COGNEX CORP, 10-Q filed on 5/4/2023
Quarterly Report
v3.23.1
Cover Page
 3 Months Ended
Apr. 02, 2023
shares
Cover [Abstract]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Apr. 02, 2023
Document Transition Report false
Entity File Number 001-34218
Entity Registrant Name COGNEX CORP
Entity Incorporation, State or Country Code MA
Entity Tax Identification Number 04-2713778
Entity Address, Address Line One One Vision Drive
Entity Address, City or Town Natick
Entity Address, State or Province MA
Entity Address, Postal Zip Code 01760
City Area Code 508
Local Phone Number 650-3000
Title of 12(b) Security Common Stock, par value $.002 per share
Trading Symbol CGNX
Security Exchange Name NASDAQ
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
Entity Shell Company false
Entity Central Index Key 0000851205
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2023
Document Fiscal Period Focus Q1
Amendment Flag false
Entity Common Stock, Shares Outstanding 172,601,360
v3.23.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Income Statement [Abstract]    
Revenue $ 201,124 $ 282,407
Cost of revenue 57,384 78,790
Gross margin 143,740 203,617
Research, development, and engineering expenses 38,542 36,054
Selling, general, and administrative expenses 83,037 80,835
Operating income 22,161 86,728
Foreign currency gain (loss) 394 (444)
Investment income 3,587 1,468
Other income (expense) 73 (48)
Income before income tax expense 26,215 87,704
Income tax expense 600 20,371
Net income $ 25,615 $ 67,333
Net income per weighted-average common and common-equivalent share:    
Basic (usd per share) $ 0.15 $ 0.39
Diluted (usd per share) $ 0.15 $ 0.38
Weighted-average common and common-equivalent shares outstanding:    
Basic (shares) 172,624 174,146
Diluted (shares) 173,903 176,668
Cash dividends per common share (usd per share) $ 0.070 $ 0.065
v3.23.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 25,615 $ 67,333
Available-for-sale investments:    
Net unrealized gain (loss) on available-for-sale investments, net of tax 5,426 (13,548)
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations   36
Net change related to available-for-sale investments 5,426 (13,512)
Foreign currency translation adjustments:    
Foreign currency translation adjustments (359) (2,111)
Net change related to foreign currency translation adjustments (359) (2,111)
Other comprehensive income (loss), net of tax 5,067 (15,623)
Total comprehensive income $ 30,682 $ 51,710
v3.23.1
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Statement of Comprehensive Income [Abstract]    
Tax effect of unrealized gain (loss) on available-for-sale investments $ 1,858 $ (4,036)
v3.23.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 164,171 $ 181,374
Current investments, amortized cost of $220,943 and $223,545 in 2023 and 2022, respectively, allowance for credit losses of $0 in 2023 and 2022 216,703 218,759
Accounts receivable, allowance for credit losses of $1,001 and $730 in 2023 and 2022, respectively 144,154 125,417
Unbilled revenue 2,354 2,179
Inventories 127,147 122,480
Prepaid expenses and other current assets 67,634 67,490
Total current assets 722,163 717,699
Non-current investments, amortized cost of $478,329 and $476,148 in 2023 and 2022, respectively, allowance for credit losses of $0 in 2023 and 2022 463,039 454,117
Property, plant, and equipment, net 81,274 79,714
Operating lease assets 37,769 37,682
Goodwill 242,041 242,630
Intangible assets, net 11,472 12,414
Deferred income taxes 409,583 407,241
Other assets 6,725 6,643
Total assets 1,974,066 1,958,140
Current liabilities:    
Accounts payable 26,939 27,103
Accrued expenses 83,527 93,235
Accrued income taxes 37,529 18,129
Deferred revenue and customer deposits 57,805 40,787
Operating lease liabilities 8,177 8,454
Total current liabilities 213,977 187,708
Non-current operating lease liabilities 31,389 31,298
Deferred income taxes 243,557 249,961
Reserve for income taxes 20,030 15,866
Non-current accrued income taxes 18,338 33,008
Other liabilities 444 1,905
Total liabilities 527,735 519,746
Shareholders’ equity:    
Preferred stock, $.01 par value – Authorized: 400 shares in 2023 and 2022, respectively; no shares issued and outstanding 0 0
Common stock, $.002 par value – Authorized: 300,000 shares in 2023 and 2022, respectively; issued and outstanding: 172,601 and 172,631 shares in 2023 and 2022, respectively 345 345
Additional paid-in capital 992,690 979,167
Retained earnings 517,526 528,179
Accumulated other comprehensive loss, net of tax (64,230) (69,297)
Total shareholders’ equity 1,446,331 1,438,394
Total liabilities and shareholders' equity $ 1,974,066 $ 1,958,140
v3.23.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Amortized cost of current investments $ 220,943 $ 223,545
Allowance for credit losses 0 0
Allowance for credit losses, current 1,001 730
Amortized cost of non-current investments 478,329 476,148
Allowance for credit losses, non-current $ 0 $ 0
Preferred stock par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock shares authorized (in shares) 400,000 400,000
Preferred stock shares issued (in shares) 0 0
Preferred stock shares outstanding (in shares) 0 0
Common stock par value (in dollars per share) $ 0.002 $ 0.002
Common stock shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 172,601,000 172,631,000
Common stock, shares outstanding (in shares) 172,601,000 172,631,000
v3.23.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Cash flows from operating activities:    
Net income $ 25,615 $ 67,333
Adjustments to reconcile net income to net cash provided by operating activities:    
Stock-based compensation expense 16,579 15,056
Depreciation of property, plant, and equipment 3,986 4,117
Amortization of intangible assets 942 840
Excess and obsolete inventory charges 788 379
Amortization of discounts or premiums on investments 700 1,402
Realized loss (gain) on sale of investments 0 36
Change in deferred income taxes (10,656) (3,891)
Accounts receivable (18,455) (24,700)
Unbilled revenue (173) 2,144
Inventories (5,338) (23,900)
Prepaid expenses and other current assets 231 4,212
Accounts payable (192) 708
Accrued expenses (9,942) (28,718)
Accrued income taxes 4,721 16,745
Deferred revenue and customer deposits 17,003 18,712
Other 1,744 (958)
Net cash provided by operating activities 27,553 49,517
Cash flows from investing activities:    
Purchases of investments (46,480) (39,155)
Maturities and sales of investments 46,199 112,976
Purchases of property, plant, and equipment (5,507) (4,585)
Net cash provided by (used in) investing activities (5,788) 69,236
Cash flows from financing activities:    
Net payments from issuance of common stock under stock plans (3,055) 3,594
Repurchase of common stock (24,178) (130,405)
Payment of dividends (12,091) (11,303)
Net cash provided by (used in) financing activities (39,324) (138,114)
Effect of foreign exchange rate changes on cash and cash equivalents 356 (1,031)
Net change in cash and cash equivalents (17,203) (20,392)
Cash and cash equivalents at beginning of period 181,374 186,161
Cash and cash equivalents at end of period $ 164,171 $ 165,769
v3.23.1
Consolidated Statement of Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2021 $ 1,430,093 $ 351 $ 914,802 $ 562,882 $ (47,942)
Beginning Balance (in shares) at Dec. 31, 2021   175,481      
Increase (Decrease) in Stockholders' Equity          
Net issuance of common stock under stock plans 3,594 $ 0 3,594    
Net issuance of common stock under stock plans (in shares)   136      
Repurchase of common stock (130,405) $ (4)   (130,401)  
Repurchase of common stock (in shares)   (1,879)      
Stock-based compensation expense 15,056   15,056    
Payment of dividends (11,303)     (11,303)  
Net income 67,333     67,333  
Net unrealized gain (loss) on available-for-sale investments, net of tax (13,548)       (13,548)
Reclassification of net realized (gain) loss on the sale of available-for-sale investments 36       36
Foreign currency translation adjustment (2,111)       (2,111)
Ending Balance at Apr. 03, 2022 1,358,745 $ 347 933,452 488,511 (63,565)
Ending Balance (in shares) at Apr. 03, 2022   173,738      
Beginning Balance at Dec. 31, 2022 $ 1,438,394 $ 345 979,167 528,179 (69,297)
Beginning Balance (in shares) at Dec. 31, 2022 172,631 172,631      
Increase (Decrease) in Stockholders' Equity          
Net issuance of common stock under stock plans $ (3,055) $ 1 (3,056)    
Net issuance of common stock under stock plans (in shares)   449      
Repurchase of common stock (24,178) $ (1)   (24,177)  
Repurchase of common stock (in shares)   (479)      
Stock-based compensation expense 16,579   16,579    
Payment of dividends (12,091)     (12,091)  
Net income 25,615     25,615  
Net unrealized gain (loss) on available-for-sale investments, net of tax 5,426       5,426
Reclassification of net realized (gain) loss on the sale of available-for-sale investments         0
Foreign currency translation adjustment (359)       (359)
Ending Balance at Apr. 02, 2023 $ 1,446,331 $ 345 $ 992,690 $ 517,526 $ (64,230)
Ending Balance (in shares) at Apr. 02, 2023 172,601 172,601      
v3.23.1
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Statement of Stockholders' Equity [Abstract]    
Cash dividends per common share (usd per share) $ 0.070 $ 0.065
Tax effect of unrealized gain (loss) on available-for-sale investments $ 1,858 $ (4,036)
v3.23.1
Summary of Significant Accounting Policies
 3 Months Ended
Apr. 02, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a full description of other significant accounting policies.
In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, and financial statement reclassifications necessary to present fairly the Company’s financial position as of April 2, 2023, and the results of its operations for the three-month periods ended April 2, 2023 and April 3, 2022, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented.
The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 2, 2023 are not necessarily indicative of the results to be expected for the full year.
v3.23.1
New Pronouncements
 3 Months Ended
Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
New Pronouncements New Pronouncements
Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848"
The amendments in these ASUs apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Together, the ASUs provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures.
v3.23.1
Fair Value Measurements
 3 Months Ended
Apr. 02, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 2, 2023 (in thousands):
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)		Significant Other
Observable
Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Money market instruments$3,618 $— $— 
Corporate bonds— 545,863 — 
Treasury bills— 61,112 — 
Asset-backed securities— 54,146 — 
Agency bonds— 16,038 — 
Sovereign bonds— 1,954 — 
Municipal bonds— 629 — 
Economic hedge forward contracts— 154 — 
Liabilities:
Economic hedge forward contracts— 74 — 
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1.
The Company’s debt securities and forward contracts are reported at fair value based on model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks.
Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis
Non-financial assets, such as property, plant and equipment, operating lease assets, goodwill, and intangible assets, are required to be measured at fair value only when an impairment loss is recognized. The Company did not record impairment charges related to non-financial assets during the three-month periods ended April 2, 2023 or April 3, 2022.
v3.23.1
Cash, Cash Equivalents, and Investments
 3 Months Ended
Apr. 02, 2023
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents, and Investments Cash, Cash Equivalents, and Investments
Cash, cash equivalents, and investments consisted of the following (in thousands):
April 2, 2023December 31, 2022
Cash$160,553 $180,959 
Money market instruments3,618 415 
Cash and cash equivalents164,171 181,374 
Corporate bonds160,320 164,055 
Asset-backed securities31,265 26,890 
Agency bonds16,038 15,858 
Treasury bills8,451 11,332 
Municipal bonds629 624 
Current investments216,703 218,759 
Corporate bonds385,543 374,440 
Treasury bills52,661 44,214 
Asset-backed securities22,881 33,539 
Sovereign bonds1,954 1,924 
Non-current investments463,039 454,117 
$843,913 $854,250 
Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing; treasury bills consist of debt securities issued by the U.S. government; municipal bonds consist of debt securities issued by state and local government entities; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of April 2, 2023 and December 31, 2022 were denominated in U.S. Dollars.
Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $4,559,000 and $3,620,000 as of April 2, 2023 and December 31, 2022, respectively.
The following table summarizes the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Current:
Corporate bonds$163,537 $3 $(3,220)$160,320 
Asset-backed securities32,016 — (751)31,265 
Agency bonds16,148 — (110)16,038 
Treasury bills8,607 — (156)8,451 
Municipal bonds635 — (6)629 
Non-current:
Corporate bonds400,051 1,623 (16,131)385,543 
Treasury bills52,290 489 (118)52,661 
Asset-backed securities23,905 117 (1,141)22,881 
Sovereign bonds2,083 — (129)1,954 
$699,272 $2,232 $(21,762)$679,742 
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 2, 2023 (in thousands):
 Unrealized Loss Position For: 
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Corporate bonds$81,931 $(1,098)$350,244 $(18,253)$432,175 $(19,351)
Asset-backed securities10,998 (213)32,783 (1,679)43,781 (1,892)
Agency bonds— — 16,037 (110)16,037 (110)
Treasury bills4,878 (117)8,451 (157)13,329 (274)
Sovereign bonds— — 1,954 (129)1,954 (129)
Municipal bonds629 (6)— — 629 (6)
$98,436 $(1,434)$409,469 $(20,328)$507,905 $(21,762)
Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of April 2, 2023 or December 31, 2022. There was no activity recorded in the allowance for credit losses during the three-month periods ended April 2, 2023 or April 3, 2022. Management currently intends to hold these securities to full value recovery at maturity.
The Company recorded no gross realized gains or gross realized losses on the sale of debt securities for the three-month period ended April 2, 2023. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $118,000 and $154,000, respectively, for the three-month period ended April 3, 2022. Realized gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as accumulated other comprehensive loss.
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 Years5-8 YearsTotal
Corporate bonds$160,320 $166,170 $87,347 $63,241 $66,558 $2,227 $545,863 
Treasury bills8,451 3,414 15,156 17,837 16,254 — 61,112 
Asset-backed securities31,265 2,579 12,599 7,703 — — 54,146 
Agency bonds16,038 — — — — — 16,038 
Sovereign bonds— 978 976 — — — 1,954 
Municipal bonds629 — — — — — 629 
$216,703 $173,141 $116,078 $88,781 $82,812 $2,227 $679,742 
v3.23.1
Inventories
 3 Months Ended
Apr. 02, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of the following (in thousands):
April 2, 2023December 31, 2022
Raw materials$77,520 $71,720 
Work-in-process1,489 906 
Finished goods48,138 49,854 
$127,147 $122,480 
v3.23.1
Leases
 3 Months Ended
Apr. 02, 2023
Leases [Abstract]  
Leases Leases
The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion.
As of April 2, 2023, there was one option to terminate and eighteen options to extend that were accounted for in the determination of the lease term for outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of April 2, 2023.
The total operating lease expense for the three-month periods ended April 2, 2023 and April 3, 2022 were $2,392,000 and $2,229,000, respectively. The total operating lease cash payments for the three-month periods ended April 2, 2023 and April 3, 2022 were $2,404,000 and $2,079,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability for the three-month periods ended April 2, 2023 and April 3, 2022 was $24,000 and $38,000, respectively.
Future operating lease cash payments are as follows (in thousands):
Year Ended December 31,Amount
Remainder of fiscal 2023$7,284 
20247,530 
20255,477 
20264,221 
20273,716 
20283,448 
Thereafter12,769 
$44,445 
The discounted present value of the future lease cash payments resulted in a total lease liability of $39,566,000 and $39,752,000 as of April 2, 2023 and December 31, 2022, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of April 2, 2023.
In December 2021, the Company entered into a lease for a 65,000 square-foot building in Southborough, Massachusetts for a term of ten years to serve as a new distribution center for customers in the Americas. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original ten-year term. This lease commenced during the first quarter of 2022, and therefore the Company recorded approximately $9,271,000 within "Operating lease assets" and "Operating lease liabilities" on the Consolidated Balance Sheets on the commencement date.
The weighted-average discount rate was 3.3% for the leases outstanding as of both April 2, 2023 and December 31, 2022. The weighted-average remaining lease term was 7.6 and 7.8 years for the leases outstanding as of April 2, 2023 and December 31, 2022, respectively.
v3.23.1
Goodwill
 3 Months Ended
Apr. 02, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The changes in the carrying value of goodwill were as follows (in thousands):
Balance as of December 31, 2022$242,630 
  Foreign exchange rate changes(589)
Balance as of April 2, 2023$242,041 
v3.23.1
Intangible Assets
 3 Months Ended
Apr. 02, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Amortized intangible assets consisted of the following (in thousands):
Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Completed technologies$28,017 $(18,492)$9,525 
Customer relationships5,838 (4,040)1,798 
Non-compete agreements340 (191)149 
Balance as of April 2, 2023$34,195 $(22,723)$11,472 
 Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Completed technologies$28,017 $(17,744)$10,273 
Customer relationships5,838 (3,860)1,978 
Non-compete agreements340 (177)163 
Balance as of December 31, 2022$34,195 $(21,781)$12,414 
As of April 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands):
Year Ended December 31,Amount
Remainder of fiscal 2023$2,195 
20242,623 
20252,300 
20261,995 
20271,273 
2028543 
Thereafter543 
$11,472 
v3.23.1
Warranty Obligations
 3 Months Ended
Apr. 02, 2023
Product Warranties Disclosures [Abstract]  
Warranty Obligations Warranty Obligations
The Company records the estimated cost of fulfilling product warranties at the time of sale based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or changes in circumstances impacting product quality become known that would not have been taken into account using historical data. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.
The changes in the warranty obligation were as follows (in thousands):
Balance as of December 31, 2022$4,375 
Provisions for warranties issued during the period527 
Fulfillment of warranty obligations(828)
Balance as of April 2, 2023$4,074 
v3.23.1
Commitment and Contingencies
 3 Months Ended
Apr. 02, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
As of April 2, 2023, the Company had outstanding purchase orders totaling $47,486,000 to procure inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months.
A significant portion of the Company's outstanding inventory purchase orders as of April 2, 2023, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by the contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss.
Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.
v3.23.1
Derivative Instruments
 3 Months Ended
Apr. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed approximately three months to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.
The Company had the following outstanding forward contracts (in thousands):
April 2, 2023December 31, 2022
CurrencyNotional
Value		USD
Equivalent		Notional
Value		USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Euro32,500 $35,529 60,000 $64,174 
Mexican Peso155,000 8,498 185,000 9,480 
Hungarian Forint1,890,000 5,381 1,590,000 4,238 
Japanese Yen600,000 4,536 700,000 5,281 
British Pound3,485 4,313 3,445 4,161 
Canadian Dollar1,705 1,261 1,730 1,278 
Chinese Renminbi— — 55,000 7,619 
Swiss Franc— — 1,120 1,218 
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
 BalanceFair ValueBalanceFair Value
 Sheet
Location		April 2, 2023December 31, 2022Sheet
Location		April 2, 2023December 31, 2022
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assets$154 $27 Accrued expenses$74 $479 

The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Asset DerivativesLiability Derivatives
April 2, 2023December 31, 2022April 2, 2023December 31, 2022
Gross amounts of recognized assets$154 $27 Gross amounts of recognized liabilities$74 $479 
Gross amounts offset— — Gross amounts offset— — 
Net amount of assets presented$154 $27 Net amount of liabilities presented$74 $479 

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
 Location in Financial StatementsThree-months Ended
 April 2, 2023April 3, 2022
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$(1,471)$1,739 
v3.23.1
Revenue Recognition
 3 Months Ended
Apr. 02, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):
Three-months Ended
April 2, 2023April 3, 2022
Americas$80,442 $126,658 
Europe59,842 62,792 
Greater China33,172 48,406 
Other Asia27,668 44,551 
$201,124 $282,407 

The following table summarizes disaggregated revenue information by revenue type (in thousands):
Three-months Ended
April 2, 2023April 3, 2022
Standard products and services$190,783 $257,880 
Application-specific customer solutions10,341 24,527 
$201,124 $282,407 
Costs to Fulfill a Contract
Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $20,219,000 and $14,578,000 as of April 2, 2023 and December 31, 2022, respectively.
Accounts Receivable, Contract Assets, and Contract Liabilities
Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.
The following table summarizes the allowance for credit losses activity for the three-month period ended April 2, 2023 (in thousands):
Balance as of December 31, 2022$730 
Increases to the allowance for credit losses350 
Write-offs, net of recoveries(78)
Foreign exchange rate changes(1)
Balance as of April 2, 2023$1,001 
The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 2, 2023 (in thousands):
Balance as of December 31, 2022$40,787 
Deferral of revenue billed in the current period, net of recognition34,786 
Recognition of revenue deferred in prior period(8,578)
Returned customer deposit(9,205)
Foreign exchange rate changes15 
Balance as of April 2, 2023$57,805 
As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year.
v3.23.1
Stock-Based Compensation Expense
 3 Months Ended
Apr. 02, 2023
Share-Based Payment Arrangement [Abstract]  
Shareholders' Equity and Share-based Payments Stock-Based Compensation Expense
Stock Plans
The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). As of April 2, 2023, the Company had 12,116,000 shares available for grant under its stock plans. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over four or five years based upon continuous service and expire ten years from the grant date. RSUs generally vest upon three or four years of continuous employment or incrementally over such three or four-year periods. PRSUs generally vest upon three years of continuous employment and achievement of performance criteria established by the Compensation Committee of our Board of Directors on or prior to the grant date. Participants are not entitled to dividends on stock options, RSUs, or PRSUs.
Stock Options
The following table summarizes the Company’s stock option activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term (in years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20228,467 $51.56 
Granted1,228 47.21 
Exercised(140)28.36 
Forfeited or expired(247)58.05 
Outstanding as of April 2, 20239,308 $51.16 6.53$37,312 
Exercisable as of April 2, 20235,433 $47.45 5.12$33,531 
Options vested or expected to vest as of April 2, 2023 (1)8,735 $50.90 6.37$36,643 
 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
 Three-months Ended
 April 2, 2023April 3, 2022
Risk-free rate4.0 %1.9 %
Expected dividend yield0.59 %0.40 %
Expected volatility39 %37 %
Expected term (in years)4.35.2
Risk-free rate
The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option.
Expected dividend yield
Generally, the current dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date. 
Expected volatility
The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock.
Expected term
The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time.
The weighted-average grant-date fair values of stock options granted during the three-month periods ended April 2, 2023 and April 3, 2022 were $17.79 and $22.45, respectively.
The total intrinsic values of stock options exercised for the three-month periods ended April 2, 2023 and April 3, 2022 were $3,439,000 and $2,615,000, respectively. The total fair values of stock options vested for the three-month periods ended April 2, 2023 and April 3, 2022 were $31,181,000 and $25,535,000, respectively.
Restricted Stock Units (RSUs)
The following table summarizes the Company's RSUs activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 20221,269 $61.74 
Granted635 46.61 
Vested(453)59.11 
Forfeited or expired(32)66.98 
Nonvested as of April 2, 20231,419 $55.69 
The fair value of RSUs is determined based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. The weighted-average grant-date fair values of RSUs granted during the three-month periods ended April 2, 2023 and April 3, 2022 were $46.61 and $63.96, respectively. There were 453,000 and 54,000 RSUs that vested during the three-month periods ended April 2, 2023 and April 3, 2022, respectively.
Performance Restricted Stock Units (PRSUs)
The following table summarizes the Company's PRSUs activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 202233 $62.49 
Granted46 44.86 
Vested— — 
Forfeited or expired— — 
Nonvested as of April 2, 202379 $52.23 
The fair value of PRSUs is calculated using the Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. There were 46,000 and 33,000 PRSUs granted during the three-month periods ended April 2, 2023 and April 3, 2022, respectively. No PRSUs vested during the three-month periods ended April 2, 2023 and April 3, 2022.
Stock-Based Compensation Expense
The Company stratifies its employee population into three groups: one consisting of the CEO, one consisting of senior management, and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 0% to all stock-based awards for the CEO, 8% to all stock-based awards for senior management, and a rate of 13% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate based on updated estimates of employee turnover. This resulted in a decrease to compensation expense of $234,000 in 2023 and an increase to compensation expense of $1,536,000 in 2022.
As of April 2, 2023, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $86,841,000, which is expected to be recognized over a weighted-average period of 2.4 years.
The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 2, 2023 were $16,579,000 and $2,308,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 3, 2022 were $15,056,000 and $2,319,000, respectively. No compensation expense was capitalized as of April 2, 2023 or December 31, 2022.
The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
 Three-months Ended
 April 2, 2023April 3, 2022
Cost of revenue$621 $563 
Research, development, and engineering5,890 4,448 
Selling, general, and administrative10,068 10,045 
$16,579 $15,056 
v3.23.1
Stock Repurchase Program
 3 Months Ended
Apr. 02, 2023
Equity [Abstract]  
Stock Repurchase Program Stock Repurchase ProgramOn March 12, 2020, the Company's Board of Directors authorized the repurchase of $200,000,000 of the Company's common stock. Under this March 2020 program, in addition to repurchases made in prior years, the Company repurchased 1,677,000 shares at a cost of $117,000,000 during the three-month period ended April 3, 2022, which completed purchases under this program. On March 3, 2022, the Company's Board of Directors authorized the repurchase of an additional $500,000,000 of the Company's common stock. Under this March 2022 program, the Company repurchased 202,000 shares at a cost of $13,405,000 during the three-month period ended April 3, 2022. Under this same March 2022 program, in addition to purchases made during the prior year, the Company repurchased 479,000 shares at a total cost of $24,178,000 during the three-month period ended April 2, 2023 leaving a remaining balance of $388,508,000 as of April 2, 2023. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions.
v3.23.1
Income Taxes
 3 Months Ended
Apr. 02, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's effective tax rate was 2% for the three-month period ended April 2, 2023, and 23% for the three-month period ended April 3, 2022.
The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, and 22% in Korea compared to the U.S. federal statutory corporate tax rate of 21%. These foreign tax rate differences resulted in a net decrease to the effective tax rate for both the three-month periods ended April 2, 2023 and April 3, 2022.
The Company recorded a net discrete tax benefit totaling $3,594,000 for the three-month period ended April 2, 2023, and a net discrete tax expense totaling $6,338,000 for the same period in 2022.
Discrete tax items for the three-month period ended April 2, 2023 included (1) an increase in tax expense of $1,068,000 related to stock-based compensation; (2) a decrease in tax expense of $2,292,000 for releasing tax reserves on state tax credits; (3) a decrease in tax expense of $2,198,000 for adjustments to certain deferred tax assets; and (4) a decrease in tax expense of $172,000 for return-to-provision adjustments.
Discrete tax items for the three-month period ended April 3, 2022 included (1) an increase in tax expense of $1,417,000 arising from an Internal Revenue Service (IRS) audit; (2) an increase in tax expense of $1,734,000 to establish a full valuation allowance against deferred tax assets related to foreign tax credits; and (3) an increase in tax expense of $3,187,000 consisting primarily of transfer pricing and return-to-provision adjustments.
Excluding the impact of these discrete tax items, the Company’s effective tax rate was 16% for both the three-month periods ended April 2, 2023 and April 3, 2022.
The Company’s reserve for income taxes, including gross interest and penalties, was $20,030,000 as of April 2, 2023, which was classified as a non-current liability. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period.
Within the United States, the tax years 2019 through 2022 remain open to examination by the IRS, and 2018 through 2021 remain open to examination by various state tax authorities. The Company is currently under audit by the state of Massachusetts for the years 2020 and 2021. The tax years 2017 through 2022 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates.
v3.23.1
Weighted-Average Shares
 3 Months Ended
Apr. 02, 2023
Earnings Per Share [Abstract]  
Weighted-Average Shares Weighted-Average Shares
Weighted-average shares were calculated as follows (in thousands):
 Three-months Ended
 April 2, 2023April 3, 2022
Basic weighted-average common shares outstanding172,624 174,146 
Effect of dilutive equity awards1,279 2,522 
Weighted-average common and common-equivalent shares outstanding173,903 176,668 

Stock options to purchase 6,515,000 and 1,282,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 2, 2023 and April 3, 2022, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. Restricted stock units totaling 10,000 and 20,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 2, 2023 and April 3, 2022, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. No PRSUs were excluded in the calculation of dilutive net income per share for the three-month periods ended April 2, 2023 and April 3, 2022, as PRSUs were not anti-dilutive on a weighted-average basis.
v3.23.1
Loss from Fire
 3 Months Ended
Apr. 02, 2023
Catastrophe [Abstract]  
Loss from Fire Loss (Recovery) from Fire
On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia. The fire destroyed a significant amount of Cognex-owned consigned inventories as well as component inventories owned by the contract manufacturer that were designated for Cognex products. There was no significant damage to the Company's production equipment. As a result of the fire, the Company recorded $48,339,000 in gross losses in 2022, primarily related to Cognex-owned inventory that was destroyed or deemed to have a net realizable value of zero, and prepayments related to Cognex-designated components that were owned by the contract manufacturer. Gross losses were reduced by insurance proceeds received from the Company’s insurance carrier of $27,560,000 in the fourth quarter of 2022. Subsequent to the April 2, 2023 balance sheet date, but prior to the date of financial statement issuance, the Company received insurance proceeds of $2,500,000 related to a business interruption claim associated with the fire from the Company's insurance carrier. In the second quarter of 2023, this recovery amount will be presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations.
As of April 2, 2023 and through the date of financial statement issuance, management cannot yet estimate additional recoveries that could be available from the contract manufacturer. Any future, additional recoveries in excess of recognized losses will be treated as gain contingencies and will be recognized when the gain is realized or realizable. There can be no assurance, however, that the insurance coverage and/or recoveries from the contract manufacturer will be available to cover the losses from the fire.
v3.23.1
Restructuring Charges
 3 Months Ended
Apr. 02, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
On December 7, 2022, the Company acquired all of the outstanding shares of SAC Sirius Advanced Cybernetics GmbH ("SAC"), a leader in computational lighting technology based in Germany. Following its acquisition of SAC, the Company performed restructuring activities to align the cost and operating structure of the acquired business with the Company's business strategy. As of December 31, 2022, the majority of these restructuring actions were completed. No additional charges were recorded during the three-month period ended April 2, 2023, or are expected to be incurred in future periods in relation to this restructuring plan.
The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands):
One-time Termination BenefitsContract Termination CostsTotal
Balance as of December 31, 2022$964 $75 $1,039 
Cash payments(143)(20)(163)
Foreign exchange rate changes17 1 18 
Balance as of April 2, 2023$838 $56 $894 
v3.23.1
Subsequent Events
 3 Months Ended
Apr. 02, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn May 4, 2023, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on June 2, 2023 to all shareholders of record as of the close of business on May 19, 2023.
v3.23.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Apr. 02, 2023
Accounting Policies [Abstract]  
New Pronouncements New Pronouncements
Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848"
The amendments in these ASUs apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Together, the ASUs provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures.
v3.23.1
Fair Value Measurements (Tables)
 3 Months Ended
Apr. 02, 2023
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 2, 2023 (in thousands):
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)		Significant Other
Observable
Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Money market instruments$3,618 $— $— 
Corporate bonds— 545,863 — 
Treasury bills— 61,112 — 
Asset-backed securities— 54,146 — 
Agency bonds— 16,038 — 
Sovereign bonds— 1,954 — 
Municipal bonds— 629 — 
Economic hedge forward contracts— 154 — 
Liabilities:
Economic hedge forward contracts— 74 — 
v3.23.1
Cash, Cash Equivalents, and Investments (Tables)
 3 Months Ended
Apr. 02, 2023
Cash and Cash Equivalents [Abstract]  
Components of Cash, Cash Equivalents, and Investments
Cash, cash equivalents, and investments consisted of the following (in thousands):
April 2, 2023December 31, 2022
Cash$160,553 $180,959 
Money market instruments3,618 415 
Cash and cash equivalents164,171 181,374 
Corporate bonds160,320 164,055 
Asset-backed securities31,265 26,890 
Agency bonds16,038 15,858 
Treasury bills8,451 11,332 
Municipal bonds629 624 
Current investments216,703 218,759 
Corporate bonds385,543 374,440 
Treasury bills52,661 44,214 
Asset-backed securities22,881 33,539 
Sovereign bonds1,954 1,924 
Non-current investments463,039 454,117 
$843,913 $854,250 
Summary of Available-for-Sale Investments
The following table summarizes the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Current:
Corporate bonds$163,537 $3 $(3,220)$160,320 
Asset-backed securities32,016 — (751)31,265 
Agency bonds16,148 — (110)16,038 
Treasury bills8,607 — (156)8,451 
Municipal bonds635 — (6)629 
Non-current:
Corporate bonds400,051 1,623 (16,131)385,543 
Treasury bills52,290 489 (118)52,661 
Asset-backed securities23,905 117 (1,141)22,881 
Sovereign bonds2,083 — (129)1,954 
$699,272 $2,232 $(21,762)$679,742 
Gross Unrealized Losses and Fair Values for Available-for-Sale Investments The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 2, 2023 (in thousands):
 Unrealized Loss Position For: 
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Corporate bonds$81,931 $(1,098)$350,244 $(18,253)$432,175 $(19,351)
Asset-backed securities10,998 (213)32,783 (1,679)43,781 (1,892)
Agency bonds— — 16,037 (110)16,037 (110)
Treasury bills4,878 (117)8,451 (157)13,329 (274)
Sovereign bonds— — 1,954 (129)1,954 (129)
Municipal bonds629 (6)— — 629 (6)
$98,436 $(1,434)$409,469 $(20,328)$507,905 $(21,762)
Effective Maturity Dates of Available-for-Sale Investments
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2023 (in thousands):
<1 year1-2 Years2-3 Years3-4 Years4-5 Years5-8 YearsTotal
Corporate bonds$160,320 $166,170 $87,347 $63,241 $66,558 $2,227 $545,863 
Treasury bills8,451 3,414 15,156 17,837 16,254 — 61,112 
Asset-backed securities31,265 2,579 12,599 7,703 — — 54,146 
Agency bonds16,038 — — — — — 16,038 
Sovereign bonds— 978 976 — — — 1,954 
Municipal bonds629 — — — — — 629 
$216,703 $173,141 $116,078 $88,781 $82,812 $2,227 $679,742 
v3.23.1
Inventories (Tables)
 3 Months Ended
Apr. 02, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of the following (in thousands):
April 2, 2023December 31, 2022
Raw materials$77,520 $71,720 
Work-in-process1,489 906 
Finished goods48,138 49,854 
$127,147 $122,480 
v3.23.1
Leases (Tables)
 3 Months Ended
Apr. 02, 2023
Leases [Abstract]  
Lessee, Operating Lease, Liability, Maturity
Future operating lease cash payments are as follows (in thousands):
Year Ended December 31,Amount
Remainder of fiscal 2023$7,284 
20247,530 
20255,477 
20264,221 
20273,716 
20283,448 
Thereafter12,769 
$44,445 
v3.23.1
Goodwill (Tables)
 3 Months Ended
Apr. 02, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying value of goodwill were as follows (in thousands):
Balance as of December 31, 2022$242,630 
  Foreign exchange rate changes(589)
Balance as of April 2, 2023$242,041 
v3.23.1
Intangible Assets (Tables)
 3 Months Ended
Apr. 02, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets
Amortized intangible assets consisted of the following (in thousands):
Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Completed technologies$28,017 $(18,492)$9,525 
Customer relationships5,838 (4,040)1,798 
Non-compete agreements340 (191)149 
Balance as of April 2, 2023$34,195 $(22,723)$11,472 
 Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Completed technologies$28,017 $(17,744)$10,273 
Customer relationships5,838 (3,860)1,978 
Non-compete agreements340 (177)163 
Balance as of December 31, 2022$34,195 $(21,781)$12,414 
Schedule of Intangible Assets, Future Amortization Expense
As of April 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands):
Year Ended December 31,Amount
Remainder of fiscal 2023$2,195 
20242,623 
20252,300 
20261,995 
20271,273 
2028543 
Thereafter543 
$11,472 
v3.23.1
Warranty Obligations (Tables)
 3 Months Ended
Apr. 02, 2023
Product Warranties Disclosures [Abstract]  
Changes in Warranty Obligations
The changes in the warranty obligation were as follows (in thousands):
Balance as of December 31, 2022$4,375 
Provisions for warranties issued during the period527 
Fulfillment of warranty obligations(828)
Balance as of April 2, 2023$4,074 
v3.23.1
Derivative Instruments (Tables)
 3 Months Ended
Apr. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Forward Contracts Table
The Company had the following outstanding forward contracts (in thousands):
April 2, 2023December 31, 2022
CurrencyNotional
Value		USD
Equivalent		Notional
Value		USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Euro32,500 $35,529 60,000 $64,174 
Mexican Peso155,000 8,498 185,000 9,480 
Hungarian Forint1,890,000 5,381 1,590,000 4,238 
Japanese Yen600,000 4,536 700,000 5,281 
British Pound3,485 4,313 3,445 4,161 
Canadian Dollar1,705 1,261 1,730 1,278 
Chinese Renminbi— — 55,000 7,619 
Swiss Franc— — 1,120 1,218 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
 BalanceFair ValueBalanceFair Value
 Sheet
Location		April 2, 2023December 31, 2022Sheet
Location		April 2, 2023December 31, 2022
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assets$154 $27 Accrued expenses$74 $479 
Offsetting Assets
The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):
Asset DerivativesLiability Derivatives
April 2, 2023December 31, 2022April 2, 2023December 31, 2022
Gross amounts of recognized assets$154 $27 Gross amounts of recognized liabilities$74 $479 
Gross amounts offset— — Gross amounts offset— — 
Net amount of assets presented$154 $27 Net amount of liabilities presented$74 $479 
Derivative Instruments, Gain (Loss)
Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
 Location in Financial StatementsThree-months Ended
 April 2, 2023April 3, 2022
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$(1,471)$1,739 
v3.23.1
Revenue Recognition (Tables)
 3 Months Ended
Apr. 02, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from External Customers by Geographic Areas
The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):
Three-months Ended
April 2, 2023April 3, 2022
Americas$80,442 $126,658 
Europe59,842 62,792 
Greater China33,172 48,406 
Other Asia27,668 44,551 
$201,124 $282,407 
Revenue from External Customers by Products and Services
The following table summarizes disaggregated revenue information by revenue type (in thousands):
Three-months Ended
April 2, 2023April 3, 2022
Standard products and services$190,783 $257,880 
Application-specific customer solutions10,341 24,527 
$201,124 $282,407 
Schedule of Allowance for Credit Loss Activity
The following table summarizes the allowance for credit losses activity for the three-month period ended April 2, 2023 (in thousands):
Balance as of December 31, 2022$730 
Increases to the allowance for credit losses350 
Write-offs, net of recoveries(78)
Foreign exchange rate changes(1)
Balance as of April 2, 2023$1,001 
Deferred Revenue, by Arrangement, Disclosure
The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 2, 2023 (in thousands):
Balance as of December 31, 2022$40,787 
Deferral of revenue billed in the current period, net of recognition34,786 
Recognition of revenue deferred in prior period(8,578)
Returned customer deposit(9,205)
Foreign exchange rate changes15 
Balance as of April 2, 2023$57,805 
v3.23.1
Stock-Based Compensation Expense (Tables)
 3 Months Ended
Apr. 02, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
The following table summarizes the Company’s stock option activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term (in years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20228,467 $51.56 
Granted1,228 47.21 
Exercised(140)28.36 
Forfeited or expired(247)58.05 
Outstanding as of April 2, 20239,308 $51.16 6.53$37,312 
Exercisable as of April 2, 20235,433 $47.45 5.12$33,531 
Options vested or expected to vest as of April 2, 2023 (1)8,735 $50.90 6.37$36,643 
 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
 Three-months Ended
 April 2, 2023April 3, 2022
Risk-free rate4.0 %1.9 %
Expected dividend yield0.59 %0.40 %
Expected volatility39 %37 %
Expected term (in years)4.35.2
Schedule of Nonvested Restricted Stock Units Activity
The following table summarizes the Company's RSUs activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 20221,269 $61.74 
Granted635 46.61 
Vested(453)59.11 
Forfeited or expired(32)66.98 
Nonvested as of April 2, 20231,419 $55.69 
Schedule of Nonvested Performance-based Units Activity
The following table summarizes the Company's PRSUs activity for the three-month period ended April 2, 2023:
Shares
(in thousands)		Weighted-Average
Grant Date Fair Value
Nonvested as of December 31, 202233 $62.49 
Granted46 44.86 
Vested— — 
Forfeited or expired— — 
Nonvested as of April 2, 202379 $52.23 
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
 Three-months Ended
 April 2, 2023April 3, 2022
Cost of revenue$621 $563 
Research, development, and engineering5,890 4,448 
Selling, general, and administrative10,068 10,045 
$16,579 $15,056 
v3.23.1
Weighted-Average Shares (Tables)
 3 Months Ended
Apr. 02, 2023
Earnings Per Share [Abstract]  
Calculation of Weighted-Average Shares
Weighted-average shares were calculated as follows (in thousands):
 Three-months Ended
 April 2, 2023April 3, 2022
Basic weighted-average common shares outstanding172,624 174,146 
Effect of dilutive equity awards1,279 2,522 
Weighted-average common and common-equivalent shares outstanding173,903 176,668 
v3.23.1
Restructuring Charges (Tables)
 3 Months Ended
Apr. 02, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Activity in Restructuring Reserve
The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands):
One-time Termination BenefitsContract Termination CostsTotal
Balance as of December 31, 2022$964 $75 $1,039 
Cash payments(143)(20)(163)
Foreign exchange rate changes17 1 18 
Balance as of April 2, 2023$838 $56 $894 
v3.23.1
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Assets:    
Money market instruments $ 3,618 $ 415
Financial assets at fair value 679,742  
Corporate Bonds    
Assets:    
Financial assets at fair value 545,863  
Asset-Backed Securities    
Assets:    
Financial assets at fair value 54,146  
Treasury Bills    
Assets:    
Financial assets at fair value 61,112  
Agency Bonds    
Assets:    
Financial assets at fair value 16,038  
Sovereign Bonds    
Assets:    
Financial assets at fair value 1,954  
Municipal Bonds    
Assets:    
Financial assets at fair value 629  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring    
Assets:    
Money market instruments 3,618  
Economic hedge forward contracts 0  
Liabilities:    
Economic hedge forward contracts 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate Bonds    
Assets:    
Financial assets at fair value 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Asset-Backed Securities    
Assets:    
Financial assets at fair value 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Treasury Bills    
Assets:    
Financial assets at fair value 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Agency Bonds    
Assets:    
Financial assets at fair value 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Sovereign Bonds    
Assets:    
Financial assets at fair value 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Municipal Bonds    
Assets:    
Financial assets at fair value 0  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring    
Assets:    
Money market instruments 0  
Economic hedge forward contracts 154  
Liabilities:    
Economic hedge forward contracts 74  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds    
Assets:    
Financial assets at fair value 545,863  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities    
Assets:    
Financial assets at fair value 54,146  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills    
Assets:    
Financial assets at fair value 61,112  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds    
Assets:    
Financial assets at fair value 16,038  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds    
Assets:    
Financial assets at fair value 1,954  
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds    
Assets:    
Financial assets at fair value 629  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring    
Assets:    
Money market instruments 0  
Economic hedge forward contracts 0  
Liabilities:    
Economic hedge forward contracts 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate Bonds    
Assets:    
Financial assets at fair value 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Asset-Backed Securities    
Assets:    
Financial assets at fair value 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Treasury Bills    
Assets:    
Financial assets at fair value 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Agency Bonds    
Assets:    
Financial assets at fair value 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Sovereign Bonds    
Assets:    
Financial assets at fair value 0  
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal Bonds    
Assets:    
Financial assets at fair value $ 0  
v3.23.1
Cash, Cash Equivalents, and Investments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Dec. 31, 2022
Cash and Cash Equivalents [Line Items]      
Debt securities, available-for-sale, allowance for credit loss $ 0   $ 0
Credit loss on investments 0 $ 0  
Gross realized gains on sale of investments 0 118  
Gross realized losses on sale of investments 0 $ 154  
Other Current Assets      
Cash and Cash Equivalents [Line Items]      
Accrued interest receivable $ 4,559   $ 3,620
v3.23.1
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale    
Cash $ 160,553 $ 180,959
Money market instruments 3,618 415
Cash and cash equivalents 164,171 181,374
Current investments 216,703 218,759
Non-current investments 463,039 454,117
Total 843,913 854,250
Corporate Bonds    
Debt Securities, Available-for-sale    
Current investments 160,320 164,055
Long-term investments 385,543 374,440
Asset-Backed Securities    
Debt Securities, Available-for-sale    
Current investments 31,265 26,890
Long-term investments 22,881 33,539
Treasury Bills    
Debt Securities, Available-for-sale    
Current investments 8,451 11,332
Long-term investments 52,661 44,214
Agency Bonds    
Debt Securities, Available-for-sale    
Current investments 16,038 15,858
Municipal Bonds    
Debt Securities, Available-for-sale    
Current investments 629 624
Sovereign Bonds    
Debt Securities, Available-for-sale    
Long-term investments $ 1,954 $ 1,924
v3.23.1
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Details)
$ in Thousands
Apr. 02, 2023
USD ($)
Debt Securities, Available-for-sale  
Amortized cost $ 699,272
Gross unrealized gains 2,232
Gross unrealized losses (21,762)
Fair value 679,742
Corporate Bonds  
Debt Securities, Available-for-sale  
Fair value 545,863
Corporate Bonds | Current Assets  
Debt Securities, Available-for-sale  
Amortized cost 163,537
Gross unrealized gains 3
Gross unrealized losses (3,220)
Fair value 160,320
Corporate Bonds | Non-current Assets  
Debt Securities, Available-for-sale  
Amortized cost 400,051
Gross unrealized gains 1,623
Gross unrealized losses (16,131)
Fair value 385,543
Asset-Backed Securities  
Debt Securities, Available-for-sale  
Fair value 54,146
Asset-Backed Securities | Current Assets  
Debt Securities, Available-for-sale  
Amortized cost 32,016
Gross unrealized gains 0
Gross unrealized losses (751)
Fair value 31,265
Asset-Backed Securities | Non-current Assets  
Debt Securities, Available-for-sale  
Amortized cost 23,905
Gross unrealized gains 117
Gross unrealized losses (1,141)
Fair value 22,881
Treasury Bills  
Debt Securities, Available-for-sale  
Fair value 61,112
Treasury Bills | Current Assets  
Debt Securities, Available-for-sale  
Amortized cost 8,607
Gross unrealized gains 0
Gross unrealized losses (156)
Fair value 8,451
Treasury Bills | Non-current Assets  
Debt Securities, Available-for-sale  
Amortized cost 52,290
Gross unrealized gains 489
Gross unrealized losses (118)
Fair value 52,661
Agency Bonds  
Debt Securities, Available-for-sale  
Fair value 16,038
Agency Bonds | Current Assets  
Debt Securities, Available-for-sale  
Amortized cost 16,148
Gross unrealized gains 0
Gross unrealized losses (110)
Fair value 16,038
Sovereign Bonds  
Debt Securities, Available-for-sale  
Fair value 1,954
Sovereign Bonds | Non-current Assets  
Debt Securities, Available-for-sale  
Amortized cost 2,083
Gross unrealized gains 0
Gross unrealized losses (129)
Fair value 1,954
Municipal Bonds  
Debt Securities, Available-for-sale  
Fair value 629
Municipal Bonds | Current Assets  
Debt Securities, Available-for-sale  
Amortized cost 635
Gross unrealized gains 0
Gross unrealized losses (6)
Fair value $ 629
v3.23.1
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Details)
$ in Thousands
Apr. 02, 2023
USD ($)
Debt Securities, Available-for-sale  
Fair value, less than 12 months $ 98,436
Unrealized losses, less than 12 months (1,434)
Fair value, 12 months or greater 409,469
Unrealized losses, 12 months or greater (20,328)
Total fair value 507,905
Total Unrealized Losses (21,762)
Corporate Bonds  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 81,931
Unrealized losses, less than 12 months (1,098)
Fair value, 12 months or greater 350,244
Unrealized losses, 12 months or greater (18,253)
Total fair value 432,175
Total Unrealized Losses (19,351)
Asset-Backed Securities  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 10,998
Unrealized losses, less than 12 months (213)
Fair value, 12 months or greater 32,783
Unrealized losses, 12 months or greater (1,679)
Total fair value 43,781
Total Unrealized Losses (1,892)
Treasury Bills  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 4,878
Unrealized losses, less than 12 months (117)
Fair value, 12 months or greater 8,451
Unrealized losses, 12 months or greater (157)
Total fair value 13,329
Total Unrealized Losses (274)
Agency Bonds  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 0
Unrealized losses, less than 12 months 0
Fair value, 12 months or greater 16,037
Unrealized losses, 12 months or greater (110)
Total fair value 16,037
Total Unrealized Losses (110)
Sovereign Bonds  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 0
Unrealized losses, less than 12 months 0
Fair value, 12 months or greater 1,954
Unrealized losses, 12 months or greater (129)
Total fair value 1,954
Total Unrealized Losses (129)
Municipal Bonds  
Debt Securities, Available-for-sale  
Fair value, less than 12 months 629
Unrealized losses, less than 12 months (6)
Fair value, 12 months or greater 0
Unrealized losses, 12 months or greater 0
Total fair value 629
Total Unrealized Losses $ (6)
v3.23.1
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Details)
$ in Thousands
Apr. 02, 2023
USD ($)
Debt Securities, Available-for-sale  
less than 1 year $ 216,703
1-2 Years 173,141
2-3 Years 116,078
3-4 Years 88,781
4-5 Years 82,812
5-8 Years 2,227
Fair value 679,742
Corporate Bonds  
Debt Securities, Available-for-sale  
less than 1 year 160,320
1-2 Years 166,170
2-3 Years 87,347
3-4 Years 63,241
4-5 Years 66,558
5-8 Years 2,227
Fair value 545,863
Asset-Backed Securities  
Debt Securities, Available-for-sale  
less than 1 year 31,265
1-2 Years 2,579
2-3 Years 12,599
3-4 Years 7,703
4-5 Years 0
5-8 Years 0
Fair value 54,146
Treasury Bills  
Debt Securities, Available-for-sale  
less than 1 year 8,451
1-2 Years 3,414
2-3 Years 15,156
3-4 Years 17,837
4-5 Years 16,254
5-8 Years 0
Fair value 61,112
Agency Bonds  
Debt Securities, Available-for-sale  
less than 1 year 16,038
1-2 Years 0
2-3 Years 0
3-4 Years 0
4-5 Years 0
5-8 Years 0
Fair value 16,038
Sovereign Bonds  
Debt Securities, Available-for-sale  
less than 1 year 0
1-2 Years 978
2-3 Years 976
3-4 Years 0
4-5 Years 0
5-8 Years 0
Fair value 1,954
Municipal Bonds  
Debt Securities, Available-for-sale  
less than 1 year 629
1-2 Years 0
2-3 Years 0
3-4 Years 0
4-5 Years 0
5-8 Years 0
Fair value $ 629
v3.23.1
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Raw materials $ 77,520 $ 71,720
Work-in-process 1,489 906
Finished goods 48,138 49,854
Inventories $ 127,147 $ 122,480
v3.23.1
Leases - Narrative (Details)
ft² in Thousands, $ in Thousands
 1 Months Ended 3 Months Ended
Dec. 31, 2021
ft²
Apr. 02, 2023
USD ($)
Apr. 03, 2022
USD ($)
Dec. 31, 2022
USD ($)
Leases [Abstract]        
Operating lease, cost   $ 2,392 $ 2,229  
Operating lease, payments   2,404 2,079  
Lease, cost   24 38  
Lessee, Lease, Description [Line Items]        
Operating lease assets   37,769   $ 37,682
Operating lease liability   39,566   39,752
Operating lease liability   $ 39,566   $ 39,752
Weighted average discount rate   3.30%   3.30%
Weighted average remaining lease term   7 years 7 months 6 days   7 years 9 months 18 days
Southborough, Massachusetts        
Lessee, Lease, Description [Line Items]        
Rentable area | ft² 65      
Term of contract 10 years      
Option to renew, term of contract 5 years      
Operating lease assets     9,271  
Operating lease liability     9,271  
Operating lease liability     $ 9,271  
v3.23.1
Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details)
$ in Thousands
Apr. 02, 2023
USD ($)
Leases [Abstract]  
Remainder of fiscal 2023 $ 7,284
2024 7,530
2025 5,477
2026 4,221
2027 3,716
2028 3,448
Thereafter 12,769
Total $ 44,445
v3.23.1
Goodwill (Details)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
Goodwill [Roll Forward]  
Balance as of December 31, 2022 $ 242,630
Foreign exchange rate changes (589)
Balance as of April 2, 2023 $ 242,041
v3.23.1
Intangible Assets (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks    
Gross Carrying Value $ 34,195 $ 34,195
Accumulated Amortization (22,723) (21,781)
Net Carrying Value 11,472 12,414
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Net Carrying Value 11,472 12,414
Completed technologies    
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks    
Gross Carrying Value 28,017 28,017
Accumulated Amortization (18,492) (17,744)
Net Carrying Value 9,525 10,273
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Net Carrying Value 9,525 10,273
Customer relationships    
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks    
Gross Carrying Value 5,838 5,838
Accumulated Amortization (4,040) (3,860)
Net Carrying Value 1,798 1,978
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Net Carrying Value 1,798 1,978
Non-compete agreements    
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks    
Gross Carrying Value 340 340
Accumulated Amortization (191) (177)
Net Carrying Value 149 163
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Net Carrying Value 149 $ 163
Indefinite-lived intangible asset excluding in-process technologies    
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks    
Net Carrying Value 11,472  
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Remainder of fiscal 2023 2,195  
2024 2,623  
2025 2,300  
2026 1,995  
2027 1,273  
2028 543  
Finite-Lived Intangible Asset, Expected Amortization, after Year Five 543  
Net Carrying Value $ 11,472  
v3.23.1
Warranty Obligations - Changes in Warranty Obligations (Detail)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]  
Beginning balance $ 4,375
Provisions for warranties issued during the period 527
Fulfillment of warranty obligations (828)
Ending balance $ 4,074
v3.23.1
Commitment and Contingencies (Details)
$ in Thousands
Apr. 02, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Outstanding purchase orders $ 47,486
v3.23.1
Derivative Instruments (Details)
 3 Months Ended
Apr. 02, 2023
Not Designated as Hedging Instrument  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Remaining maturity of foreign currency derivatives (up to) 3 months
v3.23.1
Derivative Instruments - Outstanding Forward Contracts Table (Details) - Not Designated as Hedging Instrument
€ in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands
Apr. 02, 2023
EUR (€)
Apr. 02, 2023
USD ($)
Apr. 02, 2023
MXN ($)
Apr. 02, 2023
HUF (Ft)
Apr. 02, 2023
JPY (¥)
Apr. 02, 2023
GBP (£)
Apr. 02, 2023
CAD ($)
Apr. 02, 2023
CNY (¥)
Apr. 02, 2023
CHF (SFr)
Dec. 31, 2022
EUR (€)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
MXN ($)
Dec. 31, 2022
HUF (Ft)
Dec. 31, 2022
JPY (¥)
Dec. 31, 2022
GBP (£)
Dec. 31, 2022
CAD ($)
Dec. 31, 2022
CNY (¥)
Dec. 31, 2022
CHF (SFr)
Euro Member Countries, Euro                                    
Derivative [Line Items]                                    
Outstanding forward contracts € 32,500 $ 35,529               € 60,000 $ 64,174              
China, Yuan Renminbi                                    
Derivative [Line Items]                                    
Outstanding forward contracts   0           ¥ 0     7,619           ¥ 55,000  
Mexico, Pesos                                    
Derivative [Line Items]                                    
Outstanding forward contracts   8,498 $ 155,000               9,480 $ 185,000            
Japanese Yen                                    
Derivative [Line Items]                                    
Outstanding forward contracts   4,536     ¥ 600,000           5,281     ¥ 700,000        
United Kingdom, Pounds                                    
Derivative [Line Items]                                    
Outstanding forward contracts   4,313       £ 3,485         4,161       £ 3,445      
Hungary, Forint                                    
Derivative [Line Items]                                    
Outstanding forward contracts   5,381   Ft 1,890,000             4,238   Ft 1,590,000          
Canada, Dollars                                    
Derivative [Line Items]                                    
Outstanding forward contracts   1,261         $ 1,705       1,278         $ 1,730    
Switzerland, Francs                                    
Derivative [Line Items]                                    
Outstanding forward contracts   $ 0             SFr 0   $ 1,218             SFr 1,120
v3.23.1
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Derivative asset $ 154 $ 27
Derivative liability 74 479
Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Derivative asset 154 27
Derivative liability $ 74 $ 479
v3.23.1
Derivative Instruments - Offsetting Assets (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross amounts of recognized assets $ 154 $ 27
Gross amounts offset 0 0
Net amount of assets presented 154 27
Gross amounts of recognized liabilities 74 479
Gross amounts offset 0 0
Net amount of liabilities presented $ 74 $ 479
v3.23.1
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Not Designated as Hedging Instrument    
Derivative Instruments, Gain (Loss) [Line Items]    
Gains (losses) recognized in current operations $ (1,471) $ 1,739
v3.23.1
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Disaggregation of Revenue [Line Items]    
Revenue $ 201,124 $ 282,407
Americas    
Disaggregation of Revenue [Line Items]    
Revenue 80,442 126,658
Europe    
Disaggregation of Revenue [Line Items]    
Revenue 59,842 62,792
Greater China    
Disaggregation of Revenue [Line Items]    
Revenue 33,172 48,406
Other Asia    
Disaggregation of Revenue [Line Items]    
Revenue $ 27,668 $ 44,551
v3.23.1
Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Revenue from External Customer [Line Items]    
Revenue $ 201,124 $ 282,407
Standard products and services    
Revenue from External Customer [Line Items]    
Revenue 190,783 257,880
Application-specific customer solutions    
Revenue from External Customer [Line Items]    
Revenue $ 10,341 $ 24,527
v3.23.1
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
Apr. 02, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Costs to fulfill contract $ 20,219 $ 14,578
v3.23.1
Revenue Recognition - Schedule of Allowance for Credit Loss (Details)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]  
Balance as of December 31, 2022 $ 730
Increases to the allowance for credit losses 350
Write-offs, net of recoveries (78)
Foreign exchange rate changes (1)
Balance as of April 2, 2023 $ 1,001
v3.23.1
Revenue Recognition - Deferred Revenue Activity (Details)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
Movement in Deferred Revenue [Roll Forward]  
Balance as of December 31, 2022 $ 40,787
Deferral of revenue billed in the current period, net of recognition 34,786
Recognition of revenue deferred in prior period (8,578)
Deferred Revenue, Refund Payments 9,205
Foreign exchange rate changes 15
Balance as of April 2, 2023 $ 57,805
v3.23.1
Stock-Based Compensation Expense (Details)
 3 Months Ended
Apr. 02, 2023
USD ($)
group
$ / shares
shares
Apr. 03, 2022
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair values, in dollars per share | $ / shares $ 17.79 $ 22.45  
Total intrinsic value $ 3,439,000 $ 2,615,000  
Total fair values of stock options vest $ 31,181,000 25,535,000  
Groups within the employee population | group 3    
Estimated annual forfeiture rate for unvested options for senior management 8.00%    
Estimated annual forfeiture rate for unvested options for all other employees 13.00%    
Increase (decrease) to compensation expense   1,536,000  
Unrecognized compensation expense $ 86,841,000    
Weighted average period to be recognized 2 years 4 months 24 days    
Stock-based compensation expense $ 16,579,000 15,056,000  
Tax benefit from compensation expense 2,308,000 $ 2,319,000  
Recognized period costs capitalized $ 0   $ 0
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for grant under stock option plans (in shares) | shares 12,116,000    
Expiration period from grant day 10 years    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) | $ / shares $ 46.61 $ 63.96  
Granted (in shares) | shares 635,000    
Vested (in shares) | shares 453,000 54,000  
Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period for stock option plans 3 years    
Granted (in dollars per share) | $ / shares $ 44.86    
Granted (in shares) | shares 46,000 33,000  
Vested (in shares) | shares 0 0  
Minimum | General Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period for stock option plans 4 years    
Minimum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period for stock option plans 3 years    
Maximum | General Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period for stock option plans 5 years    
Maximum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period for stock option plans 4 years    
v3.23.1
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
$ / shares
shares
Shares (in thousands)  
Outstanding, shares | shares 8,467
Granted, shares | shares 1,228
Exercised, shares | shares (140)
Forfeited or expired, shares | shares (247)
Outstanding, shares | shares 9,308
Exercisable as of reporting date, shares | shares 5,433
Options vested or expected to vest as of reporting date, shares | shares 8,735
Weighted- Average Exercise Price  
Outstanding, in dollars per share | $ / shares $ 51.56
Granted, in dollars per share | $ / shares 47.21
Exercised, in dollars per share | $ / shares 28.36
Forfeited or expired, in dollars per share | $ / shares 58.05
Outstanding, in dollars per share | $ / shares 51.16
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | $ / shares 47.45
Vested and expected to vest, outstanding, in dollars per share | $ / shares $ 50.90
Weighted- Average Remaining Contractual Term (in years)  
Outstanding, in years 6 years 6 months 10 days
Exercisable, in years 5 years 1 month 13 days
Options vested or expected to vest, in years 6 years 4 months 13 days
Aggregate Intrinsic Value (in thousands)  
Outstanding, in dollars | $ $ 37,312
Exercisable, in dollars | $ 33,531
Options vested or expected to vest, in dollars | $ $ 36,643
v3.23.1
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Details)
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Share-Based Payment Arrangement [Abstract]    
Risk-free rate 4.00% 1.90%
Expected dividend yield 0.59% 0.40%
Expected volatility 39.00% 37.00%
Expected term (in years) 4 years 3 months 18 days 5 years 2 months 12 days
v3.23.1
Stock-Based Compensation Expense Stock-Based Compensation Expense - Schedule of Restricted Stock Units (Details)
$ / shares in Units, shares in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
group
$ / shares
shares
Apr. 03, 2022
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Weighted-Average Grant Date Fair Value      
Groups within the employee population | group 3    
Estimated Forfeiture Rate for Unvested Options for CEO 0    
Estimated annual forfeiture rate for unvested options for senior management 8.00%    
Estimated annual forfeiture rate for unvested options for all other employees 13.00%    
Decrease in compensation expense due to revised estimated forfeiture rates $ 234,000    
Increase (decrease) to compensation expense   $ 1,536,000  
Unrecognized compensation expense $ 86,841,000    
Weighted average period to be recognized 2 years 4 months 24 days    
Stock-based compensation expense $ 16,579,000 15,056,000  
Tax benefit from compensation expense 2,308,000 $ 2,319,000  
Recognized period costs capitalized $ 0   $ 0
Restricted Stock Units (RSUs)      
Shares (in thousands)      
Nonvested as of Beginning of Period (in shares) | shares 1,269    
Granted (in shares) | shares 635    
Vested (in shares) | shares 453 54  
Forfeited or expired (in shares) | shares (32)    
Nonvested as of End of Period (in shares) | shares 1,419    
Weighted-Average Grant Date Fair Value      
Nonvested as of Beginning of Period (in dollars per share) | $ / shares $ 61.74    
Granted (in dollars per share) | $ / shares 46.61 $ 63.96  
Vested (in dollars per share) | $ / shares 59.11    
Forfeited or expired (in dollars per share) | $ / shares 66.98    
Nonvested as of End of Period (in dollars per share) | $ / shares $ 55.69    
v3.23.1
Stock-Based Compensation Expense - Schedule of Performance Restricted Stock Units (Details) - Performance Shares - $ / shares
shares in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Shares (in thousands)    
Nonvested as of Beginning of Period (in shares) 33  
Granted (in shares) 46 33
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period 0 0
Forfeited or expired (in shares) 0  
Nonvested as of End of Period (in shares) 79  
Weighted-Average Grant Date Fair Value    
Nonvested as of Beginning of Period (in dollars per share) $ 62.49  
Granted (in dollars per share) 44.86  
Vested (in dollars per share) 0  
Forfeited or expired (in dollars per share) 0  
Nonvested as of End of Period (in dollars per share) $ 52.23  
v3.23.1
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Stock-based compensation expense $ 16,579 $ 15,056
Cost of Revenue    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Stock-based compensation expense 621 563
Research, Development, and Engineering Expenses    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Stock-based compensation expense 5,890 4,448
Selling, General, and Administrative    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Stock-based compensation expense $ 10,068 $ 10,045
v3.23.1
Stock Repurchase Program (Details) - USD ($)
shares in Thousands
 3 Months Ended 12 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Dec. 31, 2022
Mar. 03, 2022
Mar. 12, 2020
Repurchase Program March 2020          
Equity, Class of Treasury Stock [Line Items]          
Authorized common stock to be repurchased         $ 200,000,000
Shares repurchased at cost (in shares)     1,677    
Shares repurchased at cost     $ 117,000,000    
Repurchase Program March 2022          
Equity, Class of Treasury Stock [Line Items]          
Authorized common stock to be repurchased       $ 500,000,000  
Shares repurchased at cost (in shares) 479 202      
Shares repurchased at cost $ 24,178,000 $ 13,405,000      
Remaining authorized repurchase amount $ 388,508,000        
v3.23.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 02, 2023
Oct. 02, 2022
Apr. 03, 2022
Dec. 31, 2022
Income Tax Contingency [Line Items]        
Effective tax rate 2.00%   23.00%  
Discrete tax expense (benefit) $ (3,594)   $ (6,338)  
Increase in tax expense arising from tax settlement   $ 2,292 1,417  
Increase in tax expense related to valuation allowance   $ 2,198 1,734  
Increase in tax expense related to transfer pricing and return-to-provision adjustments 172   $ 3,187  
Decrease in tax expense related to stock-based compensation $ 1,068      
Effective tax rate excluding discrete items (as a percent) 16.00%   16.00%  
Liability for uncertain tax positions $ 20,030      
Reserve for income taxes classified as a noncurrent iability $ 20,030     $ 15,866
Tax years open to examination by Internal Revenue Service 2019 through 2022      
Tax years open to examination by various taxing authorities for other entities 2017 through 2022      
Foreign Tax Authority | Revenue Commissioners, Ireland        
Income Tax Contingency [Line Items]        
Statutory tax rate 12.50%      
Foreign Tax Authority | State Administration of Taxation, China        
Income Tax Contingency [Line Items]        
Statutory tax rate 25.00%      
Foreign Tax Authority | KOREA, DEMOCRATIC PEOPLE'S REPUBLIC OF        
Income Tax Contingency [Line Items]        
Statutory tax rate 22.00%      
Domestic Tax Authority        
Income Tax Contingency [Line Items]        
Statutory tax rate 21.00%      
v3.23.1
Weighted-Average Shares - Calculation of Weighted-Average Shares (Details) - shares
shares in Thousands
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Earnings Per Share [Abstract]    
Basic weighted-average common shares outstanding (in shares) 172,624 174,146
Effect of dilutive equity awards (in shares) 1,279 2,522
Weighted-average common and common-equivalent shares outstanding (in shares) 173,903 176,668
v3.23.1
Weighted-Average Shares (Details) - shares
 3 Months Ended
Apr. 02, 2023
Apr. 03, 2022
Employee Stock Option    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Anti-dilutive securities excluded from computation of earnings per share (shares) 6,515,000 1,282,000
Restricted Stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Anti-dilutive securities excluded from computation of earnings per share (shares) 10,000 20,000
Performance Shares    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Anti-dilutive securities excluded from computation of earnings per share (shares) 0 0
v3.23.1
Loss from Fire (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
May 03, 2023
Dec. 31, 2022
Dec. 31, 2022
Business Interruption Loss [Line Items]      
Gross loss from catastrophes     $ 48,339
Insurance recoveries   $ 27,560  
Subsequent Event      
Business Interruption Loss [Line Items]      
Proceeds from insurance settlements $ 2,500    
v3.23.1
Restructuring Charges - Activity in Restructuring Reserve (Details) - Accrued Expenses - December 2022
$ in Thousands
 3 Months Ended
Apr. 02, 2023
USD ($)
Restructuring Reserve [Roll Forward]  
Balance at beginning of period $ 1,039
Cash payments (163)
Foreign exchange rate changes (18)
Balance at end of period 894
One-time Termination Benefits  
Restructuring Reserve [Roll Forward]  
Balance at beginning of period 964
Cash payments (143)
Foreign exchange rate changes (17)
Balance at end of period 838
Contract Termination Costs  
Restructuring Reserve [Roll Forward]  
Balance at beginning of period 75
Cash payments (20)
Foreign exchange rate changes (1)
Balance at end of period $ 56
v3.23.1
Subsequent Events (Details)
May 04, 2023
$ / shares
Subsequent Event  
Subsequent Event [Line Items]  
Dividends (in dollars per share) $ 0.07