sales contain hedging gains and losses, which do not represent revenues recognized from customers. See Note 5 -Derivative instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations Total net sales by the major geographic areas in which we operate, are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 (1) Net sales: Americas $ 538,679 $ 538,388 $ 504,626 EMEIA 403,424 432,977 408,625 APAC 411,112 387,767 376,135 Total $ 1,353,215 $ 1,359,132 $ 1,289,386 (1) As discussed in Note 1 - Operations and summary of significant accounting policies of Notes to Consolidated Financial Statements, prior periods have not been adjusted for adoption of ASU 2014-09 |
Changes in Deferred Revenue | Changes in deferred revenue, current and long-term, during the twelve months ended December 31, 2019 were as follows: Amount (In thousands) Deferred Revenue at January 1, 2019 $ 159,924 Deferral of revenue billed in current period, net of recognition 116,842 Recognition of revenue deferred in prior periods (111,417 ) Foreign currency translation impact (424 ) Balance as of December 31, 2019 $ 164,925 |
Short-term investments (Tables)
Short-term investments (Tables) | 12 Months Ended |
Dec. 31, 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: (In thousands) As of December 31, 2019 Adjusted Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Corporate bonds $ 237,423 $ 628 $ (68 ) $ 237,983 Short-term investments $ 237,423 $ 628 $ (68 ) $ 237,983 (In thousands) As of December 31, 2018 Adjusted Cost Gross Gross Unrealized Loss Fair Value Corporate bonds $ 235,045 $ 726 $ (1,298 ) $ 234,473 U.S. treasuries and agencies 36,932 2 (11 ) 36,923 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: (In thousands) As of December 31, 2019 Adjusted Cost Fair Value Due in less than 1 year $ 102,843 $ 103,239 Due in 1 to 5 years 134,580 134,744 Total available-for-sale debt securities $ 237,423 $ 237,983 Due in less than 1 year Adjusted Cost Fair Value Corporate bonds $ 102,843 $ 103,239 Total available-for-sale debt securities $ 102,843 $ 103,239 Due in 1 to 5 years Adjusted Cost Fair Value Corporate bonds 134,580 134,744 Total available-for-sale debt securities $ 134,580 $ 134,744 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 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: (In thousands) Fair Value Measurements at Reporting Date Using Description December 31, 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 $ 87,397 $ 87,397 $ — $ — Corporate notes and bonds 9,962 — 9,962 — Short-term investments available for sale: Corporate bonds 237,983 — 237,983 — Derivatives 8,209 — 8,209 — Total Assets $ 343,551 $ 87,397 $ 256,154 $ — Liabilities Derivatives $ (2,872 ) — (2,872 ) — Total Liabilities $ (2,872 ) $ — $ (2,872 ) $ — (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) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary Of Notional Amounts Of Derivative Instruments | We held forward contracts with the following notional amounts: (In thousands) U.S. Dollar Equivalent As of December 31, 2019 As of December 31, 2018 Chinese yuan $ 32,970 $ 45,520 Euro 130,122 134,654 Japanese yen 53,527 15,141 Hungarian forint 95,228 35,384 British pound 13,988 9,948 Malaysian ringgit 32,725 27,778 Korean won $ 24,728 $ 8,331 Total forward contracts notional amount $ 383,288 $ 276,756 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets and the effect of derivative instruments on our Consolidated Statements of Income. Asset Derivatives December 31, 2019 December 31, 2018 (In thousands) 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 $ 7,039 Prepaid expenses and other current assets $ 7,594 Foreign exchange contracts - LT forwards Other long-term assets 970 Other long-term assets 1,380 Total derivatives designated as hedging instruments $ 8,009 $ 8,974 Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Prepaid expenses and other current assets $ 200 Prepaid expenses and other current assets $ 395 Total derivatives not designated as hedging instruments $ 200 $ 395 Total derivatives $ 8,209 $ 9,369 Liability Derivatives December 31, 2019 December 31, 2018 (In thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (2,089 ) Other current liabilities $ (662 ) Foreign exchange contracts - LT forwards Other long-term liabilities (351 ) Other long-term liabilities (191 ) Total derivatives designated as hedging instruments $ (2,440 ) $ (853 ) Derivatives not designated as hedging instruments Foreign exchange contracts - ST forwards Other current liabilities $ (432 ) Other current liabilities $ (630 ) Total derivatives not designated as hedging instruments $ (432 ) $ (630 ) Total derivatives $ (2,872 ) $ (1,483 ) |
Derivative Instruments, Gain (Loss) | The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the years ended December 31, 2019 and 2018 , respectively: December 31, 2019 (In thousands) 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 $ (1,286 ) Net sales $ 11,709 Foreign exchange contracts - forwards (707 ) Cost of sales (482 ) Foreign exchange contracts - forwards (636 ) Operating expenses (383 ) Total $ (2,629 ) $ 10,844 December 31, 2018 (In thousands) 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 $ 17,422 Net sales $ (210 ) Foreign exchange contracts - forwards (2,591 ) Cost of sales 680 Foreign exchange contracts - forwards (2,306 ) Operating expenses 916 Total $ 12,525 $ 1,386 (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 December 31, 2019 December 31, 2018 Foreign exchange contracts - forwards Net foreign exchange gain/(loss) $ (348 ) $ 343 Total $ (348 ) $ 343 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | Inventories, net at December 31, 2019 and December 31, 2018 consist of the following: (In thousands) December 31, 2019 December 31, 2018 Raw materials $ 110,078 $ 98,346 Work-in-process 10,613 9,306 Finished goods 79,719 86,494 Total $ 200,410 $ 194,146 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at December 31, 2019 and December 31, 2018 , consist of the following: (In thousands) December 31, 2019 December 31, 2018 Land $ 12,366 $ 32,967 Buildings 219,473 218,289 Furniture and equipment 415,216 388,102 647,055 639,358 Accumulated depreciation (403,338 ) (394,157 ) Total, net $ 243,717 $ 245,201 |
Intangible assets and Goodwill
Intangible assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets at December 31, 2019 and December 31, 2018 are as follows: (In thousands) December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Capitalized software development costs $ 132,789 $ (76,910 ) $ 55,879 $ 123,842 $ (49,299 ) $ 74,543 Acquired technology 91,900 (87,917 ) 3,983 92,236 (84,962 ) 7,274 Patents 35,609 (23,993 ) 11,616 34,427 (21,725 ) 12,702 Other 44,490 (31,885 ) 12,605 46,437 (30,173 ) 16,264 Total $ 304,788 $ (220,705 ) $ 84,083 $ 296,942 $ (186,159 ) $ 110,783 |
Estimated Future Amortization Expense Related To Intangible Assets | The estimated future amortization expense related to intangible assets as of December 31, 2019 was as follows: Amount (In thousands) 2020 $ 36,029 2021 25,463 2022 11,079 2023 4,324 2024 1,698 Thereafter 5,490 Total $ 84,083 |
Schedule of Goodwill | A reconciliation of the beginning and ending carrying amounts of goodwill is as follows: Amount (In thousands) Balance as of December 31, 2017 $ 266,783 Acquisitions 2,819 Foreign currency translation impact (5,072 ) Balance as of December 31, 2018 $ 264,530 Foreign currency translation impact (2,288 ) Balance as of December 31, 2019 $ 262,242 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease expense were as follows: Twelve Months Ended (In thousands) December 31, 2019 Operating Lease Cost (a) $ 22,708 (a) includes variable and short-term lease costs Supplemental cash flow information related to operating leases were as follows: Twelve Months Ended (In thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating lease liabilities $ 20,919 Supplemental non-cash information: Operating lease right-of-use assets obtained in exchange for new operating lease obligations $ 18,938 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2019 were as follows: (In thousands) Years ending December 31, Operating Leases 2020 $ 16,104 2021 12,752 2022 8,984 2023 7,415 2024 6,844 Thereafter 14,153 Total future minimum lease payments 66,252 Less imputed interest 12,171 Total $ 54,081 Weighted Average Remaining Lease Term (years) Operating Leases 5.3 Weighted Average Discount Rate Operating Leases 5.3 % |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before income taxes are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Domestic $ 98,476 $ 56,068 $ 46,308 Foreign 82,068 120,385 101,072 Total $ 180,544 $ 176,453 $ 147,380 |
Provision for Income Taxes Charged To Operations | The provision for income taxes charged to operations is as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Current tax expense: U.S. federal $ 18,212 $ 15,898 $ 91,043 State 2,705 2,963 348 Foreign 10,156 14,273 9,352 Total current $ 31,073 $ 33,134 $ 100,743 Deferred tax benefit: U.S. federal $ (9,168 ) $ (10,724 ) $ (4,796 ) State (1,218 ) 1,134 (151 ) Foreign (3,045 ) (2,148 ) (827 ) Total deferred $ (13,431 ) $ (11,738 ) $ (5,774 ) Change in valuation allowance 751 — — Total provision $ 18,393 $ 21,396 $ 94,969 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax liabilities (assets) at December 31, 2019 and 2018 were as follows: (In thousands) December 31, 2019 2018 Capitalized software $ 12,202 $ 16,756 Depreciation and amortization 11,756 12,964 Intangible assets 13,490 13,492 Right of use asset 9,833 — Unrealized gain on derivative instruments 1,176 1,871 Undistributed earnings of foreign subsidiaries 3,482 3,449 Gross deferred tax liabilities 51,939 48,532 Operating loss carryforwards (87,074 ) (83,013 ) Vacation and other accruals (4,979 ) (5,391 ) Inventory valuation and warranty provisions (2,317 ) (2,576 ) Doubtful accounts and sales provisions (860 ) (890 ) Unrealized exchange loss (1,052 ) (1,735 ) Deferred revenue (7,708 ) (8,199 ) Operating lease liabilities (10,426 ) — Accrued expenses (262 ) (848 ) Global intangible low-taxed income (3,444 ) (4,339 ) Stock-based compensation (5,809 ) (5,216 ) Research and development tax credit carryforward — (258 ) Capital loss carryforward — (250 ) Foreign tax credit carryforward (674 ) (42 ) Outside basis difference on asset held for sale (10,762 ) — Cumulative translation adjustment on undistributed earnings (985 ) (912 ) Other (2,072 ) (1,776 ) Gross deferred tax assets (138,424 ) (115,445 ) Valuation allowance 85,516 79,624 Net deferred tax liability $ (969 ) $ 12,711 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income taxes at the U.S. federal statutory income tax rate to our effective tax rate follows: Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21 % 21 % 35 % Foreign taxes greater (less) than federal statutory rate — (4 ) (12 ) Outside basis difference on asset held for sale (6 ) — — Research and development tax credits (3 ) (2 ) (3 ) Enhanced deduction for certain research and development expenses (3 ) (4 ) (3 ) State income taxes, net of federal tax benefit — 2 — Nondeductible officer compensation 1 — — Change in intercompany prepaid tax asset — (1 ) (2 ) Foreign-derived intangible income deduction (3 ) (1 ) — Global intangible low-taxed income inclusion ("GILTI") 1 2 — Amortization of intangible assets — — 1 Remeasurement of U.S. deferred tax balance — — (10 ) Transition tax on deferred foreign income 1 1 54 Global intangible low-taxed income deferred — (2 ) — Foreign tax on undistributed foreign earnings — (1 ) 3 Other 1 1 1 Effective tax rate 10 % 12 % 64 % |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: (In thousands) December 31, 2019 December 31, 2018 Balance at beginning of period $ 9,775 $ 10,158 Additions based on tax positions related to the current year 776 1,486 Reductions for tax positions of prior years — (1,208 ) Additions for tax positions of prior years 390 1,207 Reductions as a result of settlement with taxing authorities (725 ) — Reductions as a result of the closing of open tax periods (3,564 ) (1,868 ) Balance at end of period $ 6,652 $ 9,775 |
Comprehensive income (Tables)
Comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The accumulated other comprehensive income, net of tax, for the years ended December 31, 2019 and 2018 , consisted of the following: December 31, 2019 (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 (3,346 ) 1,141 (13,473 ) (15,678 ) Reclassified from accumulated OCI into income — — 10,844 10,844 Income tax benefit (expense) — 82 613 695 Balance as of December 31, 2019 $ (25,831 ) $ (85 ) $ 4,846 $ (21,070 ) December 31, 2018 (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) (9,768 ) (378 ) 11,139 993 Reclassified from accumulated OCI into income — — 1,386 1,386 Income tax (expense) benefit — (148 ) (2,653 ) (2,801 ) Balance as of December 31, 2018 $ (22,485 ) $ (1,308 ) $ 6,862 $ (16,931 ) |
Authorized shares of common a_2
Authorized shares of common and preferred stock and stock-based compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Restricted Stock Plans | Transactions under our 2010 Plan and 2015 Plan are summarized as follows: RSUs Number of RSUs Weighted average grant price per share Outstanding at December 31, 2016 2,806,201 $ 28.76 Granted 1,205,920 $ 34.57 Earned (666,786 ) $ 28.05 Canceled (192,371 ) $ 29.73 Outstanding at December 31, 2017 3,152,964 $ 31.07 Granted 1,100,067 $ 48.42 Earned (823,816 ) $ 30.78 Canceled (250,679 ) $ 34.13 Outstanding at December 31, 2018 3,178,536 $ 36.91 Granted 1,306,387 $ 46.76 Earned (958,995 ) $ 35.86 Canceled (236,291 ) $ 38.82 Outstanding at December 31, 2019 3,289,637 $ 40.99 |
Schedule Of Employee Stock Purchase Plan | The weighted average purchase price of the shares under this plan was $36.50 per share. The grant date fair value of the purchase rights was estimated using the Black-Scholes model with the following assumptions: 2019 2018 2017 Dividend yield 0.558 % 0.518 % 0.650 % Expected life 3 months 3 months 3 months Expected volatility 34 % 24 % 18 % Risk-free interest rate 2.32 % 1.39 % 0.48 % |
Schedule Of Weighted Average Grant Date Fair Value Of Purchase Rights Granted Under Employee Stock Purchase Plan | Weighted average, grant date fair value of purchase rights granted under the employee stock purchase plan are as follows: Number of Shares Weighted average fair value per share 2017 1,065,154 $ 6.80 2018 872,853 $ 8.97 2019 909,274 $ 9.40 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2019 , for each of the next five years are as follows: Amount (In thousands) 2020 $ 16,104 2021 12,752 2022 8,984 2023 7,415 2024 6,844 Thereafter 14,153 Total $ 66,252 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Resulting From Restructuring Activities | A summary of the charges in the consolidated statement of operations resulting from these restructuring activities is shown below: (In thousands) Years Ended 2019 2018 2017 Cost of sales $ — (150 ) 1,208 Research and development 3,888 1,890 2,990 Sales and marketing 13,300 10,655 10,968 General and administrative 2,877 1,702 1,898 Total restructuring and other related costs $ 20,065 14,097 17,064 |
Schedule of Restructuring Reserve by Type of Cost | A summary of balance sheet activity during 2019 related to the restructuring activity is shown below: Restructuring Liability Balance as of December 31, 2018 $ 3,506 Income statement expense 20,065 Cash payments (14,044 ) Balance as of December 31, 2019 $ 9,527 |
Operations and summary of sig_4
Operations and summary of significant accounting policies - Narrative (Details) | Jan. 15, 2020USD ($)employee | Dec. 31, 2019USD ($)ft²segmentreporting_unitsourceshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jan. 01, 2019USD ($) | Dec. 31, 2016USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Gain on sale of assets | $ 26,842,000 | $ 0 | $ 0 | |||
Number of primary sources of revenue | source | 2 | |||||
Allowances for doubtful accounts | $ 3,543,000 | 3,490,000 | 2,892,000 | $ 1,867,000 | ||
Allowances for sales returns | $ 2,600,000 | 2,300,000 | ||||
Short-term investments-available-for sale, contractual maturity | 60 months | |||||
Short-term investments denominated in Euro | $ 238,000,000 | 271,000,000 | ||||
Net sale of short-term investments | 34,000,000 | |||||
Cumulative net adjustment for excess and obsolete inventories | $ 15,489,000 | 15,385,000 | $ 16,447,000 | $ 12,639,000 | ||
Number of operating segments | segment | 1 | |||||
Number of reporting units | reporting_unit | 1 | |||||
Goodwill impairment | $ 0 | 0 | ||||
Cash, cash equivalents, and short-term investments | 433,000,000 | |||||
Cash and cash equivalents | $ 194,616,000 | $ 259,386,000 | ||||
Maximum maturity period for marketable securities | 5 years | |||||
Maximum weighted average maturity period (in months) | 24 months | |||||
Minimum percentage maturing in 90 days or less | 10.00% | |||||
Maturity period | 90 days | |||||
Percentage of sales to any individual customer to total revenue | 3.00% | 3.00% | 3.00% | |||
Largest trade account receivable from any individual customer | $ 4,600,000 | |||||
Limited warranty on most hardware products (in number of years) | 1 year | |||||
Advertising expense | $ 7,000,000 | $ 8,000,000 | $ 11,000,000 | |||
Anti-dilutive securities excluded from the computation of diluted EPS (in shares) | shares | 94,206 | 11,352 | 32,400 | |||
Comprehensive income | $ 158,012,000 | $ 154,635,000 | $ 70,523,000 | |||
Operating lease liabilities | 54,081,000 | $ 52,000,000 | ||||
Property, plant and equipment, net | 243,717,000 | $ 245,201,000 | ||||
Operating lease right-of-use assets | $ 70,407,000 | 52,000,000 | ||||
Leaseholds and Leasehold Improvements | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, net | 19,000,000 | |||||
Minimum | Buildings | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 20 years | |||||
Minimum | Furniture And Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 3 years | |||||
Minimum | Acquired Software Products | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 3 years | |||||
Minimum | Patents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 10 years | |||||
Maximum | Buildings | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 40 years | |||||
Maximum | Furniture And Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives of assets | 7 years | |||||
Maximum | Acquired Software Products | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 6 years | |||||
Maximum | Patents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 17 years | |||||
Accounting Standards Update 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, net | 226,595,000 | |||||
Operating lease right-of-use assets | 68,938,000 | |||||
Accounting Standards Update 2016-02 | Leaseholds and Leasehold Improvements | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease right-of-use assets | $ 19,000,000 | |||||
Hungarian Citibank | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Short-term investments denominated in Euro | $ 5,000,000 | |||||
Malaysian Citibank | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Short-term investments denominated in Euro | 5,000,000 | |||||
Cash and cash equivalents | $ 13,000,000 | |||||
Malaysian Citibank | Credit Concentration Risk | Cash and Cash Equivalents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 7.00% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Millennium Property | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Gain on sale of assets | $ 26,800,000 | |||||
Area of property | ft² | 136,000 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | AWR Corp. | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Liabilities | $ 21,148,000 | |||||
Subsequent Event | Disposal Group, Held-for-sale, Not Discontinued Operations | AWR Corp. | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash | $ 160,000,000 | |||||
Realized Gain (Loss) on sale of properties | $ 123,000,000 | |||||
Number of employees | employee | 110 |
Operations and summary of sig_5
Operations and summary of significant accounting policies - Disposal Groups, Including Discontinued Operations (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Thousands | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Assets Classified as Held for Sale | $ 3,284 |
AWR Corp. | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | 6,015 |
Accounts receivable, net | 9,544 |
Prepaids and other current assets | 291 |
Property, plant and equipment, net | 268 |
Goodwill | 7,593 |
Intangibles, net | 141 |
Operating lease right-of-use assets | 461 |
Other long-term assets | 119 |
Total Assets | 24,432 |
Accounts payable and accrued liabilities | 1,030 |
Accrued compensation | 1,474 |
Deferred revenue | 17,851 |
Other current liabilities | 503 |
Operating lease liabilities - non-current | 290 |
Total Liabilities | $ 21,148 |
Operations and summary of sig_6
Operations and summary of significant accounting policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Period | $ 3,490 | $ 2,892 | $ 1,867 |
Provisions | 396 | 1,135 | 1,383 |
Write-Offs | 343 | 537 | 358 |
Balance at End of Period | $ 3,543 | $ 3,490 | $ 2,892 |
Operations and summary of sig_7
Operations and summary of significant accounting policies - Adjustment For Excess And Obsolete Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Valuation Reserve [Roll Forward] | |||
Balance at Beginning of Period | $ 15,385 | $ 16,447 | $ 12,639 |
Provisions | 6,046 | 7,870 | 7,130 |
Write-Offs | 5,942 | 8,932 | 3,322 |
Balance at End of Period | $ 15,489 | $ 15,385 | $ 16,447 |
Operations and summary of sig_8
Operations and summary of significant accounting policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 194,616 | $ 259,386 |
Short-term Investments | 238,000 | $ 271,000 |
Cash, Cash Equivalents and Short-term Investments | 433,000 | |
Geographic Concentration Risk | Cash and Cash Equivalents | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | 194,600 | |
Geographic Concentration Risk | Cash and Cash Equivalents | Domestic | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 55,900 | |
Concentration risk percentage | 29.00% | |
Geographic Concentration Risk | Cash and Cash Equivalents | International | ||
Concentration Risk [Line Items] | ||
Cash and cash equivalents | $ 138,700 | |
Concentration risk percentage | 71.00% | |
Geographic Concentration Risk | Short-term Investments | ||
Concentration Risk [Line Items] | ||
Short-term Investments | $ 238,000 | |
Geographic Concentration Risk | Short-term Investments | Domestic | ||
Concentration Risk [Line Items] | ||
Short-term Investments | $ 164,300 | |
Concentration risk percentage | 69.00% | |
Geographic Concentration Risk | Short-term Investments | International | ||
Concentration Risk [Line Items] | ||
Short-term Investments | $ 73,700 | |
Concentration risk percentage | 31.00% | |
Geographic Concentration Risk | Cash And Cash Equivalents and Short-Term Investments | ||
Concentration Risk [Line Items] | ||
Cash, Cash Equivalents and Short-term Investments | $ 432,600 | |
Geographic Concentration Risk | Cash And Cash Equivalents and Short-Term Investments | Domestic | ||
Concentration Risk [Line Items] | ||
Cash, Cash Equivalents and Short-term Investments | $ 220,200 | |
Concentration risk percentage | 51.00% | |
Geographic Concentration Risk | Cash And Cash Equivalents and Short-Term Investments | International | ||
Concentration Risk [Line Items] | ||
Cash, Cash Equivalents and Short-term Investments | $ 212,400 | |
Concentration risk percentage | 49.00% |
Operations and summary of sig_9
Operations and summary of significant accounting policies - Schedule Of Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at the beginning of the year | $ 3,173 | $ 2,846 | $ 2,686 |
Accruals for warranties issued during the year | 2,356 | 3,026 | 2,644 |
Accruals related to pre-existing warranties | (376) | 389 | 274 |
Settlements made (in cash or in kind) during the year | (2,592) | (3,088) | (2,758) |
Balance at the end of the year | $ 2,561 | $ 3,173 | $ 2,846 |
Operations and summary of si_10
Operations and summary of significant accounting policies - Reconciliation Of Denominators Used To Calculate Basic And Diluted EPS (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Weighted average shares outstanding - basic (in shares) | 131,722 | 131,987 | 130,300 |
Plus: Common share equivalents, Stock options and RSUs (in shares) | 1,012 | 1,287 | 1,087 |
Weighted average shares outstanding - diluted (in shares) | 132,734 | 133,274 | 131,387 |
Operations and summary of si_11
Operations and summary of significant accounting policies - Cumulative Effect Adjustment From Adoption of Topic 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||||
Accounts receivable, net | $ 248,872 | $ 242,955 | $ 251,224 | |
Prepaid expenses and other current assets | 65,477 | 54,337 | 33,618 | |
Liabilities and stockholders' equity | ||||
Deferred revenue - current | 131,445 | 127,288 | 111,571 | |
Deferred revenue - non-current | 33,480 | 32,636 | 32,745 | |
Other current liabilities | 25,882 | |||
Deferred income taxes | 14,065 | 25,457 | 35,380 | |
Retained earnings | $ 242,537 | 356,418 | $ 322,898 | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets [Abstract] | ||||
Accounts receivable, net | $ 248,825 | |||
Prepaid expenses and other current assets | 32,553 | |||
Liabilities and stockholders' equity | ||||
Deferred revenue - current | 120,638 | |||
Deferred revenue - non-current | 33,742 | |||
Other current liabilities | 23,782 | |||
Deferred income taxes | 33,609 | |||
Retained earnings | 313,241 | |||
Accounting Standards Update 2014-09 | ||||
Assets [Abstract] | ||||
Accounts receivable, net | 2,093 | |||
Prepaid expenses and other current assets | 1,220 | |||
Liabilities and stockholders' equity | ||||
Deferred revenue - current | (13,807) | |||
Deferred revenue - non-current | (4,417) | |||
Other current liabilities | 3,399 | |||
Deferred income taxes | 1,771 | |||
Retained earnings | $ 16,367 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets [Abstract] | ||||
Accounts receivable, net | 2,399 | |||
Prepaid expenses and other current assets | 1,065 | |||
Liabilities and stockholders' equity | ||||
Deferred revenue - current | (9,067) | |||
Deferred revenue - non-current | (997) | |||
Other current liabilities | 2,100 | |||
Deferred income taxes | 1,771 | |||
Retained earnings | $ 9,657 |
Operations and summary of si_12
Operations and summary of significant accounting policies - Effect of Adoption on Income Statement and Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Assets [Abstract] | ||||
Accounts receivable, net | $ 248,872 | $ 242,955 | $ 251,224 | |
Prepaid expenses and other current assets | 65,477 | 54,337 | 33,618 | |
Liabilities and stockholders' equity | ||||
Deferred revenue - current | 131,445 | 127,288 | 111,571 | |
Deferred revenue - non-current | 33,480 | 32,636 | 32,745 | |
Other current liabilities | 25,882 | |||
Deferred income taxes | 14,065 | 25,457 | 35,380 | |
Retained earnings | 242,537 | 356,418 | $ 322,898 | |
Income Statement [Abstract] | ||||
Total net sales | 1,353,215 | 1,359,132 | $ 1,289,386 | |
Operating Expenses | (841,770) | (852,526) | (815,284) | |
Operating Income | 174,554 | 172,879 | 145,778 | |
Provision for income taxes | 18,393 | 21,396 | 94,969 | |
Net income | 162,151 | 155,057 | 52,411 | |
Product | ||||
Income Statement [Abstract] | ||||
Total net sales | $ 1,215,014 | 1,220,027 | 1,173,476 | |
Accounting Standards Update 2014-09 | ||||
Assets [Abstract] | ||||
Accounts receivable, net | 2,093 | |||
Prepaid expenses and other current assets | 1,220 | |||
Liabilities and stockholders' equity | ||||
Deferred revenue - current | (13,807) | |||
Deferred revenue - non-current | (4,417) | |||
Other current liabilities | 3,399 | |||
Deferred income taxes | 1,771 | |||
Retained earnings | 16,367 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets [Abstract] | ||||
Accounts receivable, net | 2,399 | |||
Prepaid expenses and other current assets | 1,065 | |||
Liabilities and stockholders' equity | ||||
Deferred revenue - current | (9,067) | |||
Deferred revenue - non-current | (997) | |||
Other current liabilities | 2,100 | |||
Deferred income taxes | 1,771 | |||
Retained earnings | $ 9,657 | |||
Accounting Standards Update 2014-09 | Product | ||||
Income Statement [Abstract] | ||||
Total net sales | 7,911 | |||
Operating Expenses | (153) | |||
Operating Income | 8,064 | |||
Provision for income taxes | 1,299 | |||
Net income | $ 6,765 |
Operations and summary of si_13
Operations and summary of significant accounting policies - Schedule of Effect From Topic 842 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, net | $ 243,717 | $ 245,201 | ||
Operating lease right-of-use assets | 70,407 | $ 52,000 | ||
Total Assets | 1,651,889 | 1,671,235 | ||
Operating lease liabilities, current | 13,431 | |||
Operating lease liabilities, non-current | 40,650 | |||
Other current liabilities | $ 25,882 | |||
Total Liabilities and Stockholders' Equity | $ 1,651,889 | 1,671,235 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, net | 226,595 | |||
Operating lease right-of-use assets | 68,938 | |||
Total Assets | 295,533 | |||
Operating lease liabilities, current | 18,597 | |||
Operating lease liabilities, non-current | 33,853 | |||
Other current liabilities | 23,795 | |||
Total Liabilities and Stockholders' Equity | 76,245 | |||
Total Assets less Total Liabilities and Stockholders' Equity | 219,288 | |||
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, net | 245,201 | |||
Total Assets | 245,201 | |||
Other current liabilities | 25,913 | |||
Total Liabilities and Stockholders' Equity | 25,913 | |||
Total Assets less Total Liabilities and Stockholders' Equity | $ 219,288 | |||
Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease liabilities, current | 18,597 | |||
Operating lease liabilities, non-current | 33,853 | |||
Restatement Adjustment | Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, net | (18,606) | |||
Operating lease right-of-use assets | 68,938 | |||
Total Assets | 50,332 | |||
Other current liabilities | (2,118) | |||
Total Liabilities and Stockholders' Equity | 50,332 | |||
Total Assets less Total Liabilities and Stockholders' Equity | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 1,353,215 | $ 1,359,132 | $ 1,289,386 |
Point-in-Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 1,147,744 | 1,162,141 | |
Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 205,471 | 196,991 | |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 538,679 | 538,388 | 504,626 |
Americas | Point-in-Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 446,703 | 451,047 | |
Americas | Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 91,976 | 87,341 | |
EMEIA | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 403,424 | 432,977 | 408,625 |
EMEIA | Point-in-Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 324,410 | 356,070 | |
EMEIA | Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 79,014 | 76,907 | |
APAC | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 411,112 | 387,767 | $ 376,135 |
APAC | Point-in-Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | 376,631 | 355,024 | |
APAC | Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 34,481 | $ 32,743 |
Revenue - Change in Deferred Re
Revenue - Change in Deferred Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Deferred revenue | $ 159,924 |
Deferral of revenue billed in current period, net of recognition | 116,842 |
Recognition of revenue deferred in prior periods | (111,417) |
Foreign currency translation impact | (424) |
Deferred revenue | $ 164,925 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation, amount | $ 60.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, percentage | 49.00% | |
Expected timing of satisfaction | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, percentage | 21.00% | |
Expected timing of satisfaction | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction |
Short-term investments - Unrea
Short-term investments - Unrealized Gains And Losses Related To Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 237,423 | $ 271,977 |
Gross Unrealized Gain | 628 | 728 |
Gross Unrealized Loss | (68) | (1,309) |
Fair Value | 237,983 | 271,396 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 237,423 | 235,045 |
Gross Unrealized Gain | 628 | 726 |
Gross Unrealized Loss | (68) | (1,298) |
Fair Value | $ 237,983 | 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 |
Short-term investments - Contr
Short-term investments - Contractual Maturities Of Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost, Due in less than 1 year | $ 102,843 | |
Fair Value, Due in less than 1 year | 103,239 | |
Adjusted Cost, Due in 1 to 5 years | 134,580 | |
Fair Value, Due in 1 to 5 years | 134,744 | |
Adjusted Cost | 237,423 | $ 271,977 |
Fair Value, Total | 237,983 | 271,396 |
Carrying value of equity method investments | 15,000 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost, Due in less than 1 year | 102,843 | |
Fair Value, Due in less than 1 year | 103,239 | |
Adjusted Cost, Due in 1 to 5 years | 134,580 | |
Fair Value, Due in 1 to 5 years | 134,744 | |
Fair Value, Total | $ 237,983 | 234,473 |
U.S. Treasuries and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 36,932 | |
Fair Value, Total | $ 36,923 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term investments available for sale: | ||
Available-for-sale | $ 237,983 | $ 271,396 |
Total Assets | 343,551 | 352,838 |
Liabilities | ||
Derivatives | (2,872) | (1,483) |
Total Liabilities | $ (2,872) | (1,483) |
Short-term investments-available-for sale, contractual maturity | 60 months | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Short-term investments available for sale: | ||
Total Assets | $ 87,397 | 62,094 |
Liabilities | ||
Derivatives | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Short-term investments available for sale: | ||
Total Assets | 256,154 | 290,744 |
Liabilities | ||
Derivatives | (2,872) | (1,483) |
Total Liabilities | (2,872) | (1,483) |
Significant Unobservable Inputs (Level 3) | ||
Short-term investments available for sale: | ||
Total Assets | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Total Liabilities | 0 | 0 |
Money Market Accounts | ||
Assets | ||
Cash and cash equivalents available for sale | 87,397 | 62,094 |
Money Market Accounts | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Assets | ||
Cash and cash equivalents available for sale | 87,397 | 62,094 |
Money Market Accounts | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash and cash equivalents available for sale | 0 | 0 |
Money Market Accounts | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash and cash equivalents available for sale | 0 | 0 |
Corporate Notes and Bonds | ||
Assets | ||
Cash and cash equivalents available for sale | 9,962 | 9,979 |
Corporate Notes and Bonds | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Assets | ||
Cash and cash equivalents available for sale | 0 | 0 |
Corporate Notes and Bonds | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash and cash equivalents available for sale | 9,962 | 9,979 |
Corporate Notes and Bonds | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash and cash equivalents available for sale | 0 | 0 |
Corporate bonds | ||
Short-term investments available for sale: | ||
Available-for-sale | 237,983 | 234,473 |
Liabilities | ||
Cash equivalents denominated in Euros | 5,000 | |
Corporate bonds | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Short-term investments available for sale: | ||
Available-for-sale | 0 | 0 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Short-term investments available for sale: | ||
Available-for-sale | 237,983 | 234,473 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Short-term investments available for sale: | ||
Available-for-sale | 0 | 0 |
U.S. Treasuries and agencies | ||
Short-term investments available for sale: | ||
Available-for-sale | 36,923 | |
U.S. treasuries and agencies | 36,923 | |
U.S. Treasuries and agencies | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Short-term investments available for sale: | ||
U.S. treasuries and agencies | 0 | |
U.S. Treasuries and agencies | Significant Other Observable Inputs (Level 2) | ||
Short-term investments available for sale: | ||
U.S. treasuries and agencies | 36,923 | |
U.S. Treasuries and agencies | Significant Unobservable Inputs (Level 3) | ||
Short-term investments available for sale: | ||
U.S. treasuries and agencies | 0 | |
Derivative | ||
Short-term investments available for sale: | ||
Derivatives | 8,209 | 9,369 |
Derivative | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Short-term investments available for sale: | ||
Derivatives | 0 | 0 |
Derivative | Significant Other Observable Inputs (Level 2) | ||
Short-term investments available for sale: | ||
Derivatives | 8,209 | 9,369 |
Derivative | Significant Unobservable Inputs (Level 3) | ||
Short-term investments available for sale: | ||
Derivatives | $ 0 | $ 0 |
Derivative instruments and he_3
Derivative instruments and hedging activities - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)country | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |||
Number of countries for which entity has operations | country | 45 | ||
Percentage of sales outside of the Americas during the period | 60.00% | 60.00% | 61.00% |
Period of protection against the reduction in value caused by a fluctuation, minimum | 1 year | ||
Period of protection against the reduction in value caused by a fluctuation, maximum | 3 years | ||
Gains and losses recognized due to hedge ineffectiveness | $ 0 | $ 0 | $ 0 |
Foreign currency forward contracts notional amount | 383,288 | 276,756 | |
Other Derivatives | |||
Derivative [Line Items] | |||
Foreign currency forward contracts notional amount | $ 41,000 | $ 71,000 | |
Maximum | |||
Derivative [Line Items] | |||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 36 months | 24 months | |
Maximum | Forward Contracts | |||
Derivative [Line Items] | |||
Percentage of derivative risk hedged | 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% | ||
Duration of derivative contracts entered into by the entity to hedge risk of loss | 90 days | ||
Net sales | Forward Contracts | |||
Derivative [Line Items] | |||
Estimated amount of reclassification of losses on derivative instruments from AOCI to net sales | $ (6,400) | ||
Cost of sales | |||
Derivative [Line Items] | |||
Estimated amount of reclassification of losses on derivative instruments from AOCI to net sales | (600) | ||
Operating expense | Forward Contracts | |||
Derivative [Line Items] | |||
Estimated amount of reclassification of losses on derivative instruments from AOCI to net sales | $ (800) |
Derivative instruments and he_4
Derivative instruments and hedging activities - Summary Of Notional Amounts Of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 383,288 | $ 276,756 |
Chinese yuan | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 32,970 | 45,520 |
Euro | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 130,122 | 134,654 |
Japanese yen | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 53,527 | 15,141 |
Hungarian forint | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 95,228 | 35,384 |
British pound | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 13,988 | 9,948 |
Malaysian ringgit | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | 32,725 | 27,778 |
Korean won | ||
Derivative [Line Items] | ||
Total forward contracts notional amount | $ 24,728 | $ 8,331 |
Derivative instruments and he_5
Derivative instruments and hedging activities - Fair Values Of Derivative Instruments On Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 8,209 | $ 9,369 |
Derivative liabilities | (2,872) | (1,483) |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 8,009 | 8,974 |
Derivative liabilities | (2,440) | (853) |
Derivatives designated as hedging instruments | Foreign exchange contracts - ST forwards | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7,039 | 7,594 |
Derivatives designated as hedging instruments | Foreign exchange contracts - ST forwards | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (2,089) | (662) |
Derivatives designated as hedging instruments | Foreign exchange contracts - LT forwards | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 970 | 1,380 |
Derivatives designated as hedging instruments | Foreign exchange contracts - LT forwards | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (351) | (191) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 200 | 395 |
Derivative liabilities | (432) | (630) |
Derivatives not designated as hedging instruments | Foreign exchange contracts - ST forwards | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 200 | 395 |
Derivatives not designated as hedging instruments | Foreign exchange contracts - ST forwards | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (432) | $ (630) |
Derivative instruments and he_6
Derivative instruments and hedging activities - Effect Of Derivative Instruments On Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (loss) recognized in OCI on derivative (effective portion) | $ (2,629) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 10,844 | |
Gain or (loss) recognized in OCI on derivative (effective portion) | $ 12,525 | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 1,386 | |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (loss) recognized in OCI on derivative (effective portion) | (1,286) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 11,709 | |
Gain or (loss) recognized in OCI on derivative (effective portion) | 17,422 | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (210) | |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (loss) recognized in OCI on derivative (effective portion) | (707) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (482) | |
Gain or (loss) recognized in OCI on derivative (effective portion) | (2,591) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 680 | |
Derivatives designated as hedging instruments | Foreign exchange contracts - forwards | Operating expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (loss) recognized in OCI on derivative (effective portion) | (636) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (383) | |
Gain or (loss) recognized in OCI on derivative (effective portion) | (2,306) | |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 916 | |
Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in income | (348) | 343 |
Derivatives not designated as hedging instruments | Foreign exchange contracts - forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in income | $ (348) | $ 343 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 110,078 | $ 98,346 |
Work-in-process | 10,613 | 9,306 |
Finished goods | 79,719 | 86,494 |
Total | $ 200,410 | $ 194,146 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 12,366 | $ 32,967 | |
Buildings | 219,473 | 218,289 | |
Furniture and equipment | 415,216 | 388,102 | |
Property and equipment, gross | 647,055 | 639,358 | |
Accumulated depreciation | (403,338) | (394,157) | |
Total, net | 243,717 | 245,201 | |
Depreciation expense | $ 38,000 | $ 37,000 | $ 40,000 |
Intangible assets and Goodwil_2
Intangible assets and Goodwill - Schedule Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 304,788 | $ 296,942 |
Accumulated Amortization | (220,705) | (186,159) |
Net Carrying Amount | 84,083 | 110,783 |
Capitalized Software Development Costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 132,789 | 123,842 |
Accumulated Amortization | (76,910) | (49,299) |
Net Carrying Amount | 55,879 | 74,543 |
Acquired Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 91,900 | 92,236 |
Accumulated Amortization | (87,917) | (84,962) |
Net Carrying Amount | 3,983 | 7,274 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,609 | 34,427 |
Accumulated Amortization | (23,993) | (21,725) |
Net Carrying Amount | 11,616 | 12,702 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44,490 | 46,437 |
Accumulated Amortization | (31,885) | (30,173) |
Net Carrying Amount | $ 12,605 | $ 16,264 |
Intangible assets and Goodwil_3
Intangible assets and Goodwill - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segmentreporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 37,000,000 | $ 35,000,000 | $ 34,000,000 |
Number of operating segments | segment | 1 | ||
Number of reporting units | reporting_unit | 1 | ||
Goodwill impairment | $ 0 | 0 | |
Capitalized Software Development Costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized software development costs | 10,000,000 | 15,000,000 | 43,000,000 |
Capitalized computer software amortization | 28,000,000 | 27,000,000 | 22,000,000 |
Costs related to stock based compensation | $ 500,000 | $ 700,000 | $ 1,800,000 |
Maximum | Capitalized Software Development Costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 6 years | ||
Maximum | Acquired Technology and Other Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 8 years | ||
Maximum | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 17 years | ||
Minimum | Capitalized Software Development Costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Minimum | Acquired Technology and Other Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Minimum | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 10 years | ||
Weighted Average | Capitalized Software Development Costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 2 years 3 months 18 days | ||
Weighted Average | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 4 years 10 months 24 days | ||
Weighted Average | Acquired Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 1 year 6 months | ||
Weighted Average | Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years 1 month 6 days |
Intangible assets and Goodwil_4
Intangible assets and Goodwill - Estimated Future Amortization Expense Related To Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 36,029 | |
2021 | 25,463 | |
2022 | 11,079 | |
2023 | 4,324 | |
2024 | 1,698 | |
Thereafter | 5,490 | |
Net Carrying Amount | $ 84,083 | $ 110,783 |
Intangible assets and Goodwil_5
Intangible assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 264,530 | $ 266,783 |
Foreign currency translation impact | (2,288) | (5,072) |
Acquisitions | 2,819 | |
Balance at end of period | $ 262,242 | $ 264,530 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense and Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating leases, weighted average remaining lease term (in years) | 5 years 3 months 18 days |
Operating lease, termination period (in years) | 1 year |
Operating lease cost | $ 22,708 |
Operating cash flows from operating leases | 20,919 |
Operating lease right-of-use assets obtained in exchange for new operating lease obligations | $ 18,938 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, weighted average remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating leases, weighted average remaining lease term (in years) | 94 years |
Operating lease, renewal term (in years) | 9 years |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 16,104 | |
2021 | 12,752 | |
2022 | 8,984 | |
2023 | 7,415 | |
2024 | 6,844 | |
Thereafter | 14,153 | |
Total future minimum lease payments | 66,252 | |
Less imputed interest | 12,171 | |
Total | $ 54,081 | $ 52,000 |
Operating leases, weighted average remaining lease term (in years) | 5 years 3 months 18 days | |
Operating lease, weighted average discount rate (as a percent) | 5.30% |
Income taxes - Components Of I
Income taxes - Components Of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 98,476 | $ 56,068 | $ 46,308 |
Foreign | 82,068 | 120,385 | 101,072 |
Income before income taxes | $ 180,544 | $ 176,453 | $ 147,380 |
Income taxes - Provision For I
Income taxes - Provision For Income Taxes Charged To Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense: | |||
U.S. federal | $ 18,212 | $ 15,898 | $ 91,043 |
State | 2,705 | 2,963 | 348 |
Foreign | 10,156 | 14,273 | 9,352 |
Total current | 31,073 | 33,134 | 100,743 |
Deferred tax benefit: | |||
U.S. federal | (9,168) | (10,724) | (4,796) |
State | (1,218) | 1,134 | (151) |
Foreign | (3,045) | (2,148) | (827) |
Total deferred | (13,431) | (11,738) | (5,774) |
Change in valuation allowance | 751 | 0 | 0 |
Total provision | $ 18,393 | $ 21,396 | $ 94,969 |
Income taxes - Deferred Tax Li
Income taxes - Deferred Tax Liabilities (Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Capitalized software | $ 12,202 | $ 16,756 |
Depreciation and amortization | 11,756 | 12,964 |
Intangible assets | 13,490 | 13,492 |
Right of use asset | 9,833 | |
Unrealized gain on derivative instruments | 1,176 | 1,871 |
Undistributed earnings of foreign subsidiaries | 3,482 | 3,449 |
Gross deferred tax liabilities | 51,939 | 48,532 |
Deferred Tax Assets, Gross [Abstract] | ||
Operating loss carryforwards | (87,074) | (83,013) |
Vacation and other accruals | (4,979) | (5,391) |
Inventory valuation and warranty provisions | (2,317) | (2,576) |
Doubtful accounts and sales provisions | (860) | (890) |
Unrealized exchange loss | (1,052) | (1,735) |
Deferred revenue | (7,708) | (8,199) |
Operating lease liabilities | (10,426) | |
Accrued expenses | (262) | (848) |
Global intangible low-taxed income | (3,444) | (4,339) |
Stock-based compensation | (5,809) | (5,216) |
Research and development tax credit carryforward | 0 | (258) |
Capital loss carryforward | 0 | (250) |
Foreign tax credit carryforward | (674) | (42) |
Outside basis difference on asset held for sale | (10,762) | 0 |
Cumulative translation adjustment on undistributed earnings | (985) | (912) |
Other | (2,072) | (1,776) |
Gross deferred tax assets | (138,424) | (115,445) |
Valuation allowance | 85,516 | 79,624 |
Net deferred tax liability | $ 12,711 | |
Net deferred tax liability | $ (969) |
Income taxes - Reconciliation
Income taxes - Reconciliation Of Income Taxes To Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
Foreign taxes greater (less) than federal statutory rate | 0.00% | (4.00%) | (12.00%) |
Outside basis difference on asset held for sale | (6.00%) | 0.00% | 0.00% |
Research and development tax credits | (3.00%) | (2.00%) | (3.00%) |
Enhanced deduction for certain research and development expenses | (3.00%) | (4.00%) | (3.00%) |
State income taxes, net of federal tax benefit | 0.00% | 2.00% | 0.00% |
Nondeductible officer compensation | 1.00% | 0.00% | 0.00% |
Change in intercompany prepaid tax asset | 0.00% | (1.00%) | (2.00%) |
Foreign-derived intangible income deduction | (3.00%) | (1.00%) | 0.00% |
Global intangible low-taxed income inclusion (GILTI) | 1.00% | 2.00% | 0.00% |
Amortization of intangible assets | 0.00% | 0.00% | 1.00% |
Remeasurement of U.S. deferred tax balance | 0.00% | 0.00% | (10.00%) |
Transition tax on deferred foreign income | 1.00% | 1.00% | 54.00% |
Global intangible low-taxed income deferred | 0.00% | (2.00%) | 0.00% |
Foreign tax on undistributed foreign earnings | 0.00% | (1.00%) | 3.00% |
Other | 1.00% | 1.00% | 1.00% |
Effective tax rate | 10.00% | 12.00% | 64.00% |
Income taxes - Narrative (Deta
Income taxes - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharessubsidiary | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
Provisional income tax expense (benefit) | $ 69,900 | ||
Provisional income tax expense (benefit), adjustment | $ 4,200 | ||
Provisional income tax expense (benefit), tax for accumulated foreign earnings | $ 2,600 | ||
Provisional tax on foreign earnings | 679,000 | ||
Foreign income tax benefit | (10,156) | (14,273) | $ (9,352) |
Unremitted earnings from foreign subsidiaries | 5,300 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 2,800 | ||
Interest and penalties related to income tax matters | 400 | 600 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, valuation allowance | $ 600 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Number of subsidiaries | subsidiary | 14 | ||
Net operating loss carryforward | $ 981,000 | ||
Malaysia | |||
Operating Loss Carryforwards [Line Items] | |||
Foreign income tax benefit | $ 3,400 | $ 4,000 | |
Income tax benefit of tax holiday on per share basis (in dollars per share) | $ / shares | $ 0.03 | $ 0.03 | |
Expiring 2021 To 2034 | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 700 | ||
Expiring 2020 To 2038 | Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 973,000 | ||
Carried Forward Indefinitely | Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 8,000 |
Income taxes - Reconciliatio_2
Income taxes - Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 9,775 | $ 10,158 |
Additions based on tax positions related to the current year | 776 | 1,486 |
Reductions for tax positions of prior years | 0 | (1,208) |
Additions for tax positions of prior years | 390 | 1,207 |
Reductions as a result of settlement with taxing authorities | (725) | 0 |
Reductions as a result of the closing of open tax periods | (3,564) | (1,868) |
Balance at end of period | $ 6,652 | $ 9,775 |
Comprehensive income (Details)
Comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,238,358 | $ 1,128,021 |
Current-period other comprehensive (loss) income | (15,678) | 993 |
Reclassified from accumulated OCI into income | 10,844 | 1,386 |
Income tax benefit (expense) | 695 | (2,801) |
Ending balance | 1,176,350 | 1,238,358 |
Currency translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (22,485) | (12,717) |
Current-period other comprehensive (loss) income | (3,346) | (9,768) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax benefit (expense) | 0 | 0 |
Ending balance | (25,831) | (22,485) |
Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,308) | (782) |
Current-period other comprehensive (loss) income | 1,141 | (378) |
Reclassified from accumulated OCI into income | 0 | 0 |
Income tax benefit (expense) | 82 | (148) |
Ending balance | (85) | (1,308) |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 6,862 | |
Current-period other comprehensive (loss) income | (13,473) | |
Reclassified from accumulated OCI into income | 10,844 | |
Income tax benefit (expense) | 613 | |
Ending balance | 4,846 | 6,862 |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 6,862 | (3,010) |
Current-period other comprehensive (loss) income | 11,139 | |
Reclassified from accumulated OCI into income | 1,386 | |
Income tax benefit (expense) | (2,653) | |
Ending balance | 6,862 | |
Accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (16,931) | (16,509) |
Ending balance | $ (21,070) | $ (16,931) |
Authorized shares of common a_3
Authorized shares of common and preferred stock and stock-based compensation plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 14, 2019 | Jan. 23, 2019 | May 12, 2015 | May 14, 2013 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 23, 2019 | 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, shares 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 | ||||||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||||||||
Common stock repurchased (in shares) | 4,000,000 | 794,324 | 4,000,000 | 0 | |||||||
Common stock repurchased, average cost per share (in dollars per share) | $ 42.98 | $ 42.83 | |||||||||
Authorized common stock available for repurchase (shares) | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||
Restricted Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares reserved for issuance (in shares) | 3,362,304 | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized stock-based compensation expense | $ 151.6 | $ 151.6 | |||||||||
Unrecognized stock-based compensation expense (in shares) | 3,289,637 | ||||||||||
Unrecognized stock-based compensation expense, weighted average fair value (in dollars per share) | $ 40.99 | ||||||||||
Weighted average period for which unrecognized stock-based compensation expense recognized | 2 years 10 months 20 days | ||||||||||
Incentive Plan (2005) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares reserved for issuance (in shares) | 4,050,000 | ||||||||||
Award vesting period, (in years) | 5 years | ||||||||||
Incentive Plan (2005) | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 3 years | ||||||||||
Incentive Plan (2005) | Maximum | |||||||||||
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 (in shares) | 2,518,416 | 3,000,000 | |||||||||
Award vesting period, (in years) | 5 years | ||||||||||
Incentive Plan (2010) | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 3 years | ||||||||||
Incentive Plan (2010) | Maximum | |||||||||||
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] | |||||||||||
Additional number of shares reserved for issuance (in shares) | 3,000,000 | ||||||||||
Award vesting period, (in years) | 5 years | ||||||||||
Number of shares available for grant (in shares) | 1,920,771 | 1,920,771 | |||||||||
Incentive Plan (2015) | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 10 years | ||||||||||
Employee Stock Purchase Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Additional number of shares reserved for issuance (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% | |||||||||
Shares of common stock reserved for future employee purchases (in shares) | 4,085,770 | 4,085,770 | |||||||||
Shares issued during the period (in shares) | 909,274 | ||||||||||
Weighted average grant date fair value (in dollars per share) | $ 36.50 | ||||||||||
Authorized Preferred Stock And Preferred Stock Purchase Rights Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares reserved for issuance (in shares) | 750,000 | ||||||||||
Three year vesting period | Incentive Plan (2015) | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 3 years | ||||||||||
Four year vesting period | Incentive Plan (2015) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 4 years | ||||||||||
Five year vesting period | Incentive Plan (2015) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 5 years | ||||||||||
Ten year vesting period | Incentive Plan (2015) | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period, (in years) | 10 years |
Authorized shares of common a_4
Authorized shares of common and preferred stock and stock-based compensation plans - Schedule Of Restricted Stock Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of RSUs | |||
Number of RSUs, Granted (in shares) | 909,274 | 872,853 | 1,065,154 |
Restricted Stock Units | |||
Number of RSUs | |||
Number of RSUs, outstanding, beginning balance (in shares) | 3,178,536 | 3,152,964 | 2,806,201 |
Number of RSUs, Granted (in shares) | 1,306,387 | 1,100,067 | 1,205,920 |
Number of RSUs, Earned (in shares) | (958,995) | (823,816) | (666,786) |
Number of RSUs, Canceled (in shares) | (236,291) | (250,679) | (192,371) |
Number of RSUs, outstanding, ending balance (in shares) | 3,289,637 | 3,178,536 | 3,152,964 |
Weighted average grant price per share | |||
Weighted average grant price, outstanding, beginning balance (in dollars per share) | $ 36.91 | $ 31.07 | $ 28.76 |
Weighted average grant price, Granted (in dollars per share) | 46.76 | 48.42 | 34.57 |
Weighted average grant price, Earned (in dollars per share) | 35.86 | 30.78 | 28.05 |
Weighted average grant price, Canceled (in dollars per share) | 38.82 | 34.13 | 29.73 |
Weighted average grant price, outstanding, ending balance (in dollars per share) | $ 40.99 | $ 36.91 | $ 31.07 |
Authorized shares of common a_5
Authorized shares of common and preferred stock and stock-based compensation plans - Assumptions Used To Calculate Weighted Average Purchase Price (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividend expense yield (percentage) | 0.558% | 0.518% | 0.65% |
Expected life (in months) | 3 months | 3 months | 3 months |
Expected volatility (percentage) | 34.00% | 24.00% | 18.00% |
Risk-free interest rate (percentage) | 2.32% | 1.39% | 0.48% |
Authorized shares of common a_6
Authorized shares of common and preferred stock and stock-based compensation plans - Schedule Of Weighted Average Grant Date Fair Value Of Purchase Rights Granted Under Employee Stock Purchase Plan (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares | 909,274 | 872,853 | 1,065,154 |
Weighted average fair value per share (in dollars per share) | $ 9.40 | $ 8.97 | $ 6.80 |
Employee retirement plan (Detai
Employee retirement plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |||
Number of days of continuous service for eligibility to participate in defined contribution benefit plan | 30 days | ||
Maximum contribution percentage of employee salary | 15.00% | ||
Percentage of employee contribution matched by Board of Directors | 50.00% | ||
Maximum percentage of each participant’s compensation | 8.00% | 8.00% | 8.00% |
Employee eligibility period for matching contribution (years) | 1 year | ||
Company contributions | $ 9.6 | $ 9.4 | $ 9.5 |
Segment information (Details)
Segment information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Total sales outside of U.S. | $ 1,353,215 | $ 1,359,132 | $ 1,289,386 |
Property and equipment, net | 243,717 | 245,201 | |
Outside The United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales outside of U.S. | 850,000 | 859,000 | 816,000 |
Property and equipment, net | $ 130,000 | $ 132,000 | $ 132,000 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 27, 2018 | Apr. 26, 2018 | Oct. 29, 2015 | May 09, 2013 | |
Line of Credit Facility [Line Items] | ||||||
Unsecured revolving line of credit | $ 50,000,000 | |||||
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% | |||||
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 | ||||
Revolving Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Outstanding borrowing on line of credit | $ 0 | |||||
Interest expense | $ 0 | $ 0 | ||||
Weighted average interest rate | 3.00% | 3.60% | ||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Quarterly commitment fee | 0.175% | |||||
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 | 1.125% | |||||
London Interbank Offered Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate spread | 2.00% |
Commitments and Contingencies
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 16,104 |
2021 | 12,752 |
2022 | 8,984 |
2023 | 7,415 |
2024 | 6,844 |
Thereafter | 14,153 |
Total | $ 66,252 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 23 | ||
Rent expense | $ 21 | $ 20 | |
Non-cancelable purchase commitments | $ 6.5 |
Restructuring - Narrative (Det
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Percentage of headcount reduction | 3.00% | |||
Restructuring charges | $ 20,065 | $ 14,097 | $ 17,064 | |
Restructuring reserve | $ 9,527 | $ 3,506 | $ 9,527 |
Restructuring - Summary of Cha
Restructuring - Summary of Charges in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 20,065 | $ 14,097 | $ 17,064 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | (150) | 1,208 |
Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,888 | 1,890 | 2,990 |
Sales and marketing | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 13,300 | 10,655 | 10,968 |
General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 2,877 | $ 1,702 | $ 1,898 |
Restructuring - Summary of Bal
Restructuring - Summary of Balance Sheet Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | $ 3,506 | ||
Income statement expense | 20,065 | $ 14,097 | $ 17,064 |
Cash payments | (14,044) | ||
Restructuring reserve | $ 9,527 | $ 3,506 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2020 | Jan. 29, 2020 |
Subsequent Event [Line Items] | ||
Dividend payable, amount per share (in dollars per share) | $ 0.26 | |
AWR Corp. | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of business | $ 160 | |
Realized Gain (Loss) on sale of properties | $ 123 |
Uncategorized Items - nati-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 9,657,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 9,657,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,821,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (5,821,000) |