ADTRAN INC, 10-Q filed on 11/6/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2020
Nov. 05, 2020
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Entity Registrant Name ADTRAN, Inc.  
Trading Symbol ADTN  
Entity Central Index Key 0000926282  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   47,956,220
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 000-24612  
Entity Tax Identification Number 63-0918200  
Entity Address, Address Line One 901 Explorer Boulevard  
Entity Address, City or Town Huntsville  
Entity Address, State or Province AL  
Entity Address, Postal Zip Code 35806-2807  
City Area Code 256  
Local Phone Number 963-8000  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
Title of 12(b) Security Common Stock, Par Value $0.01 per share  
Security Exchange Name NASDAQ  
v3.20.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Current Assets    
Cash and cash equivalents $ 71,081 $ 73,773
Restricted cash 322  
Short-term investments 6,180 33,243
Accounts receivable, less allowance for doubtful accounts of $38 as of September 30, 2020 and December 31, 2019 100,223 90,531
Other receivables 22,899 16,566
Inventory 120,260 98,305
Prepaid expenses and other current assets 8,374 7,892
Total Current Assets 329,339 320,310
Property, plant and equipment, net 64,353 68,086
Deferred tax assets, net 7,865 7,561
Goodwill 6,968 6,968
Intangibles, net 24,465 27,821
Other assets 20,409 19,883
Long-term investments 78,016 94,489
Total Assets 531,415 545,118
Current Liabilities    
Accounts payable 59,886 44,870
Bonds payable   24,600
Unearned revenue 13,379 11,963
Accrued expenses and other liabilities 13,173 13,876
Accrued wages and benefits 17,228 13,890
Income tax payable, net 3,346 3,512
Total Current Liabilities 107,012 112,711
Non-current unearned revenue 6,694 6,012
Pension liability 16,282 15,886
Deferred compensation liability 22,957 21,698
Other non-current liabilities 8,877 8,385
Total Liabilities 161,822 164,692
Commitments and contingencies (see Note 18)
Stockholders’ Equity    
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 47,956 shares outstanding as of September 30, 2020 and 79,652 shares issued and 48,020 shares outstanding as of December 31, 2019 797 797
Additional paid-in capital 279,688 274,632
Accumulated other comprehensive loss (12,678) (16,417)
Retained earnings 788,294 806,702
Treasury stock at cost: 31,565 and 31,636 shares at September 30, 2020 and December 31, 2019, respectively (686,508) (685,288)
Total Stockholders’ Equity 369,593 380,426
Total Liabilities and Stockholders’ Equity $ 531,415 $ 545,118
v3.20.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Statement Of Financial Position [Abstract]    
Allowance for doubtful accounts $ 38 $ 38
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 79,652,000 79,652,000
Common stock, shares outstanding 47,956,000 48,020,000
Treasury stock, shares 31,565,000 31,636,000
v3.20.2
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Sales        
Total Sales $ 133,143 $ 114,092 $ 376,381 $ 414,274
Cost of Sales        
Total Cost of Sales 74,181 67,761 212,347 242,316
Gross Profit 58,962 46,331 164,034 171,958
Selling, general and administrative expenses 27,205 30,912 84,624 99,663
Research and development expenses 27,223 31,835 85,794 95,546
Asset impairments   3,872 65 3,872
Gain on contingency       (1,230)
Operating Income (Loss) 4,534 (20,288) (6,449) (25,893)
Interest and dividend income 344 610 1,031 1,893
Interest expense   (128) (1) (382)
Net investment gain (loss) 2,844 (216) 1,819 8,195
Other income (expense), net (1,679) 1,616 (2,307) 2,266
Income (Loss) Before Income Taxes 6,043 (18,406) (5,907) (13,921)
Income tax (expense) benefit (562) (27,717) 2,171 (27,437)
Net Income (Loss) $ 5,481 $ (46,123) $ (3,736) $ (41,358)
Weighted average shares outstanding – basic 47,957 47,824 47,957 47,803
Weighted average shares outstanding – diluted 48,424 47,824 47,957 47,803
Earnings (loss) per common share – basic $ 0.11 $ (0.96) $ (0.08) $ (0.87)
Earnings (loss) per common share – diluted $ 0.11 $ (0.96) $ (0.08) $ (0.87)
Network Solutions [Member]        
Sales        
Total Sales $ 115,229 $ 94,018 $ 323,924 $ 359,007
Cost of Sales        
Total Cost of Sales 62,795 56,444 178,492 207,353
Gross Profit 52,434 37,574 145,432 151,654
Services & Support [Member]        
Sales        
Total Sales 17,914 20,074 52,457 55,267
Cost of Sales        
Total Cost of Sales 11,386 11,317 33,855 34,963
Gross Profit $ 6,528 $ 8,757 $ 18,602 $ 20,304
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]        
Net Income (Loss) $ 5,481 $ (46,123) $ (3,736) $ (41,358)
Other Comprehensive Income (Loss), net of tax        
Net unrealized gains (losses) on available-for-sale securities (45) (15) 445 277
Defined benefit plan adjustments 244 90 576 361
Foreign currency translation 2,469 (2,486) 2,718 (3,113)
Other Comprehensive Income (Loss), net of tax 2,668 (2,411) 3,739 (2,475)
Comprehensive Income (Loss), net of tax $ 8,149 $ (48,534) $ 3 $ (43,833)
v3.20.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Loss [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning Balance at Dec. 31, 2018 $ 446,279 $ 4 $ 797 $ 267,670 $ 883,975 $ (381) $ (691,747) $ (14,416) $ 385
Beginning Balance, Shares at Dec. 31, 2018     79,652            
Net income (loss) 770       770        
Other comprehensive income (loss), net of tax (854)             (854)  
Dividend payments ($0.09 per share) (4,301)       (4,301)        
Dividends accrued on unvested PSUs (18)       (18)        
PSUs, RSUs and restricted stock vested (8)       (865)   857    
Purchases of treasury stock (184)           (184)    
Stock-based compensation expense 1,859     1,859          
Ending Balance at Mar. 31, 2019 443,547   $ 797 269,529 879,180   (691,074) (14,885)  
Ending Balance, Shares at Mar. 31, 2019     79,652            
Beginning Balance at Dec. 31, 2018 446,279 $ 4 $ 797 267,670 883,975 $ (381) (691,747) (14,416) $ 385
Beginning Balance, Shares at Dec. 31, 2018     79,652            
Net income (loss) (41,358)                
Other comprehensive income (loss), net of tax (2,475)                
Ending Balance at Sep. 30, 2019 394,955   $ 797 272,854 827,783   (689,973) (16,506)  
Ending Balance, Shares at Sep. 30, 2019     79,652            
Beginning Balance at Mar. 31, 2019 443,547   $ 797 269,529 879,180   (691,074) (14,885)  
Beginning Balance, Shares at Mar. 31, 2019     79,652            
Net income (loss) 3,995       3,995        
Other comprehensive income (loss), net of tax 790             790  
Dividend payments ($0.09 per share) (4,303)       (4,303)        
Dividends accrued on unvested PSUs (34)       (34)        
Stock options exercised 526       (208)   734    
Stock-based compensation expense 1,454     1,454          
Ending Balance at Jun. 30, 2019 445,975   $ 797 270,983 878,630   (690,340) (14,095)  
Ending Balance, Shares at Jun. 30, 2019     79,652            
Net income (loss) (46,123)       (46,123)        
Other comprehensive income (loss), net of tax (2,411)             (2,411)  
Dividend payments ($0.09 per share) (4,304)       (4,304)        
Dividends accrued on unvested PSUs 42       42        
PSUs, RSUs and restricted stock vested (95)       (462)   367    
Stock-based compensation expense 1,871     1,871          
Ending Balance at Sep. 30, 2019 394,955   $ 797 272,854 827,783   (689,973) (16,506)  
Ending Balance, Shares at Sep. 30, 2019     79,652            
Beginning Balance at Dec. 31, 2019 $ 380,426   $ 797 274,632 806,702   (685,288) (16,417)  
Beginning Balance, Shares at Dec. 31, 2019 79,652   79,652            
Net income (loss) $ (9,969)       (9,969)        
Other comprehensive income (loss), net of tax (1,392)             (1,392)  
Dividend payments ($0.09 per share) (4,328)       (4,328)        
Dividends accrued on unvested PSUs (32)       (32)        
Deferred compensation adjustments, net of tax (2,758)           (2,758)    
PSUs, RSUs and restricted stock vested (23)       (1,524)   1,501    
Stock-based compensation expense 1,791     1,791          
Ending Balance at Mar. 31, 2020 363,715   $ 797 276,423 790,849   (686,545) (17,809)  
Ending Balance, Shares at Mar. 31, 2020     79,652            
Beginning Balance at Dec. 31, 2019 $ 380,426   $ 797 274,632 806,702   (685,288) (16,417)  
Beginning Balance, Shares at Dec. 31, 2019 79,652   79,652            
Net income (loss) $ (3,736)                
Other comprehensive income (loss), net of tax 3,739                
Ending Balance at Sep. 30, 2020 $ 369,593   $ 797 279,688 788,294   (686,508) (12,678)  
Ending Balance, Shares at Sep. 30, 2020 79,652   79,652            
Beginning Balance at Mar. 31, 2020 $ 363,715   $ 797 276,423 790,849   (686,545) (17,809)  
Beginning Balance, Shares at Mar. 31, 2020     79,652            
Net income (loss) 752       752        
Other comprehensive income (loss), net of tax 2,463             2,463  
Dividend payments ($0.09 per share) (4,337)       (4,337)        
Dividends accrued on unvested PSUs (28)       (28)        
Deferred compensation adjustments, net of tax (24)           (24)    
PSUs, RSUs and restricted stock vested (2)       (16)   14    
Stock-based compensation expense 1,655     1,655          
Ending Balance at Jun. 30, 2020 364,194   $ 797 278,078 787,220   (686,555) (15,346)  
Ending Balance, Shares at Jun. 30, 2020     79,652            
Net income (loss) 5,481       5,481        
Other comprehensive income (loss), net of tax 2,668             2,668  
Dividend payments ($0.09 per share) (4,328)       (4,328)        
Dividends accrued on unvested PSUs (12)       (12)        
Deferred compensation adjustments, net of tax (12)           (12)    
PSUs, RSUs and restricted stock vested (8)       (67)   59    
Stock-based compensation expense 1,610     1,610          
Ending Balance at Sep. 30, 2020 $ 369,593   $ 797 $ 279,688 $ 788,294   $ (686,508) $ (12,678)  
Ending Balance, Shares at Sep. 30, 2020 79,652   79,652            
v3.20.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Statement Of Stockholders Equity [Abstract]            
Dividend payments $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09
v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:    
Net loss $ (3,736) $ (41,358)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 12,525 13,315
Asset impairments 65 3,872
Amortization of net premium on available-for-sale investments 90 (86)
Net gain on long-term investments (1,819) (8,195)
Net loss on disposal of property, plant and equipment 105 58
Gain on contingency   (1,230)
Gain on life insurance proceeds   (1,000)
Stock-based compensation expense 5,056 5,184
Deferred income taxes (1) 30,421
Changes in operating assets and liabilities:    
Accounts receivable, net (9,131) 7,603
Other receivables (6,224) 17,645
Inventory (21,170) (5,998)
Prepaid expenses and other assets (672) (10,071)
Accounts payable, net 14,204 (5,569)
Accrued expenses and other liabilities 5,618 10,564
Income taxes payable (227) (5,073)
Net cash provided by (used in) operating activities (5,317) 10,082
Cash flows from investing activities:    
Purchases of property, plant and equipment (5,082) (6,008)
Proceeds from sales and maturities of available-for-sale investments 86,145 38,561
Purchases of available-for-sale investments (42,641) (37,223)
Acquisition of note receivable (523)  
Life insurance proceeds received   1,000
Acquisition of business   13
Net cash provided by (used in) investing activities 37,899 (3,657)
Cash flows from financing activities:    
Dividend payments (12,993) (12,908)
Repayment of bonds payable (24,600)  
Proceeds from stock option exercises   526
Purchases of treasury stock   (184)
Net cash used in financing activities (37,593) (12,566)
Net decrease in cash, cash equivalents and restricted cash (5,011) (6,141)
Effect of exchange rate changes 2,641 (2,956)
Cash, cash equivalents and restricted cash, beginning of period 73,773 105,504
Cash, cash equivalents and restricted cash, end of period 71,403 96,407
Supplemental disclosure of non-cash investing activities:    
Purchases of property, plant and equipment included in accounts payable $ 442 $ 135
v3.20.2
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (“ADTRAN”, the “Company”, “we”, “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The Condensed Consolidated Balance Sheet as of December 31, 2019 is derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 25, 2020.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of deferred revenue components of multi-element sales agreements, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the novel coronavirus (“COVID-19”) as of September 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for doubtful accounts, current estimated credit losses, stock-based compensation, excess and obsolete inventory reserves, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. While there was not a material impact to our condensed consolidated financial statements as of and for the three and nine month periods ended September 30, 2020 resulting from these assessments, future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods.

Correction of Immaterial Misstatements

During the three months ended June 30, 2019, the Company determined that there was an immaterial misstatement of its excess and obsolete inventory reserves in its previously issued annual and interim financial statements. The Company corrected this misstatement by recognizing a $0.8 million out-of-period adjustment during the three months ended June 30, 2019, which increased its excess and obsolete inventory reserve and cost of goods sold for the period. For the six months ended June 30, 2019, the out-of-period adjustment was a cumulative $0.2 million reduction in its excess and obsolete inventory reserve and cost of goods sold. In addition, the Company determined that a $1.0 million cash inflow related to an insurance recovery was incorrectly classified as a cash flow from operations instead of a cash flow from investing activities within the unaudited Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. The Company corrected this misstatement in the Unaudited Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019 to correctly reflect the $1.0 million insurance recovery as a cash inflow from investing activities. Management determined that these misstatements were not material to any of its previously issued financial statements on both a quantitative and qualitative basis.

During the first quarter of 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $1.5 million in the unaudited Condensed Consolidated Statement of Income (Loss) and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $2.8 million to treasury stock in the unaudited Condensed Consolidated Balance Sheet as of March 31, 2020. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement is also not expected to be material to the 2020 annual financial results on either a quantitative or qualitative basis.

Recently Adopted Accounting Pronouncements

During 2020, we adopted the following accounting standards, which had the following impacts on our consolidated financial statements:

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement and recognition of expected credit losses for financial instruments held at amortized cost. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326 Financial Instruments – Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather should be accounted for in accordance with the standard for leases. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the accounting for transfers between classifications of debt securities and clarifies that entities should include expected recoveries on financial assets in the calculation of the current expected credit loss allowance. In addition, renewal options that are not unconditionally cancelable should be considered in the determination of expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which amends ASU 2016-13 to allow companies, upon adoption, to elect the fair value option on financial instruments that were previously recorded at amortized cost if they meet certain criteria. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, which makes various narrow-scope amendments to the new credit losses standard, such as providing disclosure relief for accrued interest receivables. All of these ASUs were codified as part of Accounting Standards Codifications (“ASC”) Topic 326 and were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this standard on January 1, 2020, using a modified-retrospective approach and, therefore, elected to carry forward legacy disclosures for comparative periods and did not adjust the comparative period financial information. Additionally, the Company made an accounting policy election, at the class of financing receivable, not to measure the allowance for credit losses for accrued interest receivables, as the Company writes off the uncollectable accrued interest receivable by reversing any previously recorded interest income in a timely manner (as soon as these amounts are determined to be uncollectable). The adoption of this standard did not have a material effect on our consolidated financial statements. See Note 19 for additional information.

 

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the measurement of goodwill by eliminating step 2 of the goodwill impairment test. Under ASU 2017-04, entities are required to compare the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 was effective for annual or interim impairment tests performed in fiscal years beginning after December 15, 2019. The Company adopted ASU 2017-04 on January 1, 2020, and the amendments were applied prospectively. The adoption of this standard did not have a material effect on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820, Fair Value Measurement. The amendments in this ASU are the result of a broader disclosure project, Concepts Statement No. 8 — Conceptual Framework for Financial Reporting — Chapter 8 — Notes to Financial Statements, which the FASB finalized on August 28, 2018. The FASB used the guidance in the Concepts Statement to improve the effectiveness of ASC 820’s disclosure requirements. ASU 2018-13 provides users of financial statements with information about assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to the financial statements. More specifically, ASU 2018-13 requires disclosures about the valuation techniques and inputs that are used to arrive at measures of fair value, including judgments and assumptions that are made in determining fair value. In addition, ASU 2018-13 requires disclosures regarding the uncertainty in the fair value measurements as of the reporting date and how changes in fair value measurements affect performance and cash flows. The Company adopted ASU 2018-13 on January 1, 2020, and the adoption of this standard did not have a material effect on our consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.  ASU 2018-15 clarifies certain aspects of ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. Specifically, ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementations costs incurred to develop or obtain internal use software. The Company adopted ASU 2018-15 on January 1, 2020, retrospectively. The adoption of this standard resulted in a reclassification of $5.6 million from property, plant and equipment to other assets for certain previously capitalized costs related to information technology implementation projects that had not yet been placed in service on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. There was no impact to previously reported net cash provided by (used in) operations on the statement of cash flows and no impact to the statements of income (loss) as no portion of the capitalized asset was depreciated in prior periods.

 

The following table illustrates the impact of adoption of ASU 2018-15 on the Condensed Consolidated Balance Sheet as of December 31, 2019:

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Condensed Consolidated Statement of Loss for the three and nine months ended September 30, 2019 and the Condensed Consolidated Statement of Cash Flows for nine months ended September 30, 2019 as outlined in the following tables:

 

 

 

Three months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(46,123

)

 

$

—

 

 

$

(46,123

)

 

 

 

Nine months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(41,358

)

 

$

—

 

 

$

(41,358

)

Condensed Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by operating activities

 

$

10,082

 

 

$

—

 

 

$

10,082

 

 

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other assets on the Condensed Consolidated Balance Sheet, as of September 30, 2020:

 

(In thousands)

 

September 30, 2020

 

Implementation costs - hosting arrangements

 

$

10,455

 

Less: accumulated amortization

 

 

—

 

Implementation costs - hosting arrangements, net

 

$

10,455

 

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company early adopted ASU 2019-12 on April 1, 2020, which was applied on a prospective basis as if the Company adopted the standard on January 1, 2020. The Company early adopted the standard to take advantage of the simplification of rules for income taxes on intra-period tax allocations. Specifically, the adoption of this standard resulted in the recognition of approximately $0.1 million of tax benefit in other comprehensive income (loss), that otherwise would have been recognized in continuing operations had the intra-period tax allocation been completed. There were no other impacts from this standard on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income (Loss) or Condensed Consolidated Statements of Cash Flows.

Recent Accounting Pronouncements Not Yet Adopted

 

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which makes changes to and clarifies the disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 requires additional disclosures related to the reasons for significant gains and losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in other disclosures required by ASC 715. ASU 2018-14 also clarifies the guidance in ASC 715 to require disclosure of the projected benefit obligation (“PBO”) and fair value of plan assets for pension plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for pension plans with ABOs in excess of plan assets. ASU 2018-14 is effective for public business entities for fiscal years ending after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its related disclosures.
v3.20.2
Cash, Cash Equivalents and Restricted Cash
 9 Months Ended
Sep. 30, 2020
Cash And Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash

2. CASH, CASH EQUIVALENTS AND RESTRICTED CASH

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows:

 

(In thousands)

 

September 30, 2020

 

Cash and cash equivalents

 

$

71,081

 

Restricted cash

 

 

322

 

Cash, cash equivalents and restricted cash

 

$

71,403

 

The Company did not have any restricted cash as of December 31, 2019.

See Note 18 for additional information regarding restricted cash.
v3.20.2
Revenue
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

3. REVENUE

The following is a description of the principal activities from which revenue is generated by reportable segment:

Network Solutions - Includes hardware products and software-defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products.

Services & Support - Includes maintenance, network implementation, solutions integration and managed services, which include hosted cloud services and subscription services.    

Sales by Category

 

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.  

 

The following tables disaggregate revenue by reportable segment and revenue category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

 

$

48,902

 

 

$

16,212

 

 

$

65,114

 

Subscriber Solutions & Experience

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

 

 

40,382

 

 

 

2,094

 

 

 

42,476

 

Traditional & Other Products

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

 

 

4,734

 

 

 

1,768

 

 

 

6,502

 

Total

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

$

94,018

 

 

$

20,074

 

 

$

114,092

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

 

$

230,837

 

 

$

43,476

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

 

 

113,545

 

 

 

6,186

 

 

 

119,731

 

Traditional & Other Products

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

 

 

14,625

 

 

 

5,605

 

 

 

20,230

 

Total

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

 

$

359,007

 

 

$

55,267

 

 

$

414,274

 

 

Revenue allocated to remaining performance obligations represents contract revenue that have not yet been recognized for contracts with a duration of greater than one year. As of September 30, 2020, we did not have any significant performance obligations related to customer contracts that had an original expected duration of one year or more, other than maintenance services, which are satisfied over time. As a practical expedient, for certain contracts we recognize revenue equal to the amounts that we are entitled to invoice, which correspond to the value of completed performance obligations to date. The amount related to these performance obligations was $16.5 million and $13.6 million as of September 30, 2020 and December 31, 2019, respectively. The Company expects to recognize 59% of the $16.5 million as of September 30, 2020 over the next 12 months, with the remainder to be recognized thereafter.

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:

 

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

Accounts receivable, net

 

$

100,223

 

 

$

90,531

 

Contract assets(1)

 

$

1,015

 

 

$

2,812

 

Unearned revenue

 

$

13,379

 

 

$

11,963

 

Non-current unearned revenue

 

$

6,694

 

 

$

6,012

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheets.

 

Of the outstanding unearned revenue balances as of December 31, 2019 and December 31, 2018, $1.5 million and $1.2 million were recognized as revenue during the three months ended September 30, 2020 and 2019 and $9.6 million and $11.7 million were recognized as revenue during the nine months ended September 30, 2020 and 2019, respectively.
v3.20.2
Income Taxes
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

4. INCOME TAXES

Our effective tax rate decreased from an expense of 150.6% of pre-tax loss for the three months ended September 30, 2019 to an expense of 9.3% of pre-tax income for the three months ended September 30, 2020 and decreased from an expense of 197.1% of pre-tax loss for the nine months ended September 30, 2019 to a benefit of 36.8% of pre-tax loss for the nine months ended September 30, 2020. The change in the effective tax rate for the three months ended September 30, 2020 was impacted by tax expense in our international operations, offset by additional changes in the valuation allowance related to our domestic operations of $1.0 million and by additional benefits recognized during the quarter of $0.4 million as a result of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act signed into law on March 27, 2020 in conjunction with the Internal Revenue Service’s release of its final Global Intangible Low Tax Income (“GILTI”) regulations on July 9th, 2020. The change in the effective tax rate for the three and nine months ended September 30, 2019 was primarily driven by the establishment of the valuation allowance against our domestic deferred tax assets in the amount of $37.1 million, with tax expense being offset by a 7.1% rate reduction related to a transfer pricing study completed during the second quarter of 2019 that resulted in the assignment of operating expenditures to specific company locations, and the effective income tax rates among the respective jurisdictions. The decrease in the effective tax rate for the nine months ended September 30, 2020 was primarily driven by a tax benefit of $7.8 million recognized during the nine months ended September 30, 2020 as a result of the CARES Act, which allowed for the carryback of federal net operating losses, partially offset with tax expense in our international operations and changes in our valuation allowance related to our domestic operations. An increase in the valuation allowance against our domestic deferred tax assets was recorded in the amount of $2.6 million during the nine months ended September 30, 2020.

 

The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes. As of September 30, 2020, the Company had deferred tax assets totaling $59.1 million, and a valuation allowance totaling $51.2 million had been established against those deferred tax assets. The remaining $7.9 million in deferred tax assets not offset by a valuation allowance is located in various foreign jurisdictions where the Company believes it is more likely than not we will realize these deferred tax assets. Our assessment of the realizability of our deferred tax assets includes the evaluation of evidence, some of which requires significant judgement, including historical operating results, the evaluation of our three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and additional valuation allowance or a partial or full release of the valuation allowance is necessary, it could have a material effect on our consolidated financial statements.

Supplemental balance sheet information related to deferred tax assets as of September 30, 2020 and December 31, 2019 is as follows:

 

 

 

September 30, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

49,212

 

 

$

(49,212

)

 

$

—

 

International

 

 

9,892

 

 

 

(2,027

)

 

 

7,865

 

Total

 

$

59,104

 

 

$

(51,239

)

 

$

7,865

 

 

 

 

December 31, 2019

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

46,266

 

 

$

(46,266

)

 

$

—

 

International

 

 

9,911

 

 

 

(2,350

)

 

 

7,561

 

Total

 

$

56,177

 

 

$

(48,616

)

 

$

7,561

 

 
v3.20.2
Pension Benefit Plan
 9 Months Ended
Sep. 30, 2020
Compensation And Retirement Disclosure [Abstract]  
Pension Benefit Plan

5. PENSION BENEFIT PLAN

The following table summarizes the components of net periodic pension cost related to a defined benefit pension plan covering employees in certain foreign countries for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

 

$

325

 

 

$

366

 

 

$

942

 

 

$

1,109

 

Interest cost

 

 

113

 

 

 

158

 

 

 

329

 

 

 

479

 

Expected return on plan assets

 

 

(429

)

 

 

(346

)

 

 

(1,246

)

 

 

(1,049

)

Amortization of actuarial losses

 

 

248

 

 

 

198

 

 

 

720

 

 

 

600

 

Net periodic pension cost

 

$

257

 

 

$

376

 

 

$

745

 

 

$

1,139

 

 

The components of net periodic pension cost, other than the service cost component, are included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss). Service cost is included in cost of sales, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss).
v3.20.2
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

6. STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense related to stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Stock-based compensation expense included in cost of sales

 

$

101

 

 

$

83

 

 

$

303

 

 

$

272

 

Selling, general and administrative expense

 

 

953

 

 

 

1,142

 

 

 

2,999

 

 

 

2,867

 

Research and development expense

 

 

556

 

 

 

646

 

 

 

1,754

 

 

 

2,045

 

Stock-based compensation expense included in operating expenses

 

 

1,509

 

 

 

1,788

 

 

 

4,753

 

 

 

4,912

 

Total stock-based compensation expense

 

 

1,610

 

 

 

1,871

 

 

 

5,056

 

 

 

5,184

 

Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock

 

 

(384

)

 

 

(446

)

 

 

(1,205

)

 

 

(1,235

)

Total stock-based compensation expense, net of tax

 

$

1,226

 

 

$

1,425

 

 

$

3,851

 

 

$

3,949

 

 

PSUs, RSUs and Restricted Stock

 

The following table summarizes PSUs, RSUs and restricted stock outstanding as of December 31, 2019 and September 30, 2020 and the changes that occurred during the nine months ended September 30, 2020.

 

 

 

Number of

Shares

(in thousands)

 

 

Weighted Avg. Grant Date Fair Value

(per share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2019

 

 

1,891

 

 

$

14.58

 

PSUs, RSUs and restricted stock granted

 

 

399

 

 

$

8.21

 

PSUs, RSUs and restricted stock vested

 

 

(15

)

 

$

12.76

 

PSUs, RSUs and restricted stock forfeited

 

 

(586

)

 

$

18.24

 

Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2020

 

 

1,689

 

 

$

11.83

 

 

During the nine months ended September 30, 2020, the Company issued 0.3 million performance-based PSUs under the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “2015 Employee Plan”) to its executive officers and certain employees. The grant-date fair value of these performance-based awards is based on the closing price of the Company’s stock on the date of grant. Subject to the grantee’s continued employment, the grantee has the ability to earn shares in a range of 0% to 142.8% of the awarded number of PSUs based on the achievement of a defined performance target at the end of a three-year period. If the Company achieves the performance target at the end of the first or second year during the vesting period, the grantee will be entitled to the target number of performance shares, which will not be issued until the end of the three-year period. Equity-based compensation expense with respect to these awards will be adjusted over the vesting period to reflect the probability of achievement of the performance target defined in the award agreements.

 

The fair value of RSUs and restricted stock is equal to the closing price of our stock on the date of grant. The fair value of PSUs with market conditions is calculated using a Monte Carlo simulation valuation method.

As of September 30, 2020, total unrecognized compensation expense related to unvested market-based PSUs, RSUs and restricted stock was approximately $10.6 million, which will be recognized over the remaining weighted-average period of 2.3 years. In addition, there was $2.3 million of unrecognized compensation expense related to unvested 2020 performance-based PSUs, which will be recognized over the remaining requisite service period of 2.3 years if achievement of the performance obligation becomes probable. Unrecognized compensation expense will be adjusted for actual forfeitures.


At the annual meeting of stockholders held on May 13, 2020, the Company’s stockholders approved, upon recommendation of the Board of Directors, the adoption of the ADTRAN, Inc. 2020 Employee Stock Incentive Plan (the “2020 Employee Plan”) as well as the ADTRAN, Inc. 2020 Directors Stock Plan (the “2020 Directors Plan”). No additional awards will be granted under the 2015 Employee Plan or the 2010 Directors Stock Plan subsequent to the stockholders’ approval of these new stock plans. Outstanding awards granted under the 2015 Employee Plan and the 2010 Directors Stock Plan will remain subject to the terms of such plans, and shares underlying awards granted under such plans that are cancelled or forfeited will be available for issuance under the 2020 Employee Plan or the 2020 Directors Plan, as applicable.

 

Under the 2020 Employee Plan, the Company is authorized to issue 2.8 million shares of common stock to certain employees, key service providers and advisors through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock, any of which may be subject to performance-based conditions. Stock options, RSUs and restricted stock granted under the 2020 Employee Plan reduce the shares authorized for issuance under the 2020 Employee Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations or expirations of awards granted under the 2015 Employee Plan increase the shares authorized for issuance under the 2020 Employee Plan, with forfeitures, cancellations or expirations of RSUs and restricted stock increasing the shares authorized for issuance by 2.5 shares of common stock for each share underlying the award. Forfeitures, cancellations or expirations of stock options from the 2015 Employee Plan increase the shares authorized for issuance under the 2020 Employee Plan by one share of common stock for each share underlying the award. RSUs and restricted stock granted under the 2020 Employee Plan will typically vest pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date. Stock options granted under the 2020 Employee Plan will typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date and have a ten-year contractual term.

 

Under the 2020 Directors Plan, the Company is authorized to issue 0.4 million shares of common stock through stock options, restricted stock and RSUs to non-employee directors. Stock awards issued under the 2020 Directors Plan typically will become vested in full on the first anniversary of the grant date. Stock options issued under the 2020 Directors Plan will have a ten-year contractual term. Stock options, restricted stock and RSUs granted under the 2020 Directors Plan reduce the shares authorized for issuance under the 2020 Directors Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations and expirations of awards granted under the 2010 Directors Stock Plan increase the shares authorized for issuance under the 2020 Directors Plan by one share of common stock for each share underlying the award.

As of September 30, 2020, 3.6 million shares, including forfeitures to date under the 2015 Employee Plan and the 2010 Directors Stock Plan, were available for issuance under stockholder-approved equity plans.

Stock Options

The following table summarizes stock options outstanding as of December 31, 2019 and September 30, 2020 and the changes that occurred during the nine months ended September 30, 2020:

 

 

Number of

Stock Options

(in thousands)

 

 

Weighted Avg.

Exercise Price

(per share)

 

 

Weighted Avg.

Remaining

Contractual

Life

(in years)

 

 

Aggregate

Intrinsic Value

(in thousands)

 

Stock options outstanding, December 31, 2019

 

 

3,572

 

 

$

22.88

 

 

 

3.4

 

 

$

—

 

Stock options exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

Stock options forfeited

 

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

Stock options expired

 

 

(352

)

 

$

21.48

 

 

 

 

 

 

 

 

 

Stock options outstanding, September 30, 2020

 

 

3,220

 

 

$

22.94

 

 

 

2.7

 

 

$

—

 

Stock options exercisable, September 30, 2020

 

 

3,217

 

 

$

22.95

 

 

 

2.7

 

 

$

—

 

 

As of September 30, 2020, total unrecognized compensation expense related to unvested stock options was approximately $1 thousand, which will be recognized over the remaining weighted-average period of 0.1 years. Unrecognized compensation expense will be adjusted for actual forfeitures.

There were no stock options granted during the three and nine months ended September 30, 2020 and 2019. All of the options were previously issued at exercise prices that approximated fair market value at the date of grant. 

 

The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2020. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock and was zero as of September 30, 2020. The total pre-tax intrinsic value of options exercised during the nine months ended September 30, 2020 was zero.
v3.20.2
Investments
 9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Investments

7. INVESTMENTS

Debt Securities and Other Investments

As of September 30, 2020, the following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

12,861

 

 

$

149

 

 

$

—

 

 

$

13,010

 

Municipal fixed-rate bonds

 

 

3,093

 

 

 

32

 

 

 

(1

)

 

 

3,124

 

Asset-backed bonds

 

 

8,472

 

 

 

115

 

 

 

—

 

 

 

8,587

 

Mortgage/Agency-backed bonds

 

 

10,964

 

 

 

127

 

 

 

(11

)

 

 

11,080

 

U.S. government bonds

 

 

7,096

 

 

 

174

 

 

 

—

 

 

 

7,270

 

Foreign government bonds

 

 

1,032

 

 

 

3

 

 

 

—

 

 

 

1,035

 

Commercial paper

 

 

324

 

 

 

1

 

 

 

—

 

 

 

325

 

Variable-rate demand notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

442

 

 

 

—

 

 

 

—

 

 

 

442

 

Available-for-sale debt securities held at fair value

 

$

44,284

 

 

$

601

 

 

$

(12

)

 

$

44,873

 

As of December 31, 2019, the following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

9,304

 

 

$

80

 

 

$

—

 

 

$

9,384

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

—

 

 

 

930

 

Asset-backed bonds

 

 

6,867

 

 

 

26

 

 

 

(3

)

 

 

6,890

 

Mortgage/Agency-backed bonds

 

 

6,944

 

 

 

26

 

 

 

(8

)

 

 

6,962

 

U.S. government bonds

 

 

12,311

 

 

 

21

 

 

 

(9

)

 

 

12,323

 

Foreign government bonds

 

 

372

 

 

 

—

 

 

 

(1

)

 

 

371

 

Variable-rate demand notes

 

 

800

 

 

 

—

 

 

 

—

 

 

 

800

 

Available-for-sale debt securities held at fair value

 

$

37,528

 

 

$

153

 

 

$

(21

)

 

$

37,660

 

 

As of September 30, 2020, contractual maturities related to debt securities and other investments were as follows:

 

(In thousands)

 

Corporate

bonds

 

 

Municipal

fixed-rate

bonds

 

 

Asset-

backed

bonds

 

 

Mortgage/

Agency-

backed bonds

 

 

U.S. government

bonds

 

 

Foreign government bonds

 

 

Commercial paper

 

 

Other

 

Less than one year

 

$

2,900

 

 

$

737

 

 

$

696

 

 

$

208

 

 

$

500

 

 

$

75

 

 

$

325

 

 

$

442

 

One to two years

 

 

3,752

 

 

 

1,183

 

 

 

956

 

 

 

1,256

 

 

 

826

 

 

 

463

 

 

 

—

 

 

 

—

 

Two to three years

 

 

6,122

 

 

 

908

 

 

 

615

 

 

 

2,775

 

 

 

5,492

 

 

 

497

 

 

 

—

 

 

 

—

 

Three to five years

 

 

236

 

 

 

296

 

 

 

4,817

 

 

 

1,079

 

 

 

452

 

 

 

—

 

 

 

—

 

 

 

—

 

Five to ten years

 

 

—

 

 

 

—

 

 

 

946

 

 

 

1,507

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

More than ten years

 

 

—

 

 

 

—

 

 

 

557

 

 

 

4,255

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

13,010

 

 

$

3,124

 

 

$

8,587

 

 

$

11,080

 

 

$

7,270

 

 

$

1,035

 

 

$

325

 

 

$

442

 

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gross realized gains on debt securities

 

$

70

 

 

$

36

 

 

$

303

 

 

$

85

 

Gross realized losses on debt securities

 

 

(6

)

 

 

(7

)

 

 

(45

)

 

 

(40

)

Total gain recognized, net

 

$

64

 

 

$

29

 

 

$

258

 

 

$

45

 

The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of the total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the three and nine months ended September 30, 2020.

 

Marketable Equity Securities

 

Our marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost, where appropriate.

 

During the three months ended March 31, 2019, an outstanding note receivable of $4.3 million was repaid and reissued in the form of debt and equity. Of the outstanding $4.3 million, $3.4 million was issued as an equity investment, which represented a non-cash investing activity. We elected to record this equity investment that does not have a readily determinable fair value using the measurement alternative. Under the measurement alternative, equity investments that do not have a readily determinable fair value can be recorded at cost less impairment, if any, adjusted for observable price changes for an identical or similar investment. The carrying value of this investment under the measurement alternative was $3.4 million as of December 31, 2019. During the nine months ended September 30, 2020, an impairment charge of $1.6 million was recorded related to this equity investment, which is included in net investment gain (loss) on the Condensed Consolidated Statement of Income (Loss). As a result, the carrying value of this investment was $1.8 million as of September 30, 2020. The remaining amount, $0.9 million of the original $4.3 million note receivable, was reissued as a new note receivable, which is included in long-term investments on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, and represented a non-cash investing activity during the nine months ended September 30, 2019. No impairment charge was recognized related to the note receivable as it is a secured loan. 

Realized and unrealized gains and losses related to marketable equity securities for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Realized gains (losses) on equity securities sold

 

$

623

 

 

$

(20

)

 

$

(1,485

)

 

$

(83

)

Unrealized gains (losses) on equity securities held

 

 

2,157

 

 

 

(225

)

 

 

3,046

 

 

 

8,233

 

Total gain (loss) recognized, net

 

$

2,780

 

 

$

(245

)

 

$

1,561

 

 

$

8,150

 

 

U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:


• Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;

• Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;

• Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement; inputs could include information supplied by investees.

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2020 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Market for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant Unobservable Inputs

(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

636

 

 

$

636

 

 

$

—

 

 

$

—

 

U.S. government securities

 

 

300

 

 

 

300

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

13,010

 

 

—

 

 

 

13,010

 

 

 

—

 

Municipal fixed-rate bonds

 

 

3,124

 

 

—

 

 

 

3,124

 

 

 

—

 

Asset-backed bonds

 

 

8,587

 

 

—

 

 

 

8,587

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

11,080

 

 

—

 

 

 

11,080

 

 

 

—

 

U.S. government bonds

 

 

7,270

 

 

 

7,270

 

 

—

 

 

 

—

 

Foreign government securities

 

 

1,035

 

 

—

 

 

 

1,035

 

 

 

—

 

Commercial paper

 

 

325

 

 

—

 

 

 

325

 

 

 

—

 

Variable-rate demand notes

 

 

—

 

 

—

 

 

 

 

 

 

 

—

 

Other

 

 

442

 

 

—

 

 

—

 

 

 

442

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

13,590

 

 

 

13,590

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

21,595

 

 

 

21,595

 

 

—

 

 

 

—

 

Other investments

 

 

1,276

 

 

 

1,276

 

 

—

 

 

 

—

 

Total

 

$

82,270

 

 

$

44,667

 

 

$

37,161

 

 

$

442

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2019 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Market for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant Unobservable Inputs

(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,309

 

 

$

1,309

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

9,384

 

 

 

—

 

 

 

9,384

 

 

 

—

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

930

 

 

 

—

 

Asset-backed bonds

 

 

6,890

 

 

 

—

 

 

 

6,890

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

6,962

 

 

 

—

 

 

 

6,962

 

 

 

—

 

U.S. government bonds

 

 

12,323

 

 

 

12,323

 

 

 

—

 

 

 

—

 

Foreign government bonds

 

 

371

 

 

 

—

 

 

 

371

 

 

 

—

 

Variable-rate demand notes

 

 

800

 

 

 

—

 

 

 

800

 

 

 

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

35,501

 

 

 

35,501

 

 

 

—

 

 

 

—

 

Equity in escrow

 

 

298

 

 

 

298

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

21,698

 

 

 

21,698

 

 

 

—

 

 

 

—

 

Other investments

 

 

2,442

 

 

 

2,442

 

 

 

—

 

 

 

—

 

Total

 

$

98,908

 

 

$

73,571

 

 

$

25,337

 

 

$

—

 

 

The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security.  

 

The fair value of Level 3 securities is calculated based on unobservable inputs. Quantitative information with respect to unobservable inputs consists of third-party valuations performed in accordance with ASC 820 – Fair Value Measurement. Inputs used in preparing the third-party valuation included the following assumptions, among others: estimated discount rates and fair market yields.

v3.20.2
Inventory
 9 Months Ended
Sep. 30, 2020
Inventory Disclosure [Abstract]  
Inventory

 

8. INVENTORY

As of September 30, 2020 and December 31, 2019, inventory consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(In thousands)

 

2020

 

 

2019

 

Raw materials

 

$

43,418

 

 

$

36,987

 

Work in process

 

 

1,787

 

 

 

1,085

 

Finished goods

 

 

75,055

 

 

 

60,233

 

Total inventory

 

$

120,260

 

 

$

98,305

 

 

Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. As of September 30, 2020 and December 31, 2019, inventory reserves were $38.0 million and $34.1 million, respectively.
v3.20.2
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2020
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

9. PROPERTY, PLANT AND EQUIPMENT

 

At September 30, 2020 and December 31, 2019, property, plant and equipment consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(In thousands)

 

2020

 

 

2019

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

35,105

 

 

 

34,797

 

Building

 

 

68,160

 

 

 

68,157

 

Furniture and fixtures

 

 

19,981

 

 

 

19,959

 

Computer hardware and software

 

 

70,766

 

 

 

68,777

 

Engineering and other equipment

 

 

132,672

 

 

 

130,430

 

Total property, plant and equipment

 

 

331,259

 

 

 

326,695

 

Less: accumulated depreciation

 

 

(266,906

)

 

 

(258,609

)

Total property, plant and equipment, net

 

$

64,353

 

 

$

68,086

 

 

Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. Due to the current economic environment, particularly related to COVID-19, the Company assessed impairment triggers related to long-lived assets during the third quarter of 2020. Based on this assessment, no triggers occurred to perform an impairment test, and no impairment losses of long-lived assets were recorded.

 

Depreciation expense was $3.1 million for both the three months ended September 30, 2020 and 2019, and $9.1 million and $9.3 million for the nine months ended September 30, 2020 and 2019 respectively, which is recorded in cost of sales, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss).
v3.20.2
Goodwill
 9 Months Ended
Sep. 30, 2020
Goodwill Disclosure [Abstract]  
Goodwill

10. GOODWILL

Goodwill was $7.0 million as of September 30, 2020 and December 31, 2019, of which $6.6 million and $0.4 million was allocated to our Network Solutions and Services & Support reportable segments, respectively.

The Company evaluates the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that could more likely than not reduce the fair value of the reporting unit below its carrying amount. Qualitative factors are assessed to determine whether the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit, if applicable. Due to the current economic environment, particularly related to COVID-19, the Company performed a triggering event assessment, in which no triggers were identified. Therefore, no interim impairment test of goodwill was performed as of September 30, 2020, and no impairment of goodwill was recorded during the three and nine months ended September 30, 2020.
v3.20.2
Intangible Assets
 9 Months Ended
Sep. 30, 2020
Intangible Assets Net Excluding Goodwill [Abstract]  
Intangible Assets

11. INTANGIBLE ASSETS

Intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

(In thousands)

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

$

20,931

 

 

$

(7,369

)

 

$

13,562

 

 

$

22,356

 

 

$

(7,233

)

 

$

15,123

 

Developed technology

 

 

8,200

 

 

 

(2,262

)

 

 

5,938

 

 

 

10,170

 

 

 

(3,379

)

 

 

6,791

 

Licensed technology

 

 

5,900

 

 

 

(1,666

)

 

 

4,234

 

 

 

5,900

 

 

 

(1,174

)

 

 

4,726

 

Supplier relationships

 

 

2,800

 

 

 

(2,800

)

 

 

—

 

 

 

2,800

 

 

 

(2,508

)

 

 

292

 

Licensing agreements

 

 

560

 

 

 

(134

)

 

 

426

 

 

 

560

 

 

 

(79

)

 

 

481

 

Patents

 

 

500

 

 

 

(277

)

 

 

223

 

 

 

500

 

 

 

(226

)

 

 

274

 

Trade names

 

 

210

 

 

 

(128

)

 

 

82

 

 

 

310

 

 

 

(176

)

 

 

134

 

Total

 

$

39,101

 

 

$

(14,636

)

 

$

24,465

 

 

$

42,596

 

 

$

(14,775

)

 

$

27,821

 

 

The Company evaluates the carrying value of intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. Due to the current economic environment, particularly related to COVID-19, the Company assessed impairment triggers related to intangible assets during the third quarter of 2020. Based on this assessment, no triggers occurred to perform an impairment test, and no impairment losses of intangible assets were recorded during the three and nine months ended September 30, 2020.

 

Amortization expense was $1.0 million and $1.3 million for the three months ended September 30, 2020 and 2019, respectively, and $3.4 million and $4.0 million for the nine months ended September 30, 2020 and 2019, respectively, and was included in cost of sales, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss).

As of September 30, 2020, estimated future amortization expense of intangible assets was as follows:

 

(In thousands)

 

 

 

 

2020

 

$

1,041

 

2021

 

 

4,107

 

2022

 

 

3,482

 

2023

 

 

3,330

 

2024

 

 

3,236

 

Thereafter

 

 

9,269

 

Total

 

$

24,465

 

 
v3.20.2
Leases
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

12. LEASES

Operating Leases

 

The Company’s operating leases consist of office space, automobiles and various other equipment in the U.S. and in certain international locations in which we do business. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain any embedded leases. As of September 30, 2020, the Company’s operating leases had remaining lease terms of one month to five years, some of which include options to extend the leases for up to nine years, and some of which include options to terminate the leases within three months. As of September 30, 2020 and December 31, 2019, the Company’s operating lease assets and operating lease liabilities were as follows:

 

(In thousands)

 

Classification

 

September 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

 

 

Operating lease asset

 

Other assets

 

$

5,503

 

 

$

8,452

 

Total lease asset

 

 

 

$

5,503

 

 

$

8,452

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses

 

$

1,731

 

 

$

2,676

 

Non-current operating lease liability

 

Other non-current liabilities

 

 

3,788

 

 

 

5,818

 

Total lease liability

 

 

 

$

5,519

 

 

$

8,494

 

 

Lease expense related to short-term leases (initial term of less than 12 months) was $6 thousand and $0.1 million for the three months ended September 30, 2020 and 2019, respectively, and was $20 thousand and $0.3 million for the nine months ended September 30, 2020 and 2019, respectively, and was included in cost of sales, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss). Lease expense related to variable lease payments that do not depend on an index or rate, such as real estate taxes and insurance reimbursements, was $0.1 million and $0.3 million for the three months ended September 30, 2020 and 2019, respectively and was $0.4 million and $0.7 million for the nine months ended September 30, 2020 and 2019, respectively.

Components of lease expense included in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of sales

 

$

21

 

 

$

16

 

 

$

68

 

 

$

49

 

Selling, general and administrative expenses

 

 

265

 

 

 

352

 

 

 

863

 

 

 

1,050

 

Research and development expenses

 

 

368

 

 

 

847

 

 

 

1,044

 

 

 

1,731

 

Total operating lease expense

 

$

654

 

 

$

1,215

 

 

$

1,975

 

 

$

2,830

 

 

As of September 30, 2020 and December 31, 2019, operating lease liabilities included on the Condensed Consolidated Balance Sheets by future maturity were as follows:

 

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

2020

 

$

518

 

 

$

2,856

 

2021

 

 

1,744

 

 

 

2,412

 

2022

 

 

1,514

 

 

 

1,705

 

2023

 

 

1,180

 

 

 

1,160

 

2024

 

 

499

 

 

 

482

 

Thereafter

 

 

276

 

 

 

264

 

Total lease payments

 

 

5,731

 

 

 

8,879

 

Less: Interest

 

 

(212

)

 

 

(385

)

Present value of lease liabilities

 

$

5,519

 

 

$

8,494

 

 

Future operating lease payments include $0.3 million related to options to extend lease terms that are reasonably certain of being exercised. There are no legally binding leases that have not yet commenced.  

 

An incremental borrowing rate is used based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate was determined on a portfolio basis by grouping leases with similar terms as well as grouping leases based on a U.S. dollar or Euro functional currency. The actual rate is then determined based on a credit spread over LIBOR as well as the Bloomberg Curve Matrix for the U.S. Communications section. The following table provides information about the weighted average lease terms and weighted average discount rates as of September 30, 2020 and December 31, 2019:

 

 

 

As of September 30, 2020

 

 

As of December 31, 2019

 

Weighted average remaining lease term (in years)

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

2.6

 

 

 

2.6

 

     Operating leases with Euro functional currency

 

 

3.8

 

 

 

4.4

 

Weighted average discount rate

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

4.50

%

 

 

4.02

%

     Operating leases with Euro functional currency

 

 

1.81

%

 

 

1.84

%

 

Supplemental cash flow information related to operating leases is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease assets / liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash used in operating activities related to operating leases

 

$

582

 

 

$

775

 

 

$

2,059

 

 

$

2,383

 

Right-of-use assets obtained in exchange for lease obligations

 

$

138

 

 

$

11,022

 

 

$

231

 

 

$

21,418

 

 

Net Investment in Sales-Type Leases

We are the lessor in sales-type lease arrangements for network equipment, which have initial terms of up to five years, and consisted of the following as of September 30, 2020 and December 31, 2019:

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

Current minimum lease payments receivable(1)

 

$

811

 

 

$

1,201

 

Non-current minimum lease payments receivable(2)

 

 

450

 

 

 

889

 

Total minimum lease payments receivable

 

 

1,261

 

 

 

2,090

 

Less: Current unearned revenue

 

 

235

 

 

 

365

 

Less: Non-current unearned revenue

 

 

70

 

 

 

163

 

Net investment in sales-type leases

 

$

956

 

 

$

1,562

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheets.

 

(2)

Included in other assets on the Condensed Consolidated Balance Sheets.

 

Components of gross profit related to sales-type leases recognized at the lease commencement date and interest and dividend income included in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Sales - Network Solutions

 

$

22

 

 

$

47

 

 

$

72

 

 

$

1,668

 

Less: Cost of sales - Network Solutions

 

 

9

 

 

 

25

 

 

 

29

 

 

 

660

 

Gross profit

 

$

13

 

 

$

22

 

 

$

43

 

 

$

1,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

10

 

 

$

92

 

 

$

34

 

 

$

278

 

 
v3.20.2
Alabama State Industrial Development Authority Financing and Economic Incentives
 9 Months Ended
Sep. 30, 2020
Text Block [Abstract]  
Alabama State Industrial Development Authority Financing and Economic Incentives

13. ALABAMA STATE INDUSTRIAL DEVELOPMENT AUTHORITY FINANCING AND ECONOMIC INCENTIVES


In conjunction with the 1995 expansion of our Huntsville, Alabama facility, we were approved for participation in an incentive program offered by the State of Alabama Industrial Development Authority (the “Authority”). Pursuant to the program, in January 1995, the Authority issued $20.0 million of its taxable revenue bonds (the “Taxable Revenue Bonds”) and loaned the proceeds from the sale of the Taxable Revenue Bonds to the Company. Further advances on the Taxable Revenue Bonds were made by the Authority, bringing the total amount to $50.0 million. The Taxable Revenue Bonds bore interest, payable monthly with an interest rate of 2% per annum. The Taxable Revenue Bonds’ aggregate principal amount outstanding as of December 31, 2019 of $24.6 million matured on January 1, 2020 and was repaid in full on January 2, 2020, using the funds held in a certificate of deposit by the Company. This certificate of deposit, which totaled $25.6 million, was included in short-term investments on the Condensed Consolidated Balance Sheet as of December 31, 2019.
v3.20.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Stockholders' Equity

14. STOCKHOLDERS’ EQUITY

 

Stock Repurchase Program

Since 1997, the Company’s Board of Directors has approved multiple share repurchase programs that have authorized repurchases of its common stock, which are implemented through open market or private purchases from time to time as conditions warrant. During the nine months ended September 30, 2020, we did not repurchase shares of our common stock. As of September 30, 2020, we had the authority to purchase an additional 2.5 million shares of our common stock under the current authorization of up to 5.0 million shares.

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended September 30, 2020

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of June 30, 2020

 

$

206

 

 

$

(8,894

)

 

$

(7,043

)

 

$

385

 

 

$

(15,346

)

Other comprehensive income before

   reclassifications

 

 

494

 

 

 

—

 

 

 

2,469

 

 

 

—

 

 

 

2,963

 

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

(539

)

 

 

244

 

 

 

—

 

 

 

—

 

 

 

(295

)

Net current period other comprehensive income

 

 

(45

)

 

 

244

 

 

 

2,469

 

 

 

—

 

 

 

2,668

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

 

Three Months Ended September 30, 2019

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of June 30, 2019

 

$

(271

)

 

$

(7,770

)

 

$

(6,439

)

 

$

385

 

 

$

(14,095

)

Other comprehensive income before

   reclassifications

 

 

(39

)

 

 

—

 

 

 

(2,486

)

 

 

—

 

 

 

(2,525

)

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

24

 

 

 

90

 

 

 

—

 

 

 

—

 

 

 

114

 

Net current period other comprehensive income

 

 

(15

)

 

 

90

 

 

 

(2,486

)

 

 

—

 

 

 

(2,411

)

As of September 30, 2019

 

$

(286

)

 

$

(7,680

)

 

$

(8,925

)

 

$

385

 

 

$

(16,506

)

 

 

(1)

With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.

 

The following tables present the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended September 30, 2020

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption(1)

 

 

Total

 

As of December 31, 2019

 

$

(284

)

 

$

(9,226

)

 

$

(7,292

)

 

$

385

 

 

$

(16,417

)

Other comprehensive income (loss) before

   reclassifications

 

 

444

 

 

 

—

 

 

 

2,718

 

 

 

—

 

 

 

3,162

 

Amounts reclassified from accumulated other

   comprehensive income

 

 

1

 

 

 

576

 

 

 

—

 

 

 

—

 

 

 

577

 

Net current period other comprehensive income

 

 

445

 

 

 

576

 

 

 

2,718

 

 

 

—

 

 

 

3,739

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

Nine Months Ended September 30, 2019

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of December 31, 2018

 

$

(563

)

 

$

(8,041

)

 

$

(5,812

)

 

$

—

 

 

$

(14,416

)

Other comprehensive income (loss) before

   reclassifications

 

 

372

 

 

 

—

 

 

 

(3,113

)

 

 

—

 

 

 

(2,741

)

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

(95

)

 

 

361

 

 

 

—

 

 

 

—

 

 

 

266

 

Amounts reclassified to retained earnings (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

385

 

 

 

385

 

Net current period other comprehensive income

  (loss)

 

 

277

 

 

 

361

 

 

 

(3,113

)

 

 

385

 

 

 

(2,090

)

As of September 30, 2019

 

$

(286

)

 

$

(7,680

)

 

$

(8,925

)

 

$

385

 

 

$

(16,506

)

 

 

(1)

With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the three months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended September 30, 2020

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized gains on sales of securities

 

$

728

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(354

)

 

(1)

Total reclassifications for the period, before tax

 

 

374

 

 

 

Tax expense

 

 

(79

)

 

 

Total reclassifications for the period, net of tax

 

$

295

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

 

 

Three Months Ended September 30, 2019

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized losses on sales of securities

 

$

(32

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(130

)

 

(1)

Total reclassifications for the period, before tax

 

 

(162

)

 

 

Tax benefit

 

 

48

 

 

 

Total reclassifications for the period, net of tax

 

$

(114

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

The following tables present the details of reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended September 30, 2020

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized losses on sales of securities

 

$

(1

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(835

)

 

(1)

Total reclassifications for the period, before tax

 

 

(836

)

 

 

Tax benefit

 

 

259

 

 

 

Total reclassifications for the period, net of tax

 

$

(577

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

 

 

Nine Months Ended September 30, 2019

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains on available-for-sale securities:

 

 

 

 

 

 

Net realized gains on sales of securities

 

$

128

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(523

)

 

(1)

Total reclassifications for the period, before tax

 

 

(395

)

 

 

Tax benefit

 

 

129

 

 

 

Total reclassifications for the period, net of tax

 

$

(266

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

The following table presents the tax effects related to the change in each component of other comprehensive loss for the three months ended September 30, 2020 and 2019: 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

Unrealized gain on available-for-sale

   securities

 

$

668

 

 

$

(174

)

 

$

494

 

 

$

(53

)

 

$

14

 

 

$

(39

)

Reclassification adjustment for amounts related to

   available-for-sale investments included in net

   income (loss)

 

 

(728

)

 

 

189

 

 

 

(539

)

 

 

32

 

 

 

(8

)

 

 

24

 

Reclassification adjustment for amounts related to

   defined benefit plan adjustments included in net

   income (loss)

 

 

354

 

 

 

(110

)

 

 

244

 

 

 

130

 

 

 

(40

)

 

 

90

 

Foreign currency translation adjustment

 

 

2,469

 

 

 

—

 

 

 

2,469

 

 

 

(2,486

)

 

 

—

 

 

 

(2,486

)

Total Other Comprehensive Income (Loss)

 

$

2,763

 

 

$

(95

)

 

$

2,668

 

 

$

(2,377

)

 

$

(34

)

 

$

(2,411

)

 

The following table presents the tax effects related to the change in each component of other comprehensive income (loss) for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

Unrealized gain (loss) on available-for-sale

   securities

 

$

600

 

 

$

(156

)

 

$

444

 

 

$

503

 

 

$

(131

)

 

$

372

 

Reclassification adjustment for amounts related to

   available-for-sale investments included in net

   income (loss)

 

 

1

 

 

 

—

 

 

 

1

 

 

 

(128

)

 

 

33

 

 

 

(95

)

Reclassification adjustment for amounts related to

   defined benefit plan adjustments included in net

   income (loss)

 

 

835

 

 

 

(259

)

 

 

576

 

 

 

523

 

 

 

(162

)

 

 

361

 

Foreign currency translation adjustment

 

 

2,718

 

 

 

—

 

 

 

2,718

 

 

 

(3,113

)

 

 

—

 

 

 

(3,113

)

Total Other Comprehensive Income (Loss)

 

$

4,154

 

 

$

(415

)

 

$

3,739

 

 

$

(2,215

)

 

$

(260

)

 

$

(2,475

)

 
v3.20.2
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

15. EARNINGS (LOSS) PER SHARE

A summary of the calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands, except per share amounts)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,481

 

 

$

(46,123

)

 

$

(3,736

)

 

$

(41,358

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

47,957

 

 

 

47,824

 

 

 

47,957

 

 

 

47,803

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

467

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

48,424

 

 

 

47,824

 

 

 

47,957

 

 

 

47,803

 

Earnings (loss) per share – basic

 

$

0.11

 

 

$

(0.96

)

 

$

(0.08

)

 

$

(0.87

)

Earnings (loss) per share – diluted

 

$

0.11

 

 

$

(0.96

)

 

$

(0.08

)

 

$

(0.87

)

 

For the three months ended September 30, 2020 and 2019, 18 thousand and 0.1 million shares, respectively, and for the nine months ended September 30, 2020 and 2019, 0.1 million shares, of unvested or unearned, as applicable, PSUs, RSUs and restricted stock were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect.

 

For the three months ended September 30, 2020 and 2019, 3.4 million and 3.9 million stock options, respectively, and for the nine months ended September 30, 2020 and 2019, 4.3 million and 2.8 million stock options, respectively, were outstanding but were not included in the computation of diluted earnings per share. These stock options were excluded because their exercise prices were greater than the average market price of the common shares during the quarter, making them anti-dilutive under the treasury stock method.
v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

16. SEGMENT INFORMATION

The chief operating decision maker regularly reviews the Company’s financial performance based on two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes a portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services.

The performance of our segments is evaluated based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain (loss), other income (expense) and income tax (expense) benefit are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

The following tables present information about the sales and gross profit of our reportable segments for the three and nine months ended September 30, 2020 and 2019.

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

115,229

 

 

$

52,434

 

 

$

94,018

 

 

$

37,574

 

Services & Support

 

 

17,914

 

 

 

6,528

 

 

 

20,074

 

 

 

8,757

 

Total

 

$

133,143

 

 

$

58,962

 

 

$

114,092

 

 

$

46,331

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

323,924

 

 

$

145,432

 

 

$

359,007

 

 

$

151,654

 

Services & Support

 

 

52,457

 

 

 

18,602

 

 

 

55,267

 

 

 

20,304

 

Total

 

$

376,381

 

 

$

164,034

 

 

$

414,274

 

 

$

171,958

 

 

Sales by Category

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.

The table below presents sales information by category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Access & Aggregation

 

$

85,423

 

 

$

65,114

 

 

$

234,165

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

43,125

 

 

 

42,476

 

 

 

125,697

 

 

 

119,731

 

Traditional & Other Products

 

 

4,595

 

 

 

6,502

 

 

 

16,519

 

 

 

20,230

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 

 

Sales by Geographic Area

 

The following table presents sales information by geographic area for the three and nine months ended September 30, 2020 and 2019: 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

United States

 

$

92,838

 

 

$

83,144

 

 

$

256,287

 

 

$

230,960

 

International

 

 

40,305

 

 

 

30,948

 

 

 

120,094

 

 

 

183,314

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 

 
v3.20.2
Liability for Warranty Returns
 9 Months Ended
Sep. 30, 2020
Product Warranties Disclosures [Abstract]  
Liability for Warranty Returns

17. LIABILITY FOR WARRANTY RETURNS

Our products generally include warranties of 90 days to five years for product defects. Warranty returns are accrued at the time revenue is recognized based on an estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. Products continue to become more complex in both size and functionality as many of our product offerings migrate from line card applications to total systems. The increasing complexity of products will cause warranty incidences, when they arise, to be more costly. Estimates regarding future warranty obligations may change due to product failure rates, material usage and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should actual experience relative to these factors be worse than estimated, additional warranty expense will be incurred. Alternatively, if actual costs incurred are less than estimated, a portion of the warranty reserves will be reversed in future periods. The liability for warranty obligations totaled $7.2 million and $8.4 million as of September 30, 2020 and December 31, 2019, respectively, and are included in accrued expenses and other liabilities in the accompanying Condensed Consolidated Balance Sheets.

 

A reconciliation of warranty expense and related write-off activity for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Balance at beginning of period

 

$

7,294

 

 

$

8,972

 

 

$

8,394

 

 

$

8,623

 

Plus: Amounts charged to cost and expenses

 

 

632

 

 

 

816

 

 

 

970

 

 

 

3,796

 

Less: Deductions

 

 

(734

)

 

 

(1,131

)

 

 

(2,172

)

 

 

(3,762

)

Balance at end of period

 

$

7,192

 

 

$

8,657

 

 

$

7,192

 

 

$

8,657

 

 
v3.20.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

18. COMMITMENTS AND CONTINGENCIES

Securities Class Action Lawsuit

On October 17, 2019, a purported stockholder class action lawsuit, captioned Burbridge v. ADTRAN, Inc. et al., Docket No. 19-cv-09619, was filed in the United States District Court for the Southern District of New York against the Company, two of its current executive officers and one of its former executive officers. The complaint alleges violations of federal securities laws and seeks unspecified compensatory damages on behalf of purported purchasers of ADTRAN securities between February 28, 2019 and October 9, 2019. The lawsuit claims that the defendants made materially false and misleading statements regarding, and/or failed to disclose material adverse facts about, the Company’s business, operations and prospects, specifically relating to the Company’s internal control over financial reporting, excess and obsolete inventory reserves, financial results and demand from certain customers. The lawsuit was transferred to the U.S. District Court for the Northern District of Alabama on January 7, 2020, and co-lead plaintiffs have been appointed to represent the putative class. The plaintiffs filed an amended complaint on April 30, 2020. The defendants filed a motion to dismiss the amended complaint on June 17, 2020. The plaintiffs filed an opposition brief to the defendants’ motion to dismiss on July 17, 2020. The defendants filed a reply to the plaintiffs’ brief on August 17, 2020. The motion to dismiss remains under review by the Court. We deny the allegations in the complaint, as amended, and intend to vigorously defend against this lawsuit. At this time, we are unable to predict the outcome of or estimate the possible loss or range of loss, if any, associated with this lawsuit.

Shareholder Derivative Lawsuit

 

On March 31, 2020, a shareholder derivative suit, captioned Johnson (Derivatively on behalf of ADTRAN) v. T. Stanton, M. Foliano, R. Shannon, and Board of Directors, case no. 5:20-cv-00447, was filed in the U.S. District Court of Northern Alabama against two of the Company’s current executive officers, one of its former executive officers and its Board of Directors. The derivative suit, which is purportedly brought on behalf of ADTRAN, makes similar allegations as the shareholder class action and accuses the directors and officers of breaches of fiduciary duty in connection with those allegations. On June 7, 2020, the Court entered an order staying the derivative litigation pending resolution of the motion to dismiss in the securities class action. The Company and its defendants disagree with the claims made in the complaint, and the defendants intend to vigorously defend against this lawsuit. At this time, we are unable to predict the outcome of or estimate the possible loss or range of loss, if any, associated with this lawsuit.

 

Other Legal Matters

In addition to the litigation described above, from time to time we are subject to or otherwise involved in various lawsuits, claims, investigations and legal proceedings that arise out of or are incidental to the conduct of our business (collectively, “Legal Matters”), including those relating to employment matters, patent rights, regulatory compliance matters, stockholder claims, and contractual and other commercial disputes. Such Legal Matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Additionally, an unfavorable outcome in any legal matter, including in a patent dispute, could require the Company to pay damages, entitle claimants to other relief, such as royalties, or could prevent the Company from selling some of its products in certain jurisdictions. While the Company cannot predict with certainty the results of the Legal Matters in which it is currently involved, the Company does not expect that the ultimate outcome of such Legal Matters will individually or in the aggregate have a material adverse effect on its business, results of operations, financial condition or cash flows.

Performance Bonds

Certain contracts, customers and jurisdictions in which we do business require us to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds. As of September 30, 2020 and December 31, 2019, we had commitments related to these bonds totaling $12.0 million and $9.3 million, respectively, which expire at various dates through August 2024. Although the triggering events vary from contract to contract, in general we would only be liable for the amount of these guarantees in the event of default under each contract, the probability of which we believe is remote.

In June 2020, the Company entered into a letter of credit with a bank to guarantee performance obligations under a contract with a certain customer. The obligations under the customer contract will be performed over multiple years. As of September 30, 2020, the Company was required to maintain a minimum collateral value of $4.5 million. The letter of credit was secured by a pledge of a portion of the Company’s fixed-income securities, which totaled $5.9 million as of September 30, 2020, of which $0.3 million is included in restricted cash and $5.6 million is included in long-term investments on the Condensed Consolidated Balance Sheet. This pledged collateral value will fluctuate as the Company changes the mix of the pledged collateral between restricted cash and investments, with an expected maximum value between $13.0 million and $15.0 million. On October 8, 2020, the Company entered into an amendment to the letter of credit, which increased the minimum collateral value to $9.0 million. The minimum collateral value is expected to continue to increase as the Company reaches certain milestones through the first quarter of 2021 as outlined in the customer contract. Any shortfalls in the minimum collateral value are required to be restored by the Company from available cash and cash equivalents, short-term investments and/or long-term investments. The collateral under the letter of credit will be released when all obligations under the customer contract have been met. As of September 30, 2020, the Company was in compliance with all contractual requirements under the letter of credit.    

Investment Commitment

We have committed to invest up to an aggregate of $5.0 million in a private equity fund, of which $4.9 million has been contributed as of September 30, 2020.
v3.20.2
Current Expected Credit Losses
 9 Months Ended
Sep. 30, 2020
Credit Loss [Abstract]  
Current Expected Credit Losses

19. CURRENT EXPECTED CREDIT LOSSES

Under ASC 326 – Financial Instruments – Credit Losses, the Company estimates credit losses for the contractual life of assets that are measured at amortized cost and are within the scope of this guidance, which includes accounts receivable, net investment in sales-type leases, contract assets under the revenue recognition model and outstanding notes receivable. Where appropriate, the Company pools assets if similar risk characteristics exist. Additionally, the Company analyzes its available-for-sale debt securities for impairment and records a credit loss allowance as needed.

Assets Measured at Amortized Cost

Accounts Receivable

The Company records accounts receivable in the normal course of business as products are shipped or services are performed and invoiced, but payment has not yet been remitted by the customer. As of January 1, 2020 and September 30, 2020, the Company’s outstanding accounts receivable balance was $90.5 million and $100.2 million, respectively. The Company assessed the need for an allowance for credit losses related to its outstanding accounts receivable as of September 30, 2020 and January 1, 2020 using the historical loss-rate method as well as assessing asset-specific risks. The Company’s historical losses related to accounts receivable have been immaterial as evidenced by its historical allowance and write-offs due to uncollectability. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition, credit rating by geographic location, as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its accounts receivable balance, assessing the specific country risk rating and overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the accounts receivable balance was at risk, the Company further analyzed the need for an allowance related to specific accounts receivable balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would require further review and analysis by the Company.    

Accounts receivable balances are considered past due when payment has not been received by the date indicated on the relevant invoice or based on agreed upon terms between the customer and the Company.

No allowance for credit loss was recorded on January 1, 2020 (the “implementation date”) or during the three and nine months ended September 30, 2020 related to accounts receivable. The Company’s allowance for credit losses related to accounts receivable was $38 thousand as of September 30, 2020 and December 31, 2019, all of which was expensed prior to January 1, 2020.

Contract Assets

The Company records contract assets when it has recognized revenue but has not yet billed the customer. As of January 1, 2020 and September 30, 2020, the Company’s outstanding contract asset balance was $2.8 million and $1.0 million, respectively, which is included in other receivables on the Condensed Consolidated Balance Sheets as of December 31, 2019 and September 30, 2020. The Company assessed the need for an allowance for credit losses related to its outstanding contract assets as of September 30, 2020 and January 1, 2020 using the historical loss-rate method as well as asset-specific risks. The Company’s historical losses related to contract assets receivable have been immaterial as evidenced by historical write-offs due to uncollectability. Asset-specific risk included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay once invoiced, such as the customer’s financial condition, credit rating by geographic location as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its contract asset balance, assessing the specific country risk rating and overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the contract balance was at risk, the Company further analyzed the need for an allowance related to specific customer balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would be subject to further review and analysis by the Company.    

No allowance for credit loss was recorded on the implementation date or during the three and nine months ended September 30, 2020 related to contract assets.

Net Investment in Sales-Type Leases

The Company is the lessor in sales-type lease arrangements for network equipment. As of January 1, 2020 and September 30, 2020, the Company’s outstanding net investment in sales-type leases was $1.6 million and $1.0 million, respectively, which is included in other receivables and other assets on the Condensed Consolidated Balance Sheets as of December 31, 2019 and September 30, 2020. The Company assessed the need for an allowance for credit losses related to future receivables under its outstanding sales-type leases as of September 30, 2020 and January 1, 2020 using the historical loss-rate method as well as asset-specific risks. The Company’s historical losses related to contract assets receivable have been immaterial as evidenced by historical write-offs due to uncollectability. Asset-specific risk included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay once invoiced, such as the customer’s financial condition, credit rating by geographic location as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates.

The following table presents amortized cost basis in sales-type leases based on payment activity:

 

 

 

Sales-Type Leases Amortized Cost Basis by Origination Year

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Total

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Performing

 

$

58

 

 

$

227

 

 

$

426

 

 

$

153

 

 

$

89

 

 

$

3

 

 

$

956

 

     Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

58

 

 

$

227

 

 

$

426

 

 

$

153

 

 

$

89

 

 

$

3

 

 

$

956

 

 

Sales-type lease receivables are considered past due when payment has not been received based on agreed upon terms between the customer and the Company. No allowance for credit loss was recorded on the implementation date or during the three and nine months ended September 30, 2020 related to sales-type leases.

Secured Loan Receivable

The Company has a secured loan receivable totaling $0.9 million as of January 1, 2020 and September 30, 2020, which originated in February 2019, and is included in long-term investments on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. The Company assessed the need for an allowance for credit loss related to its secured loan receivable as of September 30, 2020 and January 1, 2020 using the historical loss-rate method as well as asset-specific risks. There have been no historical losses related to this receivable. Asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect the customer’s ability to repay the loan upon maturity, such as the customer’s current financial condition, credit rating specific to the customer as determined by a third party and current overall economic conditions, as well as a Company valuation prepared by a third party which was based on reasonable and supportable forecasts as provided by management. Accrued interest receivable on the secured loan receivable, which is included in other receivables on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, totaled $24 thousand and $0 as of January 1, 2020 and September 30, 2020, respectively, and was excluded from the estimate of credit losses for both periods based on the Company’s accounting policy election.

No allowance for credit loss was recorded on the implementation date or during the three and nine months ended September 30, 2020 related to the secured loan receivable.

Off-Balance Sheet Arrangements

The Company did not have any off-balance sheet arrangements as of January 1, 2020 or September 30, 2020.


Available-for-Sale Debt Securities

 

As of January 1, 2020 and September 30, 2020, the Company’s available-for-sale debt securities totaled $37.7 million and $44.9 million, respectively. These securities were analyzed at the individual investment level, by CUSIP, to limit credit losses, if applicable, to reflect only the amount by which the fair value of the security was less than its amortized cost. The Company noted that, as of January 1, 2020 and September 30, 2020, there was no intent to sell any of its available-for-sale debt securities before maturity, and, therefore, the Company assessed the need for an allowance for each of its available-for-sale debt securities in which the fair value was less than its amortized cost as of January 1, 2020 and September 30, 2020. Accrued interest receivable on available-for-sale debt securities, which is included in other receivables on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, totaled $0.1 million as of January 1, 2020 and September 30, 2020, and was excluded from the estimate of credit losses for both periods based on the Company’s accounting policy election. Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Income (Loss).

 

The Company had 45 positions in available-for-sale debt securities that were in an unrealized loss position as of September 30, 2020, which are presented in the table below:

 

(In thousands)

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Municipal fixed-rate bonds

 

 

394

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

394

 

 

 

(1

)

Asset-backed bonds

 

 

396

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

396

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

3,199

 

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

3,199

 

 

 

(11

)

U.S. government bonds

 

 

800

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

800

 

 

 

—

 

Foreign government bonds

 

 

75

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75

 

 

 

—

 

Total

 

$

4,864

 

 

$

(12

)

 

$

—

 

 

$

—

 

 

$

4,864

 

 

$

(12

)

 

The following table outlines the available-for-sale debt securities in an unrealized loss position as of January 1, 2020:

 

(In thousands)

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

 

203

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

203

 

 

 

—

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

930

 

 

 

—

 

Asset-backed bonds

 

 

797

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

797

 

 

 

(3

)

Mortgage/Agency-backed bonds

 

 

2,594

 

 

 

(6

)

 

 

136

 

 

 

(2

)

 

 

2,730

 

 

 

(8

)

U.S. government bonds

 

 

4,070

 

 

 

(9

)

 

 

—

 

 

 

—

 

 

 

4,070

 

 

 

(9

)

Foreign government bonds

 

 

371

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

371

 

 

 

(1

)

Total

 

$

8,965

 

 

$

(19

)

 

$

136

 

 

$

(2

)

 

$

9,101

 

 

$

(21

)

 

For those available-for-sale debt securities whose fair value was less than its amortized cost basis, the Company analyzed additional criteria such as adverse conditions specifically related to the security, an industry or geographic area, failure of the issuer of the security to make scheduled interest or principal payments, if applicable, and any changes to the rating of the security by a rating agency to determine if a credit loss existed. The Company used information provided by its investment manager to determine if any scheduled interest or principal payments had not been received and used a third party to determine if any changes to credit ratings had occurred. The Company noted that all principal and interest payments had been received as scheduled and that there had been no changes in credit ratings year-over-year or period-over-period that warranted further review.

 

No allowance for credit loss was recorded on the implementation date or during the three and nine months ended September 30, 2020 related to the Company’s available-for-sale debt securities.
v3.20.2
Restructuring
 9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]  
Restructuring

20. RESTRUCTURING

During the second half of 2019, the Company implemented a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. Management assessed the efficiency of operations and, in turn, consolidated locations and personnel, among other things, where possible. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally.

In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020.  

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 30, 2020

 

 

September 30, 2020

 

Balance at beginning of period

 

$

358

 

 

$

1,568

 

Plus: Amounts charged to expense

 

 

1,903

 

 

 

3,648

 

Less: Amounts paid

 

 

(542

)

 

 

(3,497

)

Balance as of September 30, 2020

 

$

1,719

 

 

$

1,719

 

 

(In thousands)

 

December 31, 2019

 

Balance as of December 31, 2018

 

$

185

 

Plus: Amounts charged to expense

 

 

6,014

 

Less: Amounts paid

 

 

(4,631

)

Balance as of December 31, 2019

 

$

1,568

 

  

Restructuring expenses included in the Condensed Consolidated Statements of Income (Loss) were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of sales

 

 

232

 

 

 

62

 

 

 

288

 

 

 

747

 

Selling, general and administrative expenses

 

$

1,050

 

 

$

531

 

 

$

1,622

 

 

$

2,078

 

Research and development expenses

 

 

621

 

 

 

602

 

 

 

1,738

 

 

 

1,833

 

Total restructuring expenses

 

$

1,903

 

 

$

1,195

 

 

$

3,648

 

 

$

4,658

 

 

The following table represents the components of restructuring expenses by geographic area:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Domestic

 

$

448

 

 

$

1,116

 

 

$

2,191

 

 

$

1,941

 

International

 

 

1,455

 

 

 

79

 

 

 

1,457

 

 

 

2,717

 

Total restructuring expenses

 

$

1,903

 

 

$

1,195

 

 

$

3,648

 

 

$

4,658

 

 

The cumulative amount of restructuring expenses incurred as of September 30, 2020 for the restructuring plans announced in 2019 and 2020 was $9.7 million.
v3.20.2
Subsequent Events
 9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

 

21. SUBSEQUENT EVENTS

On November 2, 2020, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to the Company’s stockholders of record as of the close of business on November 17, 2020. The payment date will be December 1, 2020 in the aggregate amount of approximately $4.3 million.

On November 4, 2020, the Company, as borrower, entered into a Revolving Credit and Security Agreement and related Promissory Note (together, the “Revolving Credit Agreement”) with Cadence Bank, N.A., as lender (the “Lender”). The Revolving Credit Agreement provides the Company with a new $10 million secured revolving credit facility. Loans under the Revolving Credit Agreement will bear interest at a rate equal to 1.50% over the screen rate as obtained by Reuter’s, Bloomberg or another commercially available source as may be designated by the Lender from time to time; provided, however, that in no event shall the applicable rate of interest under the Revolving Credit Agreement be less than 1.50% per annum. Such loans are secured by all of the cash, securities, securities entitlements and investment property in a certain bank account, as outlined in the Revolving Credit Agreement, at a maximum loan-to-value ratio of 75% determined by dividing the full commitment amount under the Revolving Credit Agreement on the date of testing, determined by the Lender each fiscal quarter, by the market value of the collateral. The Revolving Credit Agreement matures on November 4, 2021, subject to earlier termination upon the occurrence of certain events of default. The Company has not made any draws under the Revolving Credit Agreement to date.

 
v3.20.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (“ADTRAN”, the “Company”, “we”, “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The Condensed Consolidated Balance Sheet as of December 31, 2019 is derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 25, 2020.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of deferred revenue components of multi-element sales agreements, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the novel coronavirus (“COVID-19”) as of September 30, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for doubtful accounts, current estimated credit losses, stock-based compensation, excess and obsolete inventory reserves, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. While there was not a material impact to our condensed consolidated financial statements as of and for the three and nine month periods ended September 30, 2020 resulting from these assessments, future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods.
Correction of Immaterial Misstatements

Correction of Immaterial Misstatements

During the three months ended June 30, 2019, the Company determined that there was an immaterial misstatement of its excess and obsolete inventory reserves in its previously issued annual and interim financial statements. The Company corrected this misstatement by recognizing a $0.8 million out-of-period adjustment during the three months ended June 30, 2019, which increased its excess and obsolete inventory reserve and cost of goods sold for the period. For the six months ended June 30, 2019, the out-of-period adjustment was a cumulative $0.2 million reduction in its excess and obsolete inventory reserve and cost of goods sold. In addition, the Company determined that a $1.0 million cash inflow related to an insurance recovery was incorrectly classified as a cash flow from operations instead of a cash flow from investing activities within the unaudited Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. The Company corrected this misstatement in the Unaudited Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019 to correctly reflect the $1.0 million insurance recovery as a cash inflow from investing activities. Management determined that these misstatements were not material to any of its previously issued financial statements on both a quantitative and qualitative basis.

During the first quarter of 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $1.5 million in the unaudited Condensed Consolidated Statement of Income (Loss) and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $2.8 million to treasury stock in the unaudited Condensed Consolidated Balance Sheet as of March 31, 2020. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement is also not expected to be material to the 2020 annual financial results on either a quantitative or qualitative basis.
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

During 2020, we adopted the following accounting standards, which had the following impacts on our consolidated financial statements:

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement and recognition of expected credit losses for financial instruments held at amortized cost. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326 Financial Instruments – Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather should be accounted for in accordance with the standard for leases. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the accounting for transfers between classifications of debt securities and clarifies that entities should include expected recoveries on financial assets in the calculation of the current expected credit loss allowance. In addition, renewal options that are not unconditionally cancelable should be considered in the determination of expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which amends ASU 2016-13 to allow companies, upon adoption, to elect the fair value option on financial instruments that were previously recorded at amortized cost if they meet certain criteria. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, which makes various narrow-scope amendments to the new credit losses standard, such as providing disclosure relief for accrued interest receivables. All of these ASUs were codified as part of Accounting Standards Codifications (“ASC”) Topic 326 and were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this standard on January 1, 2020, using a modified-retrospective approach and, therefore, elected to carry forward legacy disclosures for comparative periods and did not adjust the comparative period financial information. Additionally, the Company made an accounting policy election, at the class of financing receivable, not to measure the allowance for credit losses for accrued interest receivables, as the Company writes off the uncollectable accrued interest receivable by reversing any previously recorded interest income in a timely manner (as soon as these amounts are determined to be uncollectable). The adoption of this standard did not have a material effect on our consolidated financial statements. See Note 19 for additional information.

 

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the measurement of goodwill by eliminating step 2 of the goodwill impairment test. Under ASU 2017-04, entities are required to compare the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 was effective for annual or interim impairment tests performed in fiscal years beginning after December 15, 2019. The Company adopted ASU 2017-04 on January 1, 2020, and the amendments were applied prospectively. The adoption of this standard did not have a material effect on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820, Fair Value Measurement. The amendments in this ASU are the result of a broader disclosure project, Concepts Statement No. 8 — Conceptual Framework for Financial Reporting — Chapter 8 — Notes to Financial Statements, which the FASB finalized on August 28, 2018. The FASB used the guidance in the Concepts Statement to improve the effectiveness of ASC 820’s disclosure requirements. ASU 2018-13 provides users of financial statements with information about assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to the financial statements. More specifically, ASU 2018-13 requires disclosures about the valuation techniques and inputs that are used to arrive at measures of fair value, including judgments and assumptions that are made in determining fair value. In addition, ASU 2018-13 requires disclosures regarding the uncertainty in the fair value measurements as of the reporting date and how changes in fair value measurements affect performance and cash flows. The Company adopted ASU 2018-13 on January 1, 2020, and the adoption of this standard did not have a material effect on our consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.  ASU 2018-15 clarifies certain aspects of ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. Specifically, ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementations costs incurred to develop or obtain internal use software. The Company adopted ASU 2018-15 on January 1, 2020, retrospectively. The adoption of this standard resulted in a reclassification of $5.6 million from property, plant and equipment to other assets for certain previously capitalized costs related to information technology implementation projects that had not yet been placed in service on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. There was no impact to previously reported net cash provided by (used in) operations on the statement of cash flows and no impact to the statements of income (loss) as no portion of the capitalized asset was depreciated in prior periods.

 

The following table illustrates the impact of adoption of ASU 2018-15 on the Condensed Consolidated Balance Sheet as of December 31, 2019:

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Condensed Consolidated Statement of Loss for the three and nine months ended September 30, 2019 and the Condensed Consolidated Statement of Cash Flows for nine months ended September 30, 2019 as outlined in the following tables:

 

 

 

Three months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(46,123

)

 

$

—

 

 

$

(46,123

)

 

 

 

Nine months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(41,358

)

 

$

—

 

 

$

(41,358

)

Condensed Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by operating activities

 

$

10,082

 

 

$

—

 

 

$

10,082

 

 

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other assets on the Condensed Consolidated Balance Sheet, as of September 30, 2020:

 

(In thousands)

 

September 30, 2020

 

Implementation costs - hosting arrangements

 

$

10,455

 

Less: accumulated amortization

 

 

—

 

Implementation costs - hosting arrangements, net

 

$

10,455

 

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company early adopted ASU 2019-12 on April 1, 2020, which was applied on a prospective basis as if the Company adopted the standard on January 1, 2020. The Company early adopted the standard to take advantage of the simplification of rules for income taxes on intra-period tax allocations. Specifically, the adoption of this standard resulted in the recognition of approximately $0.1 million of tax benefit in other comprehensive income (loss), that otherwise would have been recognized in continuing operations had the intra-period tax allocation been completed. There were no other impacts from this standard on the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income (Loss) or Condensed Consolidated Statements of Cash Flows.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

 

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which makes changes to and clarifies the disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 requires additional disclosures related to the reasons for significant gains and losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in other disclosures required by ASC 715. ASU 2018-14 also clarifies the guidance in ASC 715 to require disclosure of the projected benefit obligation (“PBO”) and fair value of plan assets for pension plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for pension plans with ABOs in excess of plan assets. ASU 2018-14 is effective for public business entities for fiscal years ending after December 15, 2020. The Company is currently evaluating the impact this guidance will have on its related disclosures.
v3.20.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2020
Schedule of Capitalized Implementation Costs Incurred with Hosting Arrangements, Included in Other Assets on Condensed Consolidated Balance Sheet

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other assets on the Condensed Consolidated Balance Sheet, as of September 30, 2020:

 

(In thousands)

 

September 30, 2020

 

Implementation costs - hosting arrangements

 

$

10,455

 

Less: accumulated amortization

 

 

—

 

Implementation costs - hosting arrangements, net

 

$

10,455

 
ASU 2018-15 [Member]  
Schedule of Impact of Adoption of ASU 2018-15 on Condensed Consolidated Balance Sheet, Statement of Loss and Cash Flows

The following table illustrates the impact of adoption of ASU 2018-15 on the Condensed Consolidated Balance Sheet as of December 31, 2019:

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Condensed Consolidated Statement of Loss for the three and nine months ended September 30, 2019 and the Condensed Consolidated Statement of Cash Flows for nine months ended September 30, 2019 as outlined in the following tables:

 

 

 

Three months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(46,123

)

 

$

—

 

 

$

(46,123

)

 

 

 

Nine months ended September 30, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Condensed Consolidated Statement of Loss

 

 

 

 

 

 

 

 

 

 

 

 

  Net loss

 

$

(41,358

)

 

$

—

 

 

$

(41,358

)

Condensed Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by operating activities

 

$

10,082

 

 

$

—

 

 

$

10,082

 
v3.20.2
Cash, Cash Equivalents and Restricted Cash (Tables)
 9 Months Ended
Sep. 30, 2020
Cash And Cash Equivalents [Abstract]  
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows:

 

(In thousands)

 

September 30, 2020

 

Cash and cash equivalents

 

$

71,081

 

Restricted cash

 

 

322

 

Cash, cash equivalents and restricted cash

 

$

71,403

 
v3.20.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate revenue by reportable segment and revenue category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

 

$

48,902

 

 

$

16,212

 

 

$

65,114

 

Subscriber Solutions & Experience

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

 

 

40,382

 

 

 

2,094

 

 

 

42,476

 

Traditional & Other Products

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

 

 

4,734

 

 

 

1,768

 

 

 

6,502

 

Total

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

$

94,018

 

 

$

20,074

 

 

$

114,092

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

 

$

230,837

 

 

$

43,476

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

 

 

113,545

 

 

 

6,186

 

 

 

119,731

 

Traditional & Other Products

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

 

 

14,625

 

 

 

5,605

 

 

 

20,230

 

Total

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

 

$

359,007

 

 

$

55,267

 

 

$

414,274

 

 

The table below presents sales information by category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Access & Aggregation

 

$

85,423

 

 

$

65,114

 

 

$

234,165

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

43,125

 

 

 

42,476

 

 

 

125,697

 

 

 

119,731

 

Traditional & Other Products

 

 

4,595

 

 

 

6,502

 

 

 

16,519

 

 

 

20,230

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 
Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:

 

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

Accounts receivable, net

 

$

100,223

 

 

$

90,531

 

Contract assets(1)

 

$

1,015

 

 

$

2,812

 

Unearned revenue

 

$

13,379

 

 

$

11,963

 

Non-current unearned revenue

 

$

6,694

 

 

$

6,012

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheets.
v3.20.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets

Supplemental balance sheet information related to deferred tax assets as of September 30, 2020 and December 31, 2019 is as follows:

 

 

 

September 30, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

49,212

 

 

$

(49,212

)

 

$

—

 

International

 

 

9,892

 

 

 

(2,027

)

 

 

7,865

 

Total

 

$

59,104

 

 

$

(51,239

)

 

$

7,865

 

 

 

 

December 31, 2019

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

46,266

 

 

$

(46,266

)

 

$

—

 

International

 

 

9,911

 

 

 

(2,350

)

 

 

7,561

 

Total

 

$

56,177

 

 

$

(48,616

)

 

$

7,561

 
v3.20.2
Pension Benefit Plan (Tables)
 9 Months Ended
Sep. 30, 2020
Compensation And Retirement Disclosure [Abstract]  
Summarization of Components of Net Periodic Pension Cost

The following table summarizes the components of net periodic pension cost related to a defined benefit pension plan covering employees in certain foreign countries for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

 

$

325

 

 

$

366

 

 

$

942

 

 

$

1,109

 

Interest cost

 

 

113

 

 

 

158

 

 

 

329

 

 

 

479

 

Expected return on plan assets

 

 

(429

)

 

 

(346

)

 

 

(1,246

)

 

 

(1,049

)

Amortization of actuarial losses

 

 

248

 

 

 

198

 

 

 

720

 

 

 

600

 

Net periodic pension cost

 

$

257

 

 

$

376

 

 

$

745

 

 

$

1,139

 
v3.20.2
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock

The following table summarizes stock-based compensation expense related to stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Stock-based compensation expense included in cost of sales

 

$

101

 

 

$

83

 

 

$

303

 

 

$

272

 

Selling, general and administrative expense

 

 

953

 

 

 

1,142

 

 

 

2,999

 

 

 

2,867

 

Research and development expense

 

 

556

 

 

 

646

 

 

 

1,754

 

 

 

2,045

 

Stock-based compensation expense included in operating expenses

 

 

1,509

 

 

 

1,788

 

 

 

4,753

 

 

 

4,912

 

Total stock-based compensation expense

 

 

1,610

 

 

 

1,871

 

 

 

5,056

 

 

 

5,184

 

Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock

 

 

(384

)

 

 

(446

)

 

 

(1,205

)

 

 

(1,235

)

Total stock-based compensation expense, net of tax

 

$

1,226

 

 

$

1,425

 

 

$

3,851

 

 

$

3,949

 
Summary of PSUs, RSUs and Restricted Stock Outstanding

The following table summarizes PSUs, RSUs and restricted stock outstanding as of December 31, 2019 and September 30, 2020 and the changes that occurred during the nine months ended September 30, 2020.

 

 

 

Number of

Shares

(in thousands)

 

 

Weighted Avg. Grant Date Fair Value

(per share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2019

 

 

1,891

 

 

$

14.58

 

PSUs, RSUs and restricted stock granted

 

 

399

 

 

$

8.21

 

PSUs, RSUs and restricted stock vested

 

 

(15

)

 

$

12.76

 

PSUs, RSUs and restricted stock forfeited

 

 

(586

)

 

$

18.24

 

Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2020

 

 

1,689

 

 

$

11.83

 

 
Summary of Stock Options Outstanding

The following table summarizes stock options outstanding as of December 31, 2019 and September 30, 2020 and the changes that occurred during the nine months ended September 30, 2020:

 

 

Number of

Stock Options

(in thousands)

 

 

Weighted Avg.

Exercise Price

(per share)

 

 

Weighted Avg.

Remaining

Contractual

Life

(in years)

 

 

Aggregate

Intrinsic Value

(in thousands)

 

Stock options outstanding, December 31, 2019

 

 

3,572

 

 

$

22.88

 

 

 

3.4

 

 

$

—

 

Stock options exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

Stock options forfeited

 

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

Stock options expired

 

 

(352

)

 

$

21.48

 

 

 

 

 

 

 

 

 

Stock options outstanding, September 30, 2020

 

 

3,220

 

 

$

22.94

 

 

 

2.7

 

 

$

—

 

Stock options exercisable, September 30, 2020

 

 

3,217

 

 

$

22.95

 

 

 

2.7

 

 

$

—

 

 
v3.20.2
Investments (Tables)
 9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Debt Securities and Other Investments, Included on Condensed Consolidated Balance Sheet and Recorded at Fair Value

Debt Securities and Other Investments

As of September 30, 2020, the following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

12,861

 

 

$

149

 

 

$

—

 

 

$

13,010

 

Municipal fixed-rate bonds

 

 

3,093

 

 

 

32

 

 

 

(1

)

 

 

3,124

 

Asset-backed bonds

 

 

8,472

 

 

 

115

 

 

 

—

 

 

 

8,587

 

Mortgage/Agency-backed bonds

 

 

10,964

 

 

 

127

 

 

 

(11

)

 

 

11,080

 

U.S. government bonds

 

 

7,096

 

 

 

174

 

 

 

—

 

 

 

7,270

 

Foreign government bonds

 

 

1,032

 

 

 

3

 

 

 

—

 

 

 

1,035

 

Commercial paper

 

 

324

 

 

 

1

 

 

 

—

 

 

 

325

 

Variable-rate demand notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

442

 

 

 

—

 

 

 

—

 

 

 

442

 

Available-for-sale debt securities held at fair value

 

$

44,284

 

 

$

601

 

 

$

(12

)

 

$

44,873

 

As of December 31, 2019, the following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

9,304

 

 

$

80

 

 

$

—

 

 

$

9,384

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

—

 

 

 

930

 

Asset-backed bonds

 

 

6,867

 

 

 

26

 

 

 

(3

)

 

 

6,890

 

Mortgage/Agency-backed bonds

 

 

6,944

 

 

 

26

 

 

 

(8

)

 

 

6,962

 

U.S. government bonds

 

 

12,311

 

 

 

21

 

 

 

(9

)

 

 

12,323

 

Foreign government bonds

 

 

372

 

 

 

—

 

 

 

(1

)

 

 

371

 

Variable-rate demand notes

 

 

800

 

 

 

—

 

 

 

—

 

 

 

800

 

Available-for-sale debt securities held at fair value

 

$

37,528

 

 

$

153

 

 

$

(21

)

 

$

37,660

 

 
Contractual Maturities of Debt Securities and Other Investments

As of September 30, 2020, contractual maturities related to debt securities and other investments were as follows:

 
Gross Realized Gains and Losses on Sale of Debt Securities The following table presents gross realized gains and losses related to our debt securities:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gross realized gains on debt securities

 

$

70

 

 

$

36

 

 

$

303

 

 

$

85

 

Gross realized losses on debt securities

 

 

(6

)

 

 

(7

)

 

 

(45

)

 

 

(40

)

Total gain recognized, net

 

$

64

 

 

$

29

 

 

$

258

 

 

$

45

 
Realized and Unrealized Gains and Losses related to Marketable Equity Securities

Realized and unrealized gains and losses related to marketable equity securities for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Realized gains (losses) on equity securities sold

 

$

623

 

 

$

(20

)

 

$

(1,485

)

 

$

(83

)

Unrealized gains (losses) on equity securities held

 

 

2,157

 

 

 

(225

)

 

 

3,046

 

 

 

8,233

 

Total gain (loss) recognized, net

 

$

2,780

 

 

$

(245

)

 

$

1,561

 

 

$

8,150

 
Cash Equivalents and Investments held at Fair Value

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2020 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Market for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant Unobservable Inputs

(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

636

 

 

$

636

 

 

$

—

 

 

$

—

 

U.S. government securities

 

 

300

 

 

 

300

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

13,010

 

 

—

 

 

 

13,010

 

 

 

—

 

Municipal fixed-rate bonds

 

 

3,124

 

 

—

 

 

 

3,124

 

 

 

—

 

Asset-backed bonds

 

 

8,587

 

 

—

 

 

 

8,587

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

11,080

 

 

—

 

 

 

11,080

 

 

 

—

 

U.S. government bonds

 

 

7,270

 

 

 

7,270

 

 

—

 

 

 

—

 

Foreign government securities

 

 

1,035

 

 

—

 

 

 

1,035

 

 

 

—

 

Commercial paper

 

 

325

 

 

—

 

 

 

325

 

 

 

—

 

Variable-rate demand notes

 

 

—

 

 

—

 

 

 

 

 

 

 

—

 

Other

 

 

442

 

 

—

 

 

—

 

 

 

442

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

13,590

 

 

 

13,590

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

21,595

 

 

 

21,595

 

 

—

 

 

 

—

 

Other investments

 

 

1,276

 

 

 

1,276

 

 

—

 

 

 

—

 

Total

 

$

82,270

 

 

$

44,667

 

 

$

37,161

 

 

$

442

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2019 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Market for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant Unobservable Inputs

(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,309

 

 

$

1,309

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

9,384

 

 

 

—

 

 

 

9,384

 

 

 

—

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

930

 

 

 

—

 

Asset-backed bonds

 

 

6,890

 

 

 

—

 

 

 

6,890

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

6,962

 

 

 

—

 

 

 

6,962

 

 

 

—

 

U.S. government bonds

 

 

12,323

 

 

 

12,323

 

 

 

—

 

 

 

—

 

Foreign government bonds

 

 

371

 

 

 

—

 

 

 

371

 

 

 

—

 

Variable-rate demand notes

 

 

800

 

 

 

—

 

 

 

800

 

 

 

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

35,501

 

 

 

35,501

 

 

 

—

 

 

 

—

 

Equity in escrow

 

 

298

 

 

 

298

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

21,698

 

 

 

21,698

 

 

 

—

 

 

 

—

 

Other investments

 

 

2,442

 

 

 

2,442

 

 

 

—

 

 

 

—

 

Total

 

$

98,908

 

 

$

73,571

 

 

$

25,337

 

 

$

—

 

 
v3.20.2
Inventory (Tables)
 9 Months Ended
Sep. 30, 2020
Inventory Disclosure [Abstract]  
Components of Inventory

As of September 30, 2020 and December 31, 2019, inventory consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(In thousands)

 

2020

 

 

2019

 

Raw materials

 

$

43,418

 

 

$

36,987

 

Work in process

 

 

1,787

 

 

 

1,085

 

Finished goods

 

 

75,055

 

 

 

60,233

 

Total inventory

 

$

120,260

 

 

$

98,305

 

 
v3.20.2
Property, Plant and Equipment (Tables)
 9 Months Ended
Sep. 30, 2020
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

At September 30, 2020 and December 31, 2019, property, plant and equipment consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(In thousands)

 

2020

 

 

2019

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

35,105

 

 

 

34,797

 

Building

 

 

68,160

 

 

 

68,157

 

Furniture and fixtures

 

 

19,981

 

 

 

19,959

 

Computer hardware and software

 

 

70,766

 

 

 

68,777

 

Engineering and other equipment

 

 

132,672

 

 

 

130,430

 

Total property, plant and equipment

 

 

331,259

 

 

 

326,695

 

Less: accumulated depreciation

 

 

(266,906

)

 

 

(258,609

)

Total property, plant and equipment, net

 

$

64,353

 

 

$

68,086

 
v3.20.2
Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2020
Intangible Assets Net Excluding Goodwill [Abstract]  
Summary of Intangible Assets

Intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

(In thousands)

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

$

20,931

 

 

$

(7,369

)

 

$

13,562

 

 

$

22,356

 

 

$

(7,233

)

 

$

15,123

 

Developed technology

 

 

8,200

 

 

 

(2,262

)

 

 

5,938

 

 

 

10,170

 

 

 

(3,379

)

 

 

6,791

 

Licensed technology

 

 

5,900

 

 

 

(1,666

)

 

 

4,234

 

 

 

5,900

 

 

 

(1,174

)

 

 

4,726

 

Supplier relationships

 

 

2,800

 

 

 

(2,800

)

 

 

—

 

 

 

2,800

 

 

 

(2,508

)

 

 

292

 

Licensing agreements

 

 

560

 

 

 

(134

)

 

 

426

 

 

 

560

 

 

 

(79

)

 

 

481

 

Patents

 

 

500

 

 

 

(277

)

 

 

223

 

 

 

500

 

 

 

(226

)

 

 

274

 

Trade names

 

 

210

 

 

 

(128

)

 

 

82

 

 

 

310

 

 

 

(176

)

 

 

134

 

Total

 

$

39,101

 

 

$

(14,636

)

 

$

24,465

 

 

$

42,596

 

 

$

(14,775

)

 

$

27,821

 

 
Estimated Future Amortization Expense Related to Intangible Assets

As of September 30, 2020, estimated future amortization expense of intangible assets was as follows:

 

(In thousands)

 

 

 

 

2020

 

$

1,041

 

2021

 

 

4,107

 

2022

 

 

3,482

 

2023

 

 

3,330

 

2024

 

 

3,236

 

Thereafter

 

 

9,269

 

Total

 

$

24,465

 

 
v3.20.2
Leases (Tables)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Schedule of Operating Lease Assets and Operating Lease Liabilities As of September 30, 2020 and December 31, 2019, the Company’s operating lease assets and operating lease liabilities were as follows:

 

(In thousands)

 

Classification

 

September 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

 

 

Operating lease asset

 

Other assets

 

$

5,503

 

 

$

8,452

 

Total lease asset

 

 

 

$

5,503

 

 

$

8,452

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses

 

$

1,731

 

 

$

2,676

 

Non-current operating lease liability

 

Other non-current liabilities

 

 

3,788

 

 

 

5,818

 

Total lease liability

 

 

 

$

5,519

 

 

$

8,494

 

 
Components of Lease Expense included in Condensed Consolidated Statement of Income (Loss)

Components of lease expense included in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of sales

 

$

21

 

 

$

16

 

 

$

68

 

 

$

49

 

Selling, general and administrative expenses

 

 

265

 

 

 

352

 

 

 

863

 

 

 

1,050

 

Research and development expenses

 

 

368

 

 

 

847

 

 

 

1,044

 

 

 

1,731

 

Total operating lease expense

 

$

654

 

 

$

1,215

 

 

$

1,975

 

 

$

2,830

 

 
Schedule of Maturity of Operating Lease Liabilities

As of September 30, 2020 and December 31, 2019, operating lease liabilities included on the Condensed Consolidated Balance Sheets by future maturity were as follows:

 

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

2020

 

$

518

 

 

$

2,856

 

2021

 

 

1,744

 

 

 

2,412

 

2022

 

 

1,514

 

 

 

1,705

 

2023

 

 

1,180

 

 

 

1,160

 

2024

 

 

499

 

 

 

482

 

Thereafter

 

 

276

 

 

 

264

 

Total lease payments

 

 

5,731

 

 

 

8,879

 

Less: Interest

 

 

(212

)

 

 

(385

)

Present value of lease liabilities

 

$

5,519

 

 

$

8,494

 

 
Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates The following table provides information about the weighted average lease terms and weighted average discount rates as of September 30, 2020 and December 31, 2019:

 

 

 

As of September 30, 2020

 

 

As of December 31, 2019

 

Weighted average remaining lease term (in years)

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

2.6

 

 

 

2.6

 

     Operating leases with Euro functional currency

 

 

3.8

 

 

 

4.4

 

Weighted average discount rate

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

4.50

%

 

 

4.02

%

     Operating leases with Euro functional currency

 

 

1.81

%

 

 

1.84

%

 
Schedule of Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease assets / liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash used in operating activities related to operating leases

 

$

582

 

 

$

775

 

 

$

2,059

 

 

$

2,383

 

Right-of-use assets obtained in exchange for lease obligations

 

$

138

 

 

$

11,022

 

 

$

231

 

 

$

21,418

 

 
Net Investment in Sales-Type Leases We are the lessor in sales-type lease arrangements for network equipment, which have initial terms of up to five years, and consisted of the following as of September 30, 2020 and December 31, 2019:

(In thousands)

 

September 30, 2020

 

 

December 31, 2019

 

Current minimum lease payments receivable(1)

 

$

811

 

 

$

1,201

 

Non-current minimum lease payments receivable(2)

 

 

450

 

 

 

889

 

Total minimum lease payments receivable

 

 

1,261

 

 

 

2,090

 

Less: Current unearned revenue

 

 

235

 

 

 

365

 

Less: Non-current unearned revenue

 

 

70

 

 

 

163

 

Net investment in sales-type leases

 

$

956

 

 

$

1,562

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheets.

 

(2)

Included in other assets on the Condensed Consolidated Balance Sheets.

 
Schedule of Components of Gross Profit Related to Sales-type Leases and Interest and Dividend Income Included in Condensed Consolidated Statements of Income (Loss)

Components of gross profit related to sales-type leases recognized at the lease commencement date and interest and dividend income included in the Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2020 and 2019 were as follows:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Sales - Network Solutions

 

$

22

 

 

$

47

 

 

$

72

 

 

$

1,668

 

Less: Cost of sales - Network Solutions

 

 

9

 

 

 

25

 

 

 

29

 

 

 

660

 

Gross profit

 

$

13

 

 

$

22

 

 

$

43

 

 

$

1,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

10

 

 

$

92

 

 

$

34

 

 

$

278

 

 
v3.20.2
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Component

The following tables present the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended September 30, 2020

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of June 30, 2020

 

$

206

 

 

$

(8,894

)

 

$

(7,043

)

 

$

385

 

 

$

(15,346

)

Other comprehensive income before

   reclassifications

 

 

494

 

 

 

—

 

 

 

2,469

 

 

 

—

 

 

 

2,963

 

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

(539

)

 

 

244

 

 

 

—

 

 

 

—

 

 

 

(295

)

Net current period other comprehensive income

 

 

(45

)

 

 

244

 

 

 

2,469

 

 

 

—

 

 

 

2,668

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

 

Three Months Ended September 30, 2019

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of June 30, 2019

 

$

(271

)

 

$

(7,770

)

 

$

(6,439

)

 

$

385

 

 

$

(14,095

)

Other comprehensive income before

   reclassifications

 

 

(39

)

 

 

—

 

 

 

(2,486

)

 

 

—

 

 

 

(2,525

)

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

24

 

 

 

90

 

 

 

—

 

 

 

—

 

 

 

114

 

Net current period other comprehensive income

 

 

(15

)

 

 

90

 

 

 

(2,486

)

 

 

—

 

 

 

(2,411

)

As of September 30, 2019

 

$

(286

)

 

$

(7,680

)

 

$

(8,925

)

 

$

385

 

 

$

(16,506

)

 

 

(1)

With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.

 

The following tables present the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended September 30, 2020

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption(1)

 

 

Total

 

As of December 31, 2019

 

$

(284

)

 

$

(9,226

)

 

$

(7,292

)

 

$

385

 

 

$

(16,417

)

Other comprehensive income (loss) before

   reclassifications

 

 

444

 

 

 

—

 

 

 

2,718

 

 

 

—

 

 

 

3,162

 

Amounts reclassified from accumulated other

   comprehensive income

 

 

1

 

 

 

576

 

 

 

—

 

 

 

—

 

 

 

577

 

Net current period other comprehensive income

 

 

445

 

 

 

576

 

 

 

2,718

 

 

 

—

 

 

 

3,739

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

Nine Months Ended September 30, 2019

 

(In thousands)

 

Unrealized

Gains

(Losses)

on

Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

As of December 31, 2018

 

$

(563

)

 

$

(8,041

)

 

$

(5,812

)

 

$

—

 

 

$

(14,416

)

Other comprehensive income (loss) before

   reclassifications

 

 

372

 

 

 

—

 

 

 

(3,113

)

 

 

—

 

 

 

(2,741

)

Amounts reclassified from accumulated other

   comprehensive income (loss)

 

 

(95

)

 

 

361

 

 

 

—

 

 

 

—

 

 

 

266

 

Amounts reclassified to retained earnings (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

385

 

 

 

385

 

Net current period other comprehensive income

  (loss)

 

 

277

 

 

 

361

 

 

 

(3,113

)

 

 

385

 

 

 

(2,090

)

As of September 30, 2019

 

$

(286

)

 

$

(7,680

)

 

$

(8,925

)

 

$

385

 

 

$

(16,506

)

 

 

(1)

With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the three months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended September 30, 2020

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized gains on sales of securities

 

$

728

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(354

)

 

(1)

Total reclassifications for the period, before tax

 

 

374

 

 

 

Tax expense

 

 

(79

)

 

 

Total reclassifications for the period, net of tax

 

$

295

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

 

 

Three Months Ended September 30, 2019

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized losses on sales of securities

 

$

(32

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(130

)

 

(1)

Total reclassifications for the period, before tax

 

 

(162

)

 

 

Tax benefit

 

 

48

 

 

 

Total reclassifications for the period, net of tax

 

$

(114

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

The following tables present the details of reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended September 30, 2020

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Net realized losses on sales of securities

 

$

(1

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(835

)

 

(1)

Total reclassifications for the period, before tax

 

 

(836

)

 

 

Tax benefit

 

 

259

 

 

 

Total reclassifications for the period, net of tax

 

$

(577

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 

 

 

Nine Months Ended September 30, 2019

(In thousands)

 

Amount

Reclassified

from

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Affected Line Item in the

Statement Where Net

Income Is Presented

Unrealized gains on available-for-sale securities:

 

 

 

 

 

 

Net realized gains on sales of securities

 

$

128

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(523

)

 

(1)

Total reclassifications for the period, before tax

 

 

(395

)

 

 

Tax benefit

 

 

129

 

 

 

Total reclassifications for the period, net of tax

 

$

(266

)

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 5.

 
Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss)

The following table presents the tax effects related to the change in each component of other comprehensive loss for the three months ended September 30, 2020 and 2019: 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

Unrealized gain on available-for-sale

   securities

 

$

668

 

 

$

(174

)

 

$

494

 

 

$

(53

)

 

$

14

 

 

$

(39

)

Reclassification adjustment for amounts related to

   available-for-sale investments included in net

   income (loss)

 

 

(728

)

 

 

189

 

 

 

(539

)

 

 

32

 

 

 

(8

)

 

 

24

 

Reclassification adjustment for amounts related to

   defined benefit plan adjustments included in net

   income (loss)

 

 

354

 

 

 

(110

)

 

 

244

 

 

 

130

 

 

 

(40

)

 

 

90

 

Foreign currency translation adjustment

 

 

2,469

 

 

 

—

 

 

 

2,469

 

 

 

(2,486

)

 

 

—

 

 

 

(2,486

)

Total Other Comprehensive Income (Loss)

 

$

2,763

 

 

$

(95

)

 

$

2,668

 

 

$

(2,377

)

 

$

(34

)

 

$

(2,411

)

 

The following table presents the tax effects related to the change in each component of other comprehensive income (loss) for the nine months ended September 30, 2020 and 2019:

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

Unrealized gain (loss) on available-for-sale

   securities

 

$

600

 

 

$

(156

)

 

$

444

 

 

$

503

 

 

$

(131

)

 

$

372

 

Reclassification adjustment for amounts related to

   available-for-sale investments included in net

   income (loss)

 

 

1

 

 

 

—

 

 

 

1

 

 

 

(128

)

 

 

33

 

 

 

(95

)

Reclassification adjustment for amounts related to

   defined benefit plan adjustments included in net

   income (loss)

 

 

835

 

 

 

(259

)

 

 

576

 

 

 

523

 

 

 

(162

)

 

 

361

 

Foreign currency translation adjustment

 

 

2,718

 

 

 

—

 

 

 

2,718

 

 

 

(3,113

)

 

 

—

 

 

 

(3,113

)

Total Other Comprehensive Income (Loss)

 

$

4,154

 

 

$

(415

)

 

$

3,739

 

 

$

(2,215

)

 

$

(260

)

 

$

(2,475

)
v3.20.2
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Summary of Calculation of Basic and Diluted Earnings (Loss) Per Share

A summary of the calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands, except per share amounts)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,481

 

 

$

(46,123

)

 

$

(3,736

)

 

$

(41,358

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

47,957

 

 

 

47,824

 

 

 

47,957

 

 

 

47,803

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

467

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

48,424

 

 

 

47,824

 

 

 

47,957

 

 

 

47,803

 

Earnings (loss) per share – basic

 

$

0.11

 

 

$

(0.96

)

 

$

(0.08

)

 

$

(0.87

)

Earnings (loss) per share – diluted

 

$

0.11

 

 

$

(0.96

)

 

$

(0.08

)

 

$

(0.87

)

 
v3.20.2
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Sales and Gross Profit of Reportable Segments

The following tables present information about the sales and gross profit of our reportable segments for the three and nine months ended September 30, 2020 and 2019.

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

115,229

 

 

$

52,434

 

 

$

94,018

 

 

$

37,574

 

Services & Support

 

 

17,914

 

 

 

6,528

 

 

 

20,074

 

 

 

8,757

 

Total

 

$

133,143

 

 

$

58,962

 

 

$

114,092

 

 

$

46,331

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Sales

 

 

Gross Profit

 

 

Sales

 

 

Gross Profit

 

Network Solutions

 

$

323,924

 

 

$

145,432

 

 

$

359,007

 

 

$

151,654

 

Services & Support

 

 

52,457

 

 

 

18,602

 

 

 

55,267

 

 

 

20,304

 

Total

 

$

376,381

 

 

$

164,034

 

 

$

414,274

 

 

$

171,958

 

 
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate revenue by reportable segment and revenue category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

 

$

48,902

 

 

$

16,212

 

 

$

65,114

 

Subscriber Solutions & Experience

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

 

 

40,382

 

 

 

2,094

 

 

 

42,476

 

Traditional & Other Products

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

 

 

4,734

 

 

 

1,768

 

 

 

6,502

 

Total

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

$

94,018

 

 

$

20,074

 

 

$

114,092

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

 

$

230,837

 

 

$

43,476

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

 

 

113,545

 

 

 

6,186

 

 

 

119,731

 

Traditional & Other Products

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

 

 

14,625

 

 

 

5,605

 

 

 

20,230

 

Total

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

 

$

359,007

 

 

$

55,267

 

 

$

414,274

 

 

The table below presents sales information by category for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Access & Aggregation

 

$

85,423

 

 

$

65,114

 

 

$

234,165

 

 

$

274,313

 

Subscriber Solutions & Experience

 

 

43,125

 

 

 

42,476

 

 

 

125,697

 

 

 

119,731

 

Traditional & Other Products

 

 

4,595

 

 

 

6,502

 

 

 

16,519

 

 

 

20,230

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 
Sales Information by Geographic Area

The following table presents sales information by geographic area for the three and nine months ended September 30, 2020 and 2019: 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

United States

 

$

92,838

 

 

$

83,144

 

 

$

256,287

 

 

$

230,960

 

International

 

 

40,305

 

 

 

30,948

 

 

 

120,094

 

 

 

183,314

 

Total

 

$

133,143

 

 

$

114,092

 

 

$

376,381

 

 

$

414,274

 

 
v3.20.2
Liability for Warranty Returns (Tables)
 9 Months Ended
Sep. 30, 2020
Product Warranties Disclosures [Abstract]  
Summary of Reconciliation of Warranty Expense and Related Write-off Activity

 

A reconciliation of warranty expense and related write-off activity for the three and nine months ended September 30, 2020 and 2019 is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Balance at beginning of period

 

$

7,294

 

 

$

8,972

 

 

$

8,394

 

 

$

8,623

 

Plus: Amounts charged to cost and expenses

 

 

632

 

 

 

816

 

 

 

970

 

 

 

3,796

 

Less: Deductions

 

 

(734

)

 

 

(1,131

)

 

 

(2,172

)

 

 

(3,762

)

Balance at end of period

 

$

7,192

 

 

$

8,657

 

 

$

7,192

 

 

$

8,657

 

 
v3.20.2
Current Expected Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Credit Loss [Abstract]  
Amortized Cost Basis in Sales-Type Leases based on Payment Activity

The following table presents amortized cost basis in sales-type leases based on payment activity:

 

 

 

Sales-Type Leases Amortized Cost Basis by Origination Year

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Total

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Performing

 

$

58

 

 

$

227

 

 

$

426

 

 

$

153

 

 

$

89

 

 

$

3

 

 

$

956

 

     Non-performing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

58

 

 

$

227

 

 

$

426

 

 

$

153

 

 

$

89

 

 

$

3

 

 

$

956

 

 
Available-for-Sale Debt Securities in Unrealized Loss Position

The Company had 45 positions in available-for-sale debt securities that were in an unrealized loss position as of September 30, 2020, which are presented in the table below:

 

(In thousands)

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Municipal fixed-rate bonds

 

 

394

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

394

 

 

 

(1

)

Asset-backed bonds

 

 

396

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

396

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

3,199

 

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

3,199

 

 

 

(11

)

U.S. government bonds

 

 

800

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

800

 

 

 

—

 

Foreign government bonds

 

 

75

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75

 

 

 

—

 

Total

 

$

4,864

 

 

$

(12

)

 

$

—

 

 

$

—

 

 

$

4,864

 

 

$

(12

)

The following table outlines the available-for-sale debt securities in an unrealized loss position as of January 1, 2020:

 

(In thousands)

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

 

203

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

203

 

 

 

—

 

Municipal fixed-rate bonds

 

 

930

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

930

 

 

 

—

 

Asset-backed bonds

 

 

797

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

797

 

 

 

(3

)

Mortgage/Agency-backed bonds

 

 

2,594

 

 

 

(6

)

 

 

136

 

 

 

(2

)

 

 

2,730

 

 

 

(8

)

U.S. government bonds

 

 

4,070

 

 

 

(9

)

 

 

—

 

 

 

—

 

 

 

4,070

 

 

 

(9

)

Foreign government bonds

 

 

371

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

371

 

 

 

(1

)

Total

 

$

8,965

 

 

$

(19

)

 

$

136

 

 

$

(2

)

 

$

9,101

 

 

$

(21

)
v3.20.2
Restructuring (Tables)
 9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]  
Schedule of Reconciliation of Restructuring Liability

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits on the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 30, 2020

 

 

September 30, 2020

 

Balance at beginning of period

 

$

358

 

 

$

1,568

 

Plus: Amounts charged to expense

 

 

1,903

 

 

 

3,648

 

Less: Amounts paid

 

 

(542

)

 

 

(3,497

)

Balance as of September 30, 2020

 

$

1,719

 

 

$

1,719

 

 

(In thousands)

 

December 31, 2019

 

Balance as of December 31, 2018

 

$

185

 

Plus: Amounts charged to expense

 

 

6,014

 

Less: Amounts paid

 

 

(4,631

)

Balance as of December 31, 2019

 

$

1,568

 

  
Schedule of Components of Restructuring Expenses

Restructuring expenses included in the Condensed Consolidated Statements of Income (Loss) were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of sales

 

 

232

 

 

 

62

 

 

 

288

 

 

 

747

 

Selling, general and administrative expenses

 

$

1,050

 

 

$

531

 

 

$

1,622

 

 

$

2,078

 

Research and development expenses

 

 

621

 

 

 

602

 

 

 

1,738

 

 

 

1,833

 

Total restructuring expenses

 

$

1,903

 

 

$

1,195

 

 

$

3,648

 

 

$

4,658

 

 

The following table represents the components of restructuring expenses by geographic area:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Domestic

 

$

448

 

 

$

1,116

 

 

$

2,191

 

 

$

1,941

 

International

 

 

1,455

 

 

 

79

 

 

 

1,457

 

 

 

2,717

 

Total restructuring expenses

 

$

1,903

 

 

$

1,195

 

 

$

3,648

 

 

$

4,658

 

 
v3.20.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Jan. 01, 2020
Dec. 31, 2019
Summary Of Significant Accounting Policy [Line Items]                    
Life insurance proceeds received               $ 1,000    
Effect on adoption of ASU $ 64,353           $ 64,353     $ 68,086
Effect on adoption of ASU 20,409           20,409     19,883
Tax benefit in other comprehensive income (loss) $ 95   $ 34       $ 415 $ 260    
ASU 2016-13 [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true           true      
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2020           Jan. 01, 2020      
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true           true      
ASU 2017-04 [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true           true      
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2020           Jan. 01, 2020      
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true           true      
ASU 2018-13 [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true           true      
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2020           Jan. 01, 2020      
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true           true      
ASU 2018-15 [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true           true      
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2020           Jan. 01, 2020      
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true           true      
Effect on adoption of ASU                   68,086
Effect on adoption of ASU                   $ 19,883
ASU 2018-15 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Effect on adoption of ASU                 $ (5,600)  
Effect on adoption of ASU                 $ 5,600  
Adjustments for New Accounting Principle, Early Adoption [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Tax benefit in other comprehensive income (loss)             $ (100)      
ASU 2019-12 [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true           true      
Change in Accounting Principle, Accounting Standards Update, Adoption Date Apr. 01, 2020           Apr. 01, 2020      
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true           true      
Excess, Obsolete Inventory Reserve and Cost of Goods [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Amount of revision       $ 800   $ 200        
Errors in Operating Activity [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Amount of revision         $ 1,000          
Overstatement Long-term Investment Balance at Remeasured Cost Basis [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Amount of revision   $ 2,800                
Errors in Net Investment Gain [Member]                    
Summary Of Significant Accounting Policy [Line Items]                    
Amount of revision   $ 1,500                
v3.20.2
Summary of Significant Accounting Policies - Schedule of Impact of Adoption of ASU 2018-15 on Condensed Consolidated Balance Sheet (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net $ 64,353 $ 68,086
Other assets $ 20,409 19,883
ASU 2018-15 [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net   68,086
Other assets   19,883
Pre-Adoption [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net   73,708
Other assets   14,261
Effect of Adoption [Member] | ASU 2018-15 [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net   (5,622)
Other assets   $ 5,622
v3.20.2
Summary of Significant Accounting Policies - Schedule of Impact of Adoption of ASU 2018-15 on Condensed Consolidated Statement of Loss and Cash Flows (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Summary Of Significant Accounting Policy [Line Items]                
Net loss $ 5,481 $ 752 $ (9,969) $ (46,123) $ 3,995 $ 770 $ (3,736) $ (41,358)
Net cash provided by operating activities             $ (5,317) 10,082
ASU 2018-15 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Net loss       (46,123)       (41,358)
Net cash provided by operating activities               10,082
Pre-Adoption [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Net loss       $ (46,123)       (41,358)
Net cash provided by operating activities               $ 10,082
v3.20.2
Summary of Significant Accounting Policies - Schedule of Capitalized Implementation Costs Incurred with Hosting Arrangements, Included in Other Assets on Condensed Consolidated Balance Sheet (Detail)
$ in Thousands
Sep. 30, 2020
USD ($)
Hosting Arrangement Service Contract [Abstract]  
Implementation costs - hosting arrangements $ 10,455
Implementation costs - hosting arrangements, net $ 10,455
v3.20.2
Cash, Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
Sep. 30, 2020
Dec. 31, 2019
Cash And Cash Equivalents [Abstract]    
Cash and cash equivalents $ 71,081,000 $ 73,773,000
Restricted cash 322,000 $ 0
Cash, cash equivalents and restricted cash $ 71,403,000  
v3.20.2
Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($)
Sep. 30, 2020
Dec. 31, 2019
Cash And Cash Equivalents [Abstract]    
Restricted cash $ 322,000 $ 0
v3.20.2
Revenue - Additional Information (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2020
USD ($)
Category
Sep. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Revenue [Line Items]          
Number of categories | Category     3    
Remaining performance obligations $ 0   $ 0    
Recognized revenue 1,500,000 $ 1,200,000 9,600,000 $ 11,700,000  
Other Than Maintenance Services [Member]          
Revenue [Line Items]          
Remaining performance obligations $ 16,500,000   $ 16,500,000   $ 13,600,000
v3.20.2
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]        
Revenue $ 133,143 $ 114,092 $ 376,381 $ 414,274
Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 85,423 65,114 234,165 274,313
Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 43,125 42,476 125,697 119,731
Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 4,595 6,502 16,519 20,230
Network Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 115,229 94,018 323,924 359,007
Network Solutions [Member] | Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 71,919 48,902 194,695 230,837
Network Solutions [Member] | Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 40,843 40,382 118,907 113,545
Network Solutions [Member] | Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 2,467 4,734 10,322 14,625
Services & Support [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 17,914 20,074 52,457 55,267
Services & Support [Member] | Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 13,504 16,212 39,470 43,476
Services & Support [Member] | Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 2,282 2,094 6,790 6,186
Services & Support [Member] | Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue $ 2,128 $ 1,768 $ 6,197 $ 5,605
v3.20.2
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01
Sep. 30, 2020
Revenue [Line Items]  
Remaining performance obligations, percentage 59.00%
Remaining performance obligations, period 12 months
v3.20.2
Revenue - Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]      
Accounts receivable, net $ 100,223 $ 90,500 $ 90,531
Contract assets 1,015 $ 2,800 2,812
Unearned revenue 13,379   11,963
Non-current unearned revenue $ 6,694   $ 6,012
v3.20.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Income Tax Disclosure [Line Items]          
Effective tax rate expense (benefit) 9.30% 150.60% (36.80%) 197.10%  
Income tax benefit, result of CARES act of 2020     $ 7,800    
Effective tax rate reduction related to transfer pricing study   7.10%   7.10%  
Additional change in valuation allowances related to domestic operations $ 1,000        
Additional income tax benefit result of CARES act of 2020 400        
Deferred tax assets, gross 59,104   59,104   $ 56,177
Valuation allowance established against deferred tax assets 51,239   51,239   48,616
Deferred tax assets 7,865   7,865   7,561
Domestic [Member]          
Income Tax Disclosure [Line Items]          
Valuation allowance established against deferred tax assets   $ 37,100 2,600 $ 37,100  
Deferred tax assets, gross 49,212   49,212   46,266
Valuation allowance established against deferred tax assets $ 49,212   $ 49,212   $ 46,266
v3.20.2
Income Taxes - Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets $ 59,104 $ 56,177
Valuation Allowance (51,239) (48,616)
Deferred Tax Assets, net 7,865 7,561
Domestic [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 49,212 46,266
Valuation Allowance (49,212) (46,266)
International [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 9,892 9,911
Valuation Allowance (2,027) (2,350)
Deferred Tax Assets, net $ 7,865 $ 7,561
v3.20.2
Pension Benefit Plan - Summarization of Components of Net Periodic Pension Cost (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]        
Service cost $ 325 $ 366 $ 942 $ 1,109
Interest cost 113 158 329 479
Expected return on plan assets (429) (346) (1,246) (1,049)
Amortization of actuarial losses 248 198 720 600
Net periodic pension cost $ 257 $ 376 $ 745 $ 1,139
v3.20.2
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense $ 1,610 $ 1,871 $ 5,056 $ 5,184
Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock (384) (446) (1,205) (1,235)
Total stock-based compensation expense, net of tax 1,226 1,425 3,851 3,949
Stock-based Compensation Expense Included in Cost of Sales [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 101 83 303 272
Selling, General and Administrative Expense [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 953 1,142 2,999 2,867
Research and Development Expense [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 556 646 1,754 2,045
Stock-based Compensation Expense Included in Operating Expenses [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense $ 1,509 $ 1,788 $ 4,753 $ 4,912
v3.20.2
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail)
shares in Thousands
 9 Months Ended
Sep. 30, 2020
$ / shares
shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares 1,891
Number of Shares, PSUs, RSUs and restricted stock granted | shares 399
Number of Shares, PSUs, RSUs and restricted stock vested | shares (15)
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares (586)
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares 1,689
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares $ 14.58
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 8.21
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 12.76
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 18.24
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares $ 11.83
v3.20.2
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2020
USD ($)
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Options available for issuance under stockholders-approved equity plan 3,600,000
2015 Employee Stock Incentive Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Number of additional shares of common stock granted 0
2010 Directors Stock Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Number of additional shares of common stock granted 0
2020 Employee Incentive Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Number of shares of common stock authorized 2,800,000
Multiplier used when issuing PSUs, restricted stock and RSUs 1
Contractual term 10 years
2020 Directors Stock Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Number of shares of common stock authorized 400,000
Multiplier used when issuing PSUs, restricted stock and RSUs 1
Forfeiture of stock increase in issuance of common stock 1
Contractual term 10 years
Performance Stock Units (PSUs) [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share issued 300,000
Performance target period 3 years
Performance Stock Units (PSUs) [Member] | Minimum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Percentage of performance stock units granted 0.00%
Performance Stock Units (PSUs) [Member] | Maximum [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Percentage of performance stock units granted 142.80%
Market-Based PSUs, RSUs and Restricted Stock [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unrecognized compensation expense related to other than options | $ $ 10.6
Recognition period of unvested compensation expense 2 years 3 months 18 days
Performance-Based PSUs [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unrecognized compensation expense related to other than options | $ $ 2.3
Recognition period of unvested compensation expense 2 years 3 months 18 days
PSUs, RSUs and Restricted Stock [Member] | 2020 Employee Incentive Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting period 4 years
PSUs, RSUs and Restricted Stock [Member] | 2015 Employee Incentive Plan to 2020 Employee Incentive Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Forfeiture of stock increase in issuance of common stock 2.5
Stock Options [Member] | 2020 Employee Incentive Plan [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vesting period 4 years
v3.20.2
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]    
Number of Stock Options, Stock options outstanding, Beginning Balance 3,572  
Number of Stock Options, Stock options expired (352)  
Number of Stock Options, Stock options outstanding, Ending Balance 3,220 3,572
Number of Stock Options, Stock options exercisable 3,217  
Weighted Avg. Exercise Price, Stock options outstanding, Beginning Balance $ 22.88  
Weighted Avg. Exercise Price, Stock options expired 21.48  
Weighted Avg. Exercise Price, Stock options outstanding, Ending Balance 22.94 $ 22.88
Weighted Avg. Exercise Price, Stock options exercisable $ 22.95  
Weighted Avg. Remaining Contractual Life In Years, Stock options outstanding 2 years 8 months 12 days 3 years 4 months 24 days
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable 2 years 8 months 12 days  
Aggregate Intrinsic Value, Stock options outstanding $ 0  
v3.20.2
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of Stock options, granted 0 0 0 0
Aggregate intrinsic value based on fair market value $ 0   $ 0  
Total pre-tax intrinsic value of options exercised     0  
Unvested Stock Options [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Unrecognized compensation expense related to unvested stock options $ 1   $ 1  
Recognition period of unvested compensation expense     1 month 6 days  
v3.20.2
Investments - Debt Securities and Other Investments, Included on Condensed Consolidated Balance Sheet and Recorded at Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost $ 44,284   $ 37,528
Gross Unrealized Gains 601   153
Gross Unrealized Losses (12)   (21)
Fair Value 44,873 $ 37,700 37,660
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 12,861   9,304
Gross Unrealized Gains 149   80
Fair Value 13,010   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 3,093   930
Gross Unrealized Gains 32    
Gross Unrealized Losses (1)    
Fair Value 3,124   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 8,472   6,867
Gross Unrealized Gains 115   26
Gross Unrealized Losses     (3)
Fair Value 8,587   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 10,964   6,944
Gross Unrealized Gains 127   26
Gross Unrealized Losses (11)   (8)
Fair Value 11,080   6,962
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 7,096   12,311
Gross Unrealized Gains 174   21
Gross Unrealized Losses     (9)
Fair Value 7,270   12,323
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 1,032   372
Gross Unrealized Gains 3    
Gross Unrealized Losses     (1)
Fair Value 1,035   371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 324    
Gross Unrealized Gains 1    
Fair Value 325    
Variable Rate Demand Notes [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost     800
Fair Value     $ 800
Other [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 442    
Fair Value $ 442    
v3.20.2
Investments - Contractual Maturities of Debt Securities and Other Investments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities, Fair Value/Carrying Value $ 44,873 $ 37,700 $ 37,660
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 2,900    
One to two years 3,752    
Two to three years 6,122    
Three to five years 236    
Available-for-sale debt securities, Fair Value/Carrying Value 13,010   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 737    
One to two years 1,183    
Two to three years 908    
Three to five years 296    
Available-for-sale debt securities, Fair Value/Carrying Value 3,124   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 696    
One to two years 956    
Two to three years 615    
Three to five years 4,817    
Five to ten years 946    
More than ten years 557    
Available-for-sale debt securities, Fair Value/Carrying Value 8,587   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 208    
One to two years 1,256    
Two to three years 2,775    
Three to five years 1,079    
Five to ten years 1,507    
More than ten years 4,255    
Available-for-sale debt securities, Fair Value/Carrying Value 11,080   6,962
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 500    
One to two years 826    
Two to three years 5,492    
Three to five years 452    
Available-for-sale debt securities, Fair Value/Carrying Value 7,270   12,323
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 75    
One to two years 463    
Two to three years 497    
Available-for-sale debt securities, Fair Value/Carrying Value 1,035   $ 371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 325    
Available-for-sale debt securities, Fair Value/Carrying Value 325    
Other [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 442    
Available-for-sale debt securities, Fair Value/Carrying Value $ 442    
v3.20.2
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Investments Debt And Equity Securities [Abstract]        
Gross realized gains on debt securities $ 70 $ 36 $ 303 $ 85
Gross realized losses on debt securities (6) (7) (45) (40)
Total gain recognized, net $ 64 $ 29 $ 258 $ 45
v3.20.2
Investments - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Jan. 01, 2020
Dec. 31, 2019
Schedule of Investments [Line Items]              
Purchase an available-for-sale debt securities with credit deterioration $ 0     $ 0      
Transfer from investments     $ 3,400,000        
Carrying value             $ 3,400,000
Note receivable, noncurrent 900,000     900,000   $ 900,000  
Asset impairments   $ 3,872,000   65,000 $ 3,872,000    
Carrying value of investment 1,800,000     1,800,000      
Net Investment Gain (Loss) [Member]              
Schedule of Investments [Line Items]              
Asset impairments       1,600,000      
Other Receivables [Member]              
Schedule of Investments [Line Items]              
Note receivable, current 4,300,000   $ 4,300,000 4,300,000     4,300,000
Asset impairments       0      
Long-term Investments [Member]              
Schedule of Investments [Line Items]              
Note receivable, noncurrent $ 900,000     $ 900,000     $ 900,000
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member]              
Schedule of Investments [Line Items]              
Investment concentration risk percentage       5.00%      
v3.20.2
Investments - Realized and Unrealized Gains and Losses related to Marketable Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Investments Debt And Equity Securities [Abstract]        
Realized gains (losses) on equity securities sold $ 623 $ (20) $ (1,485) $ (83)
Unrealized gains (losses) on equity securities held 2,157 (225) 3,046 8,233
Total gain (loss) recognized, net $ 2,780 $ (245) $ 1,561 $ 8,150
v3.20.2
Investments - Cash Equivalents and Investments held at Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities $ 44,873 $ 37,700 $ 37,660
Marketable equity securities 1,800    
Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Other investments 1,276   2,442
Total 82,270   98,908
Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Other investments 1,276   2,442
Total 44,667   73,571
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Total 37,161   25,337
Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Total 442    
Money Market Funds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 636   1,309
Money Market Funds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 636   1,309
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 7,270   12,323
U.S. Government Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 300    
Available-for-sale debt securities 7,270   12,323
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 300    
Available-for-sale debt securities 7,270   12,323
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 13,010   9,384
Corporate Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 13,010   9,384
Corporate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 13,010   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 3,124   930
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 3,124   930
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 3,124   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 8,587   6,890
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 8,587   6,890
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 8,587   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,080   6,962
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,080   6,962
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,080   6,962
Other [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 442    
Other [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 442    
Other [Member] | Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 442    
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities 13,590   35,501
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities 13,590   35,501
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 1,035   371
Foreign Government Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 1,035   371
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 1,035   371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 325    
Commercial Paper [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 325    
Commercial Paper [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 325    
Variable Rate Demand Notes [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities     800
Variable Rate Demand Notes [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities     800
Variable Rate Demand Notes [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities     800
Equity in Escrow [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities     298
Equity in Escrow [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities     298
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities 21,595   21,698
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities $ 21,595   $ 21,698
v3.20.2
Inventory - Components of Inventory (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Raw materials $ 43,418 $ 36,987
Work in process 1,787 1,085
Finished goods 75,055 60,233
Total inventory $ 120,260 $ 98,305
v3.20.2
Inventory - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 38.0 $ 34.1
v3.20.2
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Property Plant And Equipment [Abstract]    
Land $ 4,575 $ 4,575
Building and land improvements 35,105 34,797
Building 68,160 68,157
Furniture and fixtures 19,981 19,959
Computer hardware and software 70,766 68,777
Engineering and other equipment 132,672 130,430
Total property, plant and equipment 331,259 326,695
Less: accumulated depreciation (266,906) (258,609)
Total property, plant and equipment, net $ 64,353 $ 68,086
v3.20.2
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Property Plant And Equipment [Abstract]        
Impairment losses of long-lived assets     $ 0  
Depreciation $ 3,100,000 $ 3,100,000 $ 9,100,000 $ 9,300,000
v3.20.2
Goodwill - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Dec. 31, 2019
Goodwill [Line Items]      
Goodwill   $ 7,000,000.0 $ 7,000,000.0
Impairment of goodwill $ 0 0  
Network Solutions [Member]      
Goodwill [Line Items]      
Goodwill   6,600,000 400,000
Services & Support [Member]      
Goodwill [Line Items]      
Goodwill   $ 6,600,000 $ 400,000
v3.20.2
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 39,101 $ 42,596
Accumulated Amortization (14,636) (14,775)
Net Book Value 24,465 27,821
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 20,931 22,356
Accumulated Amortization (7,369) (7,233)
Net Book Value 13,562 15,123
Developed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 8,200 10,170
Accumulated Amortization (2,262) (3,379)
Net Book Value 5,938 6,791
Licensed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 5,900 5,900
Accumulated Amortization (1,666) (1,174)
Net Book Value 4,234 4,726
Supplier Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,800 2,800
Accumulated Amortization (2,800) (2,508)
Net Book Value   292
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 560 560
Accumulated Amortization (134) (79)
Net Book Value 426 481
Patent [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 500 500
Accumulated Amortization (277) (226)
Net Book Value 223 274
Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 210 310
Accumulated Amortization (128) (176)
Net Book Value $ 82 $ 134
v3.20.2
Intangible Assets - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Intangible Assets Net Excluding Goodwill [Abstract]          
Impairment losses of intangible assets   $ 0   $ 0  
Amortization expense $ 1,000,000.0   $ 1,300,000 $ 3,400,000 $ 4,000,000.0
v3.20.2
Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Finite Lived Intangible Assets Future Amortization Expense [Abstract]    
2020 $ 1,041  
2021 4,107  
2022 3,482  
2023 3,330  
2024 3,236  
Thereafter 9,269  
Net Book Value $ 24,465 $ 27,821
v3.20.2
Leases - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Lessor and Lessee Lease Description [Line Items]        
Operating lease, option to extend, existence     true  
Operating lease, option to terminate, existence     true  
Short-term lease cost $ 6 $ 100 $ 20 $ 300
Variable lease cost 100 $ 300 400 $ 700
Operating lease payments, option to extend $ 300   $ 300  
Minimum [Member]        
Lessor and Lessee Lease Description [Line Items]        
Operating lease, remaining lease terms 1 month   1 month  
Operating lease, options to terminate term     3 months  
Maximum [Member]        
Lessor and Lessee Lease Description [Line Items]        
Operating lease, remaining lease terms 5 years   5 years  
Operating lease, renewal term 9 years   9 years  
Lessor sales-type lease arrangement terms for network equipment 5 years   5 years  
v3.20.2
Leases - Schedule of Operating Lease Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
ASSETS    
Operating lease asset $ 5,503 $ 8,452
Operating lease, right-of-use asset, statement of financial position [extensible list] us-gaap:OtherAssetsNoncurrent us-gaap:OtherAssetsNoncurrent
Liabilities    
Current operating lease liability $ 1,731 $ 2,676
Operating lease, liability, current, statement of financial position [extensible list] us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent
Non-current operating lease liability $ 3,788 $ 5,818
Operating lease, liability, noncurrent, statement of financial position [extensible list] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent
Total lease liability $ 5,519 $ 8,494
v3.20.2
Leases - Components of Lease Expense included in Condensed Consolidated Statement of Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Lessor Lease Description [Line Items]        
Total operating lease expense $ 654 $ 1,215 $ 1,975 $ 2,830
Selling, General and Administrative Expenses [Member]        
Lessor Lease Description [Line Items]        
Total operating lease expense 265 352 863 1,050
Research and Development Expenses [Member]        
Lessor Lease Description [Line Items]        
Total operating lease expense 368 847 1,044 1,731
Cost of Sales [Member]        
Lessor Lease Description [Line Items]        
Total operating lease expense $ 21 $ 16 $ 68 $ 49
v3.20.2
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Operating Lease Liabilities Payments Due [Abstract]    
2020 $ 518  
2020 1,744 $ 2,856
2022 1,514 2,412
2023 1,180 1,705
2024 499 1,160
2024   482
Thereafter 276  
Thereafter   264
Total lease payments 5,731 8,879
Less: Interest (212) (385)
Present value of lease liabilities $ 5,519 $ 8,494
v3.20.2
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Detail)
Sep. 30, 2020
Dec. 31, 2019
USD    
Weighted average remaining lease term (in years)    
Operating leases with functional currency 2 years 7 months 6 days 2 years 7 months 6 days
Weighted average discount rate    
Operating leases with functional currency 4.50% 4.02%
Euro    
Weighted average remaining lease term (in years)    
Operating leases with functional currency 3 years 9 months 18 days 4 years 4 months 24 days
Weighted average discount rate    
Operating leases with functional currency 1.81% 1.84%
v3.20.2
Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Cash paid for amounts included in the measurement of operating lease assets / liabilities        
Cash used in operating activities related to operating leases $ 582 $ 775 $ 2,059 $ 2,383
Right-of-use assets obtained in exchange for lease obligations $ 138 $ 11,022 $ 231 $ 21,418
v3.20.2
Leases - Net Investment in Sales-Type Leases (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Sales Type Leases Net Investment In Leases [Abstract]      
Current minimum lease payments receivable $ 811   $ 1,201
Non-current minimum lease payments receivable 450   889
Total minimum lease payments receivable 1,261   2,090
Less: Current unearned revenue 235   365
Less: Non-current unearned revenue 70   163
Net investment in sales-type leases $ 956 $ 1,600 $ 1,562
v3.20.2
Leases - Schedule of Components of Gross Profit Related to Sales-type Leases and Interest and Dividend Income Included in Condensed Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Sales [Member] | Network Solutions [Member]        
Lessor Lease Description [Line Items]        
Sales type leases $ 22 $ 47 $ 72 $ 1,668
Cost of Sales [Member] | Network Solutions [Member]        
Lessor Lease Description [Line Items]        
Sales type leases 9 25 29 660
Gross Profit [Member]        
Lessor Lease Description [Line Items]        
Sales type leases 13 22 43 1,008
Interest and Dividend Income [Member]        
Lessor Lease Description [Line Items]        
Sales type leases $ 10 $ 92 $ 34 $ 278
v3.20.2
Alabama State Industrial Development Authority Financing and Economic Incentives - Additional Information (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Jan. 02, 2020
Sep. 30, 2020
Dec. 31, 2019
Dec. 31, 2008
Jan. 13, 1995
Debt Instrument [Line Items]          
Repayment of bond   $ 24,600      
Taxable Revenue Bonds [Member]          
Debt Instrument [Line Items]          
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN     $ 24,600 $ 50,000 $ 20,000
Percentage of interest on bond     2.00%    
Maturity date of bond     Jan. 01, 2020    
Repayment of bond $ 24,600        
Certificate of deposit     $ 25,600    
v3.20.2
Stockholders' Equity - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2020
shares
Equity [Abstract]  
Stock repurchased, shares 0
Additional shares authorized for purchase 2,500,000
Maximum shares authorized for repurchase, prior and new announcements and total after new announcement 5,000,000.0
v3.20.2
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Component (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance $ 364,194 $ 445,975 $ 380,426 $ 446,279
Other comprehensive income (loss) before reclassifications 2,963 (2,525) 3,162 (2,741)
Amounts reclassified from accumulated other comprehensive income (loss) (295) 114 577 266
Amounts reclassified to retained earnings       385
Net current period other comprehensive income (loss) 2,668 (2,411) 3,739 (2,090)
Ending Balance 369,593 394,955 369,593 394,955
ASU 2018-02 [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance 385 385 385  
Amounts reclassified to retained earnings       385
Net current period other comprehensive income (loss)       385
Ending Balance 385 385 385 385
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance 206 (271) (284) (563)
Other comprehensive income (loss) before reclassifications 494 (39) 444 372
Amounts reclassified from accumulated other comprehensive income (loss) (539) 24 1 (95)
Net current period other comprehensive income (loss) (45) (15) 445 277
Ending Balance 161 (286) 161 (286)
Defined Benefit Plan Adjustments [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (8,894) (7,770) (9,226) (8,041)
Amounts reclassified from accumulated other comprehensive income (loss) 244 90 576 361
Net current period other comprehensive income (loss) 244 90 576 361
Ending Balance (8,650) (7,680) (8,650) (7,680)
Foreign Currency Adjustments [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (7,043) (6,439) (7,292) (5,812)
Other comprehensive income (loss) before reclassifications 2,469 (2,486) 2,718 (3,113)
Net current period other comprehensive income (loss) 2,469 (2,486) 2,718 (3,113)
Ending Balance (4,574) (8,925) (4,574) (8,925)
Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (15,346) (14,095) (16,417) (14,416)
Ending Balance $ (12,678) $ (16,506) $ (12,678) $ (16,506)
v3.20.2
Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Income (Loss) Before Income Taxes $ 6,043     $ (18,406)     $ (5,907) $ (13,921)
Tax benefit (expense) (562)     (27,717)     2,171 (27,437)
Net Income (Loss) 5,481 $ 752 $ (9,969) (46,123) $ 3,995 $ 770 (3,736) (41,358)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]                
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Defined benefit plan adjustments – actuarial losses (354)     (130)     (835) (523)
Income (Loss) Before Income Taxes 374     (162)     (836) (395)
Tax benefit (expense) (79)     48     259 129
Net Income (Loss) 295     (114)     (577) (266)
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]                
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Net investment gain (loss) $ 728     $ (32)     $ (1) $ 128
v3.20.2
Stockholders' Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Equity [Abstract]                
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount $ 668     $ (53)     $ 600 $ 503
Unrealized gain (loss) on available-for-sale securities, Tax (Expense) Benefit (174)     14     (156) (131)
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount 494     (39)     444 372
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Before-Tax Amount (728)     32     1 (128)
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Tax (Expense) Benefit 189     (8)       33
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Net-of-Tax Amount (539)     24     1 (95)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Before-Tax Amount 354     130     835 523
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Tax (Expense) Benefit (110)     (40)     (259) (162)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Net-of-Tax Amount 244     90     576 361
Foreign currency translation adjustment, Before-Tax Amount 2,469     (2,486)     2,718 (3,113)
Foreign currency translation adjustment, Net-of-Tax Amount 2,469     (2,486)     2,718 (3,113)
Total Other Comprehensive Income (Loss), Before-Tax Amount 2,763     (2,377)     4,154 (2,215)
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit (95)     (34)     (415) (260)
Other Comprehensive Income (Loss), net of tax $ 2,668 $ 2,463 $ (1,392) $ (2,411) $ 790 $ (854) $ 3,739 $ (2,475)
v3.20.2
Earnings (Loss) Per Share - Summary of Calculation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Numerator                
Net income (loss) $ 5,481 $ 752 $ (9,969) $ (46,123) $ 3,995 $ 770 $ (3,736) $ (41,358)
Denominator                
Weighted average number of shares – basic 47,957     47,824     47,957 47,803
Effect of dilutive securities                
PSUs, RSUs and restricted stock 467              
Weighted average number of shares – diluted 48,424     47,824     47,957 47,803
Earnings (loss) per share – basic $ 0.11     $ (0.96)     $ (0.08) $ (0.87)
Earnings (loss) per share – diluted $ 0.11     $ (0.96)     $ (0.08) $ (0.87)
v3.20.2
Earnings (Loss) Per Share - Additional Information (Detail) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share 3,400 3,900 4,300 2,800
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member]        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share 18 100 100 100
v3.20.2
Segment Information - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2020
Category
Segment
Segment Reporting [Abstract]  
Number of reportable segments | Segment 2
Number of categories | Category 3
v3.20.2
Segment Information - Sales and Gross Profit of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Segment Reporting Information [Line Items]        
Sales $ 133,143 $ 114,092 $ 376,381 $ 414,274
Gross Profit 58,962 46,331 164,034 171,958
Network Solutions [Member]        
Segment Reporting Information [Line Items]        
Sales 115,229 94,018 323,924 359,007
Gross Profit 52,434 37,574 145,432 151,654
Services & Support [Member]        
Segment Reporting Information [Line Items]        
Sales 17,914 20,074 52,457 55,267
Gross Profit $ 6,528 $ 8,757 $ 18,602 $ 20,304
v3.20.2
Segment Information - Sales Information by Category (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Disaggregation Of Revenue [Line Items]        
Revenue $ 133,143 $ 114,092 $ 376,381 $ 414,274
Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 85,423 65,114 234,165 274,313
Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 43,125 42,476 125,697 119,731
Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue $ 4,595 $ 6,502 $ 16,519 $ 20,230
v3.20.2
Segment Information- Sales Information by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenue from External Customer [Line Items]        
Sales $ 133,143 $ 114,092 $ 376,381 $ 414,274
United States [Member]        
Revenue from External Customer [Line Items]        
Sales 92,838 83,144 256,287 230,960
International [Member]        
Revenue from External Customer [Line Items]        
Sales $ 40,305 $ 30,948 $ 120,094 $ 183,314
v3.20.2
Liability for Warranty Returns - Additional Information (Detail) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Product Warranties Disclosures [Abstract]            
Period of assurance-based warranty for product defects 90 days to five years          
Liability for warranty obligations $ 7,192 $ 7,294 $ 8,394 $ 8,657 $ 8,972 $ 8,623
v3.20.2
Liability for Warranty Returns - Summary of Reconciliation of Warranty Expense and Related Write-off Activity (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Product Warranties Disclosures [Abstract]        
Balance at beginning of period $ 7,294 $ 8,972 $ 8,394 $ 8,623
Plus: Amounts charged to cost and expenses 632 816 970 3,796
Less: Deductions (734) (1,131) (2,172) (3,762)
Balance at end of period $ 7,192 $ 8,657 $ 7,192 $ 8,657
v3.20.2
Commitments and Contingencies - Additional Information (Detail)
 9 Months Ended
Mar. 31, 2020
Officer
Oct. 17, 2019
Officer
Sep. 30, 2020
USD ($)
Oct. 08, 2020
USD ($)
Dec. 31, 2019
USD ($)
Contingencies And Commitments [Line Items]          
Commitments related to performance bonds     $ 12,000,000.0   $ 9,300,000
Commitments related to performance bonds expiration month and year     2024-08    
Letter of credit secured by pledge of a portion of fixed income securities     $ 5,900,000    
Commitments towards private equity funds     4,900,000    
Investment Commitments [Member]          
Contingencies And Commitments [Line Items]          
Aggregate investment committed in private equity funds     5,000,000.0    
Restricted Cash [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     300,000    
Long-term Investments [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     5,600,000    
Minimum [Member]          
Contingencies And Commitments [Line Items]          
Collateral value required to be maintained     4,500,000    
Letter of credit secured by pledge of collateral value fluctuation between restricted cash and long term investment     13,000,000.0    
Minimum [Member] | Subsequent Event [Member]          
Contingencies And Commitments [Line Items]          
Collateral value required to be maintained       $ 9,000,000.0  
Maximum [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of collateral value fluctuation between restricted cash and long term investment     $ 15,000,000.0    
Current Executive Officers [Member]          
Contingencies And Commitments [Line Items]          
Number of officers | Officer 2 2      
Former Executive Officers [Member]          
Contingencies And Commitments [Line Items]          
Number of officers | Officer 1 1      
v3.20.2
Current Expected Credit Losses - Additional Information (Detail)
 3 Months Ended 9 Months Ended
Jan. 01, 2020
USD ($)
Sep. 30, 2020
USD ($)
Position
Sep. 30, 2020
USD ($)
Position
Dec. 31, 2019
USD ($)
Financing Receivable Allowance For Credit Losses [Line Items]        
Outstanding accounts receivable $ 90,500,000 $ 100,223,000 $ 100,223,000 $ 90,531,000
Allowance for credit loss, accounts receivable 0 0 0  
Allowance for credit losses, accounts receivable   38,000 38,000 38,000
Outstanding contract asset 2,800,000 1,015,000 1,015,000 2,812,000
Allowance for credit losses related to contract assets 0 0 0  
Outstanding net investment in sales-type leases 1,600,000 956,000 956,000 1,562,000
Net investment in sales-type leases, allowance for credit loss 0 0 0  
Secured loan receivable 900,000 900,000 900,000  
Accrued interest receivable 100,000 100,000 100,000  
Secured loan receivable, allowance for credit loss 0 0 0  
Available-for-sale debt securities 37,700,000 $ 44,873,000 $ 44,873,000 $ 37,660,000
Number of positions in available-for-sale debt securities, unrealized loss position | Position   45 45  
Available-for-sale, debt securities, allowance for credit loss 0 $ 0 $ 0  
Secured Loans Receivable [Member]        
Financing Receivable Allowance For Credit Losses [Line Items]        
Loss related to secured loan receivable     0  
Accrued interest receivable $ 24,000 $ 0 $ 0  
v3.20.2
Current Expected Credit Losses - Amortized Cost Basis in Sales-Type Leases based on Payment Activity (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Dec. 31, 2019
Sales Type Lease Net Investment In Lease Credit Quality Indicator [Line Items]      
2020 $ 58    
2019 227    
2018 426    
2017 153    
2016 89    
Prior 3    
Net investment in sales-type leases 956 $ 1,600 $ 1,562
Payment Performance Performing [Member]      
Sales Type Lease Net Investment In Lease Credit Quality Indicator [Line Items]      
2020 58    
2019 227    
2018 426    
2017 153    
2016 89    
Prior 3    
Net investment in sales-type leases $ 956    
v3.20.2
Current Expected Credit Losses - Available-for-Sale Debt Securities in Unrealized Loss Position (Detail) - USD ($)
$ in Thousands
Sep. 30, 2020
Jan. 01, 2020
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value $ 4,864 $ 8,965
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (12) (19)
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value   136
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses   (2)
Total Fair Value 4,864 9,101
Total Unrealized Losses (12) (21)
Corporate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value   203
Total Fair Value   203
Municipal Fixed-Rate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 394 930
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (1)  
Total Fair Value 394 930
Total Unrealized Losses (1)  
Asset-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 396 797
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses   (3)
Total Fair Value 396 797
Total Unrealized Losses   (3)
Mortgage/Agency-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 3,199 2,594
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (11) (6)
Continuous Unrealized Loss Position for 12 Months or Greater, Fair Value   136
Continuous Unrealized Loss Position for 12 Months or Greater, Unrealized Losses   (2)
Total Fair Value 3,199 2,730
Total Unrealized Losses (11) (8)
U.S. Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 800 4,070
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses   (9)
Total Fair Value 800 4,070
Total Unrealized Losses   (9)
Foreign Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 75 371
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses   (1)
Total Fair Value $ 75 371
Total Unrealized Losses   $ (1)
v3.20.2
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Restructuring And Related Activities [Abstract]          
Balance at beginning of period $ 358   $ 1,568 $ 185 $ 185
Plus: Amounts charged to expense 1,903 $ 1,195 3,648 $ 4,658 6,014
Less: Amounts paid (542)   (3,497)   (4,631)
Balance at end of period $ 1,719   $ 1,719   $ 1,568
v3.20.2
Restructuring - Schedule of Components of Restructuring Expenses Including in Condensed Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ 1,903 $ 1,195 $ 3,648 $ 4,658 $ 6,014
Selling, General and Administrative Expenses [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses 1,050 531 1,622 2,078  
Research and Development Expenses [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses 621 602 1,738 1,833  
Cost of Sales [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ 232 $ 62 $ 288 $ 747  
v3.20.2
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ 1,903 $ 1,195 $ 3,648 $ 4,658 $ 6,014
United States [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses 448 1,116 2,191 1,941  
International [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ 1,455 $ 79 $ 1,457 $ 2,717  
v3.20.2
Restructuring - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2020
USD ($)
Restructuring And Related Activities [Abstract]  
Cumulative amount of restructuring expenses incurred for restructuring plan $ 9.7
v3.20.2
Subsequent Events - Additional Information (Detail) - USD ($)
 3 Months Ended
Nov. 04, 2020
Nov. 02, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 01, 2020
Subsequent Event [Line Items]                  
Common stock dividends per share declared     $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09  
Scenario Forecast [Member]                  
Subsequent Event [Line Items]                  
Quarterly dividend payable, aggregate amount subsequent to balance sheet date                 $ 4,300,000
Subsequent Event [Member]                  
Subsequent Event [Line Items]                  
Dividend declaration date   Nov. 02, 2020              
Common stock dividends per share declared   $ 0.09              
Dividend record date   Nov. 17, 2020              
Dividend payment date   Dec. 01, 2020              
Subsequent Event [Member] | Cadence Bank, N.A [Member] | Secured Revolving Credit Facility [Member] | Revolving Credit and Security Agreement (The “Revolving Credit Agreement”) [Member]                  
Subsequent Event [Line Items]                  
Secured revolving credit facility amount $ 10,000,000                
Credit agreement maturity period Nov. 04, 2021                
Maximum loan to value ratio percentage 75.00%                
Maximum interest rate in no event time 1.50%                
Subsequent Event [Member] | Cadence Bank, N.A [Member] | Secured Revolving Credit Facility [Member] | Revolving Credit and Security Agreement (The “Revolving Credit Agreement”) [Member] | Screen Rate [Member]                  
Subsequent Event [Line Items]                  
Debt instrument interest over screen rate 1.50%