Ipg Photonics Corp 10-K for FY2020

Ipg Photonics Corp (IPGP)

10-K 2021-02-22 For: 2020-12-31

Added on April 12, 2026

About this 10-K

Ipg Photonics Corp filed this 10-K on February 22, 2021, covering the fiscal year ended December 31, 2020 (FY2020).

Headline figures

Fiscal year ended December 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.2B; down 8.7% from $1.31B a year earlier
Net income: $159.57M; down 11.5% from net income of $180.23M a year earlier
Diluted EPS: $2.97; down 11.3% from $3.35 a year earlier

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Delaware						04-3444218
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)
50 Old Webster Road, Oxford, Massachusetts						01540
(Address of principal executive offices)						(Zip Code)


Title of Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, Par Value $0.0001 per share	IPGP	The Nasdaq Stock Market LLC


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐



	PART I
ITEM 1.	BUSINESS	3
ITEM 1A.	RISK FACTORS	14
ITEM 1B.	UNRESOLVED STAFF COMMENTS	29
ITEM 2.	PROPERTIES	29
ITEM 3.	LEGAL PROCEEDINGS	29
ITEM 4.	MINE SAFETY DISCLOSURES	29

	PART II
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	30
ITEM 6.	RESERVED	31
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	31
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	44
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	45
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	45
ITEM 9A.	CONTROLS AND PROCEDURES	45
ITEM 9B.	OTHER INFORMATION	47

	PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	47
ITEM 11.	EXECUTIVE COMPENSATION	47
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	47
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	47
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	47

	PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	48
ITEM 16.	FORM 10-K SUMMARY	50

SIGNATURES		51

INDEX TO FINANCIAL STATEMENTS		F-1


End Market	Applications	Principal Products
General manufacturing	Flat sheet, tube and 3D cutting	Continuous Wave ("CW") lasers (1-20 kW)
	Welding, brazing and hardening	CW lasers (1-100 kW)
	Marking, engraving and printing	Nanosecond ("NS") pulsed lasers (10-100 W)
	3D printing	CW lasers (200-1,000 W)
	Ablation and cleaning	NS pulsed lasers (100-2000 W)
Automotive	Cutting of high-strength steel and aluminum	CW lasers (1-20 kW)
	Welding tailored blanks, frames and auto parts	CW lasers (1-50 kW)
	Seam welding and brazing	CW lasers and IPG systems
	Electric vehicle battery processing	CW lasers and NS pulsed lasers
Consumer goods	Micro welding, cutting and marking	Quasi-CW ("QCW") lasers and NS pulsed lasers
	Marking of plastic and non-metal material	Ultraviolet pulsed lasers
Medical devices	Stent, pacemaker and device manufacturing	CW lasers and NS pulsed lasers
Energy and Renewable Energy	Hardening and welding of pipes	CW lasers (4-50 kW)
	Cladding of turbine blades and drill bits	CW lasers (1-20 kW) and IPG systems
	Solar cell processing	Green pulsed lasers
Aerospace, rail and	Welding titanium, welding/cutting thick plates	CW lasers (1-50 kW) and IPG systems
shipbuilding	Percussion drilling of parts	QCW lasers
	Non-destructive inspection	Genesis systems
Micro electronics	Wafer inspection and annealing	CW lasers and NS pulsed lasers
	Processing of glass, ceramics, sapphire, silicon	Picosecond ("PS") pulsed lasers


☑			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Year Ended December 31,
	2020				2019				2018
			% of Total				% of Total				% of Total
Materials processing	$	1,082,478	90.2	%	$	1,229,211	93.5	%	$	1,374,448	94.1	%
Advanced applications	63,859		5.3	%	40,779		3.1	%	43,469		3.0	%
Communications	23,144		1.9	%	30,111		2.3	%	34,397		2.4	%
Medical procedures	31,243		2.6	%	14,480		1.1	%	7,560		0.5	%
Total	$	1,200,724	100.0	%	$	1,314,581	100.0	%	$	1,459,874	100.0	%


	Base Period		5-Year Cumulative Total Return
	12/31/2015		12/31/2016		12/31/2017		12/31/2018		12/31/2019		12/31/2020
IPG Photonics Corporation	$	100.00	$	110.71	$	240.16	$	128.98	$	161.42	$	251.00
S&P 500 Index	$	100.00	$	111.96	$	136.40	$	129.31	$	171.94	$	203.04
S&P 1500 Composite / Electronic Equipment Instruments & Components Index	$	100.00	$	129.69	$	168.06	$	144.95	$	195.01	$	241.56


Date	Total Number of Shares (or Units) Purchased		Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs









October 1, 2020 — October 31, 2020	63	(1), (2), (3)	$	195.33	—	$	246,386
November 1, 2020 — November 30, 2020	545	(1), (2), (3)	188.43		—	246,386
December 1, 2020 — December 31, 2020	53	(1), (2), (3)	209.03		—	246,386
Total	661		$	190.74	—	$	246,386


	As of December 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	876,231	$	680,070
Short-term investments	514,835		502,546
Unused credit lines and overdraft facilities	132,048		105,469
Working capital (excluding cash and cash equivalents and short-term investments)	542,433		522,114


	Payments Due in
	Total		Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
	(In thousands)
Operating lease obligations	$	27,517	$	6,452	$	8,427	$	4,327	$	8,311
Purchase obligations	51,730		51,730		—		—		—
Long-term debt obligations (including interest)(1)	39,899		4,821		35,078		—		—
Contingent consideration	1,963		491		1,472		—		—
Total(2)	$	121,109	$	63,494	$	44,977	$	4,327	$	8,311


Plan Category	Number of Securities to be Issued upon Exercise of Outstanding Options, RSUs and PSUs (a)	Weighted-Average Exercise Price of Outstanding Options, RSUs and PSUs (b)		Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)
Equity Compensation Plans Approved by Security Holders1	1,685,235	$	136.17	3,145,972
Equity Compensation Plans Not Approved by Security Holders	—			—
Total	1,685,235			3,145,972



Exhibit Number						Description
3.1						Form of Second Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement No. 333-136521 filed with the Securities and Exchange Commission (the "Commission") on August 11, 2006)

3.2						Amended and Restated By laws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's C urrent Report on Form 8-K filed with the Commission on August 24, 2020 )

4.1						Specimen Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement No. 333-136521 filed with the Commission on November 14, 2006)

4.2						Description of the Registrant's Securities Registered under Section 12 of the Exchange Act (incorpo rated by reference to Exhibit 4.2 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 24, 2020 )

10.1†						2006 Incentive Compensation Plan, as amended (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.2†						IPG Photonics Corporation Non-Employee Director Compensation Plan, as amended (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 21, 2020)

10.3†						Senior Executive Annual Incentive Plan, as amended (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.4†						IPG Photonics Corporation 2008 Employee Stock Purchase Plan, as amended and restated effective December 1, 2018 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on June 3, 2019)

10.5†						Employment Agreement dated May 30, 2019 between the Registrant and Dr. Valentin P. Gapontsev (incorporated by reference to Exhibit 10 .5 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 24, 2020)

10.6†						Service Agreement dated May 30, 2019 between IPG Laser GmbH and Dr. Eugene Scherbakov (incorporated by reference to Exhibit 10.6 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 24, 2020)

10.7†						Form of Employment Agreement dated May 30, 2019 between the Registrant and each of Timothy P.V. Mammen, Angelo P. Lopresti and Alexander Ovtchinnikov (incorporated by reference to Exhibit 10.7 to the Registrant's Annual Report Form 10-K filed with the Commission on February 24, 2020)

10.8†						Form of Confidentiality, Non-Competition and Confirmatory Assignment Agreement between the Registrant and each of the named executive officers and certain other executive officers, (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K filed with the Commission on October 15, 2013)

10.9†						Form of Letter amending Confidentiality, Non-Competition and Confirmatory Assignment Agreements between the Registrant and each of the named executive officers and certain other executive officers (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.10†						Form of Indemnification Agreement between the Registrant and each of its Directors and Executive Officers (incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K/A filed with the Commission on February 22, 2017)

10.11						Second Amended and Restated Loan Agreement, between the Registrant and Bank of America, N.A. dated as of March 25, 2020 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on March 26, 2020 )

10.12						Revolving Credit Note, between the Registrant and Bank of America, N.A., dated March 25, 2020 (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Commission on March 26, 2020 )

10.13						Credit Facility Agreement between IPG Laser GmbH and Deutsche Bank AG, dated July 27, 2017 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on August 1, 2017)


Exhibit Number						Description
10.14						Annex I to Credit Facility Agreement between IPG Laser GmbH and Deutsche Bank AG, dated July 27, 2017 (incorporated by reference to Exhibit 10.2 on Current Report on Form 8-K filed with the Commission on August 1, 2017)

10.15						Guarantee of the Registrant to Deutsche Bank dated July 27, 2017 (incorporated by reference to Exhibit 10.3 on Current Report on Form 8-K filed with the Commission on August 1, 2017)

10.16						First Amendment to Credit Facility Agreement between IPG Laser GmbH and Deutsche Bank AG, dated April 20, 2020 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Commission on April 23, 2020)

10.17						Loan and Aircraft Security Agreement between TVPX Aircraft Solutions, as Trustee under the Trust Pledge Agreement between Registrant and Trustee dated July 27, 2017, and Banc of America Leasing & Capital, LLC dated July 27, 2017 (incorporated by reference to Exhibit 10.22 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 28, 2018)

10.18						Promissory Note between TVPX Aircraft Solutions dated July 27, 2017, as Trustee under the Trust Pledge Agreement between Registrant and Trustee dated July 27, 2017, and Banc of America Leasing & Capital, LLC dated July 27, 2017 (incorporated by reference to Exhibit 10.23 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 28, 2018)

10.19						Guaranty of the Registrant to Banc of America Lease & Capital, LLC, dated July 27, 2017 (incorporated by reference to Exhibit 10.24 to the Registrant's Annual Report on Form 10-K filed with the Commission on February 28, 2018)

21.1						List of Subsidiaries

23.1						Consent of Deloitte & Touche LLP

31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended

31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended

32.1						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 1350

101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH						XBRL Taxonomy Extension Schema

101.CAL						XBRL Taxonomy Extension Calculation Linkbase

101.DEF						XBRL Taxonomy Definition Linkbase

101.LAB						XBRL Taxonomy Extension Label Linkbase

101.PRE						XBRL Taxonomy Extension Presentation Linkbase

104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


End Market	Applications	Principal Products
Aerospace and defense	Directed energy	Single-Mode CW lasers, amplifiers and diodes
Entertainment	Laser cinema projection	RGB luminaire laser system
Scientific	Sensing, spectroscopy and research	Mid-infrared and other lasers
Medical procedures	General surgery, urology and soft tissue	Thulium lasers
	Skin, wrinkle/hair removal, dental	Erbium and diode lasers
Communications	Datacom and telecom network infrastructure	Optical transceivers
	Terrestrial and satellite broadband	Optical amplifiers and raman lasers


	Year Ended December 31,
	2020				2019				2018
	(In thousands, except percentages and per share data)
Net sales	$	1,200,724	100.0	%	$	1,314,581	100.0	%	$	1,459,874	100.0	%
Cost of sales	661,728		55.1		708,372		53.9		659,606		45.2
Gross profit	538,996		44.9		606,209		46.1		800,268		54.8
Operating expenses:
Sales and marketing	70,583		5.9		77,745		5.9		57,815		4.0
Research and development	126,898		10.6		129,997		9.9		122,769		8.4
General and administrative	110,005		9.2		107,597		8.2		102,429		7.0
Goodwill impairment	44,589		3.7		37,120		2.8		—		—
Impairment of long-lived assets and other restructuring charges	1,177		0.1		7,130		0.5		—		—
Loss (gain) on foreign exchange	(12,915)		(1.1)		12,827		1.0		(6,150)		(0.4)
Total operating expenses	340,337		28.4		372,416		28.3		276,863		19.0
Operating income	198,659		16.5		233,793		17.8		523,405		35.9
Interest income, net	6,270		0.5		14,238		1.1		9,057		0.6
Other income, net	763		0.1		345		—		1,933		0.1
Income before provision for income taxes	205,692		17.1		248,376		18.9		534,395		36.6
Provision for income taxes	45,354		3.8		68,115		5.2		130,226		(8.9)
Net income	160,338		13.3		180,261		13.7		404,169		27.7
Less: net income attributable to non-controlling interest	766		0.1		27		—		142		—
Net income attributable to IPG Photonics Corporation	$	159,572	13.2	%	$	180,234	13.7	%	$	404,027	27.7	%
Net income attributable to IPG Photonics Corporation per share:
Basic	$	3.00			$	3.40			$	7.55
Diluted	$	2.97			$	3.35			$	7.38
Weighted average shares outstanding:
Basic	53,186				53,061				53,522
Diluted	53,785				53,839				54,726


	Year Ended December 31,
	2020				2019				Change
	(In thousands, except for percentages)
Sales by Product			% of Total				% of Total
High Power Continuous Wave ("CW") Lasers	$	646,062	53.8	%	$	734,745	55.9	%	$	(88,683)	(12.1)	%
Medium Power CW Lasers	50,796		4.2	%	56,625		4.3	%	(5,829)		(10.3)	%
Pulsed Lasers	158,448		13.2	%	137,675		10.5	%	20,773		15.1	%
Quasi-Continuous Wave ("QCW") Lasers	50,333		4.2	%	56,440		4.3	%	(6,107)		(10.8)	%
Laser and Non-Laser Systems	93,727		7.8	%	141,647		10.8	%	(47,920)		(33.8)	%
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	201,358		16.8	%	187,449		14.2	%	13,909		7.4	%
Total	$	1,200,724	100.0	%	$	1,314,581	100.0	%	$	(113,857)	(8.7)	%


	Year Ended December 31,
	2020				2019				Change
	(In thousands, except for percentages)
Sales by Geography			% of Total				% of Total
North America (1)	$	246,189	20.5	%	$	280,886	21.4	%	$	(34,697)	(12.4)	%
Europe:
Germany	65,646		5.5	%	81,365		6.2	%	(15,719)		(19.3)	%
Other including Eastern Europe/CIS	219,540		18.3	%	249,871		19.0	%	(30,331)		(12.1)	%
Asia and Australia:
China	502,278		41.8	%	491,890		37.4	%	10,388		2.1	%
Japan	53,180		4.4	%	71,757		5.5	%	(18,577)		(25.9)	%
Other	103,785		8.6	%	121,586		9.2	%	(17,801)		(14.6)	%
Rest of World	10,106		0.9	%	17,226		1.3	%	(7,120)		(41.3)	%
Total	$	1,200,724	100.0	%	$	1,314,581	100.0	%	$	(113,857)	(8.7)	%



IPG PHOTONICS CORPORATION

By:			/s/ Valentin P. Gapontsev
			Valentin P. Gapontsev Chief Executive Officer and Chairman of the Board


	December 31,
	2020		2019
	(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	876,231	$	680,070
Short-term investments	514,835		502,546
Accounts receivable, net	264,321		238,479
Inventories	364,993		380,790
Prepaid income taxes	69,893		38,873
Prepaid expenses and other current assets	57,804		55,876

Total current assets	2,148,077		1,896,634
Deferred income taxes, net	43,197		31,395
Goodwill	41,366		82,092
Intangible assets, net	62,114		74,271
Property, plant and equipment, net	597,527		600,852
Other assets	43,419		45,192
Total assets	$	2,935,700	$	2,730,436
LIABILITIES AND EQUITY
Current liabilities:


Current portion of long-term debt	$	3,810	$	3,740
Accounts payable	25,748		27,329
Accrued expenses and other liabilities	176,740		149,782

Income taxes payable	8,280		11,053
Total current liabilities	214,578		191,904
Deferred income taxes and other long-term liabilities	92,854		98,121
Long-term debt, net of current portion	34,157		37,968
Total liabilities	341,589		327,993

Commitments and contingencies (Note 14)
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 55,461,246 and 53,427,234 shares issued and outstanding, respectively, at December 31, 2020; 54,743,227 and 53,010,875 shares issued and outstanding, respectively, at December 31, 2019.	6		5
Treasury stock, at cost, 2,034,012 and 1,732,352 shares held at December 31, 2020 and December 31, 2019, respectively.	(303,614)		(265,730)
Additional paid-in capital	854,301		785,636
Retained earnings	2,188,191		2,028,734
Accumulated other comprehensive loss	(146,065)		(146,919)
Total IPG Photonics Corporation stockholders' equity	2,592,819		2,401,726
Non-controlling interests	1,292		717
Total equity	2,594,111		2,402,443
Total liabilities and equity	$	2,935,700	$	2,730,436


	Year Ended December 31,
	Common Stock			Treasury Stock			Additional Paid In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Non- controlling Interest		Total Stockholders' Equity
(In thousands, except share data)	Shares	Amount		Shares	Amount
Balance, January 1, 2018	53,629,439	$	5	(378,269)	$	(48,933)	$	704,727	$	1,443,867	$	(77,344)	$	—	$	2,022,322
Exercise of stock options and vesting of RSU's and PSU's	351,795	—		—	—		9,895		—		—		—		9,895
Common stock issued under employee stock purchase plan	12,198	—		—	—		2,288		—		—		—		2,288
Purchased common stock	(1,051,825)	—		(1,051,825)	(176,065)		—		—		—		—		(176,065)
Stock-based compensation	—	—		—	—		28,027		—		—		—		28,027
Recently adopted accounting standards	—	—		—	—		—		606		10		—		616
Purchase of non-controlling interest	—	—		—	—		—		—		—		558		558
Net income	—	—		—	—		—		404,027		—		142		404,169
Foreign currency translation adjustments	—	—		—	—		—		—		(85,577)		(13)		(85,590)
Unrealized gain on derivatives, net of tax	—	—		—	—		—		—		15		—		15


Balance, December 31, 2018	52,941,607	5		(1,430,094)	(224,998)		744,937		1,848,500		(162,896)		687		2,206,235
Exercise of stock options and vesting of RSU's and PSU's	319,211	—		—	—		805		—		—		—		805
Common stock issued under employee stock purchase plan	52,315	—		—	—		6,531		—		—		—		6,531
Purchased common stock	(302,258)	—		(302,258)	(40,732)		—		—		—		—		(40,732)
Stock-based compensation	—	—		—	—		33,363		—		—		—		33,363


Net income	—	—		—	—		—		180,234		—		27		180,261
Foreign currency translation adjustments	—	—		—	—		—		—		15,994		3		15,997
Unrealized loss on derivatives, net of tax	—	—		—	—		—		—		(17)		—		(17)

Balance, December 31, 2019	53,010,875	5		(1,732,352)	(265,730)		785,636		2,028,734		(146,919)		717		2,402,443
Exercise of stock options and vesting of RSU's and PSU's	677,076	1		—	—		27,934		—		—		—		27,935
Common stock issued under employee stock purchase plan	40,943	—		—	—		5,259		—		—		—		5,259
Purchased common stock	(301,660)	—		(301,660)	(37,884)		—		—		—		—		(37,884)
Stock-based compensation	—	—		—	—		35,472		—		—		—		35,472
Recently adopted accounting standards	—	—		—	—		—		(115)		—		—		(115)

Net income	—	—		—	—		—		159,572		—		766		160,338
Foreign currency translation adjustments	—	—		—	—		—		—		1,558		(191)		1,367
Unrealized gain on derivatives, net of tax	—	—		—	—		—		—		(472)		—		(472)

Adjustment for net gain realized and included in net income	—	—		—	—		—		—		(232)		—		(232)
Balance, December 31, 2020	53,427,234	$	6	(2,034,012)	$	(303,614)	$	854,301	$	2,188,191	$	(146,065)	$	1,292	$	2,594,111


	Balance at		Balance at
	December 31, 2020		December 31, 2019
Cash and cash equivalents	$	876,231	$	680,070
Restricted cash included in prepaid expenses and other current assets	2,322		—
Restricted cash included in other assets	—		2,914
Cash, cash equivalents and restricted cash	$	878,553	$	682,984



Category						Economic Useful Life
Buildings						20-30 years
Machinery and equipment						5-7 years
Office furniture and fixtures						5-7 years


	Balance at		Adoption of		Balance at
	December 31, 2019		ASU 2016-13		January 1, 2020
Balance Sheet
Accounts receivable, net	$	238,479	$	(148)	$	238,331
Deferred income taxes, net	31,395		33		31,428
Retained earnings	2,028,734		(115)		2,028,619




Sales by Geography
North America	$	246,189	$	280,886	$	202,743
Europe:
Germany	65,646		81,365		111,259
Other including Eastern Europe/CIS	219,540		249,871		296,917
Asia and Australia:
China	502,278		491,890		629,079
Japan	53,180		71,757		87,619
Other	103,785		121,586		127,251
Rest of World	10,106		17,226		5,006
Total	$	1,200,724	$	1,314,581	$	1,459,874


Timing of Revenue Recognition
Goods and services transferred at a point in time	$	1,144,237	$	1,233,065	$	1,447,343
Goods and services transferred over time	56,487		81,516		12,531
Total	$	1,200,724	$	1,314,581	$	1,459,874


	December 31,		January 1,				December 31,		January 1,
	2020		2020		Change		2019		2019		Change
Contract assets
Contract assets	$	8,999	$	9,645	$	(646)	$	9,645	$	10,102	$	(457)
Contract liabilities
Contract liabilities - current	71,246		59,531		11,715		59,531		52,606		6,925
Contract liabilities - long-term	2,189		1,820		369		1,820		1,413		407


	Remaining Performance Obligations
	2021		2022		2023		2024		2025		Thereafter		Total
Revenue expected to be recognized for extended warranty agreements	$	3,795	$	996	$	675	$	381	$	113	$	11	$	5,971
Revenue to be earned over time from contracts to sell robotic systems	17,513		1,336		—		—		—		—		18,849

Total	$	21,308	$	2,332	$	675	$	381	$	113	$	11	$	24,820


	Fair Value Measurements at December 31, 2020
	Total		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market fund deposits and term deposits	$	218,984	$	218,984	$	—	$	—
U.S. Treasury and agency obligations	6,999		—		6,999		—
Commercial paper	162,749		—		162,749		—
Corporate bonds	29,010		—		29,010		—
Short-term investments:
U.S. Treasury and agency obligations	49,996		—		49,996		—
Municipal bonds	7,997		—		7,997		—
Corporate bonds	88,171		—		88,171		—
Commercial paper	368,665		—		368,665		—





Total assets	$	932,571	$	218,984	$	713,587	$	—
Liabilities
Long-term notes	$	38,402	$	—	$	38,402	$	—
Contingent purchase consideration	1,963		—		—		1,963
Interest rate swap	603		—		603		—
Total liabilities	$	40,968	$	—	$	39,005	$	1,963


	December 31, 2020				December 31, 2019
	Book Value		Fair Value		Book Value		Fair Value
Investment maturity

Less than 1 year	$	514,835	$	514,829	$	502,546	$	502,675


	Severance and Employee Benefit Costs		Contract Cancellations		Total
Balance at January 1, 2019	$	—	$	—	$	—
Charges	1,466		314		1,780
Cash payments	(1,317)		(275)		(1,592)

Balance at December 31, 2019	149		39		188
Charges	417		89		506
Cash payments	(560)		(128)		(688)
Foreign exchange adjustment	(6)		—		(6)
Balance at December 31, 2020	$	—	$	—	$	—


	2020		2019
Balance at January 1	$	82,092	$	100,722
Adjustments to goodwill during the measurement period	—		448
Goodwill arising from business combinations	3,211		19,076
Impairment losses	(44,589)		(37,120)
Foreign exchange adjustment	652		(1,034)
Balance at December 31	$	41,366	$	82,092


	December 31, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted- Average Lives
Customer relationships	$	58,041	$	(17,674)	$	40,367	11 years	$	57,866	$	(11,993)	$	45,873	11 years
Technology, trademark and trade name	40,518		(20,949)		19,569		7 years	41,297		(16,128)		25,169		7 years
Production know-how	9,325		(8,167)		1,158		7 years	9,180		(7,415)		1,765		7 years
Patents	8,036		(7,016)		1,020		8 years	8,036		(6,572)		1,464		8 years
Total	$	115,920	$	(53,806)	$	62,114		$	116,379	$	(42,108)	$	74,271


		Year Ended December 31,
Account	Classification	2020		2019
Right-of-use assets	Other assets	$	21,720	$	23,028
Short-term lease liabilities	Accrued expenses and other liabilities	5,778		5,300
Long-term lease liabilities	Deferred income taxes and other long-term liabilities	18,448		20,410
Total lease liabilities		$	24,226	$	25,710


	2019	2018
Expected term	4.3 - 5.1 years	4.1 - 4.9 years
Volatility	37% - 38%	31% - 36%
Risk-free rate of return	1.66% - 2.55%	2.54% - 3.01%
Dividend yield	0.25%	0.25%
Forfeiture rate	—%	—%


	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(In years)	(In thousands)
Outstanding — January 1, 2018	1,797,493	$	73.95
Granted	257,111	232.26
Exercised	(282,720)	58.94
Forfeited	(24,810)	131.36
Outstanding — December 31, 2018	1,747,074	98.93		5.80	$	58,084
Granted	334,740	153.78
Exercised	(192,533)	56.58
Forfeited	(46,839)	149.64
Outstanding — December 31, 2019	1,842,442	112.03		5.73	$	85,110
Granted	—
Exercised	(533,716)	70.17
Forfeited	(36,103)	179.85
Outstanding — December 31, 2020	1,272,623	$	127.74	5.47	$	125,550
Unvested — December 31, 2020	382,729	$	171.98	7.57	$	21,386
Exercisable — December 31, 2020	889,894	$	108.71	4.57	$	104,164


	Number of Shares	Weighted-Average Grant-Date Fair Value		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
				(In years)	(In thousands)
Outstanding — January 1, 2018	378,261	$	96.23
Granted	80,254	227.45
Vested	(97,997)	91.62
Canceled	(9,497)	121.37
Outstanding — December 31, 2018	351,021	126.93		2.62	$	39,767
Granted	120,090	151.94
Vested	(147,606)	120.58
Canceled	(16,667)	139.73
Outstanding — December 31, 2019	306,838	139.09		2.57	$	44,467
Granted	198,606	145.10
Vested	(168,733)	115.77
Canceled	(16,025)	157.36
Outstanding — December 31, 2020	320,686	$	154.29	1.33	$	71,766


						2020
Performance term						3.0 years
Volatility						—%
Risk-free rate of return						1.39%
Dividend yield						0.10%
Weighted-average fair value per share						$143.51