ADTRAN INC, 10-K filed on 2/26/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2020
Feb. 24, 2021
Jun. 30, 2020
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2020    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Trading Symbol ADTN    
Entity Registrant Name ADTRAN, Inc.    
Entity Central Index Key 0000926282    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Accelerated Filer    
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Entity Common Stock, Shares Outstanding   48,337,561  
Entity Public Float     $ 520,493,715
Entity Interactive Data Current Yes    
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 Annual Report true    
Document Transition Report false    
Title of 12(b) Security Common Stock, Par Value $0.01    
Security Exchange Name NASDAQ    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 12, 2021 are incorporated herein by reference in Part III.

   
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current Assets    
Cash and cash equivalents $ 60,161 $ 73,773
Restricted cash 18  
Short-term investments (includes $1,731 and $5,201 of available-for-sale securities as of December 31, 2020 and 2019, respectively, reported at fair value) 3,131 33,243
Accounts receivable, less allowance for doubtful accounts of $38 as of December 31, 2020 and 2019 98,827 90,531
Other receivables 21,531 16,566
Inventory, net 125,457 98,305
Prepaid expenses and other current assets 8,293 7,892
Total Current Assets 317,418 320,310
Property, plant and equipment, net 62,399 68,086
Deferred tax assets, net 9,869 7,561
Goodwill 6,968 6,968
Intangibles, net 23,470 27,821
Other non-current assets 25,425 19,883
Long-term investments (includes $43,385 and $32,459 of available-for-sale securities as of December 31, 2020 and 2019, respectively, reported at fair value) 80,130 94,489
Total Assets 525,679 545,118
Current Liabilities    
Accounts payable 49,929 44,870
Bonds payable   24,600
Unearned revenue 14,092 11,963
Accrued expenses and other liabilities 13,609 13,876
Accrued wages and benefits 15,262 13,890
Income tax payable, net 1,301 3,512
Total Current Liabilities 94,193 112,711
Non-current unearned revenue 6,888 6,012
Pension liability 18,664 15,886
Deferred compensation liability 25,866 21,698
Other non-current liabilities 7,124 8,385
Total Liabilities 152,735 164,692
Commitments and contingencies (see Note 17)
Stockholders' Equity    
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 48,241 shares outstanding as of December 31, 2020 and 79,652 shares issued and 48,020 shares outstanding as of December 31, 2019 797 797
Additional paid-in capital 281,466 274,632
Accumulated other comprehensive loss (11,639) (16,417)
Retained earnings 781,813 806,702
Less treasury stock at cost: 31,280 and 31,638 shares as of December 31, 2020 and 2019, respectively (679,493) (685,288)
Total Stockholders' Equity 372,944 380,426
Total Liabilities and Stockholders' Equity $ 525,679 $ 545,118
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Statement Of Financial Position [Abstract]    
Short term investments, available-for-sale securities at fair value $ 1,731 $ 5,201
Allowance for doubtful accounts 38 38
Long Term Investments, available-for-sale securities Fair Value $ 43,385 $ 32,459
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 48,241,000 48,020,000
Treasury stock, shares 31,280,000 31,638,000
v3.20.4
Consolidated Statements of Income (Loss) - USD ($)
shares in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Sales      
Total Sales $ 506,510,000 $ 530,061,000 $ 529,277,000
Cost of Sales      
Total Cost of Sales 288,959,000 310,894,000 325,712,000
Gross Profit 217,551,000 219,167,000 203,565,000
Selling, general and administrative expenses 113,972,000 130,288,000 124,440,000
Research and development expenses 113,287,000 126,200,000 124,547,000
Asset impairments 65,000 3,872,000 0
Gain on contingency   (1,230,000)  
Operating Loss (9,773,000) (39,963,000) (45,422,000)
Interest and dividend income 1,936,000 2,765,000 4,026,000
Interest expense (5,000) (511,000) (533,000)
Net investment gain (loss) 4,850,000 11,434,000 (4,050,000)
Other income (expense), net (3,254,000) 1,498,000 1,286,000
Gain on bargain purchase of a business     11,322,000
Loss Before Income Taxes (6,246,000) (24,777,000) (33,371,000)
Income tax (expense) benefit 8,624,000 (28,205,000) 14,029,000
Net Income (Loss) $ 2,378,000 $ (52,982,000) $ (19,342,000)
Weighted average shares outstanding – basic 47,996 47,836 47,880
Weighted average shares outstanding – diluted 48,288 47,836 47,880
Earnings (loss) per common share – basic $ 0.05 $ (1.11) $ (0.40)
Earnings (loss) per common share – diluted $ 0.05 $ (1.11) $ (0.40)
Network Solutions [Member]      
Sales      
Total Sales $ 438,015,000 $ 455,226,000 $ 458,232,000
Cost of Sales      
Total Cost of Sales 244,226,000 263,677,000 278,929,000
Gross Profit 193,789,000 191,549,000 179,303,000
Services & Support [Member]      
Sales      
Total Sales 68,495,000 74,835,000 71,045,000
Cost of Sales      
Total Cost of Sales 44,733,000 47,217,000 46,783,000
Gross Profit $ 23,762,000 $ 27,618,000 $ 24,262,000
v3.20.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]      
Net Income (Loss) $ 2,378 $ (52,982) $ (19,342)
Other Comprehensive Income (Loss), net of tax      
Net unrealized gains (losses) on available-for-sale securities 316 279 (3,130)
Defined benefit plan adjustments (395) (1,185) (3,755)
Foreign currency translation 4,857 (1,480) (4,236)
Other Comprehensive Income (Loss), net of tax 4,778 (2,386) (11,121)
Comprehensive Income (Loss), net of tax $ 7,156 $ (55,368) $ (30,463)
v3.20.4
Consolidated Statements of Changes in Stockholders' Equity - 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 Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning Balance at Dec. 31, 2017 $ 497,911   $ 797 $ 260,515 $ 922,178   $ (682,284) $ (3,295)  
Beginning Balance (ASU 2016-01 [Member]) at Dec. 31, 2017   $ 3,220       $ 3,220      
Beginning Balance (ASU 2014-09 [Member]) at Dec. 31, 2017   278       278      
Beginning Balance, Shares at Dec. 31, 2017     79,652            
Net income (loss) (19,342)       (19,342)        
Other comprehensive income (loss), net of tax (11,121)             (11,121)  
Dividend payments ($0.09 per share) (17,267)       (17,267)        
Dividends accrued on unvested restricted stock units (7)       (7)        
Stock options exercised 1,483       (603)   2,086    
PSUs, RSUs and restricted stock vested (499)       (4,482)   3,983    
Purchase of treasury stock (15,532)           (15,532)    
Stock-based compensation expense 7,155     7,155          
Ending Balance at Dec. 31, 2018 446,279   $ 797 267,670 883,975   (691,747) (14,416)  
Ending Balance (ASU 2016-02 [Member]) at Dec. 31, 2018   $ 4       4      
Ending Balance (ASU 2018-02 [Member]) at Dec. 31, 2018           $ (385)     $ 385
Ending Balance, Shares at Dec. 31, 2018     79,652            
Net income (loss) (52,982)       (52,982)        
Other comprehensive income (loss), net of tax (2,386)             (2,386)  
Dividend payments ($0.09 per share) (17,212)       (17,212)        
Dividends accrued on unvested restricted stock units (10)       (10)        
Stock options exercised 526       (208)   734    
PSUs, RSUs and restricted stock vested (571)       (6,480)   5,909    
Purchase of treasury stock (184)           (184)    
Stock-based compensation expense 6,962     6,962          
Ending Balance at Dec. 31, 2019 380,426   $ 797 274,632 806,702   (685,288) (16,417)  
Ending Balance (ASU 2018-02 [Member]) at Dec. 31, 2019 $ 385                
Ending Balance, Shares at Dec. 31, 2019 79,652   79,652            
Net income (loss) $ 2,378       2,378        
Other comprehensive income (loss), net of tax 4,778             4,778  
Dividend payments ($0.09 per share) (17,334)       (17,334)        
Dividends accrued on unvested restricted stock units (180)       (180)        
Deferred compensation adjustments, net of tax (2,806)           (2,806)    
PSUs, RSUs and restricted stock vested (1,152)       (9,753)   8,601    
Stock-based compensation expense 6,834     6,834          
Ending Balance at Dec. 31, 2020 372,944   $ 797 $ 281,466 $ 781,813   $ (679,493) $ (11,639)  
Ending Balance (ASU 2018-02 [Member]) at Dec. 31, 2020 $ 385                
Ending Balance, Shares at Dec. 31, 2020 79,652   79,652            
v3.20.4
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement Of Stockholders Equity [Abstract]      
Dividend payments $ 0.09 $ 0.09 $ 0.09
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:      
Net Income (Loss) $ 2,378,000 $ (52,982,000) $ (19,342,000)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:      
Depreciation and amortization 16,627,000 17,771,000 15,891,000
Asset impairments 65,000 3,872,000 0
(Gain) loss on investments (5,802,000) (11,434,000) 4,050,000
Stock-based compensation expense 6,834,000 6,962,000 7,155,000
Deferred income taxes (1,356,000) 30,070,000 (17,257,000)
Gain on contingency payment   (1,230,000)  
Gain on life insurance proceeds   (1,000,000)  
Gain on bargain purchase of a business     (11,322,000)
Other 216,000 (33,000) 17,000
Change in operating assets and liabilities:      
Accounts receivable, net (7,269,000) 8,282,000 49,200,000
Other receivables (4,732,000) 20,046,000 (8,522,000)
Inventory, net (25,582,000) 1,252,000 24,192,000
Prepaid expenses and other assets (5,239,000) 2,749,000 10,727,000
Accounts payable, net 4,543,000 (13,494,000) (3,799,000)
Accrued expenses and other liabilities 5,093,000 (4,598,000) (3,226,000)
Income taxes payable (2,294,000) (8,705,000) 7,690,000
Net cash provided by (used in) operating activities (16,518,000) (2,472,000) 55,454,000
Cash flows from investing activities:      
Purchases of property, plant and equipment (6,413,000) (9,494,000) (8,110,000)
Proceeds from disposals of property, plant and equipment 2,000    
Proceeds from sales and maturities of available-for-sale investments 105,100,000 47,268,000 153,649,000
Purchases of available-for-sale investments (56,767,000) (48,578,000) (123,209,000)
Acquisition of note receivable (523,000)    
Life insurance proceeds received   1,000,000  
Acquisition of business   13,000 (22,045,000)
Net cash provided by (used in) investing activities 41,399,000 (9,791,000) 285,000
Cash flows from financing activities:      
Dividend payments (17,334,000) (17,212,000) (17,267,000)
Repayment of bonds payable (24,600,000)    
Tax withholdings related to stock-based compensation settlements (1,043,000)    
Proceeds from stock option exercises   526,000 1,483,000
Purchases of treasury stock   (184,000) (15,532,000)
Payments on long-term debt   (1,000,000) (1,100,000)
Net cash used in financing activities (42,977,000) (17,870,000) (32,416,000)
Net increase (decrease) in cash and cash equivalents (18,096,000) (30,133,000) 23,323,000
Effect of exchange rate changes 4,502,000 (1,598,000) (4,252,000)
Cash, cash equivalents and restricted cash, beginning of year 73,773,000 105,504,000 86,433,000
Cash, cash equivalents and restricted cash, end of year 60,179,000 73,773,000 105,504,000
Supplemental disclosure of cash flow information      
Cash paid during the year for interest 24,000 512,000 534,000
Cash paid during the year for income taxes 7,609,000 9,357,000 4,104,000
Supplemental disclosure of non-cash investing activities      
Purchases of property, plant and equipment included in accounts payable $ 108,000 $ 90,000 62,000
Contingent payment     $ 1,230,000
v3.20.4
Nature of Business
12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Nature of Business

Note 1 – Nature of Business

ADTRAN, Inc. (“ADTRAN” or the “Company”) is a leading global provider of networking and communications platforms and services focused on the broadband access market. Our vision is to enable a fully connected world where the power to communicate is available to everyone, everywhere. Our unique approach, unmatched industry expertise and innovative solutions enable us to address almost any customer need. Our products and services are utilized by a diverse global customer base of network operators that range from those having regional or national reach and operating as telephone or cable television network operators to alternative network providers such as municipalities or utilities, as well as, managed service providers who serve small- and medium-sized businesses and distributed enterprises.

Principles of Consolidation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive income (loss), changes in equity and cash flows of ADTRAN and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

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 expenses during the reporting period. Our more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred 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, fair value of investments, evaluation of other-than-temporary declines in the value of investments and our allowance for current expected credit losses. 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 December 31, 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 consolidated financial statements as of and for the year ended December 31, 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 Misstatement

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 and twelve months ended June 30, 2019 and December 31, 2019, respectively, the out-of-period adjustment was a cumulative $0.2 million reduction in its excess and obsolete inventory reserve and cost of goods sold. Management determined that the correction of this misstatement was 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 and the twelve months ended December 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 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 Consolidated 2020 Balance Sheet. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement was not material to the 2020 annual financial results on either a quantitative or qualitative basis.

 

Summary of Significant Accounting Policies

 

Cash and Cash Equivalents

Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2020, $56.3 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.

Restricted Cash

Restricted cash consists of certain collateral which secures the Company’s performance obligation under a contract with a certain customer.  

Financial Instruments

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $24.6 million, which was its fair value as of December 31, 2019.

Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes.

Long-term investments is comprised of deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. and foreign government bonds, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment gain (loss). Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income (expense). See Note 6 for additional information.

Accounts Receivable

We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2020, single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 41.5% of our total accounts receivable. As of December 31, 2019, single customers comprising more than 10% of our total accounts receivable balance included four customers, which accounted for 53.2% of our total accounts receivable.

On January 1, 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

Accounting Policy Under Topic 326

We regularly review the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method as well as assessing asset-specific risks. 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 or 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. Based on this assessment, an allowance for credit loss would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable.

Accounting Policy Prior to Adoption of Topic 326

Prior to adoption of Topic 326 on January 1, 2020, we regularly reviewed the need to maintain an allowance for doubtful accounts and considered factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events impacting these customers and our historical experience. If the financial condition of a customer deteriorated, resulting in an impairment of their ability to make payments, we may have been required to record an allowance for doubtful accounts.

Inventory

Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves 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. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 7 for additional information.

Property, Plant and Equipment

Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income (loss). See Note 8 for additional information.

Intangible Assets

Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is two to 14 years. See Note 11 for additional information.

Impairment of Long-Lived Assets and Intangibles

Long-lived assets used in operations and intangible assets 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. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. During the years ended December 31, 2020 and December 31, 2019, we recognized an impairment loss of less than $0.1 million and $3.9 million, respectively, related to the abandonment of certain information technology implementation projects for which we had previously capitalized expenses. There were no impairment losses for long-lived assets during the year ended December 31, 2018, or for intangible assets recognized during the years ended December 31, 2020, 2019 or 2018.

Goodwill

Goodwill represents the excess purchase price over the fair value of net assets acquired. We evaluate the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. We have elected to by-pass a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount and, in turn, performed a step-1 analysis of goodwill. No impairment charges related to goodwill were recognized during the years ended December 31, 2020, 2019 and 2018.

Liability for Warranty

Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and 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. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our 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 our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. The liability for warranty obligations totaled $7.1 million and $8.4 million as of December 31, 2020 and 2019, respectively. These liabilities are included in accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets.

A summary of warranty expense and write-off activity for the years ended December 31, 2020, 2019 and 2018 is as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

8,394

 

 

$

8,623

 

 

$

9,724

 

Plus: Amounts charged to cost and expenses

 

 

1,538

 

 

 

4,569

 

 

 

7,392

 

Less: Deductions

 

 

(2,786

)

 

 

(4,798

)

 

 

(8,493

)

Balance at end of period

 

$

7,146

 

 

$

8,394

 

 

$

8,623

 

 

Pension Benefit Plan Obligations

We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Our net pension liability totaled $18.7 million and $15.9 million as of December 31, 2020 and 2019, respectively.

Stock-Based Compensation

We have two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. All of our outstanding stock option awards are classified as equity awards and therefore are measured at fair value on their grant date.

Stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018 was approximately $6.8 million, $7.0 million and $7.2 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to non-vested stock options, PSUs, RSUs and restricted stock was approximately $16.7 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. See Note 5 for additional information.

Research and Development Costs

Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $113.3 million, $126.2 million and $124.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by components of accumulated other comprehensive income (loss) for the years ended December 31, 2020 2019 and 2018:

 

(In thousands)

 

Unrealized

Gains (Losses)

on Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (2)

 

 

Total

 

Balance as of December 31, 2017

 

$

2,567

 

 

$

(4,286

)

 

$

(1,576

)

 

$

 

 

$

(3,295

)

Other comprehensive loss before

   reclassifications

 

 

685

 

 

 

(3,890

)

 

 

(4,236

)

 

 

 

 

 

(7,441

)

Amounts reclassified to retained earnings (1)

 

 

(3,220

)

 

 

 

 

 

 

 

 

 

 

 

(3,220

)

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(595

)

 

 

135

 

 

 

 

 

 

 

 

 

(460

)

Balance as of December 31, 2018

 

 

(563

)

 

 

(8,041

)

 

 

(5,812

)

 

 

 

 

 

(14,416

)

Other comprehensive loss before

   reclassifications

 

 

573

 

 

 

(1,717

)

 

 

(1,480

)

 

 

 

 

 

(2,624

)

Amounts reclassified to retained earnings (1)

 

 

 

 

 

 

 

 

 

 

 

385

 

 

 

385

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(294

)

 

 

532

 

 

 

 

 

 

 

 

 

238

 

Balance as of December 31, 2019

 

 

(284

)

 

 

(9,226

)

 

 

(7,292

)

 

 

385

 

 

 

(16,417

)

Other comprehensive loss before

   reclassifications

 

 

749

 

 

 

(1,231

)

 

 

4,857

 

 

 

 

 

 

4,375

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(433

)

 

 

836

 

 

 

 

 

 

 

 

 

403

 

Balance as of December 31, 2020

 

$

32

 

 

$

(9,621

)

 

$

(2,435

)

 

$

385

 

 

$

(11,639

)

 

 

(1)

With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings.  

 

(2)

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. See Note 14 for additional information.

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

For the year ended December 31,

 

 

 

Details about Accumulated Other Comprehensive

Income Components

 

2020

 

 

2019

 

 

2018

 

 

Affected Line Item in the

Statement Where Net Income

Is Presented

Unrealized gains on available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain on sales of securities

 

$

585

 

 

$

397

 

 

$

804

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(1,212

)

 

 

(771

)

 

 

(196

)

 

(1)

Total reclassifications for the period, before tax

 

 

(627

)

 

 

(374

)

 

 

608

 

 

 

Tax benefit

 

 

224

 

 

 

136

 

 

 

(148

)

 

 

Total reclassifications for the period, net of tax

 

$

(403

)

 

$

(238

)

 

$

460

 

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 15 for additional information.

 

 

The following tables present the tax effects related to the change in each component of other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

1,012

 

 

$

(263

)

 

$

749

 

Reclassification adjustment for amounts related to available-for-sale investments included in net income

 

 

(585

)

 

 

152

 

 

 

(433

)

Defined benefit plan adjustments

 

 

(1,784

)

 

 

553

 

 

 

(1,231

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income

 

 

1,212

 

 

 

(376

)

 

 

836

 

Foreign currency translation adjustment

 

 

4,857

 

 

 

 

 

 

4,857

 

Total Other Comprehensive Income (Loss)

 

$

4,712

 

 

$

66

 

 

$

4,778

 

 

 

 

2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

774

 

 

$

(201

)

 

$

573

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(397

)

 

 

103

 

 

 

(294

)

Defined benefit plan adjustments

 

 

(2,488

)

 

 

771

 

 

 

(1,717

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

771

 

 

 

(239

)

 

 

532

 

Foreign currency translation adjustment

 

 

(1,480

)

 

 

 

 

 

(1,480

)

Total Other Comprehensive Income (Loss)

 

$

(2,820

)

 

$

434

 

 

$

(2,386

)

 

 

 

2018

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

926

 

 

$

(241

)

 

$

685

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(804

)

 

 

209

 

 

 

(595

)

Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01

 

 

(4,351

)

 

 

1,131

 

 

 

(3,220

)

Defined benefit plan adjustments

 

 

(5,638

)

 

 

1,748

 

 

 

(3,890

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

196

 

 

 

(61

)

 

 

135

 

Foreign currency translation adjustment

 

 

(4,236

)

 

 

 

 

 

(4,236

)

Total Other Comprehensive Income (Loss)

 

$

(13,907

)

 

$

2,786

 

 

$

(11,121

)

 

Income Taxes

The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change.     

Foreign Currency

Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar and our British subsidiary, whose functional currency is the Great British pound. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss).

Revenue

 

On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition.  

 

Accounting Policy under Topic 606

Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. Review of contracts with customers, for both direct customers and distributors, are performed and assessment made regarding principal versus agent considerations to determine primary responsibility for delivery of performance obligation, presumed inventory risk, and discretion in establishing pricing, when applicable. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Costs of obtaining a contract, if material, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial.

Revenue is generated by two reportable segments: Network Solutions and Services & Support.

Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue.

Hardware and Software Revenue

Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales are recognized at delivery and transfer of control to the customer. Revenue is recorded net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered.

          

 

Services & Support Segment - A complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment.

Maintenance Revenue

Our maintenance service periods range from one month to five years. Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenues, when applicable, are recorded in current and non-current unearned revenue.

Network Implementation Revenue

We recognize revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer.

See Notes 4 and 16 for additional information on reportable segments.

Unearned Revenue

Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenues related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $1.1 million and $1.6 million as of December 31, 2020 and 2019, respectively. Non-current deferred costs are included in other non-current assets on the accompanying Consolidated Balance Sheets and totaled less than $0.1 million and $0.1 million as of December 31, 2020 and 2019, respectively.

Earnings (Loss) per Share

Earnings (loss) per common share and earnings (loss) per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 19 for additional information.

Business Combinations

The Company records assets acquired, liabilities assumed, contractual contingencies, when applicable, and intangible assets recognized as part of business combinations based on their fair values on the date of acquisition. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets and liabilities assumed or acquired is recorded as goodwill. If the estimated fair values of net tangible and intangible assets acquired and liabilities assumed exceed the purchase price, a bargain purchase gain is recorded. The Company’s estimates of fair value are based on historical experience, industry knowledge, certain information obtained from the management of the acquired company and, in some cases, valuations performed by independent third-party firms. The results of operations of acquired companies are included in the accompanying Consolidated Statements of Income (Loss) since their dates of acquisition. Costs incurred to complete the business combination, such as legal, accounting or other professional fees are charged to selling, general and administrative expenses as incurred.

Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for public business entities for fiscal years ending after December 15, 2020. The adoption of this standard did not have a material effect on the disclosures in the consolidation financial statements. See Note 15 for additional information.

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 non-current assets for certain previously capitalized costs related to information technology implementation projects that had not yet been placed in service on the Consolidated Balance Sheets as of December 31, 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 Consolidated Balance Sheet as of December 31, 2019:

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other non-current assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Consolidated Statement of Income (Loss) for the year ended December 31, 2019 and the Consolidated Statement of Cash Flows for the year ended December 31, 2019 as outlined in the following tables:

 

 

 

For the year ended December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Statement of Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

  Net income (loss)

 

$

(52,982

)

 

$

 

 

$

(52,982

)

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by (used in) operating activities

 

$

(2,472

)

 

$

 

 

$

(2,472

)

 

 

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other non-current assets on the Consolidated Balance Sheet, as of December 31, 2020:

 

(In thousands)

 

December 31, 2020

 

Implementation costs - hosting arrangements

 

$

13,515

 

Less: accumulated amortization

 

 

 

Implementation costs - hosting arrangements, net

 

$

13,515

 

 

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 Consolidated Balance Sheets, Consolidated Statements of Income (Loss) or Consolidated Statements of Cash Flows.

 

In June 2016, the FASB issued 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. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to financial instruments, which clarifies various issues related to the new credit losses standard, such as the contractual term used to measure expected credit losses for leases and when to record an allowance for credit losses for financial assets that fall under the scope of ASC 860-20, Transfers and Servicing – Sales of Financial Assets. 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 18 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.

v3.20.4
Cash, Cash Equivalents and Restricted Cash
12 Months Ended
Dec. 31, 2020
Cash And Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash

Note 2 – Cash, Cash Equivalents and Restricted Cash

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

 

(In thousands)

 

December 31, 2020

 

Cash and cash equivalents

 

$

60,161

 

Restricted cash

 

 

18

 

Cash, cash equivalents and restricted cash

 

$

60,179

 

The Company did not have any restricted cash as of December 31, 2019 and 2018. See Note 17 for additional information regarding restricted cash.

v3.20.4
Business Combinations
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Business Combinations

Note 3 – Business Combinations

In November 2018, we acquired SmartRG, Inc., for cash consideration. This transaction was accounted for as a business combination. We recorded goodwill of $3.5 million as a result of this acquisition, which represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed. The financial results of this acquisition are included in the consolidated financial statements since the date of acquisition. The revenues are included in the Subscriber Solutions & Experience category within the Network Solutions and Services & Support reportable segments.  

Contingent liabilities with a fair value totaling $1.2 million were recognized at the acquisition date. The required milestones were not achieved and therefore, a gain of $1.2 million was recognized upon the reversal of these liabilities during the second quarter of 2019.

An escrow in the amount of $2.8 million was set up at the acquisition date to fund post-closing working capital settlements and to satisfy indemnity obligations to the Company arising from any inaccuracy or breach of representations, warranties, covenants, agreements or obligations of the sellers. The escrow was subject to arbitration. In December 2019, $1.3 million of the $2.8 million was released from the escrow account pursuant to the agreement and the remaining balance was released in December 2020.

 

In March 2018, we acquired Sumitomo Electric Lightwave Corp.’s (SEL) North American EPON business and entered into a technology license and OEM supply agreement with Sumitomo Electric Industries, Ltd. (SEI). We recorded a bargain purchase gain of $11.3 million during the first quarter of 2018, net of income taxes, which was subject to customary working capital adjustments between the parties. This transaction was accounted for as a business combination. The financial results of this acquisition are included in the consolidated financial statements since the date of acquisition. The revenues are included in the Access & Aggregation and Subscriber Solutions & Experience categories within the Network Solutions and Services & Support reportable segments.

 

The Consolidated Statement of Income for the year ended December 31, 2018 includes the following revenue and net loss attributable to SmartRG and Sumitomo since the date of acquisition:

 

(In thousands)

 

March 19, 2018 to

December 31,

2018

 

Revenue

 

$

9,186

 

Net loss

 

$

(1,297

)

 

The following unaudited supplemental pro forma information presents the financial results as if the acquisition of SmartRG and Sumitomo had occurred on January 1, 2017. This unaudited supplemental pro forma information does not purport to be indicative of what would have occurred had the acquisition been completed on January 1, 2018, nor is it indicative of any future results. There were no material, non-recurring adjustments to this unaudited pro forma information.

 

(In thousands)

 

2018

 

Pro forma revenue

 

$

559,050

 

Pro forma net loss

 

$

(33,862

)

 

For the years ended December 31, 2020, 2019 and 2018, we incurred acquisition and integration related expenses and amortization of acquired intangibles of $3.8 million, $5.0 million and $2.9 million, respectively, related to the SmartRG and Sumitomo acquisitions.

v3.20.4
Revenue
12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

Note 4 - 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.    

Revenue by Category

 

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

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2020:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2019:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2018:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

Revenue allocated to remaining performance obligations represents contract revenues that have not yet been recognized for contracts with a duration greater than one year. As of December 31, 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 we are entitled to invoice, which correspond to the value of completed performance obligations to date. The amount related to these performance obligations was $17.7 million and $13.6 million as of December 31, 2020 and December 31, 2019, respectively. The Company expects to recognize 61% of the $17.7 million as of December 31, 2020 over the next 12 months, with the remainder to be recognized thereafter.

 

 

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

 

(In thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Accounts receivable

 

$

98,827

 

 

$

90,531

 

Contract assets(1)

 

$

63

 

 

$

2,812

 

Unearned revenue

 

$

14,092

 

 

$

11,963

 

Non-current unearned revenue

 

$

6,888

 

 

$

6,012

 

(1) Included in other receivables on the Consolidated Balance Sheets.

Of the outstanding unearned revenue balance as of December 31, 2019 and December 31, 2018, $11.0 million and $12.7 million were recognized as revenue during the years ended December 31, 2020 and 2019, respectively.

 

v3.20.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 5 – Stock-Based Compensation

The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Stock-based compensation expense included in cost of sales

 

$

426

 

 

$

369

 

 

$

418

 

Selling, general and administrative expenses

 

 

4,036

 

 

 

3,889

 

 

 

3,989

 

Research and development expenses

 

 

2,372

 

 

 

2,704

 

 

 

2,748

 

Stock-based compensation expense included in operating expenses

 

 

6,408

 

 

 

6,593

 

 

 

6,737

 

Total stock-based compensation expense

 

 

6,834

 

 

 

6,962

 

 

 

7,155

 

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

 

 

(1,629

)

 

 

(1,659

)

 

 

(1,432

)

Total stock-based compensation expense, net of tax

 

$

5,205

 

 

$

5,303

 

 

$

5,723

 

Stock Incentive Program Descriptions

2020 Stock Incentive Plans

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 Company’s previous stock incentive plans, the ADTRAN, Inc. 2015 Employee Stock Incentive Plan (the “2015 Employee Plan”) or the 2010 Directors Stock Plan (the “2010 Directors Plan”) subsequent to the stockholders’ approval of these new stock plans. Outstanding awards granted under the 2015 Employee Plan and the 2010 Directors 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. 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. 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.

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.

Previous Stock Incentive Plans

In January 2015, the Board of Directors adopted the 2015 Employee Plan, which authorized 7.7 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, PSUs, RSUs and restricted stock. The 2015 Employee Plan was adopted by stockholder approval at our annual meeting of stockholders held in May 2015. PSUs, RSUs and restricted stock granted under the 2015 Plan reduce the shares authorized for issuance under the 2015 Employee Plan by 2.5 shares of common stock for each share underlying the award. Options granted under the 2015 Employee Plan 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. Expiration dates of options outstanding as of December 31, 2020 under the 2015 Employee Plan range from 2025 to 2026.

In January 2006, the Board of Directors adopted the ADTRAN, Inc. 2006 Employee Stock Incentive Plan (the “2006 Plan”), which authorized 13.0 million shares of common stock for issuance to certain employees and officers through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock. Options granted under the 2006 Plan 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 had a ten-year contractual term. The 2006 Plan was replaced in May 2015 by the 2015 Employee Plan. Expiration dates of options outstanding as of December 31, 2020 under the 2006 Plan range from 2021 to 2024.

In May 2010, the Company’s stockholders approved the 2010 Directors Plan, under which 0.5 million shares of common stock have been reserved for issuance. This plan replaced the 2005 Directors Stock Option Plan. Under the 2010 Directors Plan, the Company may issue stock options, restricted stock and RSUs to our non-employee directors. Stock awards issued under the 2010 Directors Plan become vested in full on the first anniversary of the grant date. Options issued under the 2010 Directors Plan had a ten-year contractual term. All remaining options under the 2010 Directors Plan expired in 2019.

PSUs, RSUs and restricted stock

The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2019 and 2020 and the changes that occurred during 2020:

 

 

 

Number of

shares (In thousands)

 

 

Weighted

Average Grant

Date Fair Value

 

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

 

 

1,891

 

 

$

14.58

 

PSUs, RSUs and restricted stock granted

 

 

1,029

 

 

$

11.02

 

PSUs, RSUs and restricted stock vested

 

 

(453

)

 

$

14.26

 

PSUs, RSUs and restricted stock forfeited

 

 

(621

)

 

$

18.14

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2020

 

 

1,846

 

 

$

11.49

 

The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs:

 

 

 

2020

 

 

2019

 

2018

 

Estimated fair value per share

 

 

$14.43

 

 

$9.53 to $18.05

 

 

$16.59

 

Expected volatility

 

 

51.88%

 

 

32.7% to 38.9%

 

27.98% to 31.58%

 

Risk-free interest rate

 

 

0.24%

 

 

1.6% to 2.46%

 

2.11% to 2.99%

 

Expected dividend yield

 

 

2.85%

 

 

2.3% to 4.09%

 

1.83% to 2.49%

 

 

 

For market-based PSUs, the number of shares of common stock earned by a recipient is subject to a market condition based on ADTRAN’s relative total shareholder return against all companies in the NASDAQ Telecommunications Index at the end of a three-year performance period. Depending on the relative total shareholder return over the performance period, the recipient may earn from 0% to 150% of the shares underlying the PSUs, with the shares earned distributed upon the vesting. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. A portion of the granted PSUs vests and the underlying shares become deliverable upon the death or disability of the recipient or upon a change of control of ADTRAN, as defined by the 2020 Employee Plan. The recipients of the PSUs receive dividend credits based on the shares of common stock underlying the PSUs. The dividend credits vest and are earned in the same manner as the PSUs and are paid in cash upon the issuance of common stock for the PSUs.

 

During the first quarter of 2020, the Company issued 0.3 million performance-based PSUs under the 2015 Employee Plan to its executive officers. 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 be issued at 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 grant date. RSUs and restricted stock vest ratably over four-year and one-year periods, respectively.

 

We will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. If circumstances change, and additional data becomes available over time, we may change our assumptions and methodologies, which may materially impact our fair value determination.

 

As of December 31, 2020, total unrecognized compensation expense related to the non-vested portion of market-based PSUs, RSUs and restricted stock was approximately $16.7 million, which is expected to be recognized over an average remaining recognition period of 2.9 years and will be adjusted for actual forfeitures as they occur.

 

As of December 31, 2020, 3.6 million shares were available for issuance under shareholder-approved equity plans in connection with the grant and exercise of stock options, PSU’s, RSU’s or restricted stock.

Stock Options

The following table is a summary of stock options outstanding as of December 31, 2020 and 2019 and the changes that occurred during 2020:

 

 

 

Number of

Options

(In thousands)

 

 

Weighted

Average

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

 

 

 

3.40

 

 

$

 

Stock options granted

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options forfeited

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options expired

 

 

(854

)

 

$

28.00

 

 

 

 

 

 

 

 

 

Stock options outstanding, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.86

 

 

$

 

Stock options exercisable, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.86

 

 

$

 

All of these stock options were issued at exercise prices that approximated fair market value at the date of grant. As of December 31, 2020, there was no unrecognized compensation expense related to non-vested stock options.

The aggregate intrinsic values represent the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of 2020 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 December 31, 2020. The amount of aggregate intrinsic value will change based on the fair market value of ADTRAN’s stock and was $0 as of December 31, 2020.

The total pre-tax intrinsic value of options exercised during 2020, 2019 and 2018 was $0, $0.1 million and $0.2 million, respectively. The fair value of options fully vesting during 2020, 2019 and 2018 was less than $0.1 million, $0.9 million and $2.5 million, respectively.

The following table further describes our stock options outstanding as of December 31, 2020:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of

Exercise Prices

 

Options

Outstanding at

December 31, 2020

(In thousands)

 

 

Weighted Avg.

Remaining

Contractual Life

in Years

 

 

Weighted

Average

Exercise

Price

 

 

Options

Exercisable at

December 31, 2020

(In thousands)

 

 

Weighted

Average

Exercise

Price

 

$15.33 – $18.96

 

 

1,007

 

 

 

3.69

 

 

$

15.91

 

 

 

1,007

 

 

$

15.91

 

$18.97 – $23.45

 

 

588

 

 

 

3.68

 

 

$

18.97

 

 

 

588

 

 

$

18.97

 

$23.46 – $30.35

 

 

603

 

 

 

2.55

 

 

$

24.11

 

 

 

603

 

 

$

24.11

 

$30.36 – $41.92

 

 

520

 

 

 

0.64

 

 

$

30.40

 

 

 

520

 

 

$

30.40

 

 

 

 

2,718

 

 

 

 

 

 

 

 

 

 

 

2,718

 

 

 

 

 

 

The Black-Scholes option pricing model (the “Black-Scholes Model”) is used to determine the estimated fair value of stock option awards on the date of grant. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Because our stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, existing models may not provide reliable measures of fair value of our stock options. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors.

There were no stock options granted in during the years ended December 31, 2020, 2019 or 2018.

v3.20.4
Investments
12 Months Ended
Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Investments

Note 6 – Investments

Debt Securities and Other Investments

As of December 31, 2020, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

11,762

 

 

$

123

 

 

$

 

 

$

11,885

 

Municipal fixed-rate bonds

 

 

2,854

 

 

 

30

 

 

 

 

 

 

2,884

 

Asset-backed bonds

 

 

6,634

 

 

 

74

 

 

 

 

 

 

6,708

 

Mortgage/Agency-backed bonds

 

 

11,536

 

 

 

114

 

 

 

(6

)

 

 

11,644

 

U.S. government bonds

 

 

9,763

 

 

 

112

 

 

 

 

 

 

9,875

 

Foreign government bonds

 

 

1,334

 

 

 

4

 

 

 

(1

)

 

 

1,337

 

Commercial Paper

 

 

250

 

 

 

 

 

 

 

 

 

250

 

Other

 

 

533

 

 

 

 

 

 

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

44,666

 

 

$

457

 

 

$

(7

)

 

$

45,116

 

As of December 31, 2019, the following debt securities and other investments were included in short-term investments and long-term investments on the 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 December 31, 2020, our debt securities had the following contractual maturities:

 

(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

 

$

1,477

 

 

$

96

 

 

$

144

 

 

$

63

 

 

$

 

 

$

75

 

 

$

250

 

 

$

533

 

One to two years

 

 

2,007

 

 

 

1,245

 

 

 

300

 

 

 

2,129

 

 

 

5,122

 

 

 

462

 

 

 

 

 

 

 

Two to three years

 

 

7,013

 

 

 

1,246

 

 

 

622

 

 

 

2,940

 

 

 

4,526

 

 

 

498

 

 

 

 

 

 

 

Three to five years

 

 

1,388

 

 

 

297

 

 

 

3,658

 

 

 

183

 

 

 

227

 

 

 

302

 

 

 

 

 

 

 

Five to ten years

 

 

 

 

 

 

 

 

1,241

 

 

 

2,095

 

 

 

 

 

 

 

 

 

 

 

 

 

More than ten years

 

 

 

 

 

 

 

 

743

 

 

 

4,234

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

11,885

 

 

$

2,884

 

 

$

6,708

 

 

$

11,644

 

 

$

9,875

 

 

$

1,337

 

 

$

250

 

 

$

533

 

 

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 securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2020, 2019 and 2018:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Gross realized gains on debt securities

 

$

459

 

 

$

108

 

 

$

57

 

Gross realized losses on debt securities

 

 

(58

)

 

 

(50

)

 

 

(592

)

Total gain (loss) recognized, net

 

$

401

 

 

$

58

 

 

$

(535

)

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 with credit deterioration during the years ended December 31, 2020, 2019 and 2018.

The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2020:

 

 

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

(In thousands)

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

$

336

 

 

$

 

 

$

 

 

$

 

 

$

336

 

 

$

 

Municipal fixed-rate bonds

 

 

310

 

 

 

 

 

 

 

 

 

 

 

 

310

 

 

 

 

Asset-backed bonds

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

Mortgage/Agency-backed bonds

 

 

2,078

 

 

 

(6

)

 

 

 

 

 

 

 

 

2,078

 

 

 

(6

)

U.S. government bonds

 

 

350

 

 

 

 

 

 

 

 

 

 

 

 

350

 

 

 

 

Foreign government bonds

 

 

302

 

 

 

(1

)

 

 

 

 

 

 

 

 

302

 

 

 

(1

)

Total

 

$

3,378

 

 

$

(7

)

 

$

 

 

$

 

 

$

3,378

 

 

$

(7

)

 

 The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2019:

 

 

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

(In thousands)

 

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

)

 

The decrease in unrealized losses during 2020 resulted from changes in market positions associated with our fixed income portfolio.

 

Marketable Equity Securities

 

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. This equity investment, which does not have a readily determinable fair value, was recorded 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 year ended December 31, 2020, impairment charges totaling $2.6 million were recorded related to this equity investment and are included in net investment gain (loss) on the Consolidated Statement of Income (Loss). As a result, the carrying value of this investment was $0.8 million as of December 31, 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 Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019, and represented a non-cash investing activity during the year ended December 31, 2019. No impairment charge was recognized related to the note receivable as it is a secured loan.

 

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2020, 2019 and 2018 were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Realized losses on equity securities sold

 

$

(2,382

)

 

$

(96

)

 

$

1,306

 

Unrealized gains on equity securities held

 

 

6,831

 

 

 

11,472

 

 

 

(4,821

)

Total gain (loss) recognized, net

 

$

4,449

 

 

$

11,376

 

 

$

(3,515

)

 

As of December 31, 2020 and 2019, gross unrealized losses related to individual investments in a continuous loss position for twelve months or longer were not material.

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 December 31, 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

 

$

497

 

 

$

497

 

 

$

 

 

$

 

U.S. government bonds

 

 

350

 

 

 

350

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

11,885

 

 

 

 

 

 

11,885

 

 

 

 

Municipal fixed-rate bonds

 

 

2,884

 

 

 

 

 

 

2,884

 

 

 

 

Asset-backed bonds

 

 

6,708

 

 

 

 

 

 

6,708

 

 

 

 

Mortgage/Agency-backed bonds

 

 

11,644

 

 

 

 

 

 

11,644

 

 

 

 

U.S. government bonds

 

 

9,875

 

 

 

9,875

 

 

 

 

 

 

 

Foreign government bonds

 

 

1,337

 

 

 

 

 

 

1,337

 

 

 

 

Commercial paper

 

 

250

 

 

 

 

 

 

250

 

 

 

 

Other investments

 

 

533

 

 

 

 

 

 

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

10,963

 

 

 

10,963

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

23,891

 

 

 

23,891

 

 

 

 

 

 

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

 

 

 

 

Total

 

$

82,217

 

 

$

46,976

 

 

$

34,708

 

 

$

533

 

 

 

 

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 consisted 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.

 

Our variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price.

v3.20.4
Inventory
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventory

Note 7 – Inventory

As of December 31, 2020 and 2019, inventory, net was comprised of the following:

 

(In thousands)

 

2020

 

 

2019

 

Raw materials

 

$

47,026

 

 

$

36,987

 

Work in process

 

 

776

 

 

 

1,085

 

Finished goods

 

 

77,655

 

 

 

60,233

 

Total Inventory, net

 

$

125,457

 

 

$

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 December 31, 2020 and 2019, our inventory reserve was $39.6 million and $34.1 million, respectively.

v3.20.4
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2020
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

Note 8 – Property, Plant and Equipment

As of December 31, 2020 and 2019, property, plant and equipment, net was comprised of the following:

 

(In thousands)

 

2020

 

 

2019

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

35,142

 

 

 

34,797

 

Building

 

 

68,169

 

 

 

68,157

 

Furniture and fixtures

 

 

19,965

 

 

 

19,959

 

Computer hardware and software

 

 

70,942

 

 

 

68,777

 

Engineering and other equipment

 

 

132,920

 

 

 

130,430

 

Total Property, Plant and Equipment

 

 

331,713

 

 

 

326,695

 

Less: accumulated depreciation

 

 

(269,314

)

 

 

(258,609

)

Total Property, Plant and Equipment, net

 

$

62,399

 

 

$

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. During the years ended December 31, 2020 and December 31, 2019, the Company recognized impairment charges of $0.1 million and $3.9 million, respectively, related to the abandonment of certain information technology projects in which we had previously capitalized expenses related to these projects. The impairment charges were determined based on actual costs incurred as part of the projects. No impairment charges were recognized during the year ended December 31, 2018.

 

Depreciation expense was $12.2 million, $12.5 million and $12.7 million for the years ended December 31, 2020, 2019 and 2018, respectively, which is recorded in cost of sales, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Income (Loss).

 

 

v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

Note 9 – Leases

 

We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain potential embedded leases. These other contracts are specifically reviewed to determine whether we have the right to substantially all of the economic benefit from the use of any specified assets or the right to direct the use of any specified assets, either of which would indicate the existence of a lease.

As of December 31, 2020, our operating leases had remaining lease terms of two months to 55 months, some of which included options to extend the leases for up to two years, and some of which included options to terminate the leases within three months. For those leases that are reasonably assured to be renewed, we have included the option to extend as part of our right of use asset and lease liability. Supplemental balance sheet information related to operating leases is as follows:

 

 

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

Classification

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

 

 

Operating lease assets

 

Other non-current assets

 

$

5,309

 

 

$

8,452

 

Total lease asset

 

 

 

$

5,309

 

 

$

8,452

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses and other liabilities

 

$

1,806

 

 

$

2,676

 

Non-current operating lease liability

 

Other non-current liabilities

 

 

3,574

 

 

 

5,818

 

Total lease liability

 

 

 

$

5,380

 

 

$

8,494

 

 

Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. Lease expense related to these short-term leases was less than $0.1 million and $0.4 million for the year ended December 31, 2020 and 2019, respectively, and is included in cost of sales, selling, general and administrative expenses and research and development expenses in the 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 $0.7 million and $0.9 million for the year ended December 31, 2020 and 2019, respectively. For lease agreements entered into or reassessed after the adoption of Topic 842, we elected to not separate lease and non-lease components. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense included in the Consolidated Statements of Income (Loss) were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

Cost of sales

 

$

113

 

 

$

64

 

Selling, general and administrative expenses

 

 

1,311

 

 

 

1,400

 

Research and development expenses

 

 

1,121

 

 

 

2,417

 

Total operating lease expense

 

$

2,545

 

 

$

3,881

 

 

As of December 31, 2020, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:

 

(In thousands)

 

Amount

 

2021

 

$

1,895

 

2022

 

 

1,600

 

2023

 

 

1,251

 

2024

 

 

521

 

2025

 

 

287

 

Thereafter

 

 

 

Total lease payments

 

 

5,554

 

Less: Interest

 

 

(174

)

Present value of lease liabilities

 

$

5,380

 

 

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 is 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 our weighted average lease terms and weighted average discount rates:

 

 

 

As of December 31,

 

Weighted average remaining lease term (years)

 

2020

 

 

2019

 

     Operating leases with USD functional currency

 

 

2.4

 

 

 

2.6

 

     Operating leases with Euro functional currency

 

 

3.6

 

 

 

4.4

 

Weighted average discount rate

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

4.47

%

 

 

4.02

%

     Operating leases with Euro functional currency

 

 

1.37

%

 

 

1.84

%

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

 

 

As of December 31,

 

(In thousands)

 

2020

 

 

2019

 

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

 

 

 

 

 

 

 

 

     Cash used in operating activities related to operating leases

 

$

2,632

 

 

$

3,439

 

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

 

$

324

 

 

$

11,615

 

 

Sales-Type Leases

We are the lessor in sales-type lease arrangements for network equipment, which have initial terms of up to five years. Our sales-type lease arrangements contain either a provision whereby the network equipment reverts back to us upon the expiration of the lease or a provision that allows the lessee to purchase the network equipment at a bargain purchase amount at the end of the lease. In addition, our sales-type lease arrangements do not contain any residual value guarantees or material restrictive covenants. The allocation of the consideration between lease and non-lease components is determined by stand-alone selling price by component. The net investment in sales-type leases consists of lease receivables less unearned income. Collectability of sales-type leases is evaluated periodically at an individual customer level. The Company has elected to exclude taxes related to sales-type leases from revenue and the associated expense of such taxes. As of December 31, 2020 and 2019, we did not have an allowance for credit losses for our net investment in sales-type leases. As of December 31, 2020 and 2019, the components of the net investment in sales-type leases were as follows:

 

 

 

As of  December 31,

 

(In thousands)

 

2020

 

 

2019

 

Current minimum lease payments receivable(1)

 

$

702

 

 

$

1,201

 

Non-current minimum lease payments receivable(2)

 

 

347

 

 

 

889

 

Total minimum lease payments receivable

 

 

1,049

 

 

 

2,090

 

Less: Current unearned revenue(1)

 

 

218

 

 

 

365

 

Less: Non-current unearned revenue(2)

 

 

50

 

 

 

163

 

Net investment in sales-type leases

 

$

781

 

 

$

1,562

 

 

(1)

Included in other receivables on the Consolidated Balance Sheets.

 

(2)

Included in other non-current assets on the Consolidated Balance Sheets.

 

 

Components of gross profit related to sales-type lease recognized at the lease commencement date and interest and dividend income, included in the Consolidated Statements of Income (Loss) for the year ended December 31, 2020 and 2019 were as follows:

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

Revenue - Network Solutions

 

$

78

 

 

$

1,723

 

Cost of sales - Network Solutions

 

 

32

 

 

 

675

 

Gross profit

 

$

46

 

 

$

1,048

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

42

 

 

$

357

 

 

As of December 31, 2020 future minimum lease payments to be received from sales-type leases were as follows:

(In thousands)

 

Amount

 

2021

 

$

703

 

2022

 

 

250

 

2023

 

 

88

 

2024

 

 

7

 

2025

 

 

1

 

Total

 

$

1,049

 

 

v3.20.4
Goodwill
12 Months Ended
Dec. 31, 2020
Goodwill Disclosure [Abstract]  
Goodwill

Note 10 – Goodwill

Goodwill, all of which relates to our acquisitions of Bluesocket, Inc. in 2011 and SmartRG in 2018, was $7.0 million as of December 31, 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. We have elected to by-pass a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount. No impairment charges related to goodwill were recognized during the years ended December 31, 2020, 2019 and 2018.

v3.20.4
Intangible Assets
12 Months Ended
Dec. 31, 2020
Intangible Assets Net Excluding Goodwill [Abstract]  
Intangible Assets

Note 11 – Intangible Assets

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

 

 

 

2020

 

 

2019

 

(In thousands)

 

Gross Value

 

 

Accumulated

Amortization

 

 

Net Value

 

 

Gross Value

 

 

Accumulated

Amortization

 

 

Net Value

 

Customer relationships

 

$

21,123

 

 

$

(8,055

)

 

$

13,068

 

 

$

22,356

 

 

$

(7,233

)

 

$

15,123

 

Developed technology

 

 

8,200

 

 

 

(2,546

)

 

 

5,654

 

 

 

10,170

 

 

 

(3,379

)

 

 

6,791

 

Licensed technology

 

 

5,900

 

 

 

(1,830

)

 

 

4,070

 

 

 

5,900

 

 

 

(1,174

)

 

 

4,726

 

Supplier relationships

 

 

2,800

 

 

 

(2,800

)

 

 

 

 

 

2,800

 

 

 

(2,508

)

 

 

292

 

Licensing agreements

 

 

560

 

 

 

(152

)

 

 

408

 

 

 

560

 

 

 

(79

)

 

 

481

 

Patents

 

 

500

 

 

 

(294

)

 

 

206

 

 

 

500

 

 

 

(226

)

 

 

274

 

Trade names

 

 

210

 

 

 

(146

)

 

 

64

 

 

 

310

 

 

 

(176

)

 

 

134

 

Total

 

$

39,293

 

 

$

(15,823

)

 

$

23,470

 

 

$

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. No impairment losses of intangible assets were recorded during the year ended December 31, 2020, 2019 or 2018.

 

 

Amortization expense was $4.4 million, $5.3 million and $2.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, and was included in cost of sales, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Income (Loss).

As of December 31, 2020, estimated future amortization expense of intangible assets was as follows:

 

(In thousands)

 

Amount

 

2021

 

$

4,119

 

2022

 

 

3,494

 

2023

 

 

3,340

 

2024

 

 

3,245

 

2025

 

 

3,031

 

Thereafter

 

 

6,241

 

Total

 

$

23,470

 

v3.20.4
Revolving Credit Agreement
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Revolving Credit Agreement

Note 12 – Revolving Credit Agreement

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 $10.0 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 had not made any draws under the Revolving Credit Agreement as of December 31, 2020.

v3.20.4
Alabama State Industrial Development Authority Financing and Economic Incentives
12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Alabama State Industrial Development Authority Financing and Economic Incentives

Note 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 outstanding 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 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 Consolidated Balance Sheet as of December 31, 2019. We made a principal payment of $1.0 million for the year ended December 31, 2019.

In conjunction with this program, we were eligible to receive certain economic incentives from the state of Alabama that reduce the amount of payroll withholdings that we were required to remit to the state for those employment positions that qualify under the program. Economic incentives realized related to payroll withholdings totaled $0, $1.2 million and $1.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. This program concluded on January 2, 2020 following the maturity of the Taxable Revenue Bonds.

v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 14 – Income Taxes

The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(10,574

)

 

$

(518

)

 

$

(8,001

)

State

 

 

(329

)

 

 

(1,065

)

 

 

(476

)

International

 

 

3,635

 

 

 

(282

)

 

 

11,705

 

Total Current

 

 

(7,268

)

 

 

(1,865

)

 

 

3,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

 

 

 

24,801

 

 

 

(14,448

)

State

 

 

 

 

 

5,815

 

 

 

(3,390

)

International

 

 

(1,356

)

 

 

(546

)

 

 

581

 

Total Deferred

 

 

(1,356

)

 

 

30,070

 

 

 

(17,257

)

Total Income Tax Expense (Benefit)

 

$

(8,624

)

 

$

28,205

 

 

$

(14,029

)

 

The effective income tax rate differs from the federal statutory rate due to the following:

 

 

 

2020

 

 

2019

 

 

2018

 

Tax provision computed at the federal statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State income tax provision, net of federal benefit

 

 

11.10

 

 

 

6.97

 

 

 

14.53

 

Federal research credits

 

 

57.63

 

 

 

15.53

 

 

 

14.23

 

Foreign taxes

 

 

(17.83

)

 

 

2.83

 

 

 

(11.45

)

Tax-exempt income

 

 

1.93

 

 

 

0.49

 

 

 

0.45

 

State tax incentives

 

 

 

 

 

3.85

 

 

 

3.15

 

Change in valuation allowance

 

 

44.79

 

 

 

(172.82

)

 

 

 

Foreign tax credits

 

 

17.90

 

 

 

16.69

 

 

 

 

Stock-based compensation

 

 

(23.36

)

 

 

(6.01

)

 

 

(2.87

)

Withholding taxes

 

 

(20.83

)

 

 

 

 

 

 

Bargain purchase

 

 

 

 

 

 

 

 

8.82

 

Impact of CARES Act

 

 

45.65

 

 

 

 

 

 

 

Impact of U.S. tax reform

 

 

 

 

 

 

 

 

12.00

 

Global intangible low-taxed income ("GILTI")

 

 

(0.49

)

 

 

(1.87

)

 

 

(17.48

)

Other, net

 

 

0.56

 

 

 

(0.49

)

 

 

(0.34

)

Effective Tax Rate

 

 

138.05

%

 

 

(113.83

)%

 

 

42.04

%

 

Income (loss) before expense (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

U.S. entities

 

$

(12,833

)

 

$

(29,829

)

 

$

(74,131

)

International entities

 

 

6,587

 

 

 

5,052

 

 

 

40,760

 

Total

 

$

(6,246

)

 

$

(24,777

)

 

$

(33,371

)

 

Income (loss) before expense (benefit) for income taxes for international entities reflects income (loss) based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenue, which occurs from our U.S. entity.

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2020 and 2019 consist of the following:

 

(In thousands)

 

2020

 

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Inventory

 

$

8,882

 

 

$

7,144

 

Accrued expenses

 

 

2,331

 

 

 

2,330

 

Deferred compensation

 

 

6,714

 

 

 

5,660

 

Stock-based compensation

 

 

1,971

 

 

 

2,451

 

Uncertain tax positions related to state taxes and related interest

 

 

149

 

 

 

241

 

Pensions

 

 

8,554

 

 

 

7,074

 

Foreign losses

 

 

2,590

 

 

 

2,925

 

State losses and credit carry-forwards

 

 

5,509

 

 

 

3,995

 

Federal loss and research carry-forwards

 

 

17,323

 

 

 

12,171

 

Lease liabilities

 

 

1,588

 

 

 

2,496

 

Capitalized research and development expenditures

 

 

11,832

 

 

 

22,230

 

Valuation allowance

 

 

(45,818

)

 

 

(48,616

)

Total Deferred Tax Assets

 

 

21,625

 

 

 

20,101

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

(4,546

)

 

 

(2,815

)

Intellectual property

 

 

(4,375

)

 

 

(5,337

)

Right of use lease assets

 

 

(1,585

)

 

 

(2,496

)

Investments

 

 

(1,250

)

 

 

(1,892

)

Total Deferred Tax Liabilities

 

 

(11,756

)

 

 

(12,540

)

Net Deferred Tax Assets

 

$

9,869

 

 

$

7,561

 

 

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Subsequently, the Internal Revenue Service (“IRS”) released its final Global Intangible Low Tax Income (“GILTI”) regulations on July 9, 2020. The passage of the CARES Act and subsequent issuance of the GILTI final regulations together resulted in the Company’s recognition of a tax benefit in the amount of $10.8 million during 2020, $7.9 million of which related to the utilization of deferred tax assets which had previously been offset with a valuation allowance and $2.9 million primarily related to the tax rate differential on carrying back losses from 2018 and 2019 tax years to prior years in which the U.S. Corporate tax rate was 35% versus the current 21% federal tax rate.

As of December 31, 2020 and 2019, non-current deferred taxes reflect deferred taxes on net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, which resulted in a deferred tax benefit of $0.1 million and $0.4 million in 2020 and 2019, respectively, was recorded as an adjustment to other comprehensive income (loss), presented in the Consolidated Statements of Comprehensive Income (Loss).

 

 

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. 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 a 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.

As of December 31, 2020 and 2019, the Company had gross deferred tax assets totaling $55.7 million offset by a valuation allowance totaling $45.8 million and gross deferred tax assets totaling $56.2 million offset by a valuation allowance of $48.6 million, respectively. Of the current valuation allowance, $43.8 million has been established against our domestic deferred tax assets and the remaining $2.0 million is related to foreign net operating loss and research and development credit carryforwards where we lack sufficient activity to realize those deferred tax assets. The change in our valuation allowance for the year ending December 31, 2020 was a decrease of $2.8 million. The change in the valuation allowance was primarily related to increases in our deferred tax assets during the year, offset with the impact of monetizing deferred tax assets through net operating loss carryback claims related to the CARES Act of $7.9 million. As of December 31, 2020, the remaining $9.9 million in deferred tax assets that were not offset by a valuation allowance are located in various foreign jurisdictions where the Company believes it is more likely than not we will realize these deferred tax assets.

 

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

 

 

 

December 31, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

43,791

 

 

$

(43,791

)

 

$

 

International

 

 

11,896

 

 

 

(2,027

)

 

 

9,869

 

Total

 

$

55,687

 

 

$

(45,818

)

 

$

9,869

 

 

 

 

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

 

 

As of December 31, 2020 and 2019, the deferred tax assets for foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development costs and state credit carry-forwards totaled $37.3 million and $41.3 million, respectively. As of December 31, 2020, $25.1 million of these deferred tax assets will expire at various times between 2021 and 2040. The remaining deferred tax assets will either amortize through 2029 or carryforward indefinitely.

As of December 31, 2020 and 2019, respectively, our cash and cash equivalents were $60.2 million and $73.8 million and short-term investments were $3.1 million and $33.2 million, which provided available short-term liquidity of $63.3 million and $107.0 million. Of these amounts, our foreign subsidiaries held cash of $49.7 million and $52.3 million, respectively, representing approximately 78.5% and 48.9% of available short-term liquidity, which is used to fund ongoing liquidity needs of these subsidiaries. As part of our restructuring plan, the Company’s assertion on being indefinitely reinvested changed in a particular jurisdiction during the current year resulting in the accrual of $0.7 million in withholding tax liabilities. The Company maintains its assertion in all other jurisdictions that it is indefinitely reinvesting its funds held in foreign jurisdictions outside of the U.S., except to the extent any of these funds can be repatriated without withholding tax. However, if all of these funds were repatriated to the U.S., or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the amount of funds subject to unrecognized deferred tax liability.

During 2020, 2019 and 2018, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity.  

The change in the unrecognized income tax benefits for the years ended December 31, 2020, 2019 and 2018 is reconciled below:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

1,487

 

 

$

1,868

 

 

$

2,366

 

Increases for tax position related to:

 

 

 

 

 

 

 

 

 

 

 

 

Prior years

 

 

4

 

 

 

 

 

 

3

 

Current year

 

 

165

 

 

 

161

 

 

 

254

 

Decreases for tax positions related to:

 

 

 

 

 

 

 

 

 

 

 

 

Prior years

 

 

 

 

 

(71

)

 

 

 

Expiration of applicable statute of limitations

 

 

(578

)

 

 

(471

)

 

 

(755

)

Balance at end of period

 

$

1,078

 

 

$

1,487

 

 

$

1,868

 

 

As of December 31, 2020, 2019 and 2018, our total liability for unrecognized tax benefits was $1.1 million, $1.5 million and $1.9 million, respectively, of which $1.0 million, $1.4 million and $1.7 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2020, 2019 and 2018, the balances of accrued interest and penalties were $0.3 million, $0.5 million and $0.7 million, respectively.

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2017.

v3.20.4
Employee Benefit Plans
12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Employee Benefit Plans

Note 15 – Employee Benefit Plans

Pension Benefit Plan

We maintain a defined benefit pension plan covering employees in certain foreign countries.

The pension benefit plan obligations and funded status as of December 31, 2020 and 2019, were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of period

 

$

43,902

 

 

$

37,245

 

Service cost

 

 

1,270

 

 

 

1,471

 

Interest cost

 

 

444

 

 

 

634

 

Actuarial (gain) loss - experience

 

 

(744

)

 

 

453

 

Actuarial loss - assumptions

 

 

2,458

 

 

 

5,091

 

Benefit payments

 

 

(509

)

 

 

(166

)

Effects of foreign currency exchange rate changes

 

 

4,106

 

 

 

(826

)

Projected benefit obligation at end of period

 

 

50,927

 

 

 

43,902

 

Change in plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

 

28,016

 

 

 

24,159

 

Actual gain on plan assets

 

 

1,744

 

 

 

4,392

 

Contributions

 

 

24

 

 

 

 

Effects of foreign currency exchange rate changes

 

 

2,479

 

 

 

(535

)

Fair value of plan assets at end of period

 

 

32,263

 

 

 

28,016

 

Unfunded status at end of period

 

$

(18,664

)

 

$

(15,886

)

 

The accumulated benefit obligation was $50.9 million and $43.9 million as of December 31, 2020 and 2019, respectively. The increase in the accumulated benefit obligation, projected benefit obligation and the actuarial loss was primarily attributable to a decrease in the discount rate during 2020.

The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Current liability

 

$

 

 

$

 

Pension liability

 

 

18,664

 

 

 

15,886

 

Total

 

$

18,664

 

 

$

15,886

 

 

The components of net periodic pension cost, other than the service cost component, are included in other income (expense), net in the Consolidated Statements of Income (Loss). The components of net periodic pension cost and amounts recognized in other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1,270

 

 

$

1,471

 

 

$

1,193

 

Interest cost

 

 

444

 

 

 

634

 

 

 

727

 

Expected return on plan assets

 

 

(1,679

)

 

 

(1,392

)

 

 

(1,548

)

Amortization of actuarial losses

 

 

970

 

 

 

795

 

 

 

247

 

Net periodic benefit cost

 

 

1,005

 

 

 

1,508

 

 

 

619

 

Other changes in plan assets and benefit obligations

   recognized in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

1,784

 

 

 

2,488

 

 

 

5,638

 

Amortization of actuarial losses

 

 

(1,212

)

 

 

(771

)

 

 

(196

)

Amount recognized in other comprehensive income (loss)

 

 

572

 

 

 

1,717

 

 

 

5,442

 

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

1,577

 

 

$

3,225

 

 

$

6,061

 

The amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Net actuarial loss

 

$

(13,545

)

 

$

(12,973

)

 

The defined benefit pension plan is accounted for on an actuarial basis, which requires the use of various assumptions, including an expected rate of return on plan assets and a discount rate. The expected return on our German plan assets that is utilized in determining the benefit obligation and net periodic benefit cost is derived from periodic studies, which include a review of asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. The discount rate has been derived from the returns of high-quality, corporate bonds denominated in Euro currency with durations close to the duration of our pension obligations.

The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 were as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

Discount rate

 

 

1.00

%

 

 

1.75

%

 

 

2.13

%

Rate of compensation increase

 

 

2.00

%

 

 

2.00

%

 

 

2.00

%

Expected long-term rates of return

 

 

5.90

%

 

 

5.90

%

 

 

5.90

%

 

The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

Discount rate

 

 

0.69

%

 

 

1.00

%

Rate of compensation increase

 

 

2.00

%

 

 

2.00

%

 

 

Actuarial gains and losses are recorded in accumulated other comprehensive income (loss). To the extent unamortized gains and losses exceed 10% of the higher of the market-related value of assets or the projected benefit obligation, the excess is amortized as a component of net periodic pension cost over the remaining service period of active participants.

We do not anticipate making any contributions to the pension plan in 2021.

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants:

 

(In thousands)

 

 

 

 

2021

 

$

714

 

2022

 

 

1,048

 

2023

 

 

1,348

 

2024

 

 

1,657

 

2025

 

 

1,621

 

2026 - 2030

 

 

7,615

 

Total

 

$

14,003

 

 

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. These inputs could include information supplied by investees.

We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows:

 

 

 

Fair Value Measurements at December 31, 2020 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Cash and cash equivalents

 

$

1,935

 

 

$

1,935

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

6,746

 

 

 

6,746

 

 

 

 

 

 

 

Government bonds

 

 

5,971

 

 

 

5,971

 

 

 

 

 

 

 

Emerging markets bonds

 

 

307

 

 

 

307

 

 

 

 

 

 

 

Equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equity

 

 

11,638

 

 

 

11,638

 

 

 

 

 

 

 

Balanced fund

 

 

2,515

 

 

 

2,515

 

 

 

 

 

 

 

Emerging markets

 

 

1,848

 

 

 

1,848

 

 

 

 

 

 

 

Large cap value

 

 

198

 

 

 

198

 

 

 

 

 

 

 

Global real estate fund

 

 

799

 

 

 

799

 

 

 

 

 

 

 

Managed futures fund

 

 

306

 

 

 

306

 

 

 

 

 

 

 

Available-for-sale securities

 

 

30,328

 

 

 

30,328

 

 

 

 

 

 

 

Total

 

$

32,263

 

 

$

32,263

 

 

$

 

 

$

 

 

 

 

 

Fair Value Measurements at December 31, 2019 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Cash and cash equivalents

 

$

691

 

 

$

691

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

 

6,645

 

 

 

6,645

 

 

 

 

 

 

 

Corporate bonds

 

 

5,514

 

 

 

5,514

 

 

 

 

 

 

 

Emerging markets bonds

 

 

531

 

 

 

531

 

 

 

 

 

 

 

Equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equity

 

 

11,071

 

 

 

11,071

 

 

 

 

 

 

 

Emerging markets

 

 

956

 

 

 

956

 

 

 

 

 

 

 

Balanced fund

 

 

863

 

 

 

863

 

 

 

 

 

 

 

Large cap value

 

 

312

 

 

 

312

 

 

 

 

 

 

 

Global real estate fund

 

 

902

 

 

 

902

 

 

 

 

 

 

 

Managed futures fund

 

 

531

 

 

 

531

 

 

 

 

 

 

 

Available-for-sale securities

 

 

27,325

 

 

 

27,325

 

 

 

 

 

 

 

Total

 

$

28,016

 

 

$

28,016

 

 

$

 

 

$

 

 

Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants and consider a broad range of economic conditions. Central to the policy are target allocation ranges by asset class, which is currently 50% for bond funds, 40% for equity funds and 10% for cash, real estate and managed futures. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions and achieve asset returns that are competitive with like institutions employing similar investment strategies.

The investment policy is periodically reviewed by us and a designated third-party fiduciary for investment matters. The policy is established and administered in a manner that is compliant at all times with applicable government regulations.

401(k) Savings Plan

We maintain the ADTRAN, Inc. 401(k) Retirement Plan (the “Savings Plan”) for the benefit of eligible employees. The Savings Plan is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12). The Savings Plan allows employees to save for retirement by contributing part of their compensation to the plan on a tax-deferred basis. The Savings Plan also requires us to contribute a “safe harbor” amount each year. We match up to 4% of employee contributions (100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions), beginning on the employee’s one-year anniversary date. In calculating our matching contribution, compensation up to the statutory maximum under the Code is used ($285,000 for 2020). All matching contributions under the Savings Plan vest immediately. Employer contribution expense and plan administration costs for the Savings Plan amounted to approximately $4.0 million, $4.4 million and $4.4 million in 2020, 2019 and 2018, respectively.

Deferred Compensation Plans

We maintain four deferred compensation programs for certain executive management employees and our Board of Directors.

The ADTRAN, Inc. Deferred Compensation Program for Employees is offered as a supplement to our tax-qualified 401(k) plan and is available to certain executive management employees who have been designated by our Board of Directors. This deferred compensation plan allows participants to defer all or a portion of certain specified bonuses and up to 25% of remaining cash compensation and permits us to make matching contributions on a discretionary basis without the limitations that apply to the 401(k) plan. To date, we have not made any matching contributions under this plan. We also maintain the ADTRAN, Inc. Equity Deferral Program for Employees. Under this plan, participants may elect to defer all or a portion of their vested PSUs and RSUs to the plan. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the participant.

For our Board of Directors, we maintain the ADTRAN, Inc. Deferred Compensation Program for Directors. This program allows our Board of Directors to defer all or a portion of monetary remuneration paid to the Director, including, but not limited to, meeting fees and annual retainers. We also maintain the ADTRAN, Inc. Equity Deferral Program for Directors. Under this plan, participants may elect to defer all or a portion of their vested restricted stock awards. Such deferrals shall continue to be held and deemed to be invested in shares of ADTRAN stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the director.

We have set aside the plan assets for all plans in a rabbi trust (the “Trust”) and all contributions are credited to bookkeeping accounts for the participants. The Trust assets are subject to the claims of our creditors in the event of bankruptcy or insolvency. The assets of the Trust are deemed to be invested in pre-approved mutual funds as directed by each participant and the participant’s bookkeeping account is credited with the earnings and losses attributable to those investments. Benefits are scheduled to be distributed six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election. Distributions will be made on a pro-rata basis from each of the hypothetical investments of the participant’s account in cash. Any whole shares of ADTRAN, Inc. common stock that are distributed will be distributed in-kind.

Assets of the Trust are deemed invested in mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds are publicly quoted and reported at fair value. The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Fair Value of Plan Assets

 

 

 

 

 

 

 

 

Long-term investments

 

$

23,891

 

 

$

21,698

 

Total Fair Value of Plan Assets

 

$

23,891

 

 

$

21,698

 

Amounts Payable to Plan Participants

 

 

 

 

 

 

 

 

Deferred compensation liability

 

$

25,866

 

 

$

21,698

 

Total Amounts Payable to Plan Participants

 

$

25,866

 

 

$

21,698

 

The Trust held $2.8 million of common stock in the Company as of December 31, 2020. Shares of the Company held by the Trust are recorded at cost and classified as treasury stock on the Consolidated Balance Sheet.

Interest and dividend income of the Trust are included in interest and dividend income in the accompanying 2020, 2019 and 2018 Consolidated Statements of Income (Loss). Changes in the fair value of the plan assets held by the Trust have been included in other income (expense) in the accompanying 2020, 2019 and 2018 Consolidated Statements of Income (Loss). Changes in the fair value of the deferred compensation liability are included as selling, general and administrative expense in the accompanying 2020, 2019 and 2018 Consolidated Statements of Income (Loss). Based on the changes in the total fair value of the Trust’s assets, we recorded deferred compensation income (expense) in 2020, 2019 and 2018 of $4.3 million, $3.6 million and $(2.1) million, respectively.

Retiree Medical Coverage

Medical, dental and prescription drug coverage is provided to certain spouses and former spouses of current and former officers on the same terms as provided to our active officers for up to 30 years. As of December 31, 2020 and 2019, this liability totaled $0.2 million and $0.1 million, respectively.  

v3.20.4
Segment Information and Major Customers
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information and Major Customers

Note 16 – Segment Information and Major Customers

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 each segment 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 table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

 

2019

 

 

2018

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

438,015

 

 

$

193,789

 

 

$

455,226

 

 

$

191,549

 

 

$

458,232

 

 

$

179,303

 

Services & Support

 

 

68,495

 

 

 

23,762

 

 

 

74,835

 

 

 

27,618

 

 

 

71,045

 

 

 

24,262

 

Total

 

$

506,510

 

 

$

217,551

 

 

$

530,061

 

 

$

219,167

 

 

$

529,277

 

 

$

203,565

 

 

Revenue by Category

In addition to our reportable segments, revenue is also reported for the following three categories – (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products.

The following tables disaggregate our revenue by category for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

 

 

2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

 

 

2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

 

Additional Information

The following table presents revenue information by geographic area for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

352,079

 

 

$

300,853

 

 

$

288,843

 

Germany

 

 

74,882

 

 

 

78,062

 

 

 

167,251

 

Mexico

 

 

4,087

 

 

 

90,795

 

 

 

12,186

 

Other international

 

 

75,462

 

 

 

60,351

 

 

 

60,997

 

Total

 

$

506,510

 

 

$

530,061

 

 

$

529,277

 

 

Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of revenue in 2020 included three customers, at 15%, 12% and 10%, of which one was a distributor. Single customers comprising more than 10% of revenue in 2019 included three customers at 19%, 17% and 13%. Single customers comprising more than 10% of revenue in 2018 included two customers at 27% and 17%. Other than those with more than 10% of revenues disclosed above, and excluding distributors, our next five largest customers can change, and have historically changed, from year-to-year. The next five largest customers combined represented 19%, 15% and 18% of total revenue in 2020, 2019 and 2018, respectively.

As of December 31, 2020, property, plant and equipment, net totaled $62.4 million, which included $58.4 million held in the U.S. and $4.0 million held outside the U.S. As of December 31, 2019, property, plant and equipment, net totaled $68.1 million, which included $64.2 million held in the U.S. and $3.9 million held outside the U.S. Property, plant and equipment, net is reported on a Company-wide, functional basis only.

v3.20.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 17 – 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 stockholder class action lawsuit 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/or 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 December 31, 2020, we had commitments related to these bonds totaling $15.2 million which expire at various dates through August 2024. As of December 31, 2019, we had commitments related to these bonds totaling $9.3 million. 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 this customer contract will be performed over multiple years. As of December 31, 2020, the Company was required to maintain a minimum collateral value of $9.0 million. The letter of credit was secured by a pledge of a portion of the Company’s fixed-income securities, which totaled $11.2 million as of December 31, 2020, of which less than $0.1 million is included in restricted cash and $11.2 million is included in long-term investments on the Consolidated Balance Sheet. This pledged collateral value will fluctuate as the Company changes the mix of the pledged collateral between restricted cash and investments. We expect to reach the maximum value of our minimum collateral requirement of $15.0 million in the first quarter of 2021 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 December 31, 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 applied to these commitments as of December 31, 2020.

 

v3.20.4
Current Expected Credit Losses
12 Months Ended
Dec. 31, 2020
Credit Loss [Abstract]  
Current Expected Credit Losses

Note 18 – 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. 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.

As of December 31, 2020 and January 1, 2020 (the “implementation date”), the Company’s net outstanding accounts receivable balance was $98.8 million and $90.5 million, respectively. The Company assessed the need for an allowance for credit losses related to its outstanding accounts receivable as of December 31, 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.    

No allowance for credit loss was recorded for the year ended December 31, 2020 or on January 1, 2020 related to accounts receivable. The Company’s allowance for credit losses related to accounts receivable was less than $0.1 million as of December 31, 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 December 31, 2020 and January 1, 2020, the Company’s outstanding contract asset balance was $0.1 million and $2.8 million, respectively, which is included in other receivables on the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. The Company assessed the need for an allowance for credit losses related to its outstanding contract assets as of December 31, 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 for the year ended December 31, 2020 or on the implementation date 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 December 31, 2020 and January 1, 2020, the Company’s outstanding net investment in sales-type leases was $0.8 million and $1.6 million, respectively, which is included in other receivables and other non-current assets on the Consolidated Balance Sheets as of December 31, 2020 and 2019. The Company assessed the need for an allowance for credit losses related to future receivables under its outstanding sales-type leases as of December 31, 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

 

$

55

 

 

$

192

 

 

$

354

 

 

$

128

 

 

$

52

 

 

$

 

 

$

781

 

     Non-performing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

55

 

 

$

192

 

 

$

354

 

 

$

128

 

 

$

52

 

 

$

 

 

$

781

 

 

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 for the year ended December 31, 2020 or on the implementation date related to sales-type leases.

Secured Loan Receivable

The Company has a secured loan receivable totaling $0.9 million as of December 31, 2020 and January 1, 2020, which originated in February 2019, and is included in long-term investments on the Consolidated Balance Sheets as of December 31, 2020 and 2019. The Company assessed the need for an allowance for credit loss related to its secured loan receivable as of December 31, 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 Consolidated Balance Sheets totaled less than $0.1 million as of December 31, 2020 and January 1, 2020, 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 for the year ended December 31, 2020 or on the implementation date related to the secured loan receivable.

Off-Balance Sheet Arrangements

The Company did not have any off-balance sheet arrangements as of December 31, 2020 or January 1, 2020.


Available-for-Sale Debt Securities

 

As of December 31, 2020 and January 1, 2020, the Company’s available-for-sale debt securities totaled $45.1 million and $37.7 million, respectively. These securities were analyzed at the individual investment level, by Committee on Uniform Securities Identification Procedures (“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 December 31, 2020 and January 1, 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 December 31, 2020 and January 1, 2020. Accrued interest receivable on available-for-sale debt securities, which is included in other receivables on the Consolidated Balance Sheets as of December 31, 2020 and 2019, totaled $0.1 million as of December 31, 2020 and January 1, 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 Consolidated Statements of Income (Loss).

 

The Company had 42 positions in available-for-sale debt securities that were in an unrealized loss position as of December 31, 2020. See Note 6 of Notes to Consolidated Financial Statements included in Part II, Item 8 of this report for additional information.

 

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 for the year ended December 31, 2020 or on the implementation date related to the Company’s available-for-sale debt securities.

 

v3.20.4
Earnings (Loss) Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Note 19 – Earnings (Loss) per Share

The calculations of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018 are as follows:

 

(In thousands, except for per share amounts)

 

2020

 

 

2019

 

 

2018

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

2,378

 

 

$

(52,982

)

 

$

(19,342

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

47,996

 

 

 

47,836

 

 

 

47,880

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

292

 

 

 

 

 

 

 

Weighted average number of shares – diluted

 

 

48,288

 

 

 

47,836

 

 

 

47,880

 

Earnings (loss) per share – basic

 

$

0.05

 

 

$

(1.11

)

 

$

(0.40

)

Earnings (loss) per share – diluted

 

$

0.05

 

 

$

(1.11

)

 

$

(0.40

)

 

For the years ended December 31, 2020 and 2019, 0.1 million and 0.5 million shares, respectively, 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 year ended December 31, 2020 and 2019, 3.6 million and 5.2 million stock options were outstanding but were not included in the computation of diluted earnings per share due to the fact that 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.

v3.20.4
Restructuring
12 Months Ended
Dec. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring

Note 20 – Restructuring

During the second half of 2019, the Company initiated a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally. Management continued to assess the efficiency of operations during 2020 and, in turn, consolidated locations and personnel, among other things, where possible.

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.  

The cumulative amount of restructuring expenses incurred as of December 31, 2020 for the restructuring plans announced in the second half of 2019 and continuing in 2020 was $12.2 million.

In January 2018, the Company announced an early retirement incentive program for employees that met certain defined requirements. The cumulative amount incurred during the year ended December 31, 2018 related to this restructuring program was $7.3 million. We did not incur any additional expenses related to this restructuring program during the year ended December 31, 2019 or 2020.

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

 

(In thousands)

 

2020

 

 

2019

 

Balance at beginning of period

 

$

1,568

 

 

$

185

 

Plus: Amounts charged to cost and expense

 

 

6,229

 

 

 

6,014

 

Less: Amounts paid

 

 

(3,611

)

 

 

(4,631

)

Balance at end of period

 

$

4,186

 

 

$

1,568

 

Restructuring expenses included in the Consolidated Statements of Income (Loss) are for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Cost of sales

 

$

455

 

 

$

785

 

 

$

2,775

 

Selling, general and administrative expenses

 

 

1,832

 

 

 

2,360

 

 

 

2,655

 

Research and development expenses

 

 

3,942

 

 

 

2,869

 

 

 

1,831

 

Total restructuring expenses

 

$

6,229

 

 

$

6,014

 

 

$

7,261

 

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

2,234

 

 

$

3,336

 

 

$

7,120

 

International

 

 

3,995

 

 

 

2,678

 

 

 

141

 

Total restructuring expenses

 

$

6,229

 

 

$

6,014

 

 

$

7,261

 

 

 

v3.20.4
Summarized Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Summarized Quarterly Financial Data (Unaudited)

Note 21 – Summarized Quarterly Financial Data (Unaudited)

The following table presents unaudited quarterly operating results for each of the last eight fiscal quarters. This information has been prepared on a basis consistent with the audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data.

Unaudited Quarterly Operating Results

 

 

 

Three Months Ended

 

 

(In thousands, except for per share amounts)

 

March 31, 2020(2)

 

 

June 30, 2020

 

 

September 30, 2020

 

 

December 31, 2020

 

 

Total Sales

 

$

114,523

 

 

$

128,715

 

 

$

133,143

 

 

$

130,129

 

 

Gross Profit

 

$

51,600

 

 

$

53,472

 

 

$

58,962

 

 

$

53,517

 

 

Operating Income (Loss)

 

$

(4,944

)

 

$

(6,039

)

 

$

4,534

 

 

$

(3,324

)

 

Net Income (Loss)

 

$

(9,969

)

 

$

752

 

 

$

5,481

 

 

$

6,114

 

 

Earnings (loss) per common share - basic

 

$

(0.21

)

 

$

0.02

 

 

$

0.11

 

 

$

0.13

 

 

Earnings (loss) per common share - diluted

 

$

(0.21

)

 

$

0.02

 

(1)

$

0.11

 

(1)

$

0.13

 

(1)

 

 

 

Three Months Ended

 

 

(In thousands, except for per share amounts)

 

March 31, 2019

 

 

June 30, 2019(2)

 

 

September 30, 2019

 

 

December 31, 2019

 

 

Total Sales

 

$

143,791

 

 

$

156,391

 

 

$

114,092

 

 

$

115,787

 

 

Gross Profit

 

$

60,612

 

 

$

65,015

 

 

$

46,331

 

 

$

47,209

 

 

Operating Income (Loss)

 

$

(6,167

)

 

$

562

 

 

$

(20,288

)

 

$

(14,070

)

 

Net Income (Loss)

 

$

770

 

 

$

3,995

 

 

$

(46,123

)

 

$

(11,624

)

 

Earnings (loss) per common share - basic

 

$

0.02

 

 

$

0.08

 

 

$

(0.96

)

 

$

(0.25

)

 

Earnings (loss) per common share - diluted

 

$

0.02

 

(1)

$

0.08

 

(1)

$

(0.96

)

 

$

(0.25

)

 

 

 

(1)

Assumes exercise of dilutive securities calculated under the treasury stock method.

 

(2)

See footnote 1 for discussion on out of period disclosures impacting these quarterly operating results.

 

 

v3.20.4
Subsequent Events
12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 22 – Subsequent Events

On February 3, 2021, 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 at the close of business on February 18, 2021. The payment date will be March 4, 2021 in the aggregate amount of approximately $4.4 million.

 

As part of our required pledged collateral related to a letter for credit agreement entered into with a bank to guarantee performance obligations under a contract with a certain customer, the Company increased its pledged collateral to $15.0 million as of February 2021. We do not anticipate any additional increases in the collateral value at this time as we have reached the maximum amount of the letter of credit required under our contract with the customer. The collateral under the letter of credit will be released when all obligations under the customer contract have been met.

 

v3.20.4
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2020
Valuation And Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

 

(In thousands)

 

Balance at

Beginning

of Period

 

 

Charged to

Costs &

Expenses

 

 

Deductions

 

 

Balance at

End of

Period

 

Year ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

$

38

 

 

 

 

 

 

 

 

$

38

 

Inventory Reserve

 

$

34,162

 

 

 

11,404

 

 

 

6,005

 

 

$

39,561

 

Warranty Liability

 

$

8,394

 

 

 

1,538

 

 

 

2,786

 

 

$

7,146

 

Deferred Tax Asset Valuation Allowance

 

$

48,616

 

 

 

5,120

 

 

 

7,918

 

 

$

45,818

 

Year ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

$

128

 

 

 

38

 

 

 

128

 

 

$

38

 

Inventory Reserve

 

$

30,009

 

 

 

5,893

 

 

 

1,740

 

 

$

34,162

 

Warranty Liability

 

$

8,623

 

 

 

4,569

 

 

 

4,798

 

 

$

8,394

 

Deferred Tax Asset Valuation Allowance

 

$

5,816

 

 

 

43,560

 

 

 

760

 

 

$

48,616

 

Year ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

$

 

 

 

128

 

 

 

 

 

$

128

 

Inventory Reserve

 

$

23,355

 

 

 

7,006

 

 

 

352

 

 

$

30,009

 

Warranty Liability

 

$

9,724

 

 

 

7,392

 

 

 

8,493

 

 

$

8,623

 

Deferred Tax Asset Valuation Allowance

 

$

6,006

 

 

 

 

 

 

190

 

 

$

5,816

 

 

v3.20.4
Nature of Business (Policies)
12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Principles of Consolidation

Principles of Consolidation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive income (loss), changes in equity and cash flows of ADTRAN and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

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 expenses during the reporting period. Our more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue components of multiple element sales agreements, estimated costs to complete obligations associated with deferred 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, fair value of investments, evaluation of other-than-temporary declines in the value of investments and our allowance for current expected credit losses. 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 December 31, 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 consolidated financial statements as of and for the year ended December 31, 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 Misstatement

Correction of Immaterial Misstatement

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 and twelve months ended June 30, 2019 and December 31, 2019, respectively, the out-of-period adjustment was a cumulative $0.2 million reduction in its excess and obsolete inventory reserve and cost of goods sold. Management determined that the correction of this misstatement was 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 and the twelve months ended December 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 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 Consolidated 2020 Balance Sheet. Management has determined that this misstatement was not material to any of its previously issued financial statements and that correction of the misstatement was not material to the 2020 annual financial results on either a quantitative or qualitative basis.

 

Cash and Cash Equivalents

Summary of Significant Accounting Policies

 

Cash and Cash Equivalents

Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2020, $56.3 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.

Restricted Cash

Restricted Cash

Restricted cash consists of certain collateral which secures the Company’s performance obligation under a contract with a certain customer.  

Financial Instruments

Financial Instruments

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount reported for bonds payable was $24.6 million, which was its fair value as of December 31, 2019.

Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes.

Long-term investments is comprised of deferred compensation plan assets, corporate bonds, municipal fixed-rate bonds, asset-backed bonds, mortgage/agency-backed bonds, U.S. and foreign government bonds, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment gain (loss). Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income (expense). See Note 6 for additional information.

Accounts Receivable

Accounts Receivable

We record accounts receivable at net realizable value. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2020, single customers comprising more than 10% of our total accounts receivable balance included three customers, which accounted for 41.5% of our total accounts receivable. As of December 31, 2019, single customers comprising more than 10% of our total accounts receivable balance included four customers, which accounted for 53.2% of our total accounts receivable.

On January 1, 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

Accounting Policy Under Topic 326

We regularly review the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method as well as assessing asset-specific risks. 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 or 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. Based on this assessment, an allowance for credit loss would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable.

Accounting Policy Prior to Adoption of Topic 326

Prior to adoption of Topic 326 on January 1, 2020, we regularly reviewed the need to maintain an allowance for doubtful accounts and considered factors such as the age of accounts receivable balances, the current economic conditions that may affect a customer’s ability to pay, significant one-time events impacting these customers and our historical experience. If the financial condition of a customer deteriorated, resulting in an impairment of their ability to make payments, we may have been required to record an allowance for doubtful accounts.

Inventory

Inventory

Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves 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. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 7 for additional information.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from five to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating income (loss). See Note 8 for additional information.

Intangible Assets

Intangible Assets

Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets, which is two to 14 years. See Note 11 for additional information.

Impairment of Long-Lived Assets and Intangibles

Impairment of Long-Lived Assets and Intangibles

Long-lived assets used in operations and intangible assets 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. An impairment loss would be recognized in the amount by which the recorded value of the asset exceeds the fair value of the asset, measured by the quoted market price of an asset or an estimate based on the best information available in the circumstances. During the years ended December 31, 2020 and December 31, 2019, we recognized an impairment loss of less than $0.1 million and $3.9 million, respectively, related to the abandonment of certain information technology implementation projects for which we had previously capitalized expenses. There were no impairment losses for long-lived assets during the year ended December 31, 2018, or for intangible assets recognized during the years ended December 31, 2020, 2019 or 2018.

Goodwill

Goodwill

Goodwill represents the excess purchase price over the fair value of net assets acquired. We evaluate the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. We have elected to by-pass a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount and, in turn, performed a step-1 analysis of goodwill. No impairment charges related to goodwill were recognized during the years ended December 31, 2020, 2019 and 2018.

Liability for Warranty

Liability for Warranty

Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and 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. The increasing complexity of our products will cause warranty incidences, when they arise, to be more costly. Our 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 our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. The liability for warranty obligations totaled $7.1 million and $8.4 million as of December 31, 2020 and 2019, respectively. These liabilities are included in accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets.

A summary of warranty expense and write-off activity for the years ended December 31, 2020, 2019 and 2018 is as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

8,394

 

 

$

8,623

 

 

$

9,724

 

Plus: Amounts charged to cost and expenses

 

 

1,538

 

 

 

4,569

 

 

 

7,392

 

Less: Deductions

 

 

(2,786

)

 

 

(4,798

)

 

 

(8,493

)

Balance at end of period

 

$

7,146

 

 

$

8,394

 

 

$

8,623

 

 

Pension Benefit Plan Obligations

Pension Benefit Plan Obligations

We maintain a defined benefit pension plan covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Our net pension liability totaled $18.7 million and $15.9 million as of December 31, 2020 and 2019, respectively.

Stock-Based Compensation

Stock-Based Compensation

We have two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods. All employee and director stock options granted under our stock option plans have an exercise price equal to the fair market value of the award, as defined in the plan, of the underlying common stock on the grant date. All of our outstanding stock option awards are classified as equity awards and therefore are measured at fair value on their grant date.

Stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018 was approximately $6.8 million, $7.0 million and $7.2 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to non-vested stock options, PSUs, RSUs and restricted stock was approximately $16.7 million, which is expected to be recognized over an average remaining recognition period of 2.9 years. See Note 5 for additional information.

Research and Development Costs

Research and Development Costs

Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research and product development efforts. Research and development costs totaled $113.3 million, $126.2 million and $124.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by components of accumulated other comprehensive income (loss) for the years ended December 31, 2020 2019 and 2018:

 

(In thousands)

 

Unrealized

Gains (Losses)

on Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (2)

 

 

Total

 

Balance as of December 31, 2017

 

$

2,567

 

 

$

(4,286

)

 

$

(1,576

)

 

$

 

 

$

(3,295

)

Other comprehensive loss before

   reclassifications

 

 

685

 

 

 

(3,890

)

 

 

(4,236

)

 

 

 

 

 

(7,441

)

Amounts reclassified to retained earnings (1)

 

 

(3,220

)

 

 

 

 

 

 

 

 

 

 

 

(3,220

)

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(595

)

 

 

135

 

 

 

 

 

 

 

 

 

(460

)

Balance as of December 31, 2018

 

 

(563

)

 

 

(8,041

)

 

 

(5,812

)

 

 

 

 

 

(14,416

)

Other comprehensive loss before

   reclassifications

 

 

573

 

 

 

(1,717

)

 

 

(1,480

)

 

 

 

 

 

(2,624

)

Amounts reclassified to retained earnings (1)

 

 

 

 

 

 

 

 

 

 

 

385

 

 

 

385

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(294

)

 

 

532

 

 

 

 

 

 

 

 

 

238

 

Balance as of December 31, 2019

 

 

(284

)

 

 

(9,226

)

 

 

(7,292

)

 

 

385

 

 

 

(16,417

)

Other comprehensive loss before

   reclassifications

 

 

749

 

 

 

(1,231

)

 

 

4,857

 

 

 

 

 

 

4,375

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(433

)

 

 

836

 

 

 

 

 

 

 

 

 

403

 

Balance as of December 31, 2020

 

$

32

 

 

$

(9,621

)

 

$

(2,435

)

 

$

385

 

 

$

(11,639

)

 

 

(1)

With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings.  

 

(2)

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. See Note 14 for additional information.

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

For the year ended December 31,

 

 

 

Details about Accumulated Other Comprehensive

Income Components

 

2020

 

 

2019

 

 

2018

 

 

Affected Line Item in the

Statement Where Net Income

Is Presented

Unrealized gains on available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain on sales of securities

 

$

585

 

 

$

397

 

 

$

804

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(1,212

)

 

 

(771

)

 

 

(196

)

 

(1)

Total reclassifications for the period, before tax

 

 

(627

)

 

 

(374

)

 

 

608

 

 

 

Tax benefit

 

 

224

 

 

 

136

 

 

 

(148

)

 

 

Total reclassifications for the period, net of tax

 

$

(403

)

 

$

(238

)

 

$

460

 

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 15 for additional information.

 

 

The following tables present the tax effects related to the change in each component of other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

1,012

 

 

$

(263

)

 

$

749

 

Reclassification adjustment for amounts related to available-for-sale investments included in net income

 

 

(585

)

 

 

152

 

 

 

(433

)

Defined benefit plan adjustments

 

 

(1,784

)

 

 

553

 

 

 

(1,231

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income

 

 

1,212

 

 

 

(376

)

 

 

836

 

Foreign currency translation adjustment

 

 

4,857

 

 

 

 

 

 

4,857

 

Total Other Comprehensive Income (Loss)

 

$

4,712

 

 

$

66

 

 

$

4,778

 

 

 

 

2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

774

 

 

$

(201

)

 

$

573

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(397

)

 

 

103

 

 

 

(294

)

Defined benefit plan adjustments

 

 

(2,488

)

 

 

771

 

 

 

(1,717

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

771

 

 

 

(239

)

 

 

532

 

Foreign currency translation adjustment

 

 

(1,480

)

 

 

 

 

 

(1,480

)

Total Other Comprehensive Income (Loss)

 

$

(2,820

)

 

$

434

 

 

$

(2,386

)

 

 

 

2018

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

926

 

 

$

(241

)

 

$

685

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(804

)

 

 

209

 

 

 

(595

)

Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01

 

 

(4,351

)

 

 

1,131

 

 

 

(3,220

)

Defined benefit plan adjustments

 

 

(5,638

)

 

 

1,748

 

 

 

(3,890

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

196

 

 

 

(61

)

 

 

135

 

Foreign currency translation adjustment

 

 

(4,236

)

 

 

 

 

 

(4,236

)

Total Other Comprehensive Income (Loss)

 

$

(13,907

)

 

$

2,786

 

 

$

(11,121

)

 

Income Taxes

Income Taxes

The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and circumstances change.     

Foreign Currency

Foreign Currency

Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income (expense). Our primary exposures to foreign currency exchange rate movements are with our German subsidiary, whose functional currency is the Euro, our Australian subsidiary, whose functional currency is the Australian dollar and our British subsidiary, whose functional currency is the Great British pound. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss).

Revenue

Revenue

 

On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition.  

 

Accounting Policy under Topic 606

Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. Review of contracts with customers, for both direct customers and distributors, are performed and assessment made regarding principal versus agent considerations to determine primary responsibility for delivery of performance obligation, presumed inventory risk, and discretion in establishing pricing, when applicable. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Costs of obtaining a contract, if material, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial.

Revenue is generated by two reportable segments: Network Solutions and Services & Support.

Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue.

Hardware and Software Revenue

Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales are recognized at delivery and transfer of control to the customer. Revenue is recorded net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered.

          

 

Services & Support Segment - A complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment.

Maintenance Revenue

Our maintenance service periods range from one month to five years. Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenues, when applicable, are recorded in current and non-current unearned revenue.

Network Implementation Revenue

We recognize revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer.

See Notes 4 and 16 for additional information on reportable segments.

Unearned Revenue

Unearned Revenue

Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenues related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $1.1 million and $1.6 million as of December 31, 2020 and 2019, respectively. Non-current deferred costs are included in other non-current assets on the accompanying Consolidated Balance Sheets and totaled less than $0.1 million and $0.1 million as of December 31, 2020 and 2019, respectively.

Earnings (Loss) per Share

Earnings (Loss) per Share

Earnings (loss) per common share and earnings (loss) per common share assuming dilution, are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 19 for additional information.

Business Combinations

Business Combinations

The Company records assets acquired, liabilities assumed, contractual contingencies, when applicable, and intangible assets recognized as part of business combinations based on their fair values on the date of acquisition. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets and liabilities assumed or acquired is recorded as goodwill. If the estimated fair values of net tangible and intangible assets acquired and liabilities assumed exceed the purchase price, a bargain purchase gain is recorded. The Company’s estimates of fair value are based on historical experience, industry knowledge, certain information obtained from the management of the acquired company and, in some cases, valuations performed by independent third-party firms. The results of operations of acquired companies are included in the accompanying Consolidated Statements of Income (Loss) since their dates of acquisition. Costs incurred to complete the business combination, such as legal, accounting or other professional fees are charged to selling, general and administrative expenses as incurred.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 was effective for public business entities for fiscal years ending after December 15, 2020. The adoption of this standard did not have a material effect on the disclosures in the consolidation financial statements. See Note 15 for additional information.

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 non-current assets for certain previously capitalized costs related to information technology implementation projects that had not yet been placed in service on the Consolidated Balance Sheets as of December 31, 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 Consolidated Balance Sheet as of December 31, 2019:

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other non-current assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Consolidated Statement of Income (Loss) for the year ended December 31, 2019 and the Consolidated Statement of Cash Flows for the year ended December 31, 2019 as outlined in the following tables:

 

 

 

For the year ended December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Statement of Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

  Net income (loss)

 

$

(52,982

)

 

$

 

 

$

(52,982

)

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by (used in) operating activities

 

$

(2,472

)

 

$

 

 

$

(2,472

)

 

 

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other non-current assets on the Consolidated Balance Sheet, as of December 31, 2020:

 

(In thousands)

 

December 31, 2020

 

Implementation costs - hosting arrangements

 

$

13,515

 

Less: accumulated amortization

 

 

 

Implementation costs - hosting arrangements, net

 

$

13,515

 

 

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 Consolidated Balance Sheets, Consolidated Statements of Income (Loss) or Consolidated Statements of Cash Flows.

 

In June 2016, the FASB issued 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. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to financial instruments, which clarifies various issues related to the new credit losses standard, such as the contractual term used to measure expected credit losses for leases and when to record an allowance for credit losses for financial assets that fall under the scope of ASC 860-20, Transfers and Servicing – Sales of Financial Assets. 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 18 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.

v3.20.4
Nature of Business (Tables)
12 Months Ended
Dec. 31, 2020
Summary of Warranty Expense and Write-Off Activity

A summary of warranty expense and write-off activity for the years ended December 31, 2020, 2019 and 2018 is as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

8,394

 

 

$

8,623

 

 

$

9,724

 

Plus: Amounts charged to cost and expenses

 

 

1,538

 

 

 

4,569

 

 

 

7,392

 

Less: Deductions

 

 

(2,786

)

 

 

(4,798

)

 

 

(8,493

)

Balance at end of period

 

$

7,146

 

 

$

8,394

 

 

$

8,623

 

 

Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Components of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by components of accumulated other comprehensive income (loss) for the years ended December 31, 2020 2019 and 2018:

 

(In thousands)

 

Unrealized

Gains (Losses)

on Available-

for-Sale

Securities

 

 

Defined

Benefit Plan

Adjustments

 

 

Foreign

Currency

Adjustments

 

 

ASU 2018-02 Adoption (2)

 

 

Total

 

Balance as of December 31, 2017

 

$

2,567

 

 

$

(4,286

)

 

$

(1,576

)

 

$

 

 

$

(3,295

)

Other comprehensive loss before

   reclassifications

 

 

685

 

 

 

(3,890

)

 

 

(4,236

)

 

 

 

 

 

(7,441

)

Amounts reclassified to retained earnings (1)

 

 

(3,220

)

 

 

 

 

 

 

 

 

 

 

 

(3,220

)

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(595

)

 

 

135

 

 

 

 

 

 

 

 

 

(460

)

Balance as of December 31, 2018

 

 

(563

)

 

 

(8,041

)

 

 

(5,812

)

 

 

 

 

 

(14,416

)

Other comprehensive loss before

   reclassifications

 

 

573

 

 

 

(1,717

)

 

 

(1,480

)

 

 

 

 

 

(2,624

)

Amounts reclassified to retained earnings (1)

 

 

 

 

 

 

 

 

 

 

 

385

 

 

 

385

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(294

)

 

 

532

 

 

 

 

 

 

 

 

 

238

 

Balance as of December 31, 2019

 

 

(284

)

 

 

(9,226

)

 

 

(7,292

)

 

 

385

 

 

 

(16,417

)

Other comprehensive loss before

   reclassifications

 

 

749

 

 

 

(1,231

)

 

 

4,857

 

 

 

 

 

 

4,375

 

Amounts reclassified from accumulated other

   comprehensive loss

 

 

(433

)

 

 

836

 

 

 

 

 

 

 

 

 

403

 

Balance as of December 31, 2020

 

$

32

 

 

$

(9,621

)

 

$

(2,435

)

 

$

385

 

 

$

(11,639

)

 

 

(1)

With the adoption of ASU 2016-01, the unrealized gains on our equity investments were reclassified to retained earnings.  

 

(2)

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. See Note 14 for additional information.

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 years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

For the year ended December 31,

 

 

 

Details about Accumulated Other Comprehensive

Income Components

 

2020

 

 

2019

 

 

2018

 

 

Affected Line Item in the

Statement Where Net Income

Is Presented

Unrealized gains on available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain on sales of securities

 

$

585

 

 

$

397

 

 

$

804

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial losses

 

 

(1,212

)

 

 

(771

)

 

 

(196

)

 

(1)

Total reclassifications for the period, before tax

 

 

(627

)

 

 

(374

)

 

 

608

 

 

 

Tax benefit

 

 

224

 

 

 

136

 

 

 

(148

)

 

 

Total reclassifications for the period, net of tax

 

$

(403

)

 

$

(238

)

 

$

460

 

 

 

 

 

(1)

Included in the computation of net periodic pension cost. See Note 15 for additional information.

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

The following tables present the tax effects related to the change in each component of other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

1,012

 

 

$

(263

)

 

$

749

 

Reclassification adjustment for amounts related to available-for-sale investments included in net income

 

 

(585

)

 

 

152

 

 

 

(433

)

Defined benefit plan adjustments

 

 

(1,784

)

 

 

553

 

 

 

(1,231

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income

 

 

1,212

 

 

 

(376

)

 

 

836

 

Foreign currency translation adjustment

 

 

4,857

 

 

 

 

 

 

4,857

 

Total Other Comprehensive Income (Loss)

 

$

4,712

 

 

$

66

 

 

$

4,778

 

 

 

 

2019

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

774

 

 

$

(201

)

 

$

573

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(397

)

 

 

103

 

 

 

(294

)

Defined benefit plan adjustments

 

 

(2,488

)

 

 

771

 

 

 

(1,717

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

771

 

 

 

(239

)

 

 

532

 

Foreign currency translation adjustment

 

 

(1,480

)

 

 

 

 

 

(1,480

)

Total Other Comprehensive Income (Loss)

 

$

(2,820

)

 

$

434

 

 

$

(2,386

)

 

 

 

2018

 

(In thousands)

 

Before-Tax

Amount

 

 

Tax

(Expense)

Benefit

 

 

Net-of-Tax

Amount

 

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

 

$

926

 

 

$

(241

)

 

$

685

 

Reclassification adjustment for amounts related to available-for-sale investments included in net loss

 

 

(804

)

 

 

209

 

 

 

(595

)

Reclassification adjustment for amounts reclassed to retained earnings related to the adoption of ASU 2016-01

 

 

(4,351

)

 

 

1,131

 

 

 

(3,220

)

Defined benefit plan adjustments

 

 

(5,638

)

 

 

1,748

 

 

 

(3,890

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net loss

 

 

196

 

 

 

(61

)

 

 

135

 

Foreign currency translation adjustment

 

 

(4,236

)

 

 

 

 

 

(4,236

)

Total Other Comprehensive Income (Loss)

 

$

(13,907

)

 

$

2,786

 

 

$

(11,121

)

 

Schedule of Capitalized Implementation Costs Incurred with Hosting Arrangements, Included in Other Assets on Consolidated Balance Sheet

The following table presents the capitalized implementation costs incurred with hosting arrangements, included in other non-current assets on the Consolidated Balance Sheet, as of December 31, 2020:

 

(In thousands)

 

December 31, 2020

 

Implementation costs - hosting arrangements

 

$

13,515

 

Less: accumulated amortization

 

 

 

Implementation costs - hosting arrangements, net

 

$

13,515

 

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

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

 

 

 

As of December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

  Property, plant and equipment, net

 

$

73,708

 

 

$

(5,622

)

 

$

68,086

 

  Other non-current assets

 

$

14,261

 

 

$

5,622

 

 

$

19,883

 

 

There was no impact upon adoption of ASU 2018-15 on the Consolidated Statement of Income (Loss) for the year ended December 31, 2019 and the Consolidated Statement of Cash Flows for the year ended December 31, 2019 as outlined in the following tables:

 

 

 

For the year ended December 31, 2019

 

(In thousands)

 

Pre-Adoption

 

 

Effect of Adoption

 

 

As Presented Now

 

Consolidated Statement of Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

  Net income (loss)

 

$

(52,982

)

 

$

 

 

$

(52,982

)

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

  Net cash provided by (used in) operating activities

 

$

(2,472

)

 

$

 

 

$

(2,472

)

v3.20.4
Cash, Cash Equivalents and Restricted Cash (Tables)
12 Months Ended
Dec. 31, 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 Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows:

 

(In thousands)

 

December 31, 2020

 

Cash and cash equivalents

 

$

60,161

 

Restricted cash

 

 

18

 

Cash, cash equivalents and restricted cash

 

$

60,179

 

v3.20.4
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income

The Consolidated Statement of Income for the year ended December 31, 2018 includes the following revenue and net loss attributable to SmartRG and Sumitomo since the date of acquisition:

 

(In thousands)

 

March 19, 2018 to

December 31,

2018

 

Revenue

 

$

9,186

 

Net loss

 

$

(1,297

)

Summary of Unaudited Supplemental Pro Forma Information

 

The following unaudited supplemental pro forma information presents the financial results as if the acquisition of SmartRG and Sumitomo had occurred on January 1, 2017. This unaudited supplemental pro forma information does not purport to be indicative of what would have occurred had the acquisition been completed on January 1, 2018, nor is it indicative of any future results. There were no material, non-recurring adjustments to this unaudited pro forma information.

 

(In thousands)

 

2018

 

Pro forma revenue

 

$

559,050

 

Pro forma net loss

 

$

(33,862

)

 

v3.20.4
Revenue (Tables)
12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2020:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2019:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2018:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

The following tables disaggregate our revenue by category for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

 

 

2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

 

 

2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

 

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

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

 

(In thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Accounts receivable

 

$

98,827

 

 

$

90,531

 

Contract assets(1)

 

$

63

 

 

$

2,812

 

Unearned revenue

 

$

14,092

 

 

$

11,963

 

Non-current unearned revenue

 

$

6,888

 

 

$

6,012

 

(1) Included in other receivables on the Consolidated Balance Sheets.

v3.20.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
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, PSUs, RSUs and restricted stock for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Stock-based compensation expense included in cost of sales

 

$

426

 

 

$

369

 

 

$

418

 

Selling, general and administrative expenses

 

 

4,036

 

 

 

3,889

 

 

 

3,989

 

Research and development expenses

 

 

2,372

 

 

 

2,704

 

 

 

2,748

 

Stock-based compensation expense included in operating expenses

 

 

6,408

 

 

 

6,593

 

 

 

6,737

 

Total stock-based compensation expense

 

 

6,834

 

 

 

6,962

 

 

 

7,155

 

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

 

 

(1,629

)

 

 

(1,659

)

 

 

(1,432

)

Total stock-based compensation expense, net of tax

 

$

5,205

 

 

$

5,303

 

 

$

5,723

 

Summary of PSUs, RSUs and Restricted Stock Outstanding

The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2019 and 2020 and the changes that occurred during 2020:

 

 

 

Number of

shares (In thousands)

 

 

Weighted

Average Grant

Date Fair Value

 

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

 

 

1,891

 

 

$

14.58

 

PSUs, RSUs and restricted stock granted

 

 

1,029

 

 

$

11.02

 

PSUs, RSUs and restricted stock vested

 

 

(453

)

 

$

14.26

 

PSUs, RSUs and restricted stock forfeited

 

 

(621

)

 

$

18.14

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2020

 

 

1,846

 

 

$

11.49

 

Summary of Stock Options Outstanding

The following table is a summary of stock options outstanding as of December 31, 2020 and 2019 and the changes that occurred during 2020:

 

 

 

Number of

Options

(In thousands)

 

 

Weighted

Average

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

 

 

 

3.40

 

 

$

 

Stock options granted

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options exercised

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options forfeited

 

 

 

 

$

 

 

 

 

 

 

 

 

 

Stock options expired

 

 

(854

)

 

$

28.00

 

 

 

 

 

 

 

 

 

Stock options outstanding, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.86

 

 

$

 

Stock options exercisable, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.86

 

 

$

 

Stock Options Outstanding

The following table further describes our stock options outstanding as of December 31, 2020:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of

Exercise Prices

 

Options

Outstanding at

December 31, 2020

(In thousands)

 

 

Weighted Avg.

Remaining

Contractual Life

in Years

 

 

Weighted

Average

Exercise

Price

 

 

Options

Exercisable at

December 31, 2020

(In thousands)

 

 

Weighted

Average

Exercise

Price

 

$15.33 – $18.96

 

 

1,007

 

 

 

3.69

 

 

$

15.91

 

 

 

1,007

 

 

$

15.91

 

$18.97 – $23.45

 

 

588

 

 

 

3.68

 

 

$

18.97

 

 

 

588

 

 

$

18.97

 

$23.46 – $30.35

 

 

603

 

 

 

2.55

 

 

$

24.11

 

 

 

603

 

 

$

24.11

 

$30.36 – $41.92

 

 

520

 

 

 

0.64

 

 

$

30.40

 

 

 

520

 

 

$

30.40

 

 

 

 

2,718

 

 

 

 

 

 

 

 

 

 

 

2,718

 

 

 

 

 

 

Market-Based PSUs [Member]  
Summary of Weighted-Average Assumptions and Value of Options Granted

The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs:

 

 

2020

 

 

2019

 

2018

 

Estimated fair value per share

 

 

$14.43

 

 

$9.53 to $18.05

 

 

$16.59

 

Expected volatility

 

 

51.88%

 

 

32.7% to 38.9%

 

27.98% to 31.58%

 

Risk-free interest rate

 

 

0.24%

 

 

1.6% to 2.46%

 

2.11% to 2.99%

 

Expected dividend yield

 

 

2.85%

 

 

2.3% to 4.09%

 

1.83% to 2.49%

 

 

 

v3.20.4
Investments (Tables)
12 Months Ended
Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Debt Securities and Other Investments, Included on Consolidated Balance Sheet and Recorded at Fair Value

Debt Securities and Other Investments

As of December 31, 2020, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value:

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

11,762

 

 

$

123

 

 

$

 

 

$

11,885

 

Municipal fixed-rate bonds

 

 

2,854

 

 

 

30

 

 

 

 

 

 

2,884

 

Asset-backed bonds

 

 

6,634

 

 

 

74

 

 

 

 

 

 

6,708

 

Mortgage/Agency-backed bonds

 

 

11,536

 

 

 

114

 

 

 

(6

)

 

 

11,644

 

U.S. government bonds

 

 

9,763

 

 

 

112

 

 

 

 

 

 

9,875

 

Foreign government bonds

 

 

1,334

 

 

 

4

 

 

 

(1

)

 

 

1,337

 

Commercial Paper

 

 

250

 

 

 

 

 

 

 

 

 

250

 

Other

 

 

533

 

 

 

 

 

 

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

44,666

 

 

$

457

 

 

$

(7

)

 

$

45,116

 

As of December 31, 2019, the following debt securities and other investments were included in short-term investments and long-term investments on the 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

As of December 31, 2020, our debt securities had the following contractual maturities:

 

(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

 

$

1,477

 

 

$

96

 

 

$

144

 

 

$

63

 

 

$

 

 

$

75

 

 

$

250

 

 

$

533

 

One to two years

 

 

2,007

 

 

 

1,245

 

 

 

300

 

 

 

2,129

 

 

 

5,122

 

 

 

462

 

 

 

 

 

 

 

Two to three years

 

 

7,013

 

 

 

1,246

 

 

 

622

 

 

 

2,940

 

 

 

4,526

 

 

 

498

 

 

 

 

 

 

 

Three to five years

 

 

1,388

 

 

 

297

 

 

 

3,658

 

 

 

183

 

 

 

227

 

 

 

302

 

 

 

 

 

 

 

Five to ten years

 

 

 

 

 

 

 

 

1,241

 

 

 

2,095

 

 

 

 

 

 

 

 

 

 

 

 

 

More than ten years

 

 

 

 

 

 

 

 

743

 

 

 

4,234

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

11,885

 

 

$

2,884

 

 

$

6,708

 

 

$

11,644

 

 

$

9,875

 

 

$

1,337

 

 

$

250

 

 

$

533

 

 

Gross Realized Gains and Losses on Sale of Debt Securities The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2020, 2019 and 2018:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Gross realized gains on debt securities

 

$

459

 

 

$

108

 

 

$

57

 

Gross realized losses on debt securities

 

 

(58

)

 

 

(50

)

 

 

(592

)

Total gain (loss) recognized, net

 

$

401

 

 

$

58

 

 

$

(535

)

Breakdown of Investments with Unrealized Losses

The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2020:

 

 

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

(In thousands)

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

 

Fair Value

 

 

Unrealized

Losses

 

Corporate bonds

 

$

336

 

 

$

 

 

$

 

 

$

 

 

$

336

 

 

$

 

Municipal fixed-rate bonds

 

 

310

 

 

 

 

 

 

 

 

 

 

 

 

310

 

 

 

 

Asset-backed bonds

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

Mortgage/Agency-backed bonds

 

 

2,078

 

 

 

(6

)

 

 

 

 

 

 

 

 

2,078

 

 

 

(6

)

U.S. government bonds

 

 

350

 

 

 

 

 

 

 

 

 

 

 

 

350

 

 

 

 

Foreign government bonds

 

 

302

 

 

 

(1

)

 

 

 

 

 

 

 

 

302

 

 

 

(1

)

Total

 

$

3,378

 

 

$

(7

)

 

$

 

 

$

 

 

$

3,378

 

 

$

(7

)

 

 The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2019:

 

 

 

Continuous Unrealized

Loss Position for Less

than 12 Months

 

 

Continuous Unrealized

Loss Position for 12

Months or Greater

 

 

Total

 

(In thousands)

 

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

)

 

Realized and Unrealized Gains and Losses for Marketable Equity Securities

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2020, 2019 and 2018 were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Realized losses on equity securities sold

 

$

(2,382

)

 

$

(96

)

 

$

1,306

 

Unrealized gains on equity securities held

 

 

6,831

 

 

 

11,472

 

 

 

(4,821

)

Total gain (loss) recognized, net

 

$

4,449

 

 

$

11,376

 

 

$

(3,515

)

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 December 31, 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

 

$

497

 

 

$

497

 

 

$

 

 

$

 

U.S. government bonds

 

 

350

 

 

 

350

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

11,885

 

 

 

 

 

 

11,885

 

 

 

 

Municipal fixed-rate bonds

 

 

2,884

 

 

 

 

 

 

2,884

 

 

 

 

Asset-backed bonds

 

 

6,708

 

 

 

 

 

 

6,708

 

 

 

 

Mortgage/Agency-backed bonds

 

 

11,644

 

 

 

 

 

 

11,644

 

 

 

 

U.S. government bonds

 

 

9,875

 

 

 

9,875

 

 

 

 

 

 

 

Foreign government bonds

 

 

1,337

 

 

 

 

 

 

1,337

 

 

 

 

Commercial paper

 

 

250

 

 

 

 

 

 

250

 

 

 

 

Other investments

 

 

533

 

 

 

 

 

 

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

10,963

 

 

 

10,963

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

23,891

 

 

 

23,891

 

 

 

 

 

 

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

 

 

 

 

Total

 

$

82,217

 

 

$

46,976

 

 

$

34,708

 

 

$

533

 

 

 

 

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

 

 

$

 

v3.20.4
Inventory (Tables)
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Components of Inventory, Net

As of December 31, 2020 and 2019, inventory, net was comprised of the following:

 

(In thousands)

 

2020

 

 

2019

 

Raw materials

 

$

47,026

 

 

$

36,987

 

Work in process

 

 

776

 

 

 

1,085

 

Finished goods

 

 

77,655

 

 

 

60,233

 

Total Inventory, net

 

$

125,457

 

 

$

98,305

 

v3.20.4
Property, Plant and Equipment (Tables)
12 Months Ended
Dec. 31, 2020
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment, Net

As of December 31, 2020 and 2019, property, plant and equipment, net was comprised of the following:

 

(In thousands)

 

2020

 

 

2019

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

35,142

 

 

 

34,797

 

Building

 

 

68,169

 

 

 

68,157

 

Furniture and fixtures

 

 

19,965

 

 

 

19,959

 

Computer hardware and software

 

 

70,942

 

 

 

68,777

 

Engineering and other equipment

 

 

132,920

 

 

 

130,430

 

Total Property, Plant and Equipment

 

 

331,713

 

 

 

326,695

 

Less: accumulated depreciation

 

 

(269,314

)

 

 

(258,609

)

Total Property, Plant and Equipment, net

 

$

62,399

 

 

$

68,086

 

v3.20.4
Leases (Tables)
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information Related to Operating Leases Supplemental balance sheet information related to operating leases is as follows:

 

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

Classification

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

 

 

Operating lease assets

 

Other non-current assets

 

$

5,309

 

 

$

8,452

 

Total lease asset

 

 

 

$

5,309

 

 

$

8,452

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses and other liabilities

 

$

1,806

 

 

$

2,676

 

Non-current operating lease liability

 

Other non-current liabilities

 

 

3,574

 

 

 

5,818

 

Total lease liability

 

 

 

$

5,380

 

 

$

8,494

 

 

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

The components of lease expense included in the Consolidated Statements of Income (Loss) were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

Cost of sales

 

$

113

 

 

$

64

 

Selling, general and administrative expenses

 

 

1,311

 

 

 

1,400

 

Research and development expenses

 

 

1,121

 

 

 

2,417

 

Total operating lease expense

 

$

2,545

 

 

$

3,881

 

 

Schedule of Maturity of Operating Lease Liabilities

As of December 31, 2020, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:

 

(In thousands)

 

Amount

 

2021

 

$

1,895

 

2022

 

 

1,600

 

2023

 

 

1,251

 

2024

 

 

521

 

2025

 

 

287

 

Thereafter

 

 

 

Total lease payments

 

 

5,554

 

Less: Interest

 

 

(174

)

Present value of lease liabilities

 

$

5,380

 

Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates The following table provides information about our weighted average lease terms and weighted average discount rates:

 

 

As of December 31,

 

Weighted average remaining lease term (years)

 

2020

 

 

2019

 

     Operating leases with USD functional currency

 

 

2.4

 

 

 

2.6

 

     Operating leases with Euro functional currency

 

 

3.6

 

 

 

4.4

 

Weighted average discount rate

 

 

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

4.47

%

 

 

4.02

%

     Operating leases with Euro functional currency

 

 

1.37

%

 

 

1.84

%

Schedule of Supplemental Cash Flow Information Related to Operating Leases

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

 

 

As of December 31,

 

(In thousands)

 

2020

 

 

2019

 

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

 

 

 

 

 

 

 

 

     Cash used in operating activities related to operating leases

 

$

2,632

 

 

$

3,439

 

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

 

$

324

 

 

$

11,615

 

 

Components of Net Investment in Sales-Type Leases As of December 31, 2020 and 2019, the components of the net investment in sales-type leases were as follows:

 

 

As of  December 31,

 

(In thousands)

 

2020

 

 

2019

 

Current minimum lease payments receivable(1)

 

$

702

 

 

$

1,201

 

Non-current minimum lease payments receivable(2)

 

 

347

 

 

 

889

 

Total minimum lease payments receivable

 

 

1,049

 

 

 

2,090

 

Less: Current unearned revenue(1)

 

 

218

 

 

 

365

 

Less: Non-current unearned revenue(2)

 

 

50

 

 

 

163

 

Net investment in sales-type leases

 

$

781

 

 

$

1,562

 

 

(1)

Included in other receivables on the Consolidated Balance Sheets.

 

(2)

Included in other non-current assets on the Consolidated Balance Sheets.

 

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

Components of gross profit related to sales-type lease recognized at the lease commencement date and interest and dividend income, included in the Consolidated Statements of Income (Loss) for the year ended December 31, 2020 and 2019 were as follows:

 

 

For the year ended December 31,

 

(In thousands)

 

2020

 

 

2019

 

Revenue - Network Solutions

 

$

78

 

 

$

1,723

 

Cost of sales - Network Solutions

 

 

32

 

 

 

675

 

Gross profit

 

$

46

 

 

$

1,048

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

42

 

 

$

357

 

 

Schedule of Future Minimum Lease Payments to be Received from Sales-Type Leases

As of December 31, 2020 future minimum lease payments to be received from sales-type leases were as follows:

(In thousands)

 

Amount

 

2021

 

$

703

 

2022

 

 

250

 

2023

 

 

88

 

2024

 

 

7

 

2025

 

 

1

 

Total

 

$

1,049

 

v3.20.4
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2020
Intangible Assets Net Excluding Goodwill [Abstract]  
Summary of Intangible Assets

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

 

 

 

2020

 

 

2019

 

(In thousands)

 

Gross Value

 

 

Accumulated

Amortization

 

 

Net Value

 

 

Gross Value

 

 

Accumulated

Amortization

 

 

Net Value

 

Customer relationships

 

$

21,123

 

 

$

(8,055

)

 

$

13,068

 

 

$

22,356

 

 

$

(7,233

)

 

$

15,123

 

Developed technology

 

 

8,200

 

 

 

(2,546

)

 

 

5,654

 

 

 

10,170

 

 

 

(3,379

)

 

 

6,791

 

Licensed technology

 

 

5,900

 

 

 

(1,830

)

 

 

4,070

 

 

 

5,900

 

 

 

(1,174

)

 

 

4,726

 

Supplier relationships

 

 

2,800

 

 

 

(2,800

)

 

 

 

 

 

2,800

 

 

 

(2,508

)

 

 

292

 

Licensing agreements

 

 

560

 

 

 

(152

)

 

 

408

 

 

 

560

 

 

 

(79

)

 

 

481

 

Patents

 

 

500

 

 

 

(294

)

 

 

206

 

 

 

500

 

 

 

(226

)

 

 

274

 

Trade names

 

 

210

 

 

 

(146

)

 

 

64

 

 

 

310

 

 

 

(176

)

 

 

134

 

Total

 

$

39,293

 

 

$

(15,823

)

 

$

23,470

 

 

$

42,596

 

 

$

(14,775

)

 

$

27,821

 

Estimated Future Amortization Expense Related to Intangible Assets

As of December 31, 2020, estimated future amortization expense of intangible assets was as follows:

 

(In thousands)

 

Amount

 

2021

 

$

4,119

 

2022

 

 

3,494

 

2023

 

 

3,340

 

2024

 

 

3,245

 

2025

 

 

3,031

 

Thereafter

 

 

6,241

 

Total

 

$

23,470

 

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(10,574

)

 

$

(518

)

 

$

(8,001

)

State

 

 

(329

)

 

 

(1,065

)

 

 

(476

)

International

 

 

3,635

 

 

 

(282

)

 

 

11,705

 

Total Current

 

 

(7,268

)

 

 

(1,865

)

 

 

3,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

 

 

 

24,801

 

 

 

(14,448

)

State

 

 

 

 

 

5,815

 

 

 

(3,390

)

International

 

 

(1,356

)

 

 

(546

)

 

 

581

 

Total Deferred

 

 

(1,356

)

 

 

30,070

 

 

 

(17,257

)

Total Income Tax Expense (Benefit)

 

$

(8,624

)

 

$

28,205

 

 

$

(14,029

)

 

Effective Income Tax Rate Differs from Federal Statutory Rate

The effective income tax rate differs from the federal statutory rate due to the following:

 

 

 

2020

 

 

2019

 

 

2018

 

Tax provision computed at the federal statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State income tax provision, net of federal benefit

 

 

11.10

 

 

 

6.97

 

 

 

14.53

 

Federal research credits

 

 

57.63

 

 

 

15.53

 

 

 

14.23

 

Foreign taxes

 

 

(17.83

)

 

 

2.83

 

 

 

(11.45

)

Tax-exempt income

 

 

1.93

 

 

 

0.49

 

 

 

0.45

 

State tax incentives

 

 

 

 

 

3.85

 

 

 

3.15

 

Change in valuation allowance

 

 

44.79

 

 

 

(172.82

)

 

 

 

Foreign tax credits

 

 

17.90

 

 

 

16.69

 

 

 

 

Stock-based compensation

 

 

(23.36

)

 

 

(6.01

)

 

 

(2.87

)

Withholding taxes

 

 

(20.83

)

 

 

 

 

 

 

Bargain purchase

 

 

 

 

 

 

 

 

8.82

 

Impact of CARES Act

 

 

45.65

 

 

 

 

 

 

 

Impact of U.S. tax reform

 

 

 

 

 

 

 

 

12.00

 

Global intangible low-taxed income ("GILTI")

 

 

(0.49

)

 

 

(1.87

)

 

 

(17.48

)

Other, net

 

 

0.56

 

 

 

(0.49

)

 

 

(0.34

)

Effective Tax Rate

 

 

138.05

%

 

 

(113.83

)%

 

 

42.04

%

 

Income (Loss) Before Expense (Benefit) for Income Taxes

Income (loss) before expense (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018 is as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

U.S. entities

 

$

(12,833

)

 

$

(29,829

)

 

$

(74,131

)

International entities

 

 

6,587

 

 

 

5,052

 

 

 

40,760

 

Total

 

$

(6,246

)

 

$

(24,777

)

 

$

(33,371

)

 

Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2020 and 2019 consist of the following:

 

(In thousands)

 

2020

 

 

2019

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Inventory

 

$

8,882

 

 

$

7,144

 

Accrued expenses

 

 

2,331

 

 

 

2,330

 

Deferred compensation

 

 

6,714

 

 

 

5,660

 

Stock-based compensation

 

 

1,971

 

 

 

2,451

 

Uncertain tax positions related to state taxes and related interest

 

 

149

 

 

 

241

 

Pensions

 

 

8,554

 

 

 

7,074

 

Foreign losses

 

 

2,590

 

 

 

2,925

 

State losses and credit carry-forwards

 

 

5,509

 

 

 

3,995

 

Federal loss and research carry-forwards

 

 

17,323

 

 

 

12,171

 

Lease liabilities

 

 

1,588

 

 

 

2,496

 

Capitalized research and development expenditures

 

 

11,832

 

 

 

22,230

 

Valuation allowance

 

 

(45,818

)

 

 

(48,616

)

Total Deferred Tax Assets

 

 

21,625

 

 

 

20,101

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

(4,546

)

 

 

(2,815

)

Intellectual property

 

 

(4,375

)

 

 

(5,337

)

Right of use lease assets

 

 

(1,585

)

 

 

(2,496

)

Investments

 

 

(1,250

)

 

 

(1,892

)

Total Deferred Tax Liabilities

 

 

(11,756

)

 

 

(12,540

)

Net Deferred Tax Assets

 

$

9,869

 

 

$

7,561

 

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

 

 

 

December 31, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

43,791

 

 

$

(43,791

)

 

$

 

International

 

 

11,896

 

 

 

(2,027

)

 

 

9,869

 

Total

 

$

55,687

 

 

$

(45,818

)

 

$

9,869

 

 

 

 

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

 

Change in Unrecognized Income Tax Benefits

The change in the unrecognized income tax benefits for the years ended December 31, 2020, 2019 and 2018 is reconciled below:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Balance at beginning of period

 

$

1,487

 

 

$

1,868

 

 

$

2,366

 

Increases for tax position related to:

 

 

 

 

 

 

 

 

 

 

 

 

Prior years

 

 

4

 

 

 

 

 

 

3

 

Current year

 

 

165

 

 

 

161

 

 

 

254

 

Decreases for tax positions related to:

 

 

 

 

 

 

 

 

 

 

 

 

Prior years

 

 

 

 

 

(71

)

 

 

 

Expiration of applicable statute of limitations

 

 

(578

)

 

 

(471

)

 

 

(755

)

Balance at end of period

 

$

1,078

 

 

$

1,487

 

 

$

1,868

 

 

v3.20.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Schedule of Pension Benefit Plan Obligations and Funded Status

The pension benefit plan obligations and funded status as of December 31, 2020 and 2019, were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of period

 

$

43,902

 

 

$

37,245

 

Service cost

 

 

1,270

 

 

 

1,471

 

Interest cost

 

 

444

 

 

 

634

 

Actuarial (gain) loss - experience

 

 

(744

)

 

 

453

 

Actuarial loss - assumptions

 

 

2,458

 

 

 

5,091

 

Benefit payments

 

 

(509

)

 

 

(166

)

Effects of foreign currency exchange rate changes

 

 

4,106

 

 

 

(826

)

Projected benefit obligation at end of period

 

 

50,927

 

 

 

43,902

 

Change in plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

 

28,016

 

 

 

24,159

 

Actual gain on plan assets

 

 

1,744

 

 

 

4,392

 

Contributions

 

 

24

 

 

 

 

Effects of foreign currency exchange rate changes

 

 

2,479

 

 

 

(535

)

Fair value of plan assets at end of period

 

 

32,263

 

 

 

28,016

 

Unfunded status at end of period

 

$

(18,664

)

 

$

(15,886

)

Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability

The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Current liability

 

$

 

 

$

 

Pension liability

 

 

18,664

 

 

 

15,886

 

Total

 

$

18,664

 

 

$

15,886

 

Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income (Loss)

The components of net periodic pension cost, other than the service cost component, are included in other income (expense), net in the Consolidated Statements of Income (Loss). The components of net periodic pension cost and amounts recognized in other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1,270

 

 

$

1,471

 

 

$

1,193

 

Interest cost

 

 

444

 

 

 

634

 

 

 

727

 

Expected return on plan assets

 

 

(1,679

)

 

 

(1,392

)

 

 

(1,548

)

Amortization of actuarial losses

 

 

970

 

 

 

795

 

 

 

247

 

Net periodic benefit cost

 

 

1,005

 

 

 

1,508

 

 

 

619

 

Other changes in plan assets and benefit obligations

   recognized in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

1,784

 

 

 

2,488

 

 

 

5,638

 

Amortization of actuarial losses

 

 

(1,212

)

 

 

(771

)

 

 

(196

)

Amount recognized in other comprehensive income (loss)

 

 

572

 

 

 

1,717

 

 

 

5,442

 

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

1,577

 

 

$

3,225

 

 

$

6,061

 

Accumulated Other Comprehensive Income (Loss)

The amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Net actuarial loss

 

$

(13,545

)

 

$

(12,973

)

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost

The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018 were as follows:

 

 

 

2020

 

 

2019

 

 

2018

 

Discount rate

 

 

1.00

%

 

 

1.75

%

 

 

2.13

%

Rate of compensation increase

 

 

2.00

%

 

 

2.00

%

 

 

2.00

%

Expected long-term rates of return

 

 

5.90

%

 

 

5.90

%

 

 

5.90

%

Weighted-Average Assumptions Used to Determine Benefit Obligation

 

The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

Discount rate

 

 

0.69

%

 

 

1.00

%

Rate of compensation increase

 

 

2.00

%

 

 

2.00

%

Schedule of Pension Benefit Payments Expected Future Service The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants:

 

(In thousands)

 

 

 

 

2021

 

$

714

 

2022

 

 

1,048

 

2023

 

 

1,348

 

2024

 

 

1,657

 

2025

 

 

1,621

 

2026 - 2030

 

 

7,615

 

Total

 

$

14,003

 

 

Schedule of Cash Equivalents and Investments Held at Fair Value

We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows:

 

 

 

Fair Value Measurements at December 31, 2020 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Cash and cash equivalents

 

$

1,935

 

 

$

1,935

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

6,746

 

 

 

6,746

 

 

 

 

 

 

 

Government bonds

 

 

5,971

 

 

 

5,971

 

 

 

 

 

 

 

Emerging markets bonds

 

 

307

 

 

 

307

 

 

 

 

 

 

 

Equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equity

 

 

11,638

 

 

 

11,638

 

 

 

 

 

 

 

Balanced fund

 

 

2,515

 

 

 

2,515

 

 

 

 

 

 

 

Emerging markets

 

 

1,848

 

 

 

1,848

 

 

 

 

 

 

 

Large cap value

 

 

198

 

 

 

198

 

 

 

 

 

 

 

Global real estate fund

 

 

799

 

 

 

799

 

 

 

 

 

 

 

Managed futures fund

 

 

306

 

 

 

306

 

 

 

 

 

 

 

Available-for-sale securities

 

 

30,328

 

 

 

30,328

 

 

 

 

 

 

 

Total

 

$

32,263

 

 

$

32,263

 

 

$

 

 

$

 

 

 

 

 

Fair Value Measurements at December 31, 2019 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Cash and cash equivalents

 

$

691

 

 

$

691

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

 

6,645

 

 

 

6,645

 

 

 

 

 

 

 

Corporate bonds

 

 

5,514

 

 

 

5,514

 

 

 

 

 

 

 

Emerging markets bonds

 

 

531

 

 

 

531

 

 

 

 

 

 

 

Equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equity

 

 

11,071

 

 

 

11,071

 

 

 

 

 

 

 

Emerging markets

 

 

956

 

 

 

956

 

 

 

 

 

 

 

Balanced fund

 

 

863

 

 

 

863

 

 

 

 

 

 

 

Large cap value

 

 

312

 

 

 

312

 

 

 

 

 

 

 

Global real estate fund

 

 

902

 

 

 

902

 

 

 

 

 

 

 

Managed futures fund

 

 

531

 

 

 

531

 

 

 

 

 

 

 

Available-for-sale securities

 

 

27,325

 

 

 

27,325

 

 

 

 

 

 

 

Total

 

$

28,016

 

 

$

28,016

 

 

$

 

 

$

 

Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2020 and 2019 were as follows:

 

(In thousands)

 

2020

 

 

2019

 

Fair Value of Plan Assets

 

 

 

 

 

 

 

 

Long-term investments

 

$

23,891

 

 

$

21,698

 

Total Fair Value of Plan Assets

 

$

23,891

 

 

$

21,698

 

Amounts Payable to Plan Participants

 

 

 

 

 

 

 

 

Deferred compensation liability

 

$

25,866

 

 

$

21,698

 

Total Amounts Payable to Plan Participants

 

$

25,866

 

 

$

21,698

 

v3.20.4
Segment Information and Major Customers (Tables)
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Sales and Gross Profit of Reportable Segments

The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

 

2019

 

 

2018

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

438,015

 

 

$

193,789

 

 

$

455,226

 

 

$

191,549

 

 

$

458,232

 

 

$

179,303

 

Services & Support

 

 

68,495

 

 

 

23,762

 

 

 

74,835

 

 

 

27,618

 

 

 

71,045

 

 

 

24,262

 

Total

 

$

506,510

 

 

$

217,551

 

 

$

530,061

 

 

$

219,167

 

 

$

529,277

 

 

$

203,565

 

 

Disaggregate of Revenue by Reportable Segment and Revenue Category

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2020:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2019:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2018:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

The following tables disaggregate our revenue by category for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

262,578

 

 

$

50,560

 

 

$

313,138

 

Subscriber Solutions & Experience

 

 

161,824

 

 

 

9,263

 

 

 

171,087

 

Traditional & Other Products

 

 

13,613

 

 

 

8,672

 

 

 

22,285

 

Total

 

$

438,015

 

 

$

68,495

 

 

$

506,510

 

 

 

 

2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

289,980

 

 

$

58,894

 

 

$

348,874

 

Subscriber Solutions & Experience

 

 

144,651

 

 

 

8,269

 

 

 

152,920

 

Traditional & Other Products

 

 

20,595

 

 

 

7,672

 

 

 

28,267

 

Total

 

$

455,226

 

 

$

74,835

 

 

$

530,061

 

 

 

 

2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

301,801

 

 

$

57,069

 

 

$

358,870

 

Subscriber Solutions & Experience

 

 

129,067

 

 

 

5,393

 

 

 

134,460

 

Traditional & Other Products

 

 

27,364

 

 

 

8,583

 

 

 

35,947

 

Total

 

$

458,232

 

 

$

71,045

 

 

$

529,277

 

 

 

Sales Information by Geographic Area

The following table presents revenue information by geographic area for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

352,079

 

 

$

300,853

 

 

$

288,843

 

Germany

 

 

74,882

 

 

 

78,062

 

 

 

167,251

 

Mexico

 

 

4,087

 

 

 

90,795

 

 

 

12,186

 

Other international

 

 

75,462

 

 

 

60,351

 

 

 

60,997

 

Total

 

$

506,510

 

 

$

530,061

 

 

$

529,277

 

v3.20.4
Current Expected Credit Losses (Tables)
12 Months Ended
Dec. 31, 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

 

$

55

 

 

$

192

 

 

$

354

 

 

$

128

 

 

$

52

 

 

$

 

 

$

781

 

     Non-performing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

55

 

 

$

192

 

 

$

354

 

 

$

128

 

 

$

52

 

 

$

 

 

$

781

 

v3.20.4
Earnings (Loss) Per Share (Tables)
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Summary of Calculations of Basic and Diluted Earnings (Loss) Per Share

The calculations of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018 are as follows:

 

(In thousands, except for per share amounts)

 

2020

 

 

2019

 

 

2018

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

2,378

 

 

$

(52,982

)

 

$

(19,342

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

47,996

 

 

 

47,836

 

 

 

47,880

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

292

 

 

 

 

 

 

 

Weighted average number of shares – diluted

 

 

48,288

 

 

 

47,836

 

 

 

47,880

 

Earnings (loss) per share – basic

 

$

0.05

 

 

$

(1.11

)

 

$

(0.40

)

Earnings (loss) per share – diluted

 

$

0.05

 

 

$

(1.11

)

 

$

(0.40

)

v3.20.4
Restructuring (Tables)
12 Months Ended
Dec. 31, 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 in the Consolidated Balance Sheets as of December 31, 2020 and 2019, is as follows:

 

(In thousands)

 

2020

 

 

2019

 

Balance at beginning of period

 

$

1,568

 

 

$

185

 

Plus: Amounts charged to cost and expense

 

 

6,229

 

 

 

6,014

 

Less: Amounts paid

 

 

(3,611

)

 

 

(4,631

)

Balance at end of period

 

$

4,186

 

 

$

1,568

 

Schedule of Components of Restructuring Expense

Restructuring expenses included in the Consolidated Statements of Income (Loss) are for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Cost of sales

 

$

455

 

 

$

785

 

 

$

2,775

 

Selling, general and administrative expenses

 

 

1,832

 

 

 

2,360

 

 

 

2,655

 

Research and development expenses

 

 

3,942

 

 

 

2,869

 

 

 

1,831

 

Total restructuring expenses

 

$

6,229

 

 

$

6,014

 

 

$

7,261

 

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2020, 2019 and 2018:

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

2,234

 

 

$

3,336

 

 

$

7,120

 

International

 

 

3,995

 

 

 

2,678

 

 

 

141

 

Total restructuring expenses

 

$

6,229

 

 

$

6,014

 

 

$

7,261

 

v3.20.4
Summarized Quarterly Financial Data (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Operating Results

The following table presents unaudited quarterly operating results for each of the last eight fiscal quarters. This information has been prepared on a basis consistent with the audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data.

Unaudited Quarterly Operating Results

 

 

 

Three Months Ended

 

 

(In thousands, except for per share amounts)

 

March 31, 2020(2)

 

 

June 30, 2020

 

 

September 30, 2020

 

 

December 31, 2020

 

 

Total Sales

 

$

114,523

 

 

$

128,715

 

 

$

133,143

 

 

$

130,129

 

 

Gross Profit

 

$

51,600

 

 

$

53,472

 

 

$

58,962

 

 

$

53,517

 

 

Operating Income (Loss)

 

$

(4,944

)

 

$

(6,039

)

 

$

4,534

 

 

$

(3,324

)

 

Net Income (Loss)

 

$

(9,969

)

 

$

752

 

 

$

5,481

 

 

$

6,114

 

 

Earnings (loss) per common share - basic

 

$

(0.21

)

 

$

0.02

 

 

$

0.11

 

 

$

0.13

 

 

Earnings (loss) per common share - diluted

 

$

(0.21

)

 

$

0.02

 

(1)

$

0.11

 

(1)

$

0.13

 

(1)

 

 

 

Three Months Ended

 

 

(In thousands, except for per share amounts)

 

March 31, 2019

 

 

June 30, 2019(2)

 

 

September 30, 2019

 

 

December 31, 2019

 

 

Total Sales

 

$

143,791

 

 

$

156,391

 

 

$

114,092

 

 

$

115,787

 

 

Gross Profit

 

$

60,612

 

 

$

65,015

 

 

$

46,331

 

 

$

47,209

 

 

Operating Income (Loss)

 

$

(6,167

)

 

$

562

 

 

$

(20,288

)

 

$

(14,070

)

 

Net Income (Loss)

 

$

770

 

 

$

3,995

 

 

$

(46,123

)

 

$

(11,624

)

 

Earnings (loss) per common share - basic

 

$

0.02

 

 

$

0.08

 

 

$

(0.96

)

 

$

(0.25

)

 

Earnings (loss) per common share - diluted

 

$

0.02

 

(1)

$

0.08

 

(1)

$

(0.96

)

 

$

(0.25

)

 

 

 

(1)

Assumes exercise of dilutive securities calculated under the treasury stock method.

 

(2)

See footnote 1 for discussion on out of period disclosures impacting these quarterly operating results.

 

 

v3.20.4
Nature of Business - Additional Information (Detail)
3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Dec. 31, 2020
USD ($)
Customer
IncentivePlan
Dec. 31, 2019
USD ($)
Customer
Dec. 31, 2018
USD ($)
Jan. 01, 2020
USD ($)
Dec. 31, 2017
USD ($)
Summary Of Significant Accounting Policy [Line Items]                
Cash, uninsured amount       $ 56,300,000        
Bonds payable, carrying amount         $ 24,600,000      
Bonds payable, fair value         $ 24,600,000      
Number of single customer comprising more than 10% of account receivable | Customer       3 4      
Asset impairments       $ 65,000 $ 3,872,000 $ 0    
Impairment losses of long-lived assets           0    
Impairment losses of intangible assets       0 0 0    
Impairment charges recognized on goodwill       $ 0 0 0    
Period of assurance-based warranty for product defects       90 days to five years        
Liability for warranty obligations       $ 7,146,000 8,394,000 8,623,000   $ 9,724,000
Pension liability       $ 18,664,000 15,886,000      
Number of stock incentive plans | IncentivePlan       2        
Stock-based compensation expense       $ 6,834,000 6,962,000 7,155,000    
Total unrecognized compensation cost related to non-vested stock options, PSUs, RSUs and restricted stock       $ 16,700,000        
Recognition period of unvested compensation expense       2 years 10 months 24 days        
Research and development costs       $ 113,287,000 126,200,000 124,547,000    
Effect on adoption of ASU       62,399,000 68,086,000      
Effect on adoption of ASU       25,425,000 19,883,000      
Tax benefit in other comprehensive income (loss)       $ (66,000) (434,000) $ (2,786,000)    
ASU 2018-14 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
ASU 2018-13 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date       Jan. 01, 2020        
ASU 2018-15 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date       Jan. 01, 2020        
Effect on adoption of ASU         68,086,000      
Effect on adoption of ASU         19,883,000      
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             $ (5,600,000)  
Effect on adoption of ASU             $ 5,600,000  
ASU 2016-13 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date       Jan. 01, 2020        
ASU 2019-12 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date       Apr. 01, 2020        
Adjustments for New Accounting Principle, Early Adoption [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Tax benefit in other comprehensive income (loss)       $ (100,000)        
ASU 2017-04 [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]       true        
Change in Accounting Principle, Accounting Standards Update, Adoption Date       Jan. 01, 2020        
Prepaid Expenses and Other Current Assets [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Current deferred costs related to prepaid and other assets       $ 1,100,000 1,600,000      
Other Non-Current Assets [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Non-current deferred costs related to other non-current assets         $ 100,000      
Minimum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Amortization, estimated useful lives       2 years        
Maintenance service periods       1 month        
Maintenance contract period       1 month        
Maximum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Amortization, estimated useful lives       14 years        
Asset impairments       $ 100,000        
Maintenance service periods       5 years        
Maintenance contract period       5 years        
Maximum [Member] | Other Non-Current Assets [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Non-current deferred costs related to other non-current assets       $ 100,000        
Building and Land Improvements [Member] | Minimum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       5 years        
Building and Land Improvements [Member] | Maximum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       39 years        
Office Machinery and Equipment [Member] | Minimum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       3 years        
Office Machinery and Equipment [Member] | Maximum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       7 years        
Engineering Machinery and Equipment [Member] | Minimum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       3 years        
Engineering Machinery and Equipment [Member] | Maximum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       7 years        
Computer Software [Member] | Minimum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       3 years        
Computer Software [Member] | Maximum [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Property, plant and equipment, estimated useful lives       5 years        
Credit Concentration Risk [Member] | Accounts Receivable [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Percentage of accounts receivable accounted by each customers       41.50% 53.20%      
Excess, Obsolete Inventory Reserve and Cost of Goods [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Amount of revision   $ 800,000 $ 200,000   $ 200,000      
Errors in Net Investment Gain [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Amount of revision $ 1,500,000     $ 1,500,000        
Overstatement Long-term Investment Balance at Remeasured Cost Basis [Member]                
Summary Of Significant Accounting Policy [Line Items]                
Amount of revision       $ 2,800,000        
v3.20.4
Nature of Business - Summary of Warranty Expense and Write-Off Activity (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Product Warranties Disclosures [Abstract]      
Balance at beginning of period $ 8,394 $ 8,623 $ 9,724
Plus: Amounts charged to cost and expenses 1,538 4,569 7,392
Less: Deductions (2,786) (4,798) (8,493)
Balance at end of period $ 7,146 $ 8,394 $ 8,623
v3.20.4
Nature of Business - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Components Of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance $ 380,426 $ 446,279 $ 497,911
Other comprehensive income (loss) before reclassifications 4,375 (2,624) (7,441)
Amounts reclassified to retained earnings   385 (3,220)
Amounts reclassified from accumulated other comprehensive loss 403 238 (460)
Ending Balance 372,944 380,426 446,279
ASU 2018-02 [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance 385    
Amounts reclassified to retained earnings   385  
Ending Balance 385 385  
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (284) (563) 2,567
Other comprehensive income (loss) before reclassifications 749 573 685
Amounts reclassified to retained earnings     (3,220)
Amounts reclassified from accumulated other comprehensive loss (433) (294) (595)
Ending Balance 32 (284) (563)
Defined Benefit Plan Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (9,226) (8,041) (4,286)
Other comprehensive income (loss) before reclassifications (1,231) (1,717) (3,890)
Amounts reclassified from accumulated other comprehensive loss 836 532 135
Ending Balance (9,621) (9,226) (8,041)
Foreign Currency Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (7,292) (5,812) (1,576)
Other comprehensive income (loss) before reclassifications 4,857 (1,480) (4,236)
Ending Balance (2,435) (7,292) (5,812)
Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (16,417) (14,416) (3,295)
Other comprehensive income (loss) before reclassifications     (7,441)
Ending Balance $ (11,639) $ (16,417) $ (14,416)
v3.20.4
Nature of Business - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                      
Defined benefit plan adjustments – actuarial losses                 $ 2,458 $ 5,091  
Loss Before Income Taxes                 (6,246) (24,777) $ (33,371)
Tax benefit (expense)                 8,624 (28,205) 14,029
Net Income (Loss) $ 6,114 $ 5,481 $ 752 $ (9,969) $ (11,624) $ (46,123) $ 3,995 $ 770 2,378 (52,982) (19,342)
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                 (1,212) (771) (196)
Loss Before Income Taxes                 (627) (374) 608
Tax benefit (expense)                 224 136 (148)
Net Income (Loss)                 (403) (238) 460
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)                 $ 585 $ 397 $ 804
v3.20.4
Nature of Business - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Equity [Abstract]      
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount $ 1,012 $ 774 $ 926
Unrealized gain (loss) on available-for-sale securities, Tax (Expense) Benefit (263) (201) (241)
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount 749 573 685
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Before-Tax Amount (585) (397) (804)
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Tax (Expense) Benefit 152 103 209
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Net-of-Tax Amount (433) (294) (595)
Reclassification adjustment for amounts reclassed to retained earnings related of the adoption of ASU 2016-01, Before-Tax Amount     (4,351)
Reclassification adjustment for amounts reclassed to retained earnings related of the adoption of ASU 2016-01, Tax (Expense) Benefit     1,131
Reclassification adjustment for amounts reclassed to retained earnings related of the adoption of ASU 2016-01, Net-of-Tax Amount     (3,220)
Defined benefit plan adjustments, Before-Tax Amount (1,784) (2,488) (5,638)
Defined benefit plan adjustments, Tax (Expense) Benefit 553 771 1,748
Defined benefit plan adjustments, Net-of-Tax Amount (1,231) (1,717) (3,890)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Before-Tax Amount 1,212 771 196
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Tax (Expense) Benefit (376) (239) (61)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Net-of-Tax Amount 836 532 135
Foreign currency translation adjustment, Before-Tax Amount 4,857 (1,480) (4,236)
Foreign currency translation adjustment, Net-of-Tax Amount 4,857 (1,480) (4,236)
Total Other Comprehensive Income (Loss), Before-Tax Amount 4,712 (2,820) (13,907)
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit 66 434 2,786
Other Comprehensive Income (Loss), net of tax $ 4,778 $ (2,386) $ (11,121)
v3.20.4
Nature of Business - Schedule of Impact of Adoption of ASU 2018-15 on Condensed Consolidated Balance Sheet (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net $ 62,399 $ 68,086
Other non-current assets $ 25,425 19,883
ASU 2018-15 [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net   68,086
Other non-current assets   19,883
Pre-Adoption [Member]    
Summary Of Significant Accounting Policy [Line Items]    
Property, plant and equipment, net   73,708
Other non-current 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 non-current assets   $ 5,622
v3.20.4
Nature of Business - Schedule of Impact of Adoption of ASU 2018-15 on Consolidated Statement of Income (Loss) and Cash Flows (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Summary Of Significant Accounting Policy [Line Items]                      
Net income (loss) $ 6,114 $ 5,481 $ 752 $ (9,969) $ (11,624) $ (46,123) $ 3,995 $ 770 $ 2,378 $ (52,982) $ (19,342)
Net cash provided by (used in) operating activities                 $ (16,518) (2,472) $ 55,454
ASU 2018-15 [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Net income (loss)                   (52,982)  
Net cash provided by (used in) operating activities                   (2,472)  
Pre-Adoption [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Net income (loss)                   (52,982)  
Net cash provided by (used in) operating activities                   $ (2,472)  
v3.20.4
Nature of Business - Schedule of Capitalized Implementation Costs Incurred with Hosting Arrangements, Included in Other Assets on Consolidated Balance Sheet (Detail)
$ in Thousands
Dec. 31, 2020
USD ($)
Hosting Arrangement Service Contract [Abstract]  
Implementation costs - hosting arrangements $ 13,515
Implementation costs - hosting arrangements, net $ 13,515
v3.20.4
Cash, Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash And Cash Equivalents [Abstract]      
Cash and cash equivalents $ 60,161,000 $ 73,773,000  
Restricted cash 18,000 $ 0 $ 0
Cash, cash equivalents and restricted cash $ 60,179,000    
v3.20.4
Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash And Cash Equivalents [Abstract]      
Restricted cash $ 18,000 $ 0 $ 0
v3.20.4
Business Combinations - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Nov. 30, 2018
Jun. 30, 2019
Mar. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]            
Goodwill       $ 7,000 $ 7,000  
Gain on contingency         1,230  
Bargain purchase gain net of income taxes           $ 11,322
SmartRG Inc [Member]            
Business Acquisition [Line Items]            
Business acquisition, agreement month and year       2018-11    
Business acquisition, description       In November 2018, we acquired SmartRG, Inc., for cash consideration. This transaction was accounted for as a business combination. We recorded goodwill of $3.5 million as a result of this acquisition, which represents the excess of the purchase price over the fair value of net assets acquired and liabilities assumed. The financial results of this acquisition are included in the consolidated financial statements since the date of acquisition. The revenues are included in the Subscriber Solutions & Experience category within the Network Solutions and Services & Support reportable segments.      
Goodwill $ 3,500          
Business combination, contingent consideration, liability 1,200          
Gain on contingency   $ 1,200        
Business combination escrow amount $ 2,800          
Business combination escrow fund released         1,300  
Sumitomo [Member]            
Business Acquisition [Line Items]            
Business acquisition, description       In March 2018, we acquired Sumitomo Electric Lightwave Corp.’s (SEL) North American EPON business and entered into a technology license and OEM supply agreement with Sumitomo Electric Industries, Ltd. (SEI).    
Date of acquisition       Mar. 31, 2018    
Bargain purchase gain net of income taxes     $ 11,300      
Smart RG and Sumitomo [Member]            
Business Acquisition [Line Items]            
Acquisition and integration related expenses and amortization of acquired intangibles       $ 3,800 $ 5,000 $ 2,900
v3.20.4
Business Combinations - Summary of Actual Revenue and Net Loss Included in Consolidated Statements of Income (Detail) - Smart RG and Sumitomo [Member]
$ in Thousands
9 Months Ended
Dec. 31, 2018
USD ($)
Business Acquisition [Line Items]  
Revenue $ 9,186
Net loss $ (1,297)
v3.20.4
Business Combinations - Summary of Unaudited Supplemental Pro Forma Information (Detail) - Smart RG and Sumitomo [Member]
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Business Acquisition [Line Items]  
Pro forma revenue $ 559,050
Pro forma net loss $ (33,862)
v3.20.4
Revenue - Additional Information (Detail)
12 Months Ended
Dec. 31, 2020
USD ($)
Category
Dec. 31, 2019
USD ($)
Revenue [Line Items]    
Number of categories | Category 3  
Remaining performance obligations $ 0  
Recognized revenue 11,000,000.0 $ 12,700,000
Other Than Maintenance Services [Member]    
Revenue [Line Items]    
Remaining performance obligations $ 17,700,000 $ 13,600,000
v3.20.4
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation Of Revenue [Line Items]                      
Revenue $ 130,129 $ 133,143 $ 128,715 $ 114,523 $ 115,787 $ 114,092 $ 156,391 $ 143,791 $ 506,510 $ 530,061 $ 529,277
Access & Aggregation [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 313,138 348,874 358,870
Subscriber Solutions & Experience [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 171,087 152,920 134,460
Traditional & Other Products [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 22,285 28,267 35,947
Network Solutions [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 438,015 455,226 458,232
Network Solutions [Member] | Access & Aggregation [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 262,578 289,980 301,801
Network Solutions [Member] | Subscriber Solutions & Experience [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 161,824 144,651 129,067
Network Solutions [Member] | Traditional & Other Products [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 13,613 20,595 27,364
Services & Support [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 68,495 74,835 71,045
Services & Support [Member] | Access & Aggregation [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 50,560 58,894 57,069
Services & Support [Member] | Subscriber Solutions & Experience [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 9,263 8,269 5,393
Services & Support [Member] | Traditional & Other Products [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 $ 8,672 $ 7,672 $ 8,583
v3.20.4
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Dec. 31, 2020
Revenue [Line Items]  
Remaining performance obligations, percentage 61.00%
Remaining performance obligations, period 12 months
v3.20.4
Revenue - Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]      
Accounts receivable $ 98,827 $ 90,500 $ 90,531
Contract assets 63 $ 2,800 2,812
Unearned revenue 14,092   11,963
Non-current unearned revenue $ 6,888   $ 6,012
v3.20.4
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense $ 6,834 $ 6,962 $ 7,155
Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock (1,629) (1,659) (1,432)
Total stock-based compensation expense, net of tax 5,205 5,303 5,723
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 426 369 418
Selling, General and Administrative Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense 4,036 3,889 3,989
Research and Development Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense 2,372 2,704 2,748
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 $ 6,408 $ 6,593 $ 6,737
v3.20.4
Stock-Based Compensation (Stock Incentive Program Descriptions) - Additional Information (Detail) - shares
12 Months Ended
Dec. 31, 2020
Jan. 31, 2015
PSUs, RSUs and Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period 4 years  
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  
Number of shares of common stock authorized   7,700,000
Multiplier used when issuing PSUs, restricted stock and RSUs   2.5
Vesting period 4 years  
Contractual term 10 years  
2015 Employee Stock Incentive Plan [Member] | Minimum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Expiration date of options 2025  
2015 Employee Stock Incentive Plan [Member] | Maximum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Expiration date of options 2026  
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  
Number of shares of common stock authorized 500,000  
Contractual term 10 years  
Expiration date of options 2019  
Previous Stock Incentive Plans [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 Employee Incentive Plan [Member] | PSUs, RSUs and Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period 4 years  
2020 Employee Incentive Plan [Member] | Stock Options [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period 4 years  
2015 Employee Incentive Plan to 2020 Employee Incentive Plan [Member] | PSUs, RSUs and Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Forfeiture of stock increase in issuance of common stock 2.5  
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  
2006 Employee Stock Incentive Plan [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Number of shares of common stock authorized 13,000,000.0  
Vesting period 4 years  
Contractual term 10 years  
2006 Employee Stock Incentive Plan [Member] | Minimum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Expiration date of options 2021  
2006 Employee Stock Incentive Plan [Member] | Maximum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Expiration date of options 2024  
v3.20.4
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail)
shares in Thousands
12 Months Ended
Dec. 31, 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 1,029
Number of Shares, PSUs, RSUs and restricted stock vested | shares (453)
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares (621)
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares 1,846
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares $ 14.58
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 11.02
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares 14.26
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares 18.14
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares $ 11.49
v3.20.4
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) - Market-Based PSUs [Member] - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Estimated fair value per share $ 14.43   $ 16.59
Expected volatility 51.88%    
Risk-free interest rate 0.24%    
Expected dividend yield 2.85%    
Minimum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Estimated fair value per share   $ 9.53  
Expected volatility   32.70% 27.98%
Risk-free interest rate   1.60% 2.11%
Expected dividend yield   2.30% 1.83%
Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Estimated fair value per share   $ 18.05  
Expected volatility   38.90% 31.58%
Risk-free interest rate   2.46% 2.99%
Expected dividend yield   4.09% 2.49%
v3.20.4
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Recognition period of non-vested compensation cost   2 years 10 months 24 days
Performance Stock Units (PSUs) [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   3 years
Share issued 0.3  
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% 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% 150.00%
PSUs, RSUs and Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   4 years
Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   1 year
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   $ 16.7
Recognition period of non-vested compensation cost   2 years 10 months 24 days
Stock Options, PSUs, RSUs or Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Options available for issuance under shareholders-approved equity plan   3.6
v3.20.4
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]      
Number of Options, Stock options outstanding, Beginning Balance 3,572,000    
Number of Options, Stock options granted 0 0 0
Number of Options, Stock options expired (854,000)    
Number of Options, Stock options outstanding, Ending Balance 2,718,000 3,572,000  
Number of Options, Stock options exercisable 2,718,000    
Weighted Average Exercise Price, Stock options outstanding, Beginning Balance $ 22.88    
Weighted Average Exercise Price, Stock options expired 28.00    
Weighted Average Exercise Price, Stock options outstanding, Ending Balance 21.17 $ 22.88  
Weighted Average Exercise Price, Stock options exercisable $ 21.17    
Weighted Avg. Remaining Contractual Life in Years, Stock options outstanding 2 years 10 months 9 days 3 years 4 months 24 days  
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable 2 years 10 months 9 days    
Aggregate Intrinsic Value, Stock options outstanding $ 0    
v3.20.4
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Aggregate intrinsic value based on fair market value $ 0    
Total pre-tax intrinsic value of options exercised $ 0 $ 100,000 $ 200,000
Fair value of options fully vested   $ 900,000 $ 2,500,000
Number of Stock options, granted 0 0 0
Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Fair value of options fully vested $ 100,000    
Unvested Stock Options [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Unrecognized compensation expense related to non-vested stock options $ 0    
v3.20.4
Stock-Based Compensation - Stock Options Outstanding (Detail) - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Options Outstanding at 12/31/20 2,718 3,572
Options Exercisable at 12/31/20 2,718  
Weighted Average Exercise Price, Options exercisable $ 21.17  
$15.33 - 18.96 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 15.33  
Upper Range Limit $ 18.96  
Options Outstanding at 12/31/20 1,007  
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding 3 years 8 months 8 days  
Weighted Average Exercise Price, Options Outstanding $ 15.91  
Options Exercisable at 12/31/20 1,007  
Weighted Average Exercise Price, Options exercisable $ 15.91  
$18.97 - 23.45 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 18.97  
Upper Range Limit $ 23.45  
Options Outstanding at 12/31/20 588  
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding 3 years 8 months 4 days  
Weighted Average Exercise Price, Options Outstanding $ 18.97  
Options Exercisable at 12/31/20 588  
Weighted Average Exercise Price, Options exercisable $ 18.97  
$23.46 - 30.35 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 23.46  
Upper Range Limit $ 30.35  
Options Outstanding at 12/31/20 603  
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding 2 years 6 months 18 days  
Weighted Average Exercise Price, Options Outstanding $ 24.11  
Options Exercisable at 12/31/20 603  
Weighted Average Exercise Price, Options exercisable $ 24.11  
$30.36 - 41.92 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 30.36  
Upper Range Limit $ 41.92  
Options Outstanding at 12/31/20 520  
Weighted Avg. Remaining Contractual Life In Years, Options Outstanding 7 months 20 days  
Weighted Average Exercise Price, Options Outstanding $ 30.40  
Options Exercisable at 12/31/20 520  
Weighted Average Exercise Price, Options exercisable $ 30.40  
v3.20.4
Investments - Debt Securities and Other Investments, Included on Consolidated Balance Sheet and Recorded at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost $ 44,666   $ 37,528
Gross Unrealized Gains 457   153
Gross Unrealized Losses (7)   (21)
Fair Value 45,116 $ 37,700 37,660
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 11,762   9,304
Gross Unrealized Gains 123   80
Fair Value 11,885   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 2,854   930
Gross Unrealized Gains 30    
Fair Value 2,884   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 6,634   6,867
Gross Unrealized Gains 74   26
Gross Unrealized Losses     (3)
Fair Value 6,708   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 11,536   6,944
Gross Unrealized Gains 114   26
Gross Unrealized Losses (6)   (8)
Fair Value 11,644   6,962
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 9,763   12,311
Gross Unrealized Gains 112   21
Gross Unrealized Losses     (9)
Fair Value 9,875   12,323
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 1,334   372
Gross Unrealized Gains 4    
Gross Unrealized Losses (1)   (1)
Fair Value 1,337   371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Amortized Cost 250    
Fair Value 250    
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 533    
Fair Value $ 533    
v3.20.4
Investments - Contractual Maturities of Debt Securities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities, Fair Value/Carrying Value $ 45,116 $ 37,700 $ 37,660
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 1,477    
One to two years 2,007    
Two to three years 7,013    
Three to five years 1,388    
Available-for-sale debt securities, Fair Value/Carrying Value 11,885   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 96    
One to two years 1,245    
Two to three years 1,246    
Three to five years 297    
Available-for-sale debt securities, Fair Value/Carrying Value 2,884   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 144    
One to two years 300    
Two to three years 622    
Three to five years 3,658    
Five to ten years 1,241    
More than ten years 743    
Available-for-sale debt securities, Fair Value/Carrying Value 6,708   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 63    
One to two years 2,129    
Two to three years 2,940    
Three to five years 183    
Five to ten years 2,095    
More than ten years 4,234    
Available-for-sale debt securities, Fair Value/Carrying Value 11,644   6,962
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
One to two years 5,122    
Two to three years 4,526    
Three to five years 227    
Available-for-sale debt securities, Fair Value/Carrying Value 9,875   12,323
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 75    
One to two years 462    
Two to three years 498    
Three to five years 302    
Available-for-sale debt securities, Fair Value/Carrying Value 1,337   $ 371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 250    
Available-for-sale debt securities, Fair Value/Carrying Value 250    
Other [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Less than one year 533    
Available-for-sale debt securities, Fair Value/Carrying Value $ 533    
v3.20.4
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]      
Gross realized gains on debt securities $ 459 $ 108 $ 57
Gross realized losses on debt securities (58) (50) (592)
Total gain (loss) recognized, net $ 401 $ 58 $ (535)
v3.20.4
Investments - Additional Information (Detail) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jan. 01, 2020
Schedule of Investments [Line Items]          
Purchase an available-for-sale debt with credit deterioration   $ 0 $ 0 $ 0  
Transfer from investments $ 3,400,000        
Carrying value     3,400,000    
Asset impairments   65,000 3,872,000 $ 0  
Carrying value of investment   800,000      
Note receivable, noncurrent   900,000     $ 900,000
Net Investment Gain (Loss) [Member]          
Schedule of Investments [Line Items]          
Asset impairments   2,600,000      
Other Receivables [Member]          
Schedule of Investments [Line Items]          
Note receivable, current $ 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    
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member]          
Schedule of Investments [Line Items]          
Investment concentration risk percentage   5.00%      
v3.20.4
Investments - Breakdown of Investments with Unrealized Losses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value $ 3,378 $ 8,965
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (7) (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 3,378 9,101
Total Unrealized Losses (7) (21)
Corporate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 336 203
Total Fair Value 336 203
Municipal Fixed-Rate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 310 930
Total Fair Value 310 930
Asset-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Continuous Unrealized Loss Position for Less than 12 Months, Fair Value 2 797
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses   (3)
Total Fair Value 2 797
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 2,078 2,594
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (6) (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 2,078 2,730
Total Unrealized Losses (6) (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 350 4,070
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses   (9)
Total Fair Value 350 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 302 371
Continuous Unrealized Loss Position for Less than 12 Months, Unrealized Losses (1) (1)
Total Fair Value 302 371
Total Unrealized Losses $ (1) $ (1)
v3.20.4
Investments - Realized and Unrealized Gains and Losses for Marketable Equity Securities (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]      
Realized gains (losses) on equity securities sold $ (2,382) $ (96) $ 1,306
Unrealized gains (losses) on equity securities held 6,831 11,472 (4,821)
Total gain (loss) recognized, net $ 4,449 $ 11,376 $ (3,515)
v3.20.4
Investments - Cash Equivalents and Investments held at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities $ 45,116 $ 37,700 $ 37,660
Marketable equity securities 800    
Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Other investments 1,400   2,442
Total 82,217   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 1,400   2,442
Total 46,976   73,571
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Total 34,708   25,337
Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Total 533    
Money Market Funds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 497   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 497   1,309
U.S. Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 9,875   12,323
U.S. Government Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Cash equivalents 350    
Available-for-sale debt securities 9,875   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 350    
Available-for-sale debt securities 9,875   12,323
Corporate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,885   9,384
Corporate Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,885   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 11,885   9,384
Municipal Fixed-Rate Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 2,884   930
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 2,884   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 2,884   930
Asset-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 6,708   6,890
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 6,708   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 6,708   6,890
Mortgage/Agency-Backed Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,644   6,962
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 11,644   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 11,644   6,962
Foreign Government Bonds [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 1,337   371
Foreign Government Bonds [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 1,337   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 1,337   371
Commercial Paper [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 250    
Commercial Paper [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 250    
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 250    
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
Other Investments [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 533    
Other Investments [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 533    
Other Investments [Member] | Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Available-for-sale debt securities 533    
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member]      
Schedule of Available-for-sale Securities [Line Items]      
Marketable equity securities 10,963   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 10,963   35,501
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 23,891   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 $ 23,891   $ 21,698
v3.20.4
Inventory - Components of Inventory, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Raw materials $ 47,026 $ 36,987
Work in process 776 1,085
Finished goods 77,655 60,233
Total Inventory, net $ 125,457 $ 98,305
v3.20.4
Inventory - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 39.6 $ 34.1
v3.20.4
Property, Plant and Equipment - Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Property Plant And Equipment [Abstract]    
Land $ 4,575 $ 4,575
Building and land improvements 35,142 34,797
Building 68,169 68,157
Furniture and fixtures 19,965 19,959
Computer hardware and software 70,942 68,777
Engineering and other equipment 132,920 130,430
Total Property, Plant and Equipment 331,713 326,695
Less: accumulated depreciation (269,314) (258,609)
Total Property, Plant and Equipment, net $ 62,399 $ 68,086
v3.20.4
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property Plant And Equipment [Abstract]      
Asset impairments $ 65,000 $ 3,872,000 $ 0
Depreciation $ 12,200,000 $ 12,500,000 $ 12,700,000
v3.20.4
Leases - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
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   $ 400,000  
Variable lease cost $ 700,000 900,000  
Future operating lease payments 5,554,000   $ 300,000
Allowance for credit losses for our investment in sales type leases $ 0 $ 0  
Minimum [Member]      
Lessor and Lessee Lease Description [Line Items]      
Operating lease, remaining lease terms 2 months    
Operating lease, options to terminate term 3 months    
Maximum [Member]      
Lessor and Lessee Lease Description [Line Items]      
Operating lease, remaining lease terms 55 months    
Operating lease, renewal term 2 years    
Short-term lease cost $ 100,000    
Lessor sales type lease arrangement terms for network equipments 5 years    
v3.20.4
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
ASSETS    
Operating lease assets $ 5,309 $ 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 $ 1,806 $ 2,676
Operating lease, liability, current, statement of financial position [extensible list] us-gaap:AccruedLiabilitiesAndOtherLiabilities us-gaap:AccruedLiabilitiesAndOtherLiabilities
Non-current operating lease liability $ 3,574 $ 5,818
Operating lease, liability, noncurrent, statement of financial position [extensible list] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent
Total lease liability $ 5,380 $ 8,494
v3.20.4
Leases - Components of Lease Expense included in Consolidated Statement of Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Lessor Lease Description [Line Items]    
Total operating lease expense $ 2,545 $ 3,881
Cost of Sales [Member]    
Lessor Lease Description [Line Items]    
Total operating lease expense 113 64
Selling, General and Administrative Expenses [Member]    
Lessor Lease Description [Line Items]    
Total operating lease expense 1,311 1,400
Research and Development Expenses [Member]    
Lessor Lease Description [Line Items]    
Total operating lease expense $ 1,121 $ 2,417
v3.20.4
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Lease Liabilities Payments Due [Abstract]      
2021 $ 1,895    
2022 1,600    
2023 1,251    
2024 521    
2025 287    
Total lease payments 5,554   $ 300
Less: Interest (174)    
Present value of lease liabilities $ 5,380 $ 8,494  
v3.20.4
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Detail)
Dec. 31, 2020
Dec. 31, 2019
USD    
Weighted average remaining lease term (years)    
Operating leases with functional currency 2 years 4 months 24 days 2 years 7 months 6 days
Weighted average discount rate    
Operating leases with functional currency 4.47% 4.02%
Euro    
Weighted average remaining lease term (years)    
Operating leases with functional currency 3 years 7 months 6 days 4 years 4 months 24 days
Weighted average discount rate    
Operating leases with functional currency 1.37% 1.84%
v3.20.4
Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Cash paid for amounts included in the measurement of operating lease assets/liabilities    
Cash used in operating activities related to operating leases $ 2,632 $ 3,439
Right-of-use assets obtained in exchange for operating lease obligations $ 324 $ 11,615
v3.20.4
Leases - Components of Net Investment in Sales-Type Leases (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Sales Type Leases Net Investment In Leases [Abstract]      
Current minimum lease payments receivable $ 702   $ 1,201
Non-current minimum lease payments receivable 347   889
Total minimum lease payments receivable 1,049   2,090
Less: Current unearned revenue 218   365
Less: Non-current unearned revenue 50   163
Net investment in sales-type leases $ 781 $ 1,600 $ 1,562
v3.20.4
Leases - Schedule of Components of Gross Profit Related to Sales-type Lease and Interest and Dividend Income Included in Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Revenue [Member] | Network Solutions [Member]    
Lessor Lease Description [Line Items]    
Sales type leases $ 78 $ 1,723
Cost of Sales [Member] | Network Solutions [Member]    
Lessor Lease Description [Line Items]    
Sales type leases 32 675
Gross Profit [Member]    
Lessor Lease Description [Line Items]    
Sales type leases 46 1,048
Interest and Dividend Income [Member]    
Lessor Lease Description [Line Items]    
Sales type leases $ 42 $ 357
v3.20.4
Leases - Schedule of Future Minimum Lease Payments to be Received from Sales-Type Leases (Detail)
$ in Thousands
Dec. 31, 2020
USD ($)
Sales Type And Direct Financing Leases Lease Receivable Fiscal Year Maturity [Abstract]  
2021 $ 703
2022 250
2023 88
2024 7
2025 1
Total $ 1,049
v3.20.4
Goodwill - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Line Items]      
Goodwill $ 7,000,000.0 $ 7,000,000.0  
Impairment charges related to goodwill 0 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  
v3.20.4
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]    
Gross Value $ 39,293 $ 42,596
Accumulated Amortization (15,823) (14,775)
Net Value 23,470 27,821
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 21,123 22,356
Accumulated Amortization (8,055) (7,233)
Net Value 13,068 15,123
Developed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 8,200 10,170
Accumulated Amortization (2,546) (3,379)
Net Value 5,654 6,791
Licensed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 5,900 5,900
Accumulated Amortization (1,830) (1,174)
Net Value 4,070 4,726
Supplier Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 2,800 2,800
Accumulated Amortization (2,800) (2,508)
Net Value   292
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 560 560
Accumulated Amortization (152) (79)
Net Value 408 481
Patent [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 500 500
Accumulated Amortization (294) (226)
Net Value 206 274
Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Value 210 310
Accumulated Amortization (146) (176)
Net Value $ 64 $ 134
v3.20.4
Intangible Assets - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Intangible Assets Net Excluding Goodwill [Abstract]      
Impairment losses of intangible assets $ 0 $ 0 $ 0
Amortization expense $ 4,400,000 $ 5,300,000 $ 2,300,000
v3.20.4
Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Finite Lived Intangible Assets Future Amortization Expense [Abstract]    
2021 $ 4,119  
2022 3,494  
2023 3,340  
2024 3,245  
2025 3,031  
Thereafter 6,241  
Net Value $ 23,470 $ 27,821
v3.20.4
Revolving Credit Agreement - Additional Information (Detail) - Cadence Bank, N.A [Member] - Secured Revolving Credit Facility [Member] - Revolving Credit and Security Agreement (The “Revolving Credit Agreement”) [Member] - USD ($)
Nov. 04, 2020
Dec. 31, 2020
Line Of Credit Facility [Line Items]    
Secured revolving credit facility amount $ 10,000,000.0  
Credit agreement maturity period Nov. 04, 2021  
Maximum loan to value ratio percentage 75.00%  
Maximum interest rate in no event time 1.50%  
Borrowings under revolving credit agreement   $ 0
Screen Rate [Member]    
Line Of Credit Facility [Line Items]    
Debt instrument interest over screen rate 1.50%  
v3.20.4
Alabama State Industrial Development Authority Financing and Economic Incentives - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2008
Jan. 13, 1995
Debt Instrument [Line Items]            
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN     $ 24,600      
Repayment of bond   $ 24,600        
Payments on long-term debt     1,000 $ 1,100    
Total economic incentives realized   $ 0 1,200 $ 1,400    
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      
Payments on long-term debt     $ 1,000      
v3.20.4
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current      
Federal $ (10,574) $ (518) $ (8,001)
State (329) (1,065) (476)
International 3,635 (282) 11,705
Total Current (7,268) (1,865) 3,228
Deferred      
Federal   24,801 (14,448)
State   5,815 (3,390)
International (1,356) (546) 581
Total Deferred (1,356) 30,070 (17,257)
Total Income Tax Expense (Benefit) $ (8,624) $ 28,205 $ (14,029)
v3.20.4
Income Taxes - Effective Income Tax Rate Differs from Federal Statutory Rate (Detail)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Tax provision computed at the federal statutory rate 21.00% 21.00% 21.00%
State income tax provision, net of federal benefit 11.10% 6.97% 14.53%
Federal research credits 57.63% 15.53% 14.23%
Foreign taxes (17.83%) 2.83% (11.45%)
Tax-exempt income 1.93% 0.49% 0.45%
State tax incentives   3.85% 3.15%
Change in valuation allowance 44.79% (172.82%)  
Foreign tax credits 17.90% 16.69%  
Stock-based compensation (23.36%) (6.01%) (2.87%)
Withholding taxes (20.83%)    
Bargain purchase     8.82%
Impact of CARES Act 45.65%    
Impact of U.S. tax reform     12.00%
Global intangible low-taxed income ("GILTI") (0.49%) (1.87%) (17.48%)
Other, net 0.56% (0.49%) (0.34%)
Effective Tax Rate 138.05% (113.83%) 42.04%
v3.20.4
Income Taxes - Income (Loss) Before Expense (Benefit) for Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
U.S. entities $ (12,833) $ (29,829) $ (74,131)
International entities 6,587 5,052 40,760
Loss Before Income Taxes $ (6,246) $ (24,777) $ (33,371)
v3.20.4
Income Taxes - Significant Components of Current and Non-current Deferred Taxes (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]    
Inventory $ 8,882 $ 7,144
Accrued expenses 2,331 2,330
Deferred compensation 6,714 5,660
Stock-based compensation 1,971 2,451
Uncertain tax positions related to state taxes and related interest 149 241
Pensions 8,554 7,074
Foreign losses 2,590 2,925
State losses and credit carry-forwards 5,509 3,995
Federal loss and research carry-forwards 17,323 12,171
Lease liabilities 1,588 2,496
Capitalized research and development expenditures 11,832 22,230
Valuation allowance (45,818) (48,616)
Total Deferred Tax Assets 21,625 20,101
Property, plant and equipment (4,546) (2,815)
Intellectual property (4,375) (5,337)
Right of use lease assets (1,585) (2,496)
Investments (1,250) (1,892)
Total Deferred Tax Liabilities (11,756) (12,540)
Net Deferred Tax Assets $ 9,869 $ 7,561
v3.20.4
Income Taxes - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Line Items]        
Income tax benefit, result of CARES act of 2020 $ 10,800,000      
Valuation allowance established against deferred tax assets 7,900,000      
Tax rate differential on carrying back losses amount $ 2,900,000      
US corporate tax rate 35.00%      
Federal tax rate 21.00% 21.00% 21.00%  
Deferred tax benefit recorded as an adjustment to other comprehensive income $ 100,000 $ 400,000    
Deferred tax assets, gross 55,687,000 56,177,000    
Valuation allowance established against deferred tax assets 45,818,000 48,616,000    
Deferred tax assets tax credit carryforward net operating loss and research and development 2,000,000.0      
Decrease in valuation allowance 2,800,000      
Deferred tax assets tax credit carryforward claims related to CARES Act 7,900,000      
Net of deferred tax liabilities 9,869,000 7,561,000    
Foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development cost and state credit carry-forwards $ 37,300,000 41,300,000    
Operating loss carry forwards expiration year 2029      
Deferred tax assets $ 21,625,000 20,101,000    
Cash and cash equivalents 60,161,000 73,773,000    
Short-term investments (includes $1,731 and $5,201 of available-for-sale securities as of December 31, 2020 and 2019, respectively, reported at fair value) 3,131,000 33,243,000    
Short-term liquidity amount 63,300,000 107,000,000.0    
Withholding tax liabilities in jurisdiction 700,000      
Income tax benefit (expense) from stock options exercised adjustment to equity 0 0 $ 0  
Unrecognized tax benefits 1,078,000 1,487,000 1,868,000 $ 2,366,000
Unrecognized tax benefits, effective tax rate 1,000,000.0 1,400,000 1,700,000  
Accrued interest and penalties 300,000 500,000 $ 700,000  
Foreign Subsidiaries [Member]        
Income Tax Disclosure [Line Items]        
Short-term liquidity amount $ 49,700,000 $ 52,300,000    
Short-term liquidity, in percentage 78.50% 48.90%    
Operating Losses Expiration Between 2020 and 2039 [Member]        
Income Tax Disclosure [Line Items]        
Deferred tax assets $ 25,100,000      
Minimum [Member]        
Income Tax Disclosure [Line Items]        
Operating loss carry forwards expiration year 2021      
Maximum [Member]        
Income Tax Disclosure [Line Items]        
Operating loss carry forwards expiration year 2040      
Domestic [Member]        
Income Tax Disclosure [Line Items]        
Deferred tax assets, gross $ 43,791,000 $ 46,266,000    
Valuation allowance established against deferred tax assets 43,791,000 $ 46,266,000    
Current valuation allowance established against deferred tax assets $ 43,800,000      
v3.20.4
Income Taxes - Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets $ 55,687 $ 56,177
Valuation allowance (45,818) (48,616)
Net Deferred Tax Assets 9,869 7,561
Domestic [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 43,791 46,266
Valuation allowance (43,791) (46,266)
International [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 11,896 9,911
Valuation allowance (2,027) (2,350)
Net Deferred Tax Assets $ 9,869 $ 7,561
v3.20.4
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Balance at beginning of period $ 1,487 $ 1,868 $ 2,366
Increases for tax position related to, Prior years 4   3
Increases for tax position related to, Current year 165 161 254
Decreases for tax positions related to, Prior years   (71)  
Expiration of applicable statute of limitations (578) (471) (755)
Balance at end of period $ 1,078 $ 1,487 $ 1,868
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Change in projected benefit obligation:      
Projected benefit obligation at beginning of period $ 43,902 $ 37,245  
Service cost 1,270 1,471 $ 1,193
Interest cost 444 634 727
Actuarial (gain) loss - experience (744) 453  
Actuarial loss - assumptions 2,458 5,091  
Benefit payments (509) (166)  
Effects of foreign currency exchange rate changes 4,106 (826)  
Projected benefit obligation at end of period 50,927 43,902 37,245
Change in plan assets:      
Fair value of plan assets at beginning of period 28,016 24,159  
Actual gain on plan assets 1,744 4,392  
Contributions 24    
Effects of foreign currency exchange rate changes 2,479 (535)  
Fair value of plan assets at end of period 32,263 28,016 $ 24,159
Unfunded status at end of period $ (18,664) $ (15,886)  
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Accumulated benefit obligation $ 50.9 $ 43.9
Bond Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of target allocation ranges by asset class 50.00%  
Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of target allocation ranges by asset class 40.00%  
Cash, Real Estate, and Managed Futures [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of target allocation ranges by asset class 10.00%  
Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Threshold for unamortized gain losses 10.00%  
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]    
Current liability $ 0 $ 0
Pension liability 18,664 15,886
Total $ 18,664 $ 15,886
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net periodic benefit cost:      
Service cost $ 1,270 $ 1,471 $ 1,193
Interest cost 444 634 727
Expected return on plan assets (1,679) (1,392) (1,548)
Amortization of actuarial losses 970 795 247
Net periodic benefit cost 1,005 1,508 619
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):      
Net actuarial (gain) loss 1,784 2,488 5,638
Amortization of actuarial losses (1,212) (771) (196)
Amount recognized in other comprehensive income (loss) 572 1,717 5,442
Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1,577 $ 3,225 $ 6,061
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]    
Net actuarial loss $ (13,545) $ (12,973)
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]      
Discount rate 1.00% 1.75% 2.13%
Rate of compensation increase 2.00% 2.00% 2.00%
Expected long-term rates of return 5.90% 5.90% 5.90%
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail)
Dec. 31, 2020
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]    
Discount rate 0.69% 1.00%
Rate of compensation increase 2.00% 2.00%
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Payments Expected Future Service (Detail)
$ in Thousands
Dec. 31, 2020
USD ($)
Compensation And Retirement Disclosure [Abstract]  
2021 $ 714
2022 1,048
2023 1,348
2024 1,657
2025 1,621
2026 - 2030 7,615
Total $ 14,003
v3.20.4
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Cash Equivalents and Investments Held at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 32,263 $ 28,016 $ 24,159
Pension Benefit Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 32,263 28,016  
Pension Benefit Plan [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,935 691  
Pension Benefit Plan [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 30,328 27,325  
Pension Benefit Plan [Member] | Government Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5,971 6,645  
Pension Benefit Plan [Member] | Corporate Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 6,746 5,514  
Pension Benefit Plan [Member] | Emerging Markets Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 307 531  
Pension Benefit Plan [Member] | Global Equity [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 11,638 11,071  
Pension Benefit Plan [Member] | Emerging Markets [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,848 956  
Pension Benefit Plan [Member] | Balanced Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,515 863  
Pension Benefit Plan [Member] | Large Cap Value [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 198 312  
Pension Benefit Plan [Member] | Global Real Estate Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 799 902  
Pension Benefit Plan [Member] | Managed Futures Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 306 531  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 32,263 28,016  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,935 691  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 30,328 27,325  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5,971 6,645  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 6,746 5,514  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Emerging Markets Bonds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 307 531  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Global Equity [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 11,638 11,071  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Emerging Markets [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,848 956  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Balanced Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,515 863  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Large Cap Value [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 198 312  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Global Real Estate Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 799 902  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Managed Futures Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 306 $ 531  
v3.20.4
Employee Benefit Plans (401(k) Savings Plan) - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]      
Criteria of employer to contribute in employee saving plan 100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions    
Percentage of employer match to employee's contribution 100.00%    
Percentage of employer match to employee's contribution 50.00%    
Upper limit of employer match 4.00%    
Percentage of employee first contribution 3.00%    
Percentage of employee second contribution 2.00%    
Maximum statutory compensation under code $ 285,000    
Contribution expense and plan administration costs for savings plan $ 4,000,000.0 $ 4,400,000 $ 4,400,000
v3.20.4
Employee Benefit Plans (Deferred Compensation Plans) - Additional Information (Detail)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
Compensation_Program
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Number of deferred compensation programs | Compensation_Program 4    
Maximum percentage of cash compensation allowed to be deferred under the deferred compensation plan 25.00%    
Criteria for benefit distribution six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election    
Benefit distribution, scheduled to be distributed term 6 months    
Deferred compensation income (expense) adjustments due to fair value of the trust assets $ 4.3 $ 3.6 $ (2.1)
Treasury Stock [Member]      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Common stock, value of shares held by trust $ 2.8    
Minimum [Member]      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Benefit distribution, paid over annual instalment term 3 years    
Maximum [Member]      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Benefit distribution, paid over annual instalment term 10 years    
v3.20.4
Employee Benefit Plans (Deferred Compensation Plans) - Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Long-term Investments $ 23,891 $ 21,698
Amounts Payable to Plan Participants Deferred Compensation Liability 25,866 21,698
Deferred Compensation Plan Assets [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Long-term investments 23,891 21,698
Deferred Compensation Liability [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Amounts Payable to Plan Participants Deferred Compensation Liability $ 25,866 $ 21,698
v3.20.4
Employee Benefit Plans (Retiree Medical Coverage) - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]    
Maximum number of years medical, dental and prescription drug coverage to spouses of retired former officers 30 years  
Total liability recorded to provide medical, dental and prescription drug coverage $ 0.2 $ 0.1
v3.20.4
Segment Information and Major Customers - Additional Information (Detail)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
Customer
Category
Segment
Dec. 31, 2019
USD ($)
Customer
Dec. 31, 2018
Customer
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 2    
Number of categories | Category 3    
Number of single customer comprising more than 10% of sales | Customer 3 3 2
Long-lived assets $ 62.4 $ 68.1  
U.S. [Member]      
Segment Reporting Information [Line Items]      
Long-lived assets 58.4 64.2  
Outside U.S. [Member]      
Segment Reporting Information [Line Items]      
Long-lived assets $ 4.0 $ 3.9  
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 15.00% 19.00% 27.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 2 [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 12.00% 17.00% 17.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 3 [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 10.00% 13.00%  
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | The Five Largest Customers Other Than Those With More Than 10% Of Revenues and Excluding Distributors [Member]      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 19.00% 15.00% 18.00%
v3.20.4
Segment Information and Major Customers - Sales and Gross Profit of Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Revenue $ 130,129 $ 133,143 $ 128,715 $ 114,523 $ 115,787 $ 114,092 $ 156,391 $ 143,791 $ 506,510 $ 530,061 $ 529,277
Gross Profit $ 53,517 $ 58,962 $ 53,472 $ 51,600 $ 47,209 $ 46,331 $ 65,015 $ 60,612 217,551 219,167 203,565
Network Solutions [Member]                      
Segment Reporting Information [Line Items]                      
Revenue                 438,015 455,226 458,232
Gross Profit                 193,789 191,549 179,303
Services & Support [Member]                      
Segment Reporting Information [Line Items]                      
Revenue                 68,495 74,835 71,045
Gross Profit                 $ 23,762 $ 27,618 $ 24,262
v3.20.4
Segment Information and Major Customers - Disaggregation of Sales by Category (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation Of Revenue [Line Items]                      
Revenue $ 130,129 $ 133,143 $ 128,715 $ 114,523 $ 115,787 $ 114,092 $ 156,391 $ 143,791 $ 506,510 $ 530,061 $ 529,277
Network Solutions [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 438,015 455,226 458,232
Services & Support [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 68,495 74,835 71,045
Access & Aggregation [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 313,138 348,874 358,870
Access & Aggregation [Member] | Network Solutions [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 262,578 289,980 301,801
Access & Aggregation [Member] | Services & Support [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 50,560 58,894 57,069
Subscriber Solutions & Experience [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 171,087 152,920 134,460
Subscriber Solutions & Experience [Member] | Network Solutions [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 161,824 144,651 129,067
Subscriber Solutions & Experience [Member] | Services & Support [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 9,263 8,269 5,393
Traditional & Other Products [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 22,285 28,267 35,947
Traditional & Other Products [Member] | Network Solutions [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 13,613 20,595 27,364
Traditional & Other Products [Member] | Services & Support [Member]                      
Disaggregation Of Revenue [Line Items]                      
Revenue                 $ 8,672 $ 7,672 $ 8,583
v3.20.4
Segment Information and Major Customers - Sales Information by Geographic Area (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenue from External Customer [Line Items]                      
Revenue $ 130,129 $ 133,143 $ 128,715 $ 114,523 $ 115,787 $ 114,092 $ 156,391 $ 143,791 $ 506,510 $ 530,061 $ 529,277
United States [Member]                      
Revenue from External Customer [Line Items]                      
Revenue                 352,079 300,853 288,843
Germany [Member]                      
Revenue from External Customer [Line Items]                      
Revenue                 74,882 78,062 167,251
Mexico [Member]                      
Revenue from External Customer [Line Items]                      
Revenue                 4,087 90,795 12,186
Other International [Member]                      
Revenue from External Customer [Line Items]                      
Revenue                 $ 75,462 $ 60,351 $ 60,997
v3.20.4
Commitments and Contingencies - Additional Information (Detail)
12 Months Ended
Mar. 31, 2020
Officer
Oct. 17, 2019
Officer
Dec. 31, 2020
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2019
USD ($)
Contingencies And Commitments [Line Items]          
Commitments related to performance bonds     $ 15,200,000   $ 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     $ 11,200,000    
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    
Long-term Investments [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     11,200,000    
Minimum [Member]          
Contingencies And Commitments [Line Items]          
Collateral value required to be maintained     9,000,000.0    
Maximum [Member] | Scenario Forecast [Member]          
Contingencies And Commitments [Line Items]          
Collateral value required to be maintained       $ 15,000,000.0  
Maximum [Member] | Restricted Cash [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     $ 100,000    
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      
v3.20.4
Current Expected Credit Losses - Additional Information (Detail)
12 Months Ended
Jan. 01, 2020
USD ($)
Dec. 31, 2020
USD ($)
Position
Dec. 31, 2019
USD ($)
Financing Receivable Allowance For Credit Losses [Line Items]      
Accounts receivable $ 90,500,000 $ 98,827,000 $ 90,531,000
Allowance for credit loss, accounts receivable 0 0  
Allowance for credit losses, accounts receivable   38,000 38,000
Outstanding contract asset 2,800,000 63,000 2,812,000
Allowance for credit losses related to contract assets 0 0  
Outstanding net investment in sales-type leases 1,600,000 781,000 1,562,000
Net investment in sales-type leases, allowance for credit loss 0 0  
Secured loan receivable 900,000 900,000  
Accrued interest receivable 100,000 100,000  
Secured loan receivable, allowance for credit loss 0 0  
Available-for-sale debt securities 37,700,000 $ 45,116,000 37,660,000
Number of positions in available-for-sale debt securities, unrealized loss position | Position   42  
Available-for-sale, debt securities, allowance for credit loss 0 $ 0  
Secured Loans Receivable [Member]      
Financing Receivable Allowance For Credit Losses [Line Items]      
Loss related to secured loan receivable   0  
Maximum [Member]      
Financing Receivable Allowance For Credit Losses [Line Items]      
Allowance for credit losses, accounts receivable   100,000 $ 100,000
Maximum [Member] | Secured Loans Receivable [Member]      
Financing Receivable Allowance For Credit Losses [Line Items]      
Accrued interest receivable $ 100,000 $ 100,000  
v3.20.4
Current Expected Credit Losses - Amortized Cost Basis in Sales-Type Leases based on Payment Activity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Sales Type Lease Net Investment In Lease Credit Quality Indicator [Line Items]      
2020 $ 55    
2019 192    
2018 354    
2017 128    
2016 52    
Net investment in sales-type leases 781 $ 1,600 $ 1,562
Payment Performance Performing [Member]      
Sales Type Lease Net Investment In Lease Credit Quality Indicator [Line Items]      
2020 55    
2019 192    
2018 354    
2017 128    
2016 52    
Net investment in sales-type leases $ 781    
v3.20.4
Earnings (Loss) Per Share - Summary of Calculations of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Numerator                      
Net Income (Loss) $ 6,114 $ 5,481 $ 752 $ (9,969) $ (11,624) $ (46,123) $ 3,995 $ 770 $ 2,378 $ (52,982) $ (19,342)
Denominator                      
Weighted average number of shares – basic                 47,996 47,836 47,880
Effect of dilutive securities:                      
PSUs, RSUs and restricted stock                 292    
Weighted average number of shares – diluted                 48,288 47,836 47,880
Earnings (loss) per share – basic $ 0.13 $ 0.11 $ 0.02 $ (0.21) $ (0.25) $ (0.96) $ 0.08 $ 0.02 $ 0.05 $ (1.11) $ (0.40)
Earnings (loss) per share – diluted $ 0.13 $ 0.11 $ 0.02 $ (0.21) $ (0.25) $ (0.96) $ 0.08 $ 0.02 $ 0.05 $ (1.11) $ (0.40)
v3.20.4
Earnings (Loss) Per Share - Additional Information (Detail) - shares
shares in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Anti-dilutive effect excluded calculation of diluted earnings (loss) per share 3.6 5.2
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 (loss) per share 0.1 0.5
v3.20.4
Restructuring - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2018
Restructuring And Related Activities [Abstract]    
Cumulative amount of restructuring expenses incurred for restructuring plan $ 12.2 $ 7.3
v3.20.4
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring And Related Activities [Abstract]      
Balance at beginning of period $ 1,568 $ 185  
Plus: Amounts charged to cost and expense 6,229 6,014 $ 7,261
Less: Amounts paid (3,611) (4,631)  
Balance at end of period $ 4,186 $ 1,568 $ 185
v3.20.4
Restructuring - Schedule of Components of Restructuring Expense Included in Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 6,229 $ 6,014 $ 7,261
Selling, General and Administrative Expenses [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 1,832 2,360 2,655
Research and Development Expenses [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 3,942 2,869 1,831
Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 455 $ 785 $ 2,775
v3.20.4
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 6,229 $ 6,014 $ 7,261
United States [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 2,234 3,336 7,120
International [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 3,995 $ 2,678 $ 141
v3.20.4
Summarized Quarterly Financial Data (Unaudited) - Quarterly Operating Results (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]                      
Total Sales $ 130,129 $ 133,143 $ 128,715 $ 114,523 $ 115,787 $ 114,092 $ 156,391 $ 143,791 $ 506,510 $ 530,061 $ 529,277
Gross Profit 53,517 58,962 53,472 51,600 47,209 46,331 65,015 60,612 217,551 219,167 203,565
Operating Income (Loss) (3,324) 4,534 (6,039) (4,944) (14,070) (20,288) 562 (6,167) (9,773) (39,963) (45,422)
Net Income (Loss) $ 6,114 $ 5,481 $ 752 $ (9,969) $ (11,624) $ (46,123) $ 3,995 $ 770 $ 2,378 $ (52,982) $ (19,342)
Earnings (loss) per common share - basic $ 0.13 $ 0.11 $ 0.02 $ (0.21) $ (0.25) $ (0.96) $ 0.08 $ 0.02 $ 0.05 $ (1.11) $ (0.40)
Earnings (loss) per common share - diluted $ 0.13 $ 0.11 $ 0.02 $ (0.21) $ (0.25) $ (0.96) $ 0.08 $ 0.02 $ 0.05 $ (1.11) $ (0.40)
v3.20.4
Subsequent Events - Additional Information (Detail) - USD ($)
12 Months Ended
Feb. 03, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mar. 04, 2021
Subsequent Event [Line Items]          
Common stock dividends per share declared   $ 0.09 $ 0.09 $ 0.09  
Minimum [Member]          
Subsequent Event [Line Items]          
Collateral value required to be maintained   $ 9,000,000.0      
Subsequent Event [Member]          
Subsequent Event [Line Items]          
Dividend declaration date Feb. 03, 2021        
Common stock dividends per share declared $ 0.09        
Dividend record date Feb. 18, 2021        
Dividend payment date Mar. 04, 2021        
Quarterly dividend payable, aggregate amount         $ 4,400,000
Subsequent Event [Member] | Maximum [Member]          
Subsequent Event [Line Items]          
Collateral value required to be maintained $ 15,000,000.0        
v3.20.4
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Allowance for Doubtful Accounts [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period $ 38 $ 128  
Charged to costs & expenses   38 $ 128
Deductions   128  
Balance at end of period 38 38 128
Inventory Reserve [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 34,162 30,009 23,355
Charged to costs & expenses 11,404 5,893 7,006
Deductions 6,005 1,740 352
Balance at end of period 39,561 34,162 30,009
Warranty Liability [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 8,394 8,623 9,724
Charged to costs & expenses 1,538 4,569 7,392
Deductions 2,786 4,798 8,493
Balance at end of period 7,146 8,394 8,623
Deferred Tax Asset Valuation Allowance [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 48,616 5,816 6,006
Charged to costs & expenses 5,120 43,560  
Deductions 7,918 760 190
Balance at end of period $ 45,818 $ 48,616 $ 5,816