Operations and summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Disposal Groups, Including Discontinued Operations

Assets held-for-sale as of December 31, 2019 were included within the following line items on our Consolidated Balance Sheets:

	Year Ended December 31,
(In thousands)	2019
Assets
Cash	$	6,015
Accounts receivable, net	9,544
Prepaids and other current assets	291
Property, plant and equipment, net	268
Goodwill	7,593
Intangibles, net	141
Operating lease right-of-use assets	461
Other long-term assets	119
Total Assets	$	24,432
Liabilities
Accounts payable and accrued liabilities	$	1,030
Accrued compensation	1,474
Deferred revenue	17,851
Other current liabilities	503
Operating lease liabilities - non-current	290
Total Liabilities	21,148
Net Assets Classified as Held for Sale	$	3,284

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

Our typical performance obligations include the following:

Performance Obligation	When performance obligation is typically satisfied	When payment is typically due	How standalone selling price is typically estimated
Product revenue
Modular hardware	When customer obtains control of the product (point-in-time)	Within 30-90 days of shipment	Observable in transactions without multiple performance obligations
Software licenses	When software media is delivered to customer or made available for download electronically, and the applicable license period has begun (point-in-time)	Within 30-90 days of the beginning of license period	Perpetual/Subscription licenses: Value relationships based on (i) the directly observable pricing of the license bundled with software maintenance and (ii) the directly observable pricing of software maintenance renewals, when they are sold on a standalone basis. Enterprise-wide term licenses: Residual method
Extended hardware warranty	Ratably over the course of the support contract (over time)	Within 30-90 days of the beginning of the contract period	Observable in renewal transactions
Other related support offerings	As work is performed (over time) or course is delivered (point-in-time)	Within 30-90 days of delivery	Observable in transactions without multiple performance obligations
Software maintenance revenue
Software maintenance	Ratably over the course of the support contract (over time)	Within 30-90 days of the beginning of the contract period	Observable in renewal transactions

Allowance for Doubtful Accounts

(In thousands)
Year	Description	Balance at Beginning of Period		Provisions		Write-Offs	Balance at End of Period
2017	Allowance for doubtful accounts	$	1,867	$	1,383	358	$	2,892
2018	Allowance for doubtful accounts	$	2,892	$	1,135	537	$	3,490
2019	Allowance for doubtful accounts	$	3,490	$	396	343	$	3,543

Adjustment for Excess and Obsolete Inventories

Inventory is shown net of adjustment for excess and obsolete inventories of $15.5 million, $15.4 million and $16.4 million at December 31, 2019, 2018 and 2017, respectively.

(In thousands)
Year	Description	Balance at Beginning of Period		Provisions		Write-Offs	Balance at End of Period
2017	Adjustment for excess and obsolete inventories	$	12,639	$	7,130	3,322	$	16,447
2018	Adjustment for excess and obsolete inventories	$	16,447	$	7,870	8,932	$	15,385
2019	Adjustment for excess and obsolete inventories	$	15,385	$	6,046	5,942	$	15,489

Fair Value, Concentration of Risk

The following table presents the geographic distribution of our cash, cash equivalents, and short-term investments as of December 31, 2019 (in millions):

	Domestic	International	Total
Cash and Cash Equivalents	$55.9	$138.7	$194.6
	29%	71%
Short-term Investments	$164.3	$73.7	$238.0
	69%	31%
Cash, Cash Equivalents and Short-term Investments	$220.2	$212.4	$432.6
	51%	49%

Schedule of Product Warranty Liability

The warranty reserve for the years ended December 31, 2019, 2018, and 2017 was as follows:

(In thousands)
	2019			2018			2017
Balance at the beginning of the year	$	3,173		$	2,846		$	2,686
Accruals for warranties issued during the year	2,356			3,026			2,644
Accruals related to pre-existing warranties	(376		)	389			274
Settlements made (in cash or in kind) during the year	(2,592		)	(3,088		)	(2,758		)
Balance at the end of the year	$	2,561		$	3,173		$	2,846

Reconciliation of the Denominators used to Calculate Basic and Diluted EPS

The reconciliation of the denominators used to calculate basic EPS and diluted EPS for years ended December 31, 2019, 2018, and 2017 are as follows:

	Years ended December 31,
(In thousands)	2019	2018	2017
Weighted average shares outstanding-basic	131,722	131,987	130,300
Plus: Common share equivalents
RSUs	1,012	1,287	1,087
Weighted average shares outstanding-diluted	132,734	133,274	131,387

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effects of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of the new lease standard were as follows (in thousands):

	Balance at December 31, 2018		Adjustments Due to New Lease Standard			Balance at January 1, 2019
Assets
Property, plant and equipment, net	$	245,201	$	(18,606	)	$	226,595
Operating lease right-of-use assets	—		$	68,938		$	68,938
Total Assets	245,201		50,332			295,533
Liabilities and Stockholders' Equity
Operating lease liabilities, current	—		$	18,597		$	18,597
Operating lease liabilities, non-current	—		$	33,853		$	33,853
Other current liabilities	$	25,913	$	(2,118	)	$	23,795
Total Liabilities and Stockholders' Equity	$	25,913	$	50,332		$	76,245
Total Assets less Total Liabilities and Stockholders' Equity	$	219,288	$	—		$	219,288

Schedule of Prospective Adoption of New Accounting Pronouncements

The following tables present the amounts by which financial statement line items were affected during 2018 due to the adoption of the new revenue standard. Our historical net cash flows were not impacted by this accounting change.

(In thousands)	Balance at December 31, 2017	Adjustments Due to New Revenue Standard			Balance at January 1, 2018
Balance Sheet
Assets
Accounts receivable, net	248,825	$	2,399		251,224
Other long-term assets	32,553	1,065			33,618
Liabilities and Stockholders' Equity
Deferred revenue - current	120,638	(9,067		)	111,571
Deferred revenue - long-term	33,742	(997		)	32,745
Other current liabilities	23,782	2,100			25,882
Deferred income taxes	33,609	1,771			35,380
Retained earnings	313,241	$	9,657		322,898

The following tables present the amounts by which financial statement line items were affected in the year ended December 31, 2018 due to the adoption of the new revenue standard. Our historical net cash flows are not impacted by this accounting change.

(In thousands)	For the year ended December 31, 2018
	Increase / (Decrease)
Consolidated Statements of Income*
Products	7,911
Total net sales	7,911
Operating Expenses	(153)
Operating Income	8,064
Provision for income taxes	1,299
Net income	6,765
*   Excludes line items that were not materially affected by our adoption of the new revenue standard

(In thousands)	December 31, 2018
	Increase / (Decrease)
Consolidated Balance Sheet
Assets
Accounts receivable, net	2,093
Other long-term assets	1,220
Liabilities and Stockholders' Equity
Deferred revenue - current	(13,807)
Deferred revenue - non-current	(4,417)
Other current liabilities	3,399
Deferred income taxes	1,771
Retained earnings	16,367
*   Excludes line items that were not materially affected by our adoption of the new revenue standard