View Filing Data

(In thousands)

March 31, 2020

March 31, 2019

Operating Lease Cost (a)

(a) includes variable and short-term lease costs

Comprehensive income (Tables)

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

The accumulated OCI, net of tax, for the three months ended March 31, 2020 and 2019, consisted of the following:



	March 31, 2020
	(Unaudited)
(In thousands)	Currency translation adjustment			Investments			Derivative instruments			Accumulated other comprehensive income/(loss)
Balance as of December 31, 2019	$	(25,831	)	$	(85	)	4,846			$	(21,070	)
Current-period other comprehensive loss	(5,913		)	(2,788		)	995			(7,706		)
Reclassified from accumulated OCI into income	—			—			(1,570		)	(1,570		)
Income tax expense (benefit)	—			(108		)	181			73
Balance as of March 31, 2020	$	(31,744	)	$	(2,765	)	$	4,090		$	(30,419	)



	March 31, 2019
	(Unaudited)
(In thousands)	Currency translation adjustment			Investments			Derivative instruments			Accumulated other comprehensive income/(loss)
Balance as of December 31, 2018	$	(22,485	)	$	(1,308	)	6,862			$	(16,931	)
Current-period other comprehensive (loss) income	(3,067		)	1,175			3,006			1,114
Reclassified from accumulated OCI into income	—			—			(1,794		)	(1,794		)
Income tax expense (benefit)	—			(6		)	216			210
Balance as of March 31, 2019	$	(25,552	)	$	(127	)	$	7,858		$	(17,821	)

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 254,441	$ 194,616
Short-term investments	329,573	237,983
Accounts receivable, net	213,015	248,872
Inventories, net	208,493	200,410
Prepaid expenses and other current assets	64,972	65,477
Total current assets	1,070,494	947,358
Property and equipment, net	245,166	243,717
Goodwill	253,191	262,242
Intangible assets, net	76,308	84,083
Operating lease right-of-use assets	66,245	70,407
Other long-term assets	51,461	44,082
Total assets	1,762,865	1,651,889
Current liabilities:
Accounts payable and accrued liabilities	50,259	52,192
Accrued compensation	38,808	47,732
Deferred revenue - current	117,598	131,445
Operating lease liabilities - current	13,942	13,431
Other taxes payable	33,064	40,607
Other current liabilities	60,065	20,716
Total current liabilities	313,736	306,123
Deferred income taxes	12,475	14,065
Liability for uncertain income tax positions	6,756	6,652
Income taxes payable - non-current	69,151	69,151
Deferred revenue - non-current	32,853	33,480
Operating lease liabilities - non-current	36,429	40,650
Other long-term liabilities	11,348	5,418
Total liabilities	482,748	475,539
Commitments and contingencies
Stockholders' equity:
Preferred stock: par value $0.01; 5,000,000 shares authorized; none issued and outstanding	0	0
Common stock: par value $0.01; 360,000,000 shares authorized; 130,595,203 shares and 130,504,535 shares issued and outstanding, respectively	1,306	1,305
Additional paid-in capital	973,354	953,578
Retained earnings	335,876	242,537
Accumulated other comprehensive loss	(30,419)	(21,070)
Total stockholders’ equity	1,280,117	1,176,350
Total liabilities and stockholders’ equity	$ 1,762,865	$ 1,651,889

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 132,655	$ 23,220
Other comprehensive income (loss), before tax and net of reclassification adjustments:
Foreign currency translation adjustment	(5,913)	(3,067)
Unrealized (loss) gain on securities available-for-sale	(2,788)	1,175
Unrealized (loss) gain on derivative instruments	(575)	1,212
Other comprehensive loss, before tax	(9,276)	(680)
Tax expense related to items of other comprehensive income	73	210
Other comprehensive loss, net of tax	(9,349)	(890)
Comprehensive income	$ 123,306	$ 22,330

Inventories, net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 113,539	$ 110,078
Work-in-process	10,844	10,613
Finished goods	84,110	79,719
Inventory, Net	$ 208,493	$ 200,410

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.26	$ 0.25

Restructuring - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
Restructuring accrual	$ 8,242	$ 9,527

Derivative instruments and hedging activities - Summary Of Notional Amounts Of Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Total forward contracts notional amount	$ 533,071	$ 383,288
Chinese yuan
Derivative [Line Items]
Total forward contracts notional amount	50,402	32,970
Euro
Derivative [Line Items]
Total forward contracts notional amount	220,749	130,122
Japanese yen
Derivative [Line Items]
Total forward contracts notional amount	82,611	53,527
Hungarian forint
Derivative [Line Items]
Total forward contracts notional amount	107,395	95,228
British pound
Derivative [Line Items]
Total forward contracts notional amount	14,616	13,988
Malaysian ringgit
Derivative [Line Items]
Total forward contracts notional amount	33,552	32,725
Korean won
Derivative [Line Items]
Total forward contracts notional amount	$ 23,746	$ 24,728

Intangible assets and goodwill

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

Intangible assets at March 31, 2020 and December 31, 2019 are as follows:



	March 31, 2020
(In thousands)	(Unaudited)							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Capitalized software development costs	$	134,797	$	(84,195	)	$	50,602	$	132,789	$	(76,910	)	$	55,879
Acquired technology	64,990		(61,913		)	3,077		91,900		(87,917		)	3,983
Patents	35,699		(24,676		)	11,023		35,609		(23,993		)	11,616
Other	37,884		(26,278		)	11,606		44,490		(31,885		)	12,605
Total	$	273,370	$	(197,062	)	$	76,308	$	304,788	$	(220,705	)	$	84,083

Software development costs capitalized for the three months ended March 31, 2020 and 2019 were $2.0 million and $2.4 million, respectively, and related amortization expense was $7.3 million and $6.9 million, respectively. Capitalized software development costs for each of the three months ended March 31, 2020 and 2019 included costs related to stock-based compensation of $0.1 million and $0.1 million, respectively.

Amortization of capitalized software development costs is computed on an individual product basis for those products available for market and is recognized based on the product’s estimated economic life, generally three to six years. Acquired technology and other intangible assets are amortized over their useful lives, which range from three to eight years. Patents are amortized using the straight-line method over their estimated period of benefit, generally 10 to 17 years. Total intangible assets amortization expenses were $9.4 million and $9.0 million for the three months ended March 31, 2020 and 2019, respectively.

Goodwill

The carrying amount of goodwill as of March 31, 2020, was as follows:



	Amount
	(In thousands)
Balance as of December 31, 2019	$	262,242
Foreign currency translation impact	(1,830		)
Divestiture	(7,221		)
Balance as of March 31, 2020 (unaudited)	$	253,191

The excess purchase price over the fair value of assets acquired is recorded as goodwill. As businesses are acquired, we assign assets acquired (including goodwill) and liabilities assumed to either our existing reporting unit or a newly identified reporting unit as of the date of the acquisition. In the event a disposal group meets the definition of a business, goodwill is allocated to the disposal group based on the relative fair value of the disposal group to the related reporting unit. As we have one operating segment comprised of components with similar economic characteristics, we allocate goodwill to one reporting unit for goodwill impairment testing. Goodwill is tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. Our annual impairment test is performed in the fourth quarter of each year.

No impairment of goodwill was identified during the three months ended March 31, 2020 or the twelve months ended December 31, 2019.

Restructuring - Restructuring Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost and Reserve [Line Items]
Total restructuring and other related costs	$ 11,250	$ 3,316
Cost of sales
Restructuring Cost and Reserve [Line Items]
Total restructuring and other related costs	20	0
Research and development
Restructuring Cost and Reserve [Line Items]
Total restructuring and other related costs	4,600	345
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Total restructuring and other related costs	6,315	1,981
General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring and other related costs	$ 315	$ 990

Intangible assets and goodwill - Schedule Of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 273,370	$ 304,788
Accumulated Amortization	(197,062)	(220,705)
Net Carrying Amount	76,308	84,083
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	134,797	132,789
Accumulated Amortization	(84,195)	(76,910)
Net Carrying Amount	50,602	55,879
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	64,990	91,900
Accumulated Amortization	(61,913)	(87,917)
Net Carrying Amount	3,077	3,983
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	35,699	35,609
Accumulated Amortization	(24,676)	(23,993)
Net Carrying Amount	11,023	11,616
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	37,884	44,490
Accumulated Amortization	(26,278)	(31,885)
Net Carrying Amount	$ 11,606	$ 12,605

Litigation	3 Months Ended
Litigation	Mar. 31, 2020
Litigation Settlement [Abstract]
Litigation	Litigation We are not currently a party to any material litigation. However, in the ordinary course of our business, we have in the past, are currently and will likely become involved in various legal proceedings, claims, and regulatory, tax or government inquiries and investigations, and could incur uninsured liability in any one or more of them. We also periodically receive notifications from various third parties related to alleged infringement of patents or intellectual property rights, commercial disputes or other matters. No assurances can be given with respect to the extent or outcome of any investigation, litigation or dispute.

Short-term investments - Unrealized Gains And Losses Related To Short-Term Investments Designated As Available-For-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	$ 331,801	$ 237,423
Gross Unrealized Gain	143	628
Gross Unrealized Loss	(2,371)	(68)
Fair Value	329,573	237,983
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	331,801	237,423
Gross Unrealized Gain	143	628
Gross Unrealized Loss	(2,371)	(68)
Fair Value	$ 329,573	$ 237,983

Restructuring - Restructuring Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Reserve [Roll Forward]
December 31, 2019	$ 9,527
Income statement expense	11,250	$ 3,316
Cash payments	(12,535)
March 31, 2020	$ 8,242

Restructuring

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring

Since the first quarter of 2017, we have been taking steps to optimize our processes, reduce job duplication, evaluate where we should shift and centralize activities, improve efficiencies, and rebalance our resources on what we believe to be higher return activities. These steps involve reductions in our overall employee headcount. The timing and scope of our headcount reductions will vary.

A summary of the charges in the consolidated statement of operations resulting from our restructuring activities is shown below:



	Three Months Ended March 31,
(In thousands)	(Unaudited)
	2020		2019
Cost of sales	$	20	—
Research and development	4,600		345
Sales and marketing	6,315		1,981
General and administrative	315		990
Total restructuring and other related costs	$	11,250	3,316

A summary of balance sheet activity related to the restructuring activity is shown below:



	Restructuring Liability
	(in thousands)
Balance as of December 31, 2019	$	9,527
Income statement expense	11,250
Cash payments	(12,535		)
Balance as of March 31, 2020	$	8,242

The restructuring liability of $8.2 million at March 31, 2020 relating to this restructuring activity is recorded in the “accrued compensation” line item of the consolidated balance sheet.

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Derivative instruments and hedging activities - Fair Value Of Derivative Instruments On Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative assets	$ 18,553	$ 8,209
Derivative liability	(13,130)	(2,872)
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets	17,547	8,009
Derivative liability	(12,463)	(2,440)
Derivatives designated as hedging instruments \| Foreign exchange contracts - ST forwards \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	10,027	7,039
Derivatives designated as hedging instruments \| Foreign exchange contracts - ST forwards \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	(5,922)	(2,089)
Derivatives designated as hedging instruments \| Foreign exchange contracts - LT forwards \| Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	7,520	970
Derivatives designated as hedging instruments \| Foreign exchange contracts - LT forwards \| Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	(6,541)	(351)
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative assets	1,006	200
Derivative liability	(667)	(432)
Derivatives not designated as hedging instruments \| Foreign exchange contracts - ST forwards \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	1,006	200
Derivatives not designated as hedging instruments \| Foreign exchange contracts - ST forwards \| Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability	$ (667)	$ (432)

Intangible assets and goodwill - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Roll Forward]
December 31, 2019	$ 262,242
Foreign currency translation impact	(1,830)
Divestiture	(7,221)
March 31, 2020	$ 253,191

Leases - Summary of Components of Lease Expense and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease, termination period	1 year
Operating lease cost	$ 5,682	$ 5,725
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	94 years
Operating lease, option to extend, term	9 years

Fair value measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Short-term investments available for sale:
Available-for-sale	$ 329,573	$ 237,983
Derivatives	18,553	8,209
Total Assets	492,178	343,551
Derivatives	(13,130)	(2,872)
Total Liabilities	$ (13,130)	(2,872)
Short-term investments contractual maturity (in months)	60 months
Quoted Prices in Active Markets for Identical Assets (Level 1)
Short-term investments available for sale:
Derivatives	$ 0	0
Total Assets	114,082	87,397
Derivatives	0	0
Total Liabilities	0	0
Significant Other Observable Inputs (Level 2)
Short-term investments available for sale:
Derivatives	18,553	8,209
Total Assets	378,096	256,154
Derivatives	(13,130)	(2,872)
Total Liabilities	(13,130)	(2,872)
Significant Unobservable Inputs (Level 3)
Short-term investments available for sale:
Derivatives		0
Total Assets	0	0
Derivatives	0	0
Total Liabilities	0	0
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	114,082	87,397
Money Market Funds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	114,082	87,397
Money Market Funds \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	0	0
Money Market Funds \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	29,970
Short-term investments available for sale:
Available-for-sale	329,573	237,983
Cash equivalents dominated in euros	4,000
Corporate bonds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	0
Short-term investments available for sale:
Available-for-sale	0	0
Corporate bonds \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	29,970
Short-term investments available for sale:
Available-for-sale	329,573	237,983
Corporate bonds \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:	0
Short-term investments available for sale:
Available-for-sale	$ 0	0
Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:		9,962
Corporate notes and bonds \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:		0
Corporate notes and bonds \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:		9,962
Corporate notes and bonds \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents available for sale:		$ 0

Debt (Details) - USD ($)	3 Months Ended
Debt (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Apr. 27, 2018	Apr. 26, 2018	Oct. 29, 2015	May 09, 2013
Line of Credit Facility [Line Items]
Unsecured revolving line of credit						$ 50,000,000.0
Ratio of consolidated indebtedness to earnings before interest, taxes, depreciation and amortization, maximum allowed	3.25
Ratio of consolidated earnings before interest, taxes, depreciation and amortization expense, minimum allowed	3.00
Interest rate in event of default	2.00%
Outstanding borrowing on line of credit	$ 0
Interest expense	$ 0	$ 0
Weighted average interest rate	2.60%	3.70%
Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee	0.175%
Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee	0.30%
First Amendment
Line of Credit Facility [Line Items]
Unsecured revolving line of credit					$ 125,000,000.0
Optional credit line increase					$ 25,000,000.0
Second Amendment
Line of Credit Facility [Line Items]
Unsecured revolving line of credit			$ 5,000,000.0	$ 125,000,000.0
Letter of credit sublimit			$ 5,000,000.0	$ 10,000,000.0
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Variable interest rate spread	0.00%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Variable interest rate spread	0.50%
London Interbank Offered Rate \| Minimum
Line of Credit Facility [Line Items]
Variable interest rate spread	1.125%
London Interbank Offered Rate \| Maximum
Line of Credit Facility [Line Items]
Variable interest rate spread	2.00%

Comprehensive Income

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive income

Our comprehensive income is comprised of net income, foreign currency translation, unrealized gains and losses on forward contracts and securities classified as available-for-sale. The accumulated OCI, net of tax, for the three months ended March 31, 2020 and 2019, consisted of the following:



	March 31, 2020
	(Unaudited)
(In thousands)	Currency translation adjustment			Investments			Derivative instruments			Accumulated other comprehensive income/(loss)
Balance as of December 31, 2019	$	(25,831	)	$	(85	)	4,846			$	(21,070	)
Current-period other comprehensive loss	(5,913		)	(2,788		)	995			(7,706		)
Reclassified from accumulated OCI into income	—			—			(1,570		)	(1,570		)
Income tax expense (benefit)	—			(108		)	181			73
Balance as of March 31, 2020	$	(31,744	)	$	(2,765	)	$	4,090		$	(30,419	)



	March 31, 2019
	(Unaudited)
(In thousands)	Currency translation adjustment			Investments			Derivative instruments			Accumulated other comprehensive income/(loss)
Balance as of December 31, 2018	$	(22,485	)	$	(1,308	)	6,862			$	(16,931	)
Current-period other comprehensive (loss) income	(3,067		)	1,175			3,006			1,114
Reclassified from accumulated OCI into income	—			—			(1,794		)	(1,794		)
Income tax expense (benefit)	—			(6		)	216			210
Balance as of March 31, 2019	$	(25,552	)	$	(127	)	$	7,858		$	(17,821	)

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Derivative instruments and hedging activities - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) country	Mar. 31, 2019	Dec. 31, 2019 USD ($)
Derivative [Line Items]
Number of countries for which entity has operations (over) \| country	45
Percentage of sales outside of the Americas during the period	60.00%	61.00%
Foreign currency forward contracts notional amount	$ 533,071		$ 383,288
Cost of sales
Derivative [Line Items]
Gains (losses) expected to be reclassified from AOCI to earnings	(3,400)
Forward Contracts \| Net Sales
Derivative [Line Items]
Gains (losses) expected to be reclassified from AOCI to earnings	9,900
Forward Contracts \| Operating Expenses
Derivative [Line Items]
Gains (losses) expected to be reclassified from AOCI to earnings	(2,400)
Other Derivatives
Derivative [Line Items]
Foreign currency forward contracts notional amount	$ 59,000		$ 41,000
Minimum
Derivative [Line Items]
Period of protection against the reduction in value caused by a fluctuation, minimum (in number of years)	1 year
Maximum
Derivative [Line Items]
Period of protection against the reduction in value caused by a fluctuation, maximum (in number of years)	3 years
Duration of derivative contracts entered into by the entity to hedge risk of loss	39 months		36 months
Maximum \| Forward Contracts
Derivative [Line Items]
Percentage of derivative risk hedged	100.00%
Duration of derivative contracts entered into by the entity to hedge risk of loss	40 months
Maximum \| Other Derivatives
Derivative [Line Items]
Percentage of derivative risk hedged	90.00%
Duration of derivative contracts entered into by the entity to hedge risk of loss	90 days

Derivative instruments and hedging activities

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments and hedging activities

We recognize all of our derivative instruments as either assets or liabilities in our statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

We have operations in approximately 45 countries. Sales outside of the Americas accounted for approximately 60% and 61% of our net sales during the three months ended March 31, 2020 and 2019, respectively. Our activities expose us to a variety of market risks, including the effects of changes in foreign currency exchange rates. These financial risks are monitored and managed by us as an integral part of our overall risk management program.

We maintain a foreign currency risk management strategy that uses derivative instruments (foreign currency forward contracts) to help protect our earnings and cash flows from fluctuations caused by the volatility in currency exchange rates. Movements in foreign currency exchange rates pose a risk to our operations and competitive position, in that exchange rate changes may affect our profitability and cash flow, and the business or pricing strategies of our non-U.S. based competitors.

The vast majority of our foreign sales are denominated in the customers’ local currency. We purchase foreign currency forward contracts as hedges of forecasted sales that are denominated in foreign currencies and as hedges of foreign currency denominated financial assets or liabilities. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash inflows resulting from such sales or firm commitments will be adversely affected by changes in exchange rates. We also purchase foreign currency forward contracts as hedges of forecasted expenses that are denominated in foreign currencies. These contracts are entered into to help protect against the risk that the eventual dollar-net-cash outflows resulting from foreign currency operating and cost of sales expenses will be adversely affected by changes in exchange rates.

We designate foreign currency forward contracts as cash flow hedges of forecasted net sales or forecasted expenses. In addition, we hedge our foreign currency denominated balance sheet exposures using foreign currency forward contracts that are not designated as hedging instruments. None of our derivative instruments contain a credit-risk-related contingent feature.

Cash flow hedges

To help protect against the reduction in value caused by a fluctuation in foreign currency exchange rates of forecasted foreign currency cash flows resulting from international sales over the next one to three years, we have instituted a foreign currency cash flow hedging program. We hedge portions of our forecasted net sales and forecasted expenses denominated in foreign currencies with forward contracts. For forward contracts, when the dollar strengthens significantly against the foreign currencies, the change in the present value of future foreign currency cash flows may be offset by the change in the fair value of the forward contracts designated as hedges. We purchase foreign currency forward contracts for up to 100% of our forecasted exposures in selected currencies (primarily in Euro, Japanese yen, Hungarian forint, British pound, Malaysian ringgit, Chinese yuan, and Korean won) and limit the duration of these contracts to 40 months or less.

For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is reported as a component of accumulated other comprehensive income ("OCI") and reclassified into earnings in the same line item (net sales, operating expenses, or cost of sales) associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. Hedge effectiveness of foreign currency forwards designated as cash flow hedges are measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the forecasted transaction’s terminal value.

We held forward contracts designated as cash flow hedges with the following notional amounts:



(In thousands)	US Dollar Equivalent
	As of March 31, 2020		As of December 31,
	(Unaudited)		2019
Chinese yuan	50,402		$	32,970
Euro	220,749		130,122
Japanese yen	82,611		53,527
Hungarian forint	107,395		95,228
British pound	14,616		13,988
Malaysian ringgit	33,552		32,725
Korean won	23,746		24,728
Total forward contracts notional amount	$	533,071	$	383,288

The contracts in the foregoing table had contractual maturities of 39 months or less and 36 months or less at March 31, 2020 and December 31, 2019, respectively.

At March 31, 2020, we expect to reclassify $9.9 million of gains on derivative instruments from accumulated OCI to net sales during the next twelve months when the hedged international sales occur, $(2.4) million of losses on derivative instruments from accumulated OCI to cost of sales during the next twelve months when the cost of sales are incurred and $(3.4) million of losses on derivative instruments from accumulated OCI to operating expenses during the next twelve months when the hedged operating expenses occur. Expected amounts are based on derivative valuations at March 31, 2020. Actual results may vary materially as a result of changes in the corresponding exchange rates subsequent to this date.

The gains and losses recognized in earnings due to hedge ineffectiveness were not material for the three months ended March 31, 2020, and 2019 and are included as a component of net income under the line item "net foreign exchange loss."

Other Derivatives

Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge our foreign denominated net receivable or net payable positions to help protect against the change in value caused by a fluctuation in foreign currency exchange rates. We typically attempt to hedge up to 90% of our outstanding foreign denominated net receivables or net payables and typically limit the duration of these foreign currency forward contracts to approximately 90 days or less. The gain or loss on the derivatives as well as the offsetting gain or loss on the hedge item attributable to the hedged risk is recognized in current earnings under the line item “net foreign exchange gain (loss).” As of March 31, 2020 and December 31, 2019, we held foreign currency forward contracts that were not designated as hedging instruments with a notional amount of $59 million and $41 million, respectively.

The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at March 31, 2020 and December 31, 2019, respectively.



	Asset Derivatives
	March 31, 2020			December 31, 2019
(In thousands)	(Unaudited)

	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	10,027	Prepaid expenses and other current assets	$	7,039

Foreign exchange contracts - LT forwards	Other long-term assets	7,520		Other long-term assets	970
Total derivatives designated as hedging instruments		$	17,547		$	8,009

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	1,006	Prepaid expenses and other current assets	$	200
Total derivatives not designated as hedging instruments		$	1,006		$	200

Total derivatives		$	18,553		$	8,209



	Liability Derivatives
	March 31, 2020				December 31, 2019
(In thousands)	(Unaudited)				December 31, 2019
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts - ST forwards	Other current liabilities	$	(5,922	)	Other current liabilities	$	(2,089	)

Foreign exchange contracts - LT forwards	Other long-term liabilities	(6,541		)	Other long-term liabilities	(351		)
Total derivatives designated as hedging instruments		$	(12,463	)		$	(2,440	)

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Other current liabilities	$	(667	)	Other current liabilities	$	(432	)
Total derivatives not designated as hedging instruments		$	(667	)		$	(432	)

Total derivatives		$	(13,130	)		$	(2,872	)

The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three-months ended March 31, 2020 and 2019, respectively:



March 31, 2020
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship	Gain or (Loss) Recognized in OCI on Derivative			Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Gain or (Loss) Reclassified from Accumulated OCI into Income
Foreign exchange contracts - forwards	$	10,856		Net sales	$	2,534

Foreign exchange contracts - forwards	(6,760		)	Cost of sales	(519		)

Foreign exchange contracts - forwards	(4,671		)	Operating expenses	(445		)
Total	$	(575	)		$	1,570



March 31, 2019
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship	Gain or (Loss) Recognized in OCI on Derivative			Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Gain or (Loss) Reclassified from Accumulated OCI into Income
Foreign exchange contracts - forwards	$	1,800		Net sales	$	1,745

Foreign exchange contracts - forwards	(270		)	Cost of sales	20

Foreign exchange contracts - forwards	(318		)	Operating expenses	29
Total	$	1,212			$	1,794



(In thousands)
Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income		Amount of Gain (Loss) Recognized in Income
		March 31, 2020		March 31, 2019
		(Unaudited)		(Unaudited)
Foreign exchange contracts - forwards	Net foreign exchange gain/(loss)	$	297	(228		)

Total		$	297	$	(228	)

໿

Debt	3 Months Ended
Debt	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	Debt On May 9, 2013, we entered into a Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank (the “Lender”). The Loan Agreement provided for a $50.0 million unsecured revolving line of credit with a scheduled maturity date of May 9, 2018 (the “Maturity Date”). On October 29, 2015, we entered into a First Amendment to Loan Agreement (the “Amendment”) with the Lender, which amended our Loan Agreement to among other things, (i) increase the unsecured revolving line of credit from $50.0 million to $125.0 million, (ii) extend the Maturity Date of the line of credit from May 9, 2018 to October 29, 2020, and (iii) provide us with an option to request increases to the line of credit of up to an additional $25.0 million in the aggregate, subject to consent of the Lender and terms and conditions to be mutually agreed between us and the Lender. On April 27, 2018, we entered into a Second Amendment to Loan Agreement (the "Second Amendment") which amended the Loan Agreement, as amended by the Amendment to, among other things, (i) reduce the revolving line of credit from $125.0 million to $5.0 million, (ii) reduce the letter of credit sublimit under the line of credit from $10.0 million to $5.0 million and (iii) require us and our subsidiaries to comply with certain of the affirmative and negative covenants under the Loan Agreement only if loans are outstanding under the Loan Agreement or if we have not reimbursed any drawing under a letter of credit issued under the Loan Agreement within five business days following the request of the Lender. The loan agreement, as amended by the Amendment and the Second Amendment is referred to herein as the Loan Agreement (See Note 17 - Subsequent events of Notes to Consolidated Financial Statements for information on the Third Amendment to Loan Agreement, dated April 16, 2020, which amended certain terms of the Loan Agreement summarized in this Note). The loan bears interest, at our option, at a base rate determined in accordance with the Loan Agreement, plus a spread of 0.0% to 0.50%, or a LIBOR rate plus a spread of 1.125% to 2.000%, in each case with such spread determined based on a ratio of consolidated indebtedness to EBITDA, determined in accordance with the Loan Agreement. Principal, together with all accrued and unpaid interest, is due and payable on the Maturity Date. We are also obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments at a rate of 0.175% to 0.300%, with such rate determined based on the ratio described above. The Loan Agreement contains customary affirmative and negative covenants. The affirmative covenants include, among other things, delivery of financial statements, compliance certificates and notices; payment of taxes and other obligations; maintenance of existence; maintenance of properties and insurance; and compliance with applicable laws and regulations. The negative covenants include, among other things, limitations on indebtedness, liens, mergers, consolidations, acquisitions and sales of assets, investments, changes in the nature of the business, affiliate transactions and certain restricted payments. The Loan Agreement also requires us to maintain a ratio of consolidated indebtedness to EBITDA equal to or less than 3.25 to 1.00, and a ratio of consolidated EBITDA to interest expense greater than or equal to 3.00 to 1.00, in each case determined in accordance with the Loan Agreement. As of March 31, 2020, we were in compliance with all applicable covenants in the Loan Agreement. The Loan Agreement contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events, judgment defaults and change in control events, subject to grace periods in certain instances. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by us to be immediately due and payable and exercise other rights and remedies provided for under the Loan Agreement. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Loan Agreement at a per annum rate of interest equal to 2.00% above the otherwise applicable interest rate. Proceeds of loans made under the Loan Agreement may be used for working capital and other general corporate purposes. We may prepay the loans under the Loan Agreement in whole or in part at any time without premium or penalty. Certain of our existing and future material domestic subsidiaries are required to guaranty our obligations under the Loan Agreement. As of March 31, 2020, we had no outstanding borrowings under this line of credit. During the three-months ended, March 31, 2020 and 2019, we incurred no interest expense under this line of credit. As of March 31, 2020 and March 31, 2019, the weighted-average interest rate on the revolving line of credit was 2.6% and 3.7%, respectively.

Inventories, net

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net consist of the following:



	March 31, 2020		December 31,
(In thousands)	(Unaudited)		2019

Raw materials	$	113,539	$	110,078
Work-in-process	10,844		10,613
Finished goods	84,110		79,719
Total	$	208,493	$	200,410

໿

Intangible assets and goodwill - Narrative (Details)	3 Months Ended		12 Months Ended
Intangible assets and goodwill - Narrative (Details)	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 9,400,000	$ 9,000,000.0
Number of operating segments \| segment	1
Goodwill impairment	$ 0		$ 0
Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Software development costs capitalized	2,000,000.0	2,400,000
Amortization expense of capitalized software development costs	7,300,000	6,900,000
Costs related to stock based compensation	$ 100,000	$ 100,000
Minimum \| Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	3 years
Minimum \| Acquired Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	3 years
Minimum \| Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	10 years
Maximum \| Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	6 years
Maximum \| Acquired Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	8 years
Maximum \| Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets amortization period (in years)	17 years

Basis of Presentation - Disposal Groups, Including Discontinued Operations (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - AWR Corporation $ in Thousands	Jan. 15, 2020 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash	$ 1,027
Accounts receivable, net	7,233
Prepaid and other current assets	283
Goodwill	7,221
Other non-current assets	556
Total assets	16,320
Deferred revenue	15,296
Other current liabilities	940
Cumulative translation adjustment	(660)
Total liabilities and stockholders' equity	15,576
Total assets divested, net (including cash)	$ 744

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Components of Lease Expense

The components of operating lease expense were as follows (unaudited):

Schedule of Future Minimum Lease Payments

Maturities of lease liabilities as of March 31, 2020 were as follows (unaudited):



(In thousands)
Years ending December 31,	Operating Leases
2020 (Excluding the three months ended March 31, 2020)	$	13,122
2021	13,440
2022	8,359
2023	6,950
2024	6,469
Thereafter	13,422
Total future minimum lease payments	61,762
Less imputed interest	(11,391		)
Total	$	50,371

Revenue - Schedule of Disaggregation of Revenues (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Number of operating segments \| segment	1
Disaggregation of Revenue [Line Items]
Total net sales	$ 309,381	$ 311,074
Americas
Disaggregation of Revenue [Line Items]
Total net sales	125,017	122,655
EMEIA
Disaggregation of Revenue [Line Items]
Total net sales	90,693	98,807
APAC
Disaggregation of Revenue [Line Items]
Total net sales	93,671	89,612
Point-in-Time
Disaggregation of Revenue [Line Items]
Total net sales	260,310	260,253
Point-in-Time \| Americas
Disaggregation of Revenue [Line Items]
Total net sales	105,299	99,681
Point-in-Time \| EMEIA
Disaggregation of Revenue [Line Items]
Total net sales	71,103	79,122
Point-in-Time \| APAC
Disaggregation of Revenue [Line Items]
Total net sales	83,908	81,450
Over Time
Disaggregation of Revenue [Line Items]
Total net sales	49,071	50,821
Over Time \| Americas
Disaggregation of Revenue [Line Items]
Total net sales	19,718	22,974
Over Time \| EMEIA
Disaggregation of Revenue [Line Items]
Total net sales	19,590	19,685
Over Time \| APAC
Disaggregation of Revenue [Line Items]
Total net sales	$ 9,763	$ 8,162

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	Apr. 27, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2020
Entity File Number	0-25426
Entity Registrant Name	NATIONAL INSTRUMENTS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-1871327
Entity Address, Address Line One	11500 North MoPac Expressway
Entity Address, City or Town	Austin,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78759
City Area Code	512
Local Phone Number	683-0100
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	NATI
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 Common Stock, Shares Outstanding		130,595,074
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000935494
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Derivative instruments and hedging activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Notional Amounts Of Derivative Instruments

We held forward contracts designated as cash flow hedges with the following notional amounts:



(In thousands)	US Dollar Equivalent
	As of March 31, 2020		As of December 31,
	(Unaudited)		2019
Chinese yuan	50,402		$	32,970
Euro	220,749		130,122
Japanese yen	82,611		53,527
Hungarian forint	107,395		95,228
British pound	14,616		13,988
Malaysian ringgit	33,552		32,725
Korean won	23,746		24,728
Total forward contracts notional amount	$	533,071	$	383,288

Summary of Fair Value Of Derivative Instruments On Consolidated Balance Sheets

The following tables present the fair value of derivative instruments on our Consolidated Balance Sheets at March 31, 2020 and December 31, 2019, respectively.



	Asset Derivatives
	March 31, 2020			December 31, 2019
(In thousands)	(Unaudited)

	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	10,027	Prepaid expenses and other current assets	$	7,039

Foreign exchange contracts - LT forwards	Other long-term assets	7,520		Other long-term assets	970
Total derivatives designated as hedging instruments		$	17,547		$	8,009

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Prepaid expenses and other current assets	$	1,006	Prepaid expenses and other current assets	$	200
Total derivatives not designated as hedging instruments		$	1,006		$	200

Total derivatives		$	18,553		$	8,209



	Liability Derivatives
	March 31, 2020				December 31, 2019
(In thousands)	(Unaudited)				December 31, 2019
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts - ST forwards	Other current liabilities	$	(5,922	)	Other current liabilities	$	(2,089	)

Foreign exchange contracts - LT forwards	Other long-term liabilities	(6,541		)	Other long-term liabilities	(351		)
Total derivatives designated as hedging instruments		$	(12,463	)		$	(2,440	)

Derivatives not designated as hedging instruments

Foreign exchange contracts - ST forwards	Other current liabilities	$	(667	)	Other current liabilities	$	(432	)
Total derivatives not designated as hedging instruments		$	(667	)		$	(432	)

Total derivatives		$	(13,130	)		$	(2,872	)

Summary of Derivative Instruments, Gain (Loss)

The following tables present the effect of derivative instruments on our Consolidated Statements of Income for the three-months ended March 31, 2020 and 2019, respectively:



March 31, 2020
(In thousands)
(Unaudited)
Derivatives in Cash Flow Hedging Relationship	Gain or (Loss) Recognized in OCI on Derivative	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Gain or (Loss) Reclassified from Accumulated OCI into Income
Foreign exchange contracts - forwards</