Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended April 2, 2023 or |
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address, including zip code, and telephone number, including area code, of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | No | ☐ |
☒ | No | ☐ |
☒ | Accelerated filer | ☐ | |||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||||||||
Emerging growth company | |||||||||||||||||||||||
Yes | No | ☒ |
PART I | FINANCIAL INFORMATION | |||||||
Consolidated Statements of Comprehensive Income for the three-month periods ended April 2, 2023 and April 3, 2022 | ||||||||
Consolidated Statements of Cash Flows for the three-month periods ended April 2, 2023 and April 3, 2022 | ||||||||
Consolidated Statements of Shareholders’ Equity for the three-month periods ended April 2, 2023 and April 3, 2022 | ||||||||
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
(unaudited) | |||||||||||
Revenue | $ | $ | |||||||||
Cost of revenue | |||||||||||
Gross margin | |||||||||||
Research, development, and engineering expenses | |||||||||||
Selling, general, and administrative expenses | |||||||||||
Operating income | |||||||||||
Foreign currency gain (loss) | ( | ||||||||||
Investment income | |||||||||||
Other income (expense) | ( | ||||||||||
Income before income tax expense | |||||||||||
Income tax expense | |||||||||||
Net income | $ | $ | |||||||||
Net income per weighted-average common and common-equivalent share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted-average common and common-equivalent shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Cash dividends per common share | $ | $ |
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
(unaudited) | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Available-for-sale investments: | |||||||||||
Net unrealized gain (loss), net of tax of $ | ( | ||||||||||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations | |||||||||||
Net change related to available-for-sale investments | ( | ||||||||||
Foreign currency translation adjustments: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Net change related to foreign currency translation adjustments | ( | ( | |||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||
Total comprehensive income | $ | $ |
April 2, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Current investments, amortized cost of $ | |||||||||||
Accounts receivable, allowance for credit losses of $ | |||||||||||
Unbilled revenue | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Non-current investments, amortized cost of $ | |||||||||||
Property, plant, and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Accrued income taxes | |||||||||||
Deferred revenue and customer deposits | |||||||||||
Operating lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Reserve for income taxes | |||||||||||
Non-current accrued income taxes | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
(unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation expense | |||||||||||
Depreciation of property, plant, and equipment | |||||||||||
Amortization of intangible assets | |||||||||||
Excess and obsolete inventory charges | |||||||||||
Amortization of discounts or premiums on investments | |||||||||||
Realized loss (gain) on sale of investments | |||||||||||
Change in deferred income taxes | ( | ( | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Unbilled revenue | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other current assets | |||||||||||
Accounts payable | ( | ||||||||||
Accrued expenses | ( | ( | |||||||||
Accrued income taxes | |||||||||||
Deferred revenue and customer deposits | |||||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | ( | ( | |||||||||
Maturities and sales of investments | |||||||||||
Purchases of property, plant, and equipment | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net payments from issuance of common stock under stock plans | ( | ||||||||||
Repurchase of common stock | ( | ( | |||||||||
Payment of dividends | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ( | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net issuance of common stock under stock plans | ( | — | — | ( | |||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Payment of dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale investments, net of tax of $ | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance as of April 2, 2023 (unaudited) | $ | $ | $ | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net issuance of common stock under stock plans | — | — | |||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Payment of dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale investments, net of tax of $( | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance as of April 3, 2022 (unaudited) | $ | $ | $ | $ | ( | $ |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||
Money market instruments | $ | $ | $ | ||||||||||||||
Corporate bonds | |||||||||||||||||
Treasury bills | |||||||||||||||||
Asset-backed securities | |||||||||||||||||
Agency bonds | |||||||||||||||||
Sovereign bonds | |||||||||||||||||
Municipal bonds | |||||||||||||||||
Economic hedge forward contracts | |||||||||||||||||
Liabilities: | |||||||||||||||||
Economic hedge forward contracts | |||||||||||||||||
April 2, 2023 | December 31, 2022 | ||||||||||
Cash | $ | $ | |||||||||
Money market instruments | |||||||||||
Cash and cash equivalents | |||||||||||
Corporate bonds | |||||||||||
Asset-backed securities | |||||||||||
Agency bonds | |||||||||||
Treasury bills | |||||||||||
Municipal bonds | |||||||||||
Current investments | |||||||||||
Corporate bonds | |||||||||||
Treasury bills | |||||||||||
Asset-backed securities | |||||||||||
Sovereign bonds | |||||||||||
Non-current investments | |||||||||||
$ | $ |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Current: | |||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | ||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Agency bonds | ( | ||||||||||||||||||||||
Treasury bills | ( | ||||||||||||||||||||||
Municipal bonds | ( | ||||||||||||||||||||||
Non-current: | |||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||
Treasury bills | ( | ||||||||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||||||||
Sovereign bonds | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
Unrealized Loss Position For: | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Asset-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Agency bonds | ( | ( | |||||||||||||||||||||||||||||||||
Treasury bills | ( | ( | ( | ||||||||||||||||||||||||||||||||
Sovereign bonds | ( | ( | |||||||||||||||||||||||||||||||||
Municipal bonds | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
<1 year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | 5-8 Years | Total | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Treasury bills | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||||||||||||||||||||
Agency bonds | |||||||||||||||||||||||||||||||||||||||||
Sovereign bonds | |||||||||||||||||||||||||||||||||||||||||
Municipal bonds | |||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ |
April 2, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
$ | $ |
Year Ended December 31, | Amount | |||||||
Remainder of fiscal 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
$ |
Balance as of December 31, 2022 | $ | |||||||
Foreign exchange rate changes | ( | |||||||
Balance as of April 2, 2023 | $ |
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||
Completed technologies | $ | $ | ( | $ | |||||||||||||
Customer relationships | ( | ||||||||||||||||
Non-compete agreements | ( | ||||||||||||||||
Balance as of April 2, 2023 | $ | $ | ( | $ | |||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||
Completed technologies | $ | $ | ( | $ | |||||||||||||
Customer relationships | ( | ||||||||||||||||
Non-compete agreements | ( | ||||||||||||||||
Balance as of December 31, 2022 | $ | $ | ( | $ |
Year Ended December 31, | Amount | |||||||
Remainder of fiscal 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
$ |
Balance as of December 31, 2022 | $ | ||||
Provisions for warranties issued during the period | |||||
Fulfillment of warranty obligations | ( | ||||
Balance as of April 2, 2023 | $ |
April 2, 2023 | December 31, 2022 | ||||||||||||||||||||||
Currency | Notional Value | USD Equivalent | Notional Value | USD Equivalent | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||
Euro | $ | $ | |||||||||||||||||||||
Mexican Peso | |||||||||||||||||||||||
Hungarian Forint | |||||||||||||||||||||||
Japanese Yen | |||||||||||||||||||||||
British Pound | |||||||||||||||||||||||
Canadian Dollar | |||||||||||||||||||||||
Chinese Renminbi | |||||||||||||||||||||||
Swiss Franc |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | ||||||||||||||||||||||||||||||||
Sheet Location | April 2, 2023 | December 31, 2022 | Sheet Location | April 2, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
Economic hedge forward contracts | Prepaid expenses and other current assets | $ | $ | Accrued expenses | $ | $ |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||
April 2, 2023 | December 31, 2022 | April 2, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Gross amounts of recognized assets | $ | $ | Gross amounts of recognized liabilities | $ | $ | |||||||||||||||||||||||||||
Gross amounts offset | Gross amounts offset | |||||||||||||||||||||||||||||||
Net amount of assets presented | $ | $ | Net amount of liabilities presented | $ | $ |
Location in Financial Statements | Three-months Ended | ||||||||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||
Gains (losses) recognized in current operations | Foreign currency gain (loss) | $ | ( | $ |
Three-months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
Americas | $ | $ | ||||||||||||
Europe | ||||||||||||||
Greater China | ||||||||||||||
Other Asia | ||||||||||||||
$ | $ |
Three-months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
Standard products and services | $ | $ | ||||||||||||
Application-specific customer solutions | ||||||||||||||
$ | $ |
Balance as of December 31, 2022 | $ | ||||
Increases to the allowance for credit losses | |||||
Write-offs, net of recoveries | ( | ||||
Foreign exchange rate changes | ( | ||||
Balance as of April 2, 2023 | $ |
Balance as of December 31, 2022 | $ | ||||
Deferral of revenue billed in the current period, net of recognition | |||||
Recognition of revenue deferred in prior period | ( | ||||
Returned customer deposit | ( | ||||
Foreign exchange rate changes | |||||
Balance as of April 2, 2023 | $ |
Shares (in thousands) | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Outstanding as of December 31, 2022 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited or expired | ( | ||||||||||||||||||||||
Outstanding as of April 2, 2023 | $ | $ | |||||||||||||||||||||
Exercisable as of April 2, 2023 | $ | $ | |||||||||||||||||||||
Options vested or expected to vest as of April 2, 2023 (1) | $ | $ |
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
Risk-free rate | % | % | |||||||||
Expected dividend yield | % | % | |||||||||
Expected volatility | % | % | |||||||||
Expected term (in years) |
Shares (in thousands) | Weighted-Average Grant Date Fair Value | ||||||||||
Nonvested as of December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited or expired | ( | ||||||||||
Nonvested as of April 2, 2023 | $ |
Shares (in thousands) | Weighted-Average Grant Date Fair Value | ||||||||||
Nonvested as of December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Forfeited or expired | |||||||||||
Nonvested as of April 2, 2023 | $ |
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
Cost of revenue | $ | $ | |||||||||
Research, development, and engineering | |||||||||||
Selling, general, and administrative | |||||||||||
$ | $ |
Three-months Ended | |||||||||||
April 2, 2023 | April 3, 2022 | ||||||||||
Basic weighted-average common shares outstanding | |||||||||||
Effect of dilutive equity awards | |||||||||||
Weighted-average common and common-equivalent shares outstanding | |||||||||||
One-time Termination Benefits | Contract Termination Costs | Total | |||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Foreign exchange rate changes | |||||||||||||||||
Balance as of April 2, 2023 | $ | $ | $ | ||||||||||||||
Three-months Ended | ||||||||||||||||||||||||||
April 2, 2023 | April 3, 2022 | $ Change | % Change | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Americas | $ | 80,442 | $ | 126,658 | $ | (46,216) | (36)% | |||||||||||||||||||
Percentage of total revenue | 40 | % | 45 | % | ||||||||||||||||||||||
Europe | $ | 59,842 | $ | 62,792 | $ | (2,950) | (5)% | |||||||||||||||||||
Percentage of total revenue | 30 | % | 22 | % | ||||||||||||||||||||||
Greater China | $ | 33,172 | $ | 48,406 | $ | (15,234) | (31)% | |||||||||||||||||||
Percentage of total revenue | 16 | % | 17 | % | ||||||||||||||||||||||
Other Asia | $ | 27,668 | $ | 44,551 | $ | (16,883) | (38)% | |||||||||||||||||||
Percentage of total revenue | 14 | % | 16 | % | ||||||||||||||||||||||
Total revenue | $ | 201,124 | $ | 282,407 | $ | (81,283) | (29)% |
Three-months Ended | ||||||||||||||||||||||||||
April 2, 2023 | April 3, 2022 | $ Change | % Change | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Gross margin | $ | 143,740 | $ | 203,617 | $ | (59,877) | (29) | % | ||||||||||||||||||
Percentage of total revenue | 71 | % | 72 | % |
Three-months Ended | ||||||||||||||||||||||||||
April 2, 2023 | April 3, 2022 | $ Change | % Change | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Research, development, and engineering expenses | $ | 38,542 | $ | 36,054 | $ | 2,488 | 7 | % | ||||||||||||||||||
Percentage of total revenue | 19 | % | 13 | % | ||||||||||||||||||||||
Selling, general, and administrative expenses | $ | 83,037 | $ | 80,835 | $ | 2,202 | 3 | % | ||||||||||||||||||
Percentage of total revenue | 41 | % | 29 | % | ||||||||||||||||||||||
Total operating expenses | $ | 121,579 | $ | 116,889 | $ | 4,690 | 4 | % | ||||||||||||||||||
Percentage of total revenue | 60 | % | 41 | % |
Three-months Ended | ||||||||||||||||||||||||||
April 2, 2023 | April 3, 2022 | $ Change | % Change | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Foreign currency gain (loss) | $ | 394 | $ | (444) | $ | 838 | (189) | % | ||||||||||||||||||
Investment income | $ | 3,587 | $ | 1,468 | $ | 2,119 | 144 | % | ||||||||||||||||||
Other income (expense) | $ | 73 | $ | (48) | $ | 121 | (252) | % | ||||||||||||||||||
Total non-operating income (expense) | $ | 4,054 | $ | 976 | $ | 3,078 | 315 | % |
Three-months Ended | ||||||||||||||||||||||||||
April 2, 2023 | April 3, 2022 | $ Change | % Change | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Income before income tax expense | $ | 26,215 | $ | 87,704 | $(61,489) | (70)% | ||||||||||||||||||||
Income tax expense | $ | 600 | $ | 20,371 | $(19,771) | (97)% | ||||||||||||||||||||
Effective income tax rate | 2 | % | 23 | % |
Three-months Ended | ||||||||||||||
April 2, 2023 | April 3, 2022 | |||||||||||||
(unaudited) | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 27,553 | $ | 49,517 | ||||||||||
Net cash provided by (used in) investing activities | $ | (5,788) | $ | 69,236 | ||||||||||
Net cash provided by (used in) financing activities | $ | (39,324) | $ | (138,114) |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||
January 1, 2023 - January 29, 2023 | 126,000 | $ | 51.15 | 126,000 | $ | 406,238,000 | |||||||||||||||||
January 30, 2023 - February 26, 2023 | 144,000 | 53.22 | 144,000 | 398,582,000 | |||||||||||||||||||
February 27, 2023 - April 2, 2023 | 209,000 | 48.09 | 209,000 | 388,508,000 | |||||||||||||||||||
Total | 479,000 | $ | 50.43 | 479,000 | $ | 388,508,000 |
Exhibit Number | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document* | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) | |||||||
* | Filed herewith | |||||||
** | Furnished herewith |
Date: | May 4, 2023 | COGNEX CORPORATION | ||||||||||||
By: | /s/ Robert J. Willett | |||||||||||||
Robert J. Willett | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
By: | /s/ Paul D. Todgham | |||||||||||||
Paul D. Todgham | ||||||||||||||
Senior Vice President of Finance and Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
Date: | May 4, 2023 | By: | /s/ Robert J. Willett | ||||||||||||||
Robert J. Willett | |||||||||||||||||
President and Chief Executive Officer | |||||||||||||||||
(Principal Executive Officer) |
Date: | May 4, 2023 | By: | /s/ Paul D. Todgham | ||||||||||||||
Paul D. Todgham | |||||||||||||||||
Senior Vice President of Finance and Chief Financial Officer | |||||||||||||||||
(Principal Financial Officer) |
Date: | May 4, 2023 | By: | /s/ Robert J. Willett | |||||||||||
Robert J. Willett | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
* | This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
Date: | May 4, 2023 | By: | /s/ Paul D. Todgham | |||||||||||
Paul D. Todgham | ||||||||||||||
Senior Vice President of Finance and Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
* | This certification shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Apr. 02, 2023 |
Apr. 03, 2022 |
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Income Statement [Abstract] | ||
Revenue | $ 201,124 | $ 282,407 |
Cost of revenue | 57,384 | 78,790 |
Gross margin | 143,740 | 203,617 |
Research, development, and engineering expenses | 38,542 | 36,054 |
Selling, general, and administrative expenses | 83,037 | 80,835 |
Operating income | 22,161 | 86,728 |
Foreign currency gain (loss) | 394 | (444) |
Investment income | 3,587 | 1,468 |
Other income (expense) | 73 | (48) |
Income before income tax expense | 26,215 | 87,704 |
Income tax expense | 600 | 20,371 |
Net income | $ 25,615 | $ 67,333 |
Net income per weighted-average common and common-equivalent share: | ||
Basic (usd per share) | $ 0.15 | $ 0.39 |
Diluted (usd per share) | $ 0.15 | $ 0.38 |
Weighted-average common and common-equivalent shares outstanding: | ||
Basic (shares) | 172,624 | 174,146 |
Diluted (shares) | 173,903 | 176,668 |
Cash dividends per common share (usd per share) | $ 0.070 | $ 0.065 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 25,615 | $ 67,333 |
Available-for-sale investments: | ||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 5,426 | (13,548) |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations | 36 | |
Net change related to available-for-sale investments | 5,426 | (13,512) |
Foreign currency translation adjustments: | ||
Foreign currency translation adjustments | (359) | (2,111) |
Net change related to foreign currency translation adjustments | (359) | (2,111) |
Other comprehensive income (loss), net of tax | 5,067 | (15,623) |
Total comprehensive income | $ 30,682 | $ 51,710 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Tax effect of unrealized gain (loss) on available-for-sale investments | $ 1,858 | $ (4,036) |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Amortized cost of current investments | $ 220,943 | $ 223,545 |
Allowance for credit losses | 0 | 0 |
Allowance for credit losses, current | 1,001 | 730 |
Amortized cost of non-current investments | 478,329 | 476,148 |
Allowance for credit losses, non-current | $ 0 | $ 0 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 400,000 | 400,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.002 | $ 0.002 |
Common stock shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 172,601,000 | 172,631,000 |
Common stock, shares outstanding (in shares) | 172,601,000 | 172,631,000 |
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per common share (usd per share) | $ 0.070 | $ 0.065 |
Tax effect of unrealized gain (loss) on available-for-sale investments | $ 1,858 | $ (4,036) |
Summary of Significant Accounting Policies |
3 Months Ended |
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Apr. 02, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a full description of other significant accounting policies. In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, and financial statement reclassifications necessary to present fairly the Company’s financial position as of April 2, 2023, and the results of its operations for the three-month periods ended April 2, 2023 and April 3, 2022, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 2, 2023 are not necessarily indicative of the results to be expected for the full year.
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New Pronouncements |
3 Months Ended |
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Apr. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" The amendments in these ASUs apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Together, the ASUs provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 2, 2023 (in thousands):
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. The Company’s debt securities and forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets, such as property, plant and equipment, operating lease assets, goodwill, and intangible assets, are required to be measured at fair value only when an impairment loss is recognized. The Company did not record impairment charges related to non-financial assets during the three-month periods ended April 2, 2023 or April 3, 2022.
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Cash, Cash Equivalents, and Investments |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands):
Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing; treasury bills consist of debt securities issued by the U.S. government; municipal bonds consist of debt securities issued by state and local government entities; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of April 2, 2023 and December 31, 2022 were denominated in U.S. Dollars. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $4,559,000 and $3,620,000 as of April 2, 2023 and December 31, 2022, respectively. The following table summarizes the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 2, 2023 (in thousands):
Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of April 2, 2023 or December 31, 2022. There was no activity recorded in the allowance for credit losses during the three-month periods ended April 2, 2023 or April 3, 2022. Management currently intends to hold these securities to full value recovery at maturity. The Company recorded no gross realized gains or gross realized losses on the sale of debt securities for the three-month period ended April 2, 2023. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $118,000 and $154,000, respectively, for the three-month period ended April 3, 2022. Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive loss. The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
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Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following (in thousands):
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Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of April 2, 2023, there was one option to terminate and eighteen options to extend that were accounted for in the determination of the lease term for outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of April 2, 2023. The total operating lease expense for the three-month periods ended April 2, 2023 and April 3, 2022 were $2,392,000 and $2,229,000, respectively. The total operating lease cash payments for the three-month periods ended April 2, 2023 and April 3, 2022 were $2,404,000 and $2,079,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability for the three-month periods ended April 2, 2023 and April 3, 2022 was $24,000 and $38,000, respectively. Future operating lease cash payments are as follows (in thousands):
The discounted present value of the future lease cash payments resulted in a total lease liability of $39,566,000 and $39,752,000 as of April 2, 2023 and December 31, 2022, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of April 2, 2023. In December 2021, the Company entered into a lease for a 65,000 square-foot building in Southborough, Massachusetts for a term of ten years to serve as a new distribution center for customers in the Americas. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original ten-year term. This lease commenced during the first quarter of 2022, and therefore the Company recorded approximately $9,271,000 within "Operating lease assets" and "Operating lease liabilities" on the Consolidated Balance Sheets on the commencement date. The weighted-average discount rate was 3.3% for the leases outstanding as of both April 2, 2023 and December 31, 2022. The weighted-average remaining lease term was 7.6 and 7.8 years for the leases outstanding as of April 2, 2023 and December 31, 2022, respectively.
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Goodwill |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The changes in the carrying value of goodwill were as follows (in thousands):
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Amortized intangible assets consisted of the following (in thousands):
As of April 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands):
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Warranty Obligations |
3 Months Ended | ||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||
Warranty Obligations | Warranty Obligations The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or changes in circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets. The changes in the warranty obligation were as follows (in thousands):
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Commitment and Contingencies |
3 Months Ended |
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Apr. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of April 2, 2023, the Company had outstanding purchase orders totaling $47,486,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months. A significant portion of the Company's outstanding inventory purchase orders as of April 2, 2023, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss. Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed approximately three months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment. The Company had the following outstanding forward contracts (in thousands):
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):
The following table summarizes disaggregated revenue information by revenue type (in thousands):
Costs to Fulfill a Contract Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $20,219,000 and $14,578,000 as of April 2, 2023 and December 31, 2022, respectively. Accounts Receivable, Contract Assets, and Contract Liabilities Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition. The following table summarizes the allowance for credit losses activity for the three-month period ended April 2, 2023 (in thousands):
The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 2, 2023 (in thousands):
As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year.
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Stock-Based Compensation Expense |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Share-based Payments | Stock-Based Compensation Expense Stock Plans The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). As of April 2, 2023, the Company had 12,116,000 shares available for grant under its stock plans. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over or five years based upon continuous service and expire ten years from the grant date. RSUs generally vest upon or four years of continuous employment or incrementally over such or four-year periods. PRSUs generally vest upon three years of continuous employment and achievement of performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Participants are not entitled to dividends on stock options, RSUs, or PRSUs. Stock Options The following table summarizes the Company’s stock option activity for the three-month period ended April 2, 2023:
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
Risk-free rate The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option. Expected dividend yield Generally, the current dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date. Expected volatility The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock. Expected term The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time. The weighted-average grant-date fair values of stock options granted during the three-month periods ended April 2, 2023 and April 3, 2022 were $17.79 and $22.45, respectively. The total intrinsic values of stock options exercised for the three-month periods ended April 2, 2023 and April 3, 2022 were $3,439,000 and $2,615,000, respectively. The total fair values of stock options vested for the three-month periods ended April 2, 2023 and April 3, 2022 were $31,181,000 and $25,535,000, respectively. Restricted Stock Units (RSUs) The following table summarizes the Company's RSUs activity for the three-month period ended April 2, 2023:
The fair value of RSUs is determined based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. The weighted-average grant-date fair values of RSUs granted during the three-month periods ended April 2, 2023 and April 3, 2022 were $46.61 and $63.96, respectively. There were 453,000 and 54,000 RSUs that vested during the three-month periods ended April 2, 2023 and April 3, 2022, respectively. Performance Restricted Stock Units (PRSUs) The following table summarizes the Company's PRSUs activity for the three-month period ended April 2, 2023:
The fair value of PRSUs is calculated using the Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. There were 46,000 and 33,000 PRSUs granted during the three-month periods ended April 2, 2023 and April 3, 2022, respectively. No PRSUs vested during the three-month periods ended April 2, 2023 and April 3, 2022. Stock-Based Compensation Expense The Company stratifies its employee population into three groups: one consisting of the CEO, one consisting of senior management, and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 0% to all stock-based awards for the CEO, 8% to all stock-based awards for senior management, and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. This resulted in a decrease to compensation expense of $234,000 in 2023 and an increase to compensation expense of $1,536,000 in 2022. As of April 2, 2023, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $86,841,000, which is expected to be recognized over a weighted-average period of 2.4 years. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 2, 2023 were $16,579,000 and $2,308,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 3, 2022 were $15,056,000 and $2,319,000, respectively. No compensation expense was capitalized as of April 2, 2023 or December 31, 2022. The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
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Stock Repurchase Program |
3 Months Ended |
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Apr. 02, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramOn March 12, 2020, the Company's Board of Directors authorized the repurchase of $200,000,000 of the Company's common stock. Under this March 2020 program, in addition to repurchases made in prior years, the Company repurchased 1,677,000 shares at a cost of $117,000,000 during the three-month period ended April 3, 2022, which completed purchases under this program. On March 3, 2022, the Company's Board of Directors authorized the repurchase of an additional $500,000,000 of the Company's common stock. Under this March 2022 program, the Company repurchased 202,000 shares at a cost of $13,405,000 during the three-month period ended April 3, 2022. Under this same March 2022 program, in addition to purchases made during the prior year, the Company repurchased 479,000 shares at a total cost of $24,178,000 during the three-month period ended April 2, 2023 leaving a remaining balance of $388,508,000 as of April 2, 2023. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions. |
Income Taxes |
3 Months Ended |
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Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 2% for the three-month period ended April 2, 2023, and 23% for the three-month period ended April 3, 2022. The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, and 22% in Korea compared to the U.S. federal statutory corporate tax rate of 21%. These foreign tax rate differences resulted in a net decrease to the effective tax rate for both the three-month periods ended April 2, 2023 and April 3, 2022. The Company recorded a net discrete tax benefit totaling $3,594,000 for the three-month period ended April 2, 2023, and a net discrete tax expense totaling $6,338,000 for the same period in 2022. Discrete tax items for the three-month period ended April 2, 2023 included (1) an increase in tax expense of $1,068,000 related to stock-based compensation; (2) a decrease in tax expense of $2,292,000 for releasing tax reserves on state tax credits; (3) a decrease in tax expense of $2,198,000 for adjustments to certain deferred tax assets; and (4) a decrease in tax expense of $172,000 for return-to-provision adjustments. Discrete tax items for the three-month period ended April 3, 2022 included (1) an increase in tax expense of $1,417,000 arising from an Internal Revenue Service (IRS) audit; (2) an increase in tax expense of $1,734,000 to establish a full valuation allowance against deferred tax assets related to foreign tax credits; and (3) an increase in tax expense of $3,187,000 consisting primarily of transfer pricing and return-to-provision adjustments. Excluding the impact of these discrete tax items, the Company’s effective tax rate was 16% for both the three-month periods ended April 2, 2023 and April 3, 2022. The Company’s reserve for income taxes, including gross interest and penalties, was $20,030,000 as of April 2, 2023, which was classified as a non-current liability. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period. Within the United States, the tax years 2019 through 2022 remain open to examination by the IRS, and 2018 through 2021 remain open to examination by various state tax authorities. The Company is currently under audit by the state of Massachusetts for the years 2020 and 2021. The tax years 2017 through 2022 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates.
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Weighted-Average Shares |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands):
Stock options to purchase 6,515,000 and 1,282,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 2, 2023 and April 3, 2022, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. Restricted stock units totaling 10,000 and 20,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 2, 2023 and April 3, 2022, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. No PRSUs were excluded in the calculation of dilutive net income per share for the three-month periods ended April 2, 2023 and April 3, 2022, as PRSUs were not anti-dilutive on a weighted-average basis.
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Loss from Fire |
3 Months Ended |
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Apr. 02, 2023 | |
Catastrophe [Abstract] | |
Loss from Fire | Loss (Recovery) from Fire On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia. The fire destroyed a significant amount of Cognex-owned consigned inventories as well as component inventories owned by the contract manufacturer that were designated for Cognex products. There was no significant damage to the Company's production equipment. As a result of the fire, the Company recorded $48,339,000 in gross losses in 2022, primarily related to Cognex-owned inventory that was destroyed or deemed to have a net realizable value of zero, and prepayments related to Cognex-designated components that were owned by the contract manufacturer. Gross losses were reduced by insurance proceeds received from the Company’s insurance carrier of $27,560,000 in the fourth quarter of 2022. Subsequent to the April 2, 2023 balance sheet date, but prior to the date of financial statement issuance, the Company received insurance proceeds of $2,500,000 related to a business interruption claim associated with the fire from the Company's insurance carrier. In the second quarter of 2023, this recovery amount will be presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations. As of April 2, 2023 and through the date of financial statement issuance, management cannot yet estimate additional recoveries that could be available from the contract manufacturer. Any future, additional recoveries in excess of recognized losses will be treated as gain contingencies and will be recognized when the gain is realized or realizable. There can be no assurance, however, that the insurance coverage and/or recoveries from the contract manufacturer will be available to cover the losses from the fire.
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Restructuring Charges |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges On December 7, 2022, the Company acquired all of the outstanding shares of SAC Sirius Advanced Cybernetics GmbH ("SAC"), a leader in computational lighting technology based in Germany. Following its acquisition of SAC, the Company performed restructuring activities to align the cost and operating structure of the acquired business with the Company's business strategy. As of December 31, 2022, the majority of these restructuring actions were completed. No additional charges were recorded during the three-month period ended April 2, 2023, or are expected to be incurred in future periods in relation to this restructuring plan. The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands):
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Subsequent Events |
3 Months Ended |
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Apr. 02, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn May 4, 2023, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on June 2, 2023 to all shareholders of record as of the close of business on May 19, 2023. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Apr. 02, 2023 | |
Accounting Policies [Abstract] | |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" The amendments in these ASUs apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Together, the ASUs provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures.
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Fair Value Measurements (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 2, 2023 (in thousands):
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Cash, Cash Equivalents, and Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands):
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Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
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Gross Unrealized Losses and Fair Values for Available-for-Sale Investments | The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 2, 2023 (in thousands):
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Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
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Inventories (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following (in thousands):
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Leases (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity | Future operating lease cash payments are as follows (in thousands):
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Goodwill (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying value of goodwill were as follows (in thousands):
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Intangible Assets (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Amortized intangible assets consisted of the following (in thousands):
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Schedule of Intangible Assets, Future Amortization Expense | As of April 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands):
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Warranty Obligations (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands):
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands):
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
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Offsetting Assets | The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
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Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
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Revenue Recognition (Tables) |
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue information by revenue type (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Credit Loss Activity | The following table summarizes the allowance for credit losses activity for the three-month period ended April 2, 2023 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue, by Arrangement, Disclosure | The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 2, 2023 (in thousands):
|
Stock-Based Compensation Expense (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three-month period ended April 2, 2023:
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the Company's RSUs activity for the three-month period ended April 2, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the Company's PRSUs activity for the three-month period ended April 2, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
|
Weighted-Average Shares (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands):
|
Restructuring Charges (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity in Restructuring Reserve | The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands):
|
Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
Dec. 31, 2022 |
|
Cash and Cash Equivalents [Line Items] | |||
Debt securities, available-for-sale, allowance for credit loss | $ 0 | $ 0 | |
Credit loss on investments | 0 | $ 0 | |
Gross realized gains on sale of investments | 0 | 118 | |
Gross realized losses on sale of investments | 0 | $ 154 | |
Other Current Assets | |||
Cash and Cash Equivalents [Line Items] | |||
Accrued interest receivable | $ 4,559 | $ 3,620 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 77,520 | $ 71,720 |
Work-in-process | 1,489 | 906 |
Finished goods | 48,138 | 49,854 |
Inventories | $ 127,147 | $ 122,480 |
Leases - Narrative (Details) ft² in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2021
ft²
|
Apr. 02, 2023
USD ($)
|
Apr. 03, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Leases [Abstract] | ||||
Operating lease, cost | $ 2,392 | $ 2,229 | ||
Operating lease, payments | 2,404 | 2,079 | ||
Lease, cost | 24 | 38 | ||
Lessee, Lease, Description [Line Items] | ||||
Operating lease assets | 37,769 | $ 37,682 | ||
Operating lease liability | 39,566 | 39,752 | ||
Operating lease liability | $ 39,566 | $ 39,752 | ||
Weighted average discount rate | 3.30% | 3.30% | ||
Weighted average remaining lease term | 7 years 7 months 6 days | 7 years 9 months 18 days | ||
Southborough, Massachusetts | ||||
Lessee, Lease, Description [Line Items] | ||||
Rentable area | ft² | 65 | |||
Term of contract | 10 years | |||
Option to renew, term of contract | 5 years | |||
Operating lease assets | 9,271 | |||
Operating lease liability | 9,271 | |||
Operating lease liability | $ 9,271 |
Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details) $ in Thousands |
Apr. 02, 2023
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of fiscal 2023 | $ 7,284 |
2024 | 7,530 |
2025 | 5,477 |
2026 | 4,221 |
2027 | 3,716 |
2028 | 3,448 |
Thereafter | 12,769 |
Total | $ 44,445 |
Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of December 31, 2022 | $ 242,630 |
Foreign exchange rate changes | (589) |
Balance as of April 2, 2023 | $ 242,041 |
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,375 |
Provisions for warranties issued during the period | 527 |
Fulfillment of warranty obligations | (828) |
Ending balance | $ 4,074 |
Commitment and Contingencies (Details) $ in Thousands |
Apr. 02, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase orders | $ 47,486 |
Derivative Instruments (Details) |
3 Months Ended |
---|---|
Apr. 02, 2023 | |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Remaining maturity of foreign currency derivatives (up to) | 3 months |
Derivative Instruments - Outstanding Forward Contracts Table (Details) - Not Designated as Hedging Instrument € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
Apr. 02, 2023
EUR (€)
|
Apr. 02, 2023
USD ($)
|
Apr. 02, 2023
MXN ($)
|
Apr. 02, 2023
HUF (Ft)
|
Apr. 02, 2023
JPY (¥)
|
Apr. 02, 2023
GBP (£)
|
Apr. 02, 2023
CAD ($)
|
Apr. 02, 2023
CNY (¥)
|
Apr. 02, 2023
CHF (SFr)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
MXN ($)
|
Dec. 31, 2022
HUF (Ft)
|
Dec. 31, 2022
JPY (¥)
|
Dec. 31, 2022
GBP (£)
|
Dec. 31, 2022
CAD ($)
|
Dec. 31, 2022
CNY (¥)
|
Dec. 31, 2022
CHF (SFr)
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Euro Member Countries, Euro | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | € 32,500 | $ 35,529 | € 60,000 | $ 64,174 | ||||||||||||||
China, Yuan Renminbi | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 0 | ¥ 0 | 7,619 | ¥ 55,000 | ||||||||||||||
Mexico, Pesos | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 8,498 | $ 155,000 | 9,480 | $ 185,000 | ||||||||||||||
Japanese Yen | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 4,536 | ¥ 600,000 | 5,281 | ¥ 700,000 | ||||||||||||||
United Kingdom, Pounds | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 4,313 | £ 3,485 | 4,161 | £ 3,445 | ||||||||||||||
Hungary, Forint | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 5,381 | Ft 1,890,000 | 4,238 | Ft 1,590,000 | ||||||||||||||
Canada, Dollars | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 1,261 | $ 1,705 | 1,278 | $ 1,730 | ||||||||||||||
Switzerland, Francs | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | $ 0 | SFr 0 | $ 1,218 | SFr 1,120 |
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 154 | $ 27 |
Derivative liability | 74 | 479 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 154 | 27 |
Derivative liability | $ 74 | $ 479 |
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 154 | $ 27 |
Gross amounts offset | 0 | 0 |
Net amount of assets presented | 154 | 27 |
Gross amounts of recognized liabilities | 74 | 479 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 74 | $ 479 |
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in current operations | $ (1,471) | $ 1,739 |
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 201,124 | $ 282,407 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 80,442 | 126,658 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 59,842 | 62,792 |
Greater China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33,172 | 48,406 |
Other Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 27,668 | $ 44,551 |
Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Revenue from External Customer [Line Items] | ||
Revenue | $ 201,124 | $ 282,407 |
Standard products and services | ||
Revenue from External Customer [Line Items] | ||
Revenue | 190,783 | 257,880 |
Application-specific customer solutions | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 10,341 | $ 24,527 |
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands |
Apr. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Costs to fulfill contract | $ 20,219 | $ 14,578 |
Revenue Recognition - Schedule of Allowance for Credit Loss (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 31, 2022 | $ 730 |
Increases to the allowance for credit losses | 350 |
Write-offs, net of recoveries | (78) |
Foreign exchange rate changes | (1) |
Balance as of April 2, 2023 | $ 1,001 |
Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Movement in Deferred Revenue [Roll Forward] | |
Balance as of December 31, 2022 | $ 40,787 |
Deferral of revenue billed in the current period, net of recognition | 34,786 |
Recognition of revenue deferred in prior period | (8,578) |
Deferred Revenue, Refund Payments | 9,205 |
Foreign exchange rate changes | 15 |
Balance as of April 2, 2023 | $ 57,805 |
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Details) |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Share-Based Payment Arrangement [Abstract] | ||
Risk-free rate | 4.00% | 1.90% |
Expected dividend yield | 0.59% | 0.40% |
Expected volatility | 39.00% | 37.00% |
Expected term (in years) | 4 years 3 months 18 days | 5 years 2 months 12 days |
Stock-Based Compensation Expense - Schedule of Performance Restricted Stock Units (Details) - Performance Shares - $ / shares shares in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Shares (in thousands) | ||
Nonvested as of Beginning of Period (in shares) | 33 | |
Granted (in shares) | 46 | 33 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | 0 |
Forfeited or expired (in shares) | 0 | |
Nonvested as of End of Period (in shares) | 79 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested as of Beginning of Period (in dollars per share) | $ 62.49 | |
Granted (in dollars per share) | 44.86 | |
Vested (in dollars per share) | 0 | |
Forfeited or expired (in dollars per share) | 0 | |
Nonvested as of End of Period (in dollars per share) | $ 52.23 |
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 16,579 | $ 15,056 |
Cost of Revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 621 | 563 |
Research, Development, and Engineering Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 5,890 | 4,448 |
Selling, General, and Administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 10,068 | $ 10,045 |
Stock Repurchase Program (Details) - USD ($) shares in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
Dec. 31, 2022 |
Mar. 03, 2022 |
Mar. 12, 2020 |
|
Repurchase Program March 2020 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized common stock to be repurchased | $ 200,000,000 | ||||
Shares repurchased at cost (in shares) | 1,677 | ||||
Shares repurchased at cost | $ 117,000,000 | ||||
Repurchase Program March 2022 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized common stock to be repurchased | $ 500,000,000 | ||||
Shares repurchased at cost (in shares) | 479 | 202 | |||
Shares repurchased at cost | $ 24,178,000 | $ 13,405,000 | |||
Remaining authorized repurchase amount | $ 388,508,000 |
Weighted-Average Shares - Calculation of Weighted-Average Shares (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Apr. 02, 2023 |
Apr. 03, 2022 |
|
Earnings Per Share [Abstract] | ||
Basic weighted-average common shares outstanding (in shares) | 172,624 | 174,146 |
Effect of dilutive equity awards (in shares) | 1,279 | 2,522 |
Weighted-average common and common-equivalent shares outstanding (in shares) | 173,903 | 176,668 |
Loss from Fire (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended |
---|---|---|---|
May 03, 2023 |
Dec. 31, 2022 |
Dec. 31, 2022 |
|
Business Interruption Loss [Line Items] | |||
Gross loss from catastrophes | $ 48,339 | ||
Insurance recoveries | $ 27,560 | ||
Subsequent Event | |||
Business Interruption Loss [Line Items] | |||
Proceeds from insurance settlements | $ 2,500 |
Restructuring Charges - Activity in Restructuring Reserve (Details) - Accrued Expenses - December 2022 $ in Thousands |
3 Months Ended |
---|---|
Apr. 02, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | $ 1,039 |
Cash payments | (163) |
Foreign exchange rate changes | (18) |
Balance at end of period | 894 |
One-time Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 964 |
Cash payments | (143) |
Foreign exchange rate changes | (17) |
Balance at end of period | 838 |
Contract Termination Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 75 |
Cash payments | (20) |
Foreign exchange rate changes | (1) |
Balance at end of period | $ 56 |
Subsequent Events (Details) |
May 04, 2023
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.07 |
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