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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Feb. 17, 2016	Jun. 26, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	FARO
Entity Registrant Name	FARO TECHNOLOGIES INC
Entity Central Index Key	0000917491
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		16,589,618
Entity Public Float			$ 796,756,020

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 107,356	$ 109,289
Short-term investments	42,994	64,995
Accounts receivable, net	69,918	83,959
Inventories, net	45,571	43,094
Deferred income taxes, net	7,792	5,936
Prepaid expenses and other current assets	18,527	16,079
Total current assets	292,158	323,352
Property and equipment:
Machinery and equipment	54,124	45,254
Furniture and fixtures	5,945	6,156
Leasehold improvements	18,471	19,676
Property and equipment at cost	78,540	71,086
Less: accumulated depreciation and amortization	(42,594)	(41,741)
Property and equipment, net	35,946	29,345
Goodwill	26,371	19,205
Intangible assets, net	15,985	9,109
Service and sales demonstration inventory, net	33,709	36,886
Deferred income taxes, net	4,050	6,624
Other long-term assets	967	942
Total assets	409,186	425,463
Current liabilities:
Accounts payable	11,345	15,437
Accrued liabilities	22,574	26,127
Current portion of unearned service revenues	26,114	23,572
Customer deposits	2,998	2,046
Total current liabilities	63,031	67,182
Unearned service revenues - less current portion	15,025	13,799
Deferred income tax liability	686
Other long-term liabilities	2,800	628
Total liabilities	81,542	81,609
Commitments and contingencies - See Note 13
Shareholders' equity:
Preferred stock - par value $0.01, 10,000,000 shares authorized; none issued	0	0
Common stock - par value $.001, 50,000,000 shares authorized; 18,077,594 and 17,997,665 issued; 16,588,118 and 17,317,430 outstanding, respectively	18	18
Additional paid-in capital	206,996	200,090
Retained earnings	172,329	159,516
Accumulated other comprehensive loss	(19,861)	(6,695)
Common stock in treasury, at cost - 1,489,476 and 680,235 shares, respectively	(31,838)	(9,075)
Total shareholders' equity	327,644	343,854
Total liabilities and shareholders' equity	$ 409,186	$ 425,463

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,077,594	17,997,665
Common stock, shares outstanding	16,588,118	17,317,430
Treasury stock, shares	1,489,476	680,235

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
SALES
Product	$ 259,842	$ 284,147	$ 238,841
Service	57,706	57,679	52,943
Total sales	317,548	341,826	291,784
COST OF SALES
Product	113,983	114,994	97,630
Service	35,888	37,918	32,261
Total cost of sales (exclusive of depreciation and amortization, shown separately below)	149,871	152,912	129,891
GROSS PROFIT	167,677	188,914	161,893
OPERATING EXPENSES
Selling and marketing	79,306	80,157	71,689
General and administrative	37,474	36,479	30,600
Depreciation and amortization	11,217	7,428	7,038
Research and development	26,558	27,510	22,412
Total operating expenses	154,555	151,574	131,739
INCOME FROM OPERATIONS	13,122	37,340	30,154
OTHER (INCOME) EXPENSE
Interest income	(111)	(96)	(74)
Other (income) expense, net	371	(94)	1,357
Interest expense	56	8	9
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE	12,806	37,522	28,862
INCOME TAX (BENEFIT) EXPENSE	(7)	3,873	7,353
NET INCOME	$ 12,813	$ 33,649	$ 21,509
NET INCOME PER SHARE - BASIC	$ 0.74	$ 1.95	$ 1.26
NET INCOME PER SHARE - DILUTED	$ 0.74	$ 1.93	$ 1.25
Weighted average shares - Basic	17,288,665	17,247,727	17,087,104
Weighted average shares - Diluted	17,389,473	17,416,453	17,241,115

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 12,813	$ 33,649	$ 21,509
Currency translation adjustments, net of tax	(13,166)	(13,961)	925
Comprehensive (loss) income	$ (353)	$ 19,688	$ 22,434

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Common Stock in Treasury
Beginning Balance (in shares) at Dec. 31, 2012		16,973,644
Beginning Balance at Dec. 31, 2012	$ 282,736	$ 18	$ 181,094	$ 104,358	$ 6,341	$ (9,075)
Net income	21,509			21,509
Currency translation adjustment, net of tax	925				925
Restricted stock issued and stock based compensation under incentive plans (in shares)		17,441
Restricted stock issued and stock based compensation under incentive plans	4,367		4,367
Stock options exercised (in shares)		197,052
Stock options exercised	5,444		5,444
Income tax benefit from exercise of stock options	969		969
Ending Balance (in shares) at Dec. 31, 2013		17,188,137
Ending Balance at Dec. 31, 2013	315,950	$ 18	191,874	125,867	7,266	(9,075)
Net income	33,649			33,649
Currency translation adjustment, net of tax	(13,961)				(13,961)
Restricted stock issued and stock based compensation under incentive plans (in shares)		24,588
Restricted stock issued and stock based compensation under incentive plans	4,678		4,678
Stock options exercised (in shares)		104,705
Stock options exercised	3,369		3,369
Income tax benefit from exercise of stock options	169		169
Ending Balance (in shares) at Dec. 31, 2014		17,317,430
Ending Balance at Dec. 31, 2014	343,854	$ 18	200,090	159,516	(6,695)	(9,075)
Net income	12,813			12,813
Currency translation adjustment, net of tax	(13,166)				(13,166)
Restricted stock issued and stock based compensation under incentive plans (in shares)		13,143
Restricted stock issued and stock based compensation under incentive plans	$ 4,306		4,306
Stock options exercised (in shares)	66,786	66,786
Stock options exercised	$ 2,287		2,287
Income tax benefit from exercise of stock options	313		313
Repurchase of common stock	(22,763)					(22,763)
Repurchase of common stock, shares		(809,241)
Ending Balance (in shares) at Dec. 31, 2015		16,588,118
Ending Balance at Dec. 31, 2015	$ 327,644	$ 18	$ 206,996	$ 172,329	$ (19,861)	$ (31,838)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES:
Net income	$ 12,813	$ 33,649	$ 21,509
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,217	7,428	7,038
Compensation for stock options and restricted stock units	4,306	4,678	4,367
Provision for bad debts (net recovery of)	346	(306)	1,001
Loss on disposal of assets	947
Write-down of inventories	10,878	3,272	1,167
Deferred income tax (benefit) expense	(655)	(4,707)	645
Income tax benefit from exercise of stock options	(313)	(169)	(969)
Decrease (increase) in:
Accounts receivable	9,584	(24,587)	(4,053)
Inventories	(18,021)	(21,995)	(1,286)
Prepaid expenses and other assets	(2,834)	(3,501)	(3,346)
(Decrease) increase in:
Accounts payable and accrued liabilities	(6,401)	8,867	6,108
Income taxes payable		(1,560)	(2,028)
Customer deposits	1,114	(724)	353
Unearned service revenues	5,051	5,313	3,772
Net cash provided by operating activities	28,032	5,658	34,278
INVESTING ACTIVITIES:
Proceeds from sale of investments	22,001
Purchases of property and equipment	(14,169)	(18,722)	(4,350)
Payments for intangible assets	(2,140)	(1,221)	(2,204)
Purchase of business acquired, net of cash	(12,066)	(1,150)
Net cash used in investing activities	(6,374)	(21,093)	(6,554)
FINANCING ACTIVITIES:
Payments on capital leases	(8)	(8)	(93)
Repurchase of common stock	(22,763)
Income tax benefit from exercise of stock options	313	169	969
Proceeds from issuance of stock, net	2,287	3,369	5,444
Net cash (used in) provided by financing activities	(20,171)	3,530	6,320
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(3,420)	(3,436)	(2,647)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,933)	(15,341)	31,397
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	109,289	124,630	93,233
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 107,356	$ 109,289	$ 124,630

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business—FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. We sell the majority of our products through a direct sales force across a broad number of customers in a range of manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety, cultural heritage and other applications. Our FaroArm^®, FARO Laser ScanArm^®, FARO Gage, FARO Laser Tracker™, FARO Cobalt Array 3D Imager, and their companion CAM2^® software provide for Computer-Aided Design, or CAD, based inspection and/or factory-level statistical process control and high-density surveying. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. Our FARO Focus^3D and FARO Freestyle^3D laser scanners, and their companion SCENE, FARO public safety software, and FARO 3D software are utilized for a wide variety of 3D modeling, documentation and high-density surveying applications, including in two of our key vertical markets – Building Information Modeling (BIM)/Construction Information Management (CIM) and public safety.

Principles of Consolidation—Our consolidated financial statements include the accounts of FARO Technologies, Inc. and its subsidiaries, all of which are wholly owned. All intercompany transactions and balances have been eliminated. The financial statements of our foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at period-end for assets and liabilities and average exchange rates during each reporting period for results of operations. Adjustments resulting from financial statement translations are reflected as a separate component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in income.

Revenue Recognition, Product Warranty and Extended Warranty Contracts—Revenue is recognized when the price is fixed, collectability is reasonably assured, the title and risks and rewards of ownership have passed to the customer and the earnings process is complete. Revenue related to our measurement, imaging, and realization equipment and related software is generally recognized upon shipment, as we consider the earnings process complete as of the shipping date. The related software sold with our equipment function together and deliver the tangible product’s essential functionality. Fees billed to customers associated with the distribution of products are classified as revenue. We warrant our products against defects in design, materials and workmanship for one year. A provision for estimated future costs relating to warranty expense is recorded when products are shipped. We separately sell extended warranties. Extended warranty revenues are recognized on a straight-line basis over the term of the warranty. Costs relating to extended warranties are recognized as incurred. Revenue from sales of software only is recognized when no further significant production, modification or customization of the software is required and when the following criteria are met: persuasive evidence of a sales agreement exists, delivery has occurred, and the sales price is fixed or determinable and deemed collectible. These software arrangements generally include short-term maintenance that is considered post-contract support (PCS). We generally establish vendor-specific objective evidence (VSOE) of fair value for this PCS component based on our maintenance renewal rate. Maintenance renewals, when sold, are recognized on a straight-line basis over the term of the maintenance agreement. Revenues resulting from sales of comprehensive support, training and technology consulting services are recognized as such services are performed and are deferred when billed in advance of the performance of services. Revenue from the licensing agreements for the use of our technology for medical applications is generally recognized as licensees use the technology. Amounts representing royalties for the current year and not received as of year-end are estimated as due based on historical data and recognized in the current year. Revenues are presented net of sales-related taxes.

Cash and Cash Equivalents—We consider cash on hand and amounts on deposit with financial institutions with maturities of three months or less when purchased to be cash and cash equivalents. We have deposits with foreign banks totaling $71.2 million and $58.9 million as of December 31, 2015 and 2014, respectively. We do not intend to repatriate those funds. (See Note 12, Income Taxes).

Accounts Receivable and Related Allowance for Doubtful Accounts—Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. We make judgments as to the collectability of accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which adjusts gross trade accounts receivable to its net realizable value. The allowance for doubtful accounts is based on an analysis of all receivables for possible impairment issues and historical write-off percentages. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally charge interest on past due receivables.

Inventories—Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. Shipping and handling costs are classified as a component of cost of sales in the consolidated statements of operations. Sales demonstration inventory is comprised of measuring, imaging and realization devices utilized by sales representatives to present our products to customers. In the third quarter of 2015, management reassessed certain inventory policies based on recent sales and customer trends and in light of new product introductions, impacting our entire product portfolio. As a result of these recent policy amendments management now expects sales demonstration inventory to be held by our sales representatives for up to three years, at which time it would be refurbished and transferred to finished goods as used equipment, stated at the lower of cost or net realizable value. Management expects these refurbished units to remain in finished goods inventory and be sold within 12 months at prices that produce reduced gross margins. To reflect our revised expectation, $18.5 million in sales demonstration inventory was reclassified from “Inventories, net”, a current asset, to “Service and sales demonstration inventory, net”, a long-term asset, as of December 31, 2015 on the consolidated balance sheet. In addition, we reclassified $16.2 million in sales demonstration inventory from “Inventories, net” to “Service and sales demonstration inventory, net”, on the consolidated balance sheet as of December 31, 2014 and reclassified $3.0 million from sales demonstration inventory to finished goods as of December 31, 2014, to conform with this current policy. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal.

Service inventory is typically used to provide a temporary replacement product to a customer covered by a premium warranty when the customer’s unit requires service or repair and as training equipment. Service inventory is available for sale; however, management does not expect service inventory to be sold within 12 months and, as such, classifies this inventory as a long-term asset. Service inventory that we utilize for training or repairs which we deem as no longer available for sale is transferred to fixed assets at the lower of cost or net realizable value and depreciated over its remaining useful life, typically three years. We transferred $3.0 million of service inventory to “Property and Equipment” in 2015.

Reserve for Excess and Obsolete Inventory—Since the value of inventory that will ultimately be realized cannot be known with exact certainty, we rely upon both past sales history and future sales forecasts to provide a basis for the determination of the reserve. Inventory is considered potentially obsolete if we have withdrawn those products from the market or had no sales of the product for the past 12 months and have no sales forecasted for the next 12 months. Inventory is considered potentially excess if the quantity on hand exceeds 12 months of expected remaining usage. The resulting obsolete and excess parts are then reviewed to determine if a substitute usage or a future need exists. Items without an identified current or future usage are reserved in an amount equal to 100% of the FIFO cost of such inventory. Our products are subject to changes in technologies that may make certain of our products or their components obsolete or less competitive, which may increase our historical provisions to the reserve.

Property and Equipment—Property and equipment purchases exceeding a thousand dollars are capitalized and recorded at cost. Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows:


Machinery, equipment and software		2 to 5 years
Furniture and fixtures		3 to 10 years

Leasehold improvements are amortized on a straight-line basis over the lesser of the life of the asset or the remaining term of the lease.

Depreciation expense was $9,238, $6,171 and $5,825 in 2015, 2014 and 2013, respectively. Accelerated methods of depreciation are used for income tax purposes in contrast to book purposes, and as a result, appropriate provisions are made for the related deferred income taxes.

Business Combinations—We allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, customer attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available.

Goodwill and Intangibles—Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. We do not amortize goodwill; however, we perform an annual review in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if the carrying value of the recorded goodwill or indefinite lived intangible assets is impaired. If an asset is impaired, the difference between the value of the asset reflected in the financial statements and its current fair value is recognized as an expense in the period in which the impairment occurs.

Each period, and for any of our reporting units, we can elect to perform a qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If we believe, as a result of our qualitative assessment, that it is not more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying amount, then the first and second steps of the quantitative goodwill impairment test are unnecessary. If we elect to bypass the qualitative assessment option, or if the qualitative assessment was performed and resulted in the Company being unable to conclude that it is not more likely than not that the fair value of a reporting unit containing goodwill is greater than its carrying amount, we will perform the two-step quantitative goodwill impairment test. We perform the first step of the two-step quantitative goodwill impairment test by calculating the fair value of the reporting unit using a discounted cash flow method and market approach method, and then comparing the respective fair value with the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, we perform the second step of the quantitative goodwill impairment test to measure the amount of the impairment loss, if any. Management has concluded there was no goodwill impairment for the years ended December 31, 2015, 2014 and 2013.

Other intangible assets principally include patents, existing product technology and customer relationships that arose in connection with our acquisitions. Other intangible assets are recorded at fair value at the date of acquisition and are amortized over their estimated useful lives of 3 to 20 years. As of December 31, 2015, there were no indefinite-lived intangible assets.

Product technology and patents are recorded at cost. Amortization is computed using the straight-line method over the lives of the product technology and patents of 7 to 20 years.

The remaining weighted-average amortization period for all our intangible assets is nine years.

Long-Lived Assets—Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Management has concluded that there were no indications of impairment of these assets during the years ended December 31, 2015, 2014 and 2013.

Research and Development—Research and development costs incurred in the discovery of new knowledge and the resulting translation of this new knowledge into plans and designs for new products, prior to the attainment of the related products’ technological feasibility, are recorded as expenses in the period incurred.

Reserve for Warranties—We establish at the time of sale a liability for the one year warranty included with the initial purchase price of our products, based upon an estimate of the repair expenses likely to be incurred for the warranty period. The warranty period is measured in installation-months for each major product group. The warranty reserve is included in accrued liabilities in the accompanying consolidated balance sheets. The warranty expense is estimated by applying the actual total repair expenses for each product group in the prior period and determining a rate of repair expense per installation-month. This repair rate is multiplied by the number of installation-months of warranty for each product group to determine the provision for warranty expenses for the period. We evaluate our exposure to warranty costs at the end of each period using the estimated expense per installation-month for each major product group, the number of units remaining under warranty and the remaining number of months each unit will be under warranty. We have a history of new product introductions and enhancements to existing products, which may result in unforeseen issues that increase our warranty costs. While such expenses have historically been within expectations, we cannot guarantee this will continue in the future.

Income Taxes—We review our deferred tax assets on a regular basis to evaluate their recoverability based upon expected future reversals of deferred tax assets and liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards. Based on the positive and negative evidence for recoverability, we establish a valuation allowance against the net deferred tax assets of a taxing jurisdiction in which we operate unless it is “more likely than not” that we will recover such assets through the above means. In the future, our evaluation of the need for the valuation allowance will be significantly influenced by our ability to maintain profitability and our ability to predict and achieve future projections of taxable income over at least a two-year period.

We recognize tax benefits related to uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities. For those positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. In the ordinary course of business, we are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes.

Earnings Per Share (EPS)—Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee and director stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 15, Earnings Per Share.

Accounting for Stock-Based Compensation—We have several stock-based employee and director compensation plans, which are described more fully in Note 14, Stock Compensation Plans.

We measure and record compensation expense using the applicable accounting guidance for share-based payments related to stock options, restricted stock, and performance-based awards granted to our directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated, at the date of grant, using the Black-Scholes option-pricing model. The fair value of restricted stock awards and stock options with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. In valuing our stock options, significant judgment is required in determining the expected volatility of our common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility for stock options is based on the historical and implied volatility of our own common stock while the volatility for our restricted stock units with a market condition is based on the historical volatility of our own stock and the stock of companies within our defined peer group. The expected life of stock options is derived from the historical actual term of option grants and an estimate of future exercises during the remaining contractual period of the option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure as they represent future expectations based on historical experience. Further, our expected volatility and expected life may change in the future, which could substantially change the grant-date fair value of future awards of stock options and, ultimately, the expense we record. The fair value of restricted stock, including performance awards, without a market condition is estimated using the current market price of our common stock on the date of grant. Additionally, in calculating compensation expense for these awards, we are also required to estimate the extent to which awards will be forfeited prior to vesting. Many factors are considered when estimating expected forfeitures, including types of awards, employee class and historical experience. To the extent actual results or updated estimates of forfeiture differ from current estimates, such amounts are recorded as a cumulative adjustment to the previously recorded amounts.

We expense stock-based compensation for stock options, restricted stock awards, and performance awards over the requisite service period. For awards with only a service condition, we expense stock-based compensation, adjusted for estimated forfeitures, using the straight-line method over the requisite service period for the entire award. For awards with both performance and service conditions, we expense the stock-based compensation, adjusted for estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award, taking into account the probability that we will satisfy the performance conditions. Furthermore, we expense awards with a market condition over the three-year vesting period regardless of the value that the award recipients ultimately receive. Excess tax benefits are credited to common stock when the deduction reduces cash taxes payable. When we have tax deductions in excess of the compensation cost, they are classified as financing cash inflows in the Consolidated Statements of Cash Flows.

Concentration of Credit Risk—Financial instruments that expose us to concentrations of credit risk consist principally of short-term investments and operating demand deposit accounts. Our policy is to place our operating demand deposit accounts with high credit quality financial institutions, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and believe we are not exposed to any significant credit risk on our operating demand deposit accounts.

Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Impact of Recently Issued Accounting Standards—In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, the acquirers must recognize measurement-period adjustments during the period in which the amounts are determined. The new guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. We do not believe the implementation of this standard will have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2015, and interim periods within those years, with early adoption permitted. We do not believe the implementation of this standard will have a material impact on our consolidated financial statements.

In May 2014, the FASB issued an amendment to its accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board (“IASB”) to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards. To meet those objectives, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”). ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, Revenue from contracts with customers (Topic 606): Deferral of the Effective Date, deferring the effective date of ASU 2014-09 by one year. With this deferral, the new standard is effective for us on January 1, 2018. The standard permits the use of either the retrospective or cumulative effective transition method. We are evaluating the impact of adopting this standard on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Reclassifications—Certain prior year amounts have been reclassified in the accompanying consolidated financial statements to conform to the current period presentation. For example, certain prior year inventory balances were reclassified in the accompanying consolidated financial statements to reflect changes in management’s expectations. See Note 5, Inventories, for additional information.

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2015

Supplemental Cash Flow Information

2.	SUPPLEMENTAL CASH FLOW INFORMATION

Selected cash payments and non-cash activities were as follows:


	Years ended December 31,
	2015		2014		2013
Supplemental cash flow information:
Cash paid for interest	$	55	$	7	$	8
Cash paid for income taxes		4,682		10,844		10,286
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets		2,979		41		383

Allowance for Doubtful Accounts

12 Months Ended

Dec. 31, 2015

Allowance for Doubtful Accounts

3.	ALLOWANCE FOR DOUBTFUL ACCOUNTS

Activity in the allowance for doubtful accounts was as follows:


	Years ended December 31,
	2015			2014			2013
Balance, beginning of year	$	1,844		$	3,686		$	3,780
Provision (net of recovery)		346			(306	)		1,001
Amounts written off, net of recoveries		(773	)		(1,536	)		(1,095	)

Balance, end of year	$	1,417		$	1,844		$	3,686

Short-Term Investments

12 Months Ended

Dec. 31, 2015

Short-Term Investments

4.	SHORT-TERM INVESTMENTS

Short-term investments of $43.0 million and $65.0 million at December 31, 2015 and 2014, respectively, were comprised of six-month U.S. Treasury Bills that mature through April 14, 2016. The interest rate on the U.S. Treasury Bills is less than one percent. The investments are classified as held-to-maturity and recorded at cost plus accrued interest, which approximates fair value. The fair value of the U.S. Treasury Bills at December 31, 2015 and 2014 were classed as Level 1 as they are traded with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. For further discussion of fair value, refer to Note 10, Fair Value Measurements.

Inventories

12 Months Ended

Dec. 31, 2015

Inventories

5.	INVENTORIES

Inventories consist of the following:


	As of December 31, 2015		As of December 31, 2014
Raw materials	$	28,190	$	27,266
Finished goods		17,381		15,828

Inventories, net	$	45,571	$	43,094


Service and sales demonstration inventory, net	$	33,709	$	36,886

Based upon the planned timing of new product introductions and a sudden and significant decline in demand for our products during the three months ended September 26, 2015, our on-hand inventory levels exceeded our estimated requirements, resulting in excess inventory. We use several contract manufacturers and suppliers to provide manufacturing services for our products. In the normal course of business, to reduce manufacturing lead times and ensure adequate component availability, we enter into agreements with these manufacturers and suppliers to purchase sufficient inventory based on our forecast demand. At September 26, 2105, we had purchase commitments with suppliers for inventory that we no longer expected to utilize through the product lifecycle and for warranty commitments. Consequently, we recorded a $5.9 million write-down of excess inventory and a $2.0 million loss on purchase commitments in the third quarter of 2015. The aggregate of $7.9 million is included within the consolidated statement of cash flows for the year ended December 31, 2015 under the caption “Write-down of inventories”.

Goodwill

12 Months Ended

Dec. 31, 2015

Goodwill

6.	GOODWILL

Our goodwill at December 31, 2015 and 2014 is related to our previous acquisitions. We evaluate each reporting unit’s fair value as compared to its carrying value on December 31 of each year or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value. We first performed a qualitative assessment to determine whether it was necessary to perform the two-step goodwill impairment test. We concluded a quantitative goodwill impairment test, or step 1, was necessary. The fair value of the reporting units was measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved for each reporting unit and a market approach. The key assumptions used in the discounted cash flow model include discount rates, growth rates, cash flow projections and terminal value rates. These rates are susceptible to change and require significant management judgment. The market approach relies on an analysis of publicly-traded companies similar to us and derives a range of revenue and profit multiples. The publicly-traded companies used in the market approach were selected based on our defined peer group. The resulting multiples were then applied to each reporting unit to determine fair value. Impairments to goodwill are charged against earnings in the period the impairment is identified. We have two reporting units for which goodwill was tested on December 31, 2015: the Americas Region, and the Europe/Africa Region, as shown in the table below. As of December 31, 2015 and 2014, we did not have any goodwill that was identified as impaired. The increase in goodwill in 2015 reflected the acquisitions completed in 2015, partially offset by changes in foreign exchange rates. The decrease in goodwill in 2014 related to changes in foreign exchange rates, partially offset by goodwill resulting from an acquisition completed in 2014.


December 31, 2015	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Americas Region	$	8,366	$	4,964	$	(389	)	$	12,941
Europe/Africa region		10,839		3,805		(1,214	)		13,430
Asia Pacific Region		—		—		—			—

Total	$	19,205	$	8,769	$	(1,603	)	$	26,371


December 31, 2014	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Americas Region	$	6,994	$	1,372	$	—		$	8,366
Europe/Africa region		12,364		—		(1,525	)		10,839
Asia Pacific Region		—		—		—			—

Total	$	19,358	$	1,372	$	(1,525	)	$	19,205

Intangible Assets

12 Months Ended

Dec. 31, 2015

Intangible Assets

7.	INTANGIBLE ASSETS

Intangible assets consist of the following:


	As of December 31, 2015
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	10,494	$	7,204	$	3,290
Patents and trademarks		13,048		4,130		8,918
Other		10,757		6,980		3,777

Total	$	34,299	$	18,314	$	15,985


	As of December 31, 2014
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	9,065	$	8,215	$	850
Patents and trademarks		12,169		4,621		7,548
Other		8,010		7,299		711

Total	$	29,244	$	20,135	$	9,109

Amortization expense was $1,979, $1,257 and $1,213 in 2015, 2014 and 2013, respectively. The estimated amortization expense for each of the years 2016 through 2020 and thereafter is as follows:


Years ending December 31,	Amount
2016	$	2,051
2017		2,017
2018		1,803
2019		1,742
2020		1,718
Thereafter		6,654

	$	15,985

Accrued Liabilities

12 Months Ended

Dec. 31, 2015

Accrued Liabilities

8.	ACCRUED LIABILITIES

Accrued liabilities consist of the following:


	As of December 31,
	2015		2014
Accrued compensation and benefits	$	12,798	$	17,544
Accrued warranties		2,309		2,719
Professional and legal fees		2,014		1,475
Other accrued liabilities		5,453		4,389

	$	22,574	$	26,127

Activity related to accrued warranties was as follows:


	Years ended December 31,
	2015			2014			2013
Balance, beginning of year	$	2,719		$	2,364		$	2,359
Provision for warranty expense		3,597			3,848			3,541
Fulfillment of warranty obligations		(4,007	)		(3,493	)		(3,536	)

Balance, end of year	$	2,309		$	2,719		$	2,364

Line of Credit

12 Months Ended

Dec. 31, 2015

Line of Credit

9.	LINE OF CREDIT

On July 11, 2006, we entered into a loan agreement providing for an available line of credit of $30.0 million, which was most recently amended on March 15, 2012. Loans under the Amended and Restated Loan Agreement, as amended, bear interest at the rate of LIBOR plus a fixed percentage between 1.50% and 2.00%. The Amended and Restated Loan Agreement required us to maintain a minimum cash balance of $25 million and tangible net worth measured at the end of each of our fiscal quarters. The term of the Amended and Restated Loan Agreement, as amended, expired on March 31, 2015. We did not extend the loan agreement and we did not draw on this line of credit in 2015, 2014 or 2013.

Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Measurements

10.

FAIR VALUE MEASUREMENTS

The guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and requires enhanced disclosures about assets and liabilities measured at fair value. Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are used to determine fair value. These models employ valuation techniques that involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.

Assets and liabilities recorded at fair value on a recurring basis in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by the guidance on fair value measurements, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and are as follows:

Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets.

Level 2 - Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques.

Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations:


	Years ended December 31, 2015
	Level 1		Level 2		Level 3

Assets:
Short-term investments (1)	$	42,994	$	—	$	—

Total	$	42,994	$	—	$	—


Liabilities:
Contingent consideration (2)	$	—	$	—	$	2,695

Total	$	—	$	—	$	2,695


	Years ended December 31, 2014
	Level 1		Level 2		Level 3

Assets:
Short-term investments (1)	$	64,995	$	—	$	—

Total	$	64,995	$	—	$	—


Liabilities:
Contingent consideration (2)	$	—	$	—	$	600

Total	$	—	$	—	$	600

(1)	Short-term investments in the accompanying consolidated balance sheets are six-month U.S. Treasury Bills. The fair values of these assets are based on Level 1 inputs in the fair value hierarchy.

(2)

Contingent consideration liability represents arrangements to pay the former owners of certain companies we acquired. The undiscounted maximum payment under the arrangements was $7.9 million at the end of fiscal 2015, based on future revenues, gross profits and certain milestones. We estimated the fair value of the contingent consideration using a Monte Carlo Simulation, which is based on significant inputs, primarily forecasted future results of the acquired businesses, not observable in the market, and thus represents a Level 3 measure. Contingent consideration liability is included in Other long-term liabilities on our consolidated balance sheets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Other (Income) Expense, Net

12 Months Ended

Dec. 31, 2015

Other (Income) Expense, Net

11.

OTHER (INCOME) EXPENSE, NET

Other (income) expense, net consists of the following:


	Years ended December 31,
	2015			2014			2013
Foreign exchange transaction (gains) losses	$	377		$	(103	)	$	1,307
Other		(6	)		9			50

Total other (income) expense, net	$	371		$	(94	)	$	1,357

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Taxes

12.

INCOME TAXES

Income (loss) before income tax (benefit) expense consists of the following:


	Years ended December 31,
	2015			2014		2013
Domestic	$	(144	)	$	12,877	$	14,842
Foreign		12,950			24,645		14,020

Income before income taxes	$	12,806		$	37,522	$	28,862

The components of the income tax (benefit) expense for income taxes are as follows:


	Years ended December 31,
	2015			2014			2013
Current:
Federal	$	199		$	3,780		$	4,859
State		78			367			472
Foreign		562			4,433			3,751

Current income tax expense		839			8,580			9,082
Deferred:
Federal		88			306			(1,105	)
State		9			30			(108	)
Foreign		(943	)		(5,043	)		(516	)

Deferred income tax benefit		(846	)		(4,707	)		(1,729	)

Income tax (benefit) expense	$	(7	)	$	3,873		$	7,353

Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax (benefit) expense are summarized below:


	Years ended December 31,
	2015			2014			2013
Tax expense at statutory rate of 34%	$	4,354		$	12,757		$	9,813
State income taxes, net of federal benefit		54			425			490
Foreign tax rate difference		(3,708	)		(2,917	)		(1,345	)
Research and development credit		(853	)		(583	)		(957	)
Change in valuation allowance		(28	)		(5,392	)		(187	)
Equity based compensation		54			880			(212	)
Manufacturing credit		11			(721	)		(249	)
Other		109			(576	)		—

Total income tax (benefit) expense	$	(7	)	$	3,873		$	7,353

The components of our net deferred income tax asset and liabilities are as follows:


	As of December 31,
	2015			2014
Net deferred income tax asset - Current
Warranty cost	$	657		$	404
Bad debt reserve		21			30
Inventory reserve		774			512
Unearned service revenue		4,319			3,474
Other, net		2,021			1,516

Net deferred income tax asset - Current	$	7,792		$	5,936


Net deferred income tax asset - Non-current
Depreciation	$	(5,658	)	$	(3,195	)
Goodwill amortization		(2,076	)		(2,007	)
Employee stock options		3,664			2,756
Unearned service revenue		2,337			1,649
Loss carryforwards		6,568			9,240

Deferred income tax asset - Non-current		4,835			8,443

Valuation Allowance		(785	)		(1,819	)

Net deferred income tax asset - Non-current	$	4,050		$	6,624


Net deferred income tax liability - Non-current

Intangible assets	$	(686	)	$	—

The effective income tax rate for 2015, 2014, and 2013 includes a reduction in the statutory corporate tax rates for our operations in Switzerland. The favorable tax rate ruling requires us to maintain a certain level of manufacturing operations in Switzerland. The aggregate dollar effect of this favorable tax rate was approximately $2.7 million, or $0.16 per share, in the year ended December 31, 2015, $1.9 million, or $0.11 per share, in the year ended December 31, 2014, and $1.5 million, or $0.09 per share, in the year ended December 31, 2013.

Our domestic entities had deferred income tax assets in the amount of $5.2 million as of December 31, 2015 and December 31, 2014. At December 31, 2015 and 2014, our foreign subsidiaries had deferred tax assets primarily relating to net operating losses, some of which expire in the next 1 to 18 years and others which can be carried forward indefinitely, of $6.6 million and $9.2 million, respectively. The valuation allowance for deferred tax assets as of December 31, 2015 and 2014 was $0.8 million and $1.8 million, respectively. The net decrease in the total valuation allowance for each of years ended December 31, 2015, 2014 and 2013, was $1.0 million, $5.0 million and $0.2 million, respectively. During the year ended December 31, 2014, we identified certain immaterial errors related to deferred tax assets and the related valuation allowance. As a result, we decreased deferred tax assets and the related valuation allowance by $4.7 million each to correct the gross-up error. The above table has been adjusted to reflect this adjustment. We believe this error was not material to the consolidated financial statements of any prior interim or annual periods and that the correction of the error was not material to the 2014 consolidated financial statements.

The valuation allowance as of December 31, 2015 and 2014 was primarily related to foreign net operating loss carryforwards that, in the judgment of management, were not more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax-planning strategies in making this assessment. In 2014, certain foreign subsidiaries, which had previously generated losses, established a pattern of profitability which resulted in the Company concluding that the valuation allowance should be reversed based on the assessment previously described. As a result, in 2014, we recorded a $4.5 million discrete tax adjustment. The remaining changes impacting the valuation allowance for the year ended December 31, 2014 related to changes in foreign currency.

We have not recognized any U.S. tax expense on undistributed international earnings, as we intend to reinvest the earnings outside the U.S. for the foreseeable future. Our net undistributed international earnings were approximately $119.5 million and $106.2 million at December 31, 2015 and 2014, respectively.

Significant judgment is required in determining our worldwide provision for income taxes. In the ordinary course of a global business, there are many transactions for which the ultimate tax outcome is uncertain. We review our tax contingencies on a regular basis and make appropriate accruals as necessary.

As of December 31, 2015 and 2014, our unrecognized tax benefits totaled $0.3 million, which includes approximately $0.03 million of interest and penalties. We estimate that the unrecognized tax benefits will not change significantly within the next year.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Years ended December 31,
	2015		2014		2013

Balance at January 1,	$	265	$	265	$	265
Additions based on tax positions related to the current year		—		—		—
Additions for tax positions of prior years		—		—		—
Reductions for tax positions of prior years		—		—		—
Settlements		—		—		—

Balance at December 31,	$	265	$	265	$	265

We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2015:


Jurisdiction	Open Years		Examination in Process
United States - Federal Income Tax		2012-2015		N/A
United States - various states		2011-2015		N/A
Germany		2010-2015		2010-2012
Switzerland		2014-2015		N/A
Singapore		2011-2015		N/A

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $0.3 million. We do not currently anticipate that the total amount of unrecognized tax benefits will result in material changes to our financial position. We are subject to income taxes at the federal, state and foreign country level. Our tax returns are subject to examination at the U.S. federal level from 2011 forward and at the state level subject to a three to four year statute of limitations. In September 2013, the U.S. Internal Revenue Service issued new regulations for capitalizing and deducting costs incurred to acquire, produce, or improve tangible property. We adopted these new regulations as of January 1, 2014, and it did not have a material effect on our consolidated financial statements.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies

13.

COMMITMENTS AND CONTINGENCIES

Leases – We lease buildings and equipment under non-cancellable operating leases through 2026. The following is a schedule of future minimum lease payments required under non-cancelable operating leases with initial terms in excess of one year, in effect at December 31, 2015:


Years ending December 31,	Amount
2016	$	6,737
2017		5,799
2018		4,331
2019		3,481
2020		2,532
Thereafter		5,722

Total future minimum lease payments	$	28,602

Rent expense for 2015, 2014, and 2013 was $6,874, $6,119 and $5,227, respectively.

Purchase Commitments — We enter into purchase commitments for products and services in the ordinary course of business. These purchases generally cover production requirements for 60 to 120 days as well as materials necessary to service customer units through the product lifecycle and for warranty commitments. As of December 31, 2015 we had $10.7 million in purchase commitments that are expected to be delivered within the next 12 months. To ensure adequate component availability in preparation for new product introductions, as of December 31, 2015, we also had $4.5 million in long-term commitments for purchases to be delivered through 2017.

Legal Proceedings — We are not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations.

Stock Compensation Plans

12 Months Ended

Dec. 31, 2015

Stock Compensation Plans

14.

STOCK COMPENSATION PLANS

We have three compensation plans that provide for the granting of stock options and other share-based awards to key employees and non-employee members of the Board of Directors. The 2004 Equity Incentive Plan (“2004 Plan”), the 2009 Equity Incentive Plan (“2009 Plan”), and the 2014 Equity Incentive Plan (“2014 Plan”) provide for granting options, restricted stock, restricted stock units or stock appreciation rights to employees and non-employee directors.

We were authorized to grant awards for up to 1,750,000 shares of common stock under the 2004 Plan, of which 69,587 options are outstanding at December 31, 2015 at exercise prices between $13.04 and $24.36. We were also authorized to grant awards for up to 1,781,546 shares of common stock under the 2009 Plan, as well as any shares underlying awards outstanding under the 2004 Plan as of the effective date of the 2009 Plan that thereafter terminated or expired unexercised or were canceled, forfeited or lapsed for any reason. There are 677,869 options outstanding at December 31, 2015 under the 2009 Plan at exercise prices between $24.30 and $57.54. The options outstanding under the 2004 Plan and the 2009 Plan have a 10-year term (7 years on grants beginning in 2010) and vest over a 3-year period.

In May 2014, our shareholders approved the 2014 Plan authorizing us to grant awards for up to 1,974,543 shares of common stock, as well as any shares underlying awards outstanding under the 2004 Plan and 2009 Plan as of the effective date of the 2014 Plan that thereafter terminate or expire unexercised or are canceled, forfeited or lapse for any reason. There are 339,452 options outstanding at December 31, 2015 under the 2014 Plan at exercise prices between $29.98 and $62.63. The options outstanding under the 2014 Plan have a 7-year term and generally vest over a 3-year period. We will not make any further grants under the 2004 Plan or the 2009 Plan.

Beginning in 2013, upon election to the Board, each non-employee director receives an initial equity grant of shares of restricted common stock with a value equal to $100,000, calculated using the closing share price on the date of the non-employee director’s election to the Board. The initial restricted stock grant vests on the third anniversary of the grant date, subject to the non-employee director’s continued membership on the Board. Annually, the non-employee directors are granted restricted shares equal to 50% of their compensation on the first business day following the annual meeting of shareholders, calculated using the closing price of our common stock on that day. The shares of restricted stock vest on the day prior to the following year’s annual meeting date, subject to a non-employee director’s continued membership on the Board. We record compensation cost associated with our restricted stock unit grants on a straight-line basis over the vesting term.

Annually, upon approval by our Compensation Committee, we grant stock options and restricted stock units to certain employees. We also grant stock options to certain new employees throughout the year. These awards are non-performance-based subject only to time-based vesting, and vest in three equal annual installments beginning one year after the grant date. The related stock-based compensation is recognized over the requisite service period.

In 2015, we began granting performance-based stock options and restricted stock units to certain executives. These awards vest in three equal annual installments beginning one year after the grant date if the applicable performance goals or strategic objectives are achieved. The related stock-based compensation expense is recognized over the requisite service period, taking into account the probability that we will satisfy the performance goals or strategic objectives. In addition to certain strategic objectives, the awards to be issued under the 2015 performance-based stock options and restricted stock unit grant are determined based on (1) our achievement of specified revenue and EPS targets, and (2) our total shareholder return (TSR) relative to the TSR attained by companies within our defined peer group.

Due to the TSR presence in certain performance-based grants, the fair value of these awards is determined using the Monte Carlo Simulation valuation model. We expense these market condition awards over the three-year vesting period regardless of the value that the award recipients ultimately receive.

Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted average fair value of the stock options and restricted stock units that were granted in 2015 and valued based on the Monte Carlo Simulation valuation model was $19.97 and $44.45, respectively. The assumptions used to estimate the fair value of the performance-based stock options and restricted stock units granted in 2015 under the Monte Carlo Simulation model are as follows:


	Years Ended December 31,
	2015			2014		2013
Risk-free interest rate		0.95% - 1.48	%		—		—
Expected dividend yield		0	%		—		—
Expected option life		4 years			—		—
Expected volatility		44.5	%		—		—
Weighted-average expected volatility		44.5	%		—		—

For stock options granted using the Black-Scholes option-pricing model, we used the following assumptions:


	Years Ended December 31,
	2015			2014			2013
Risk-free interest rate		0.80% - 1.21	%		0.95% - 1.32	%		0.55% - 1.03	%
Expected dividend yield		0	%		0	%		0	%
Expected option life		3 years			3-4 years			4 years
Expected volatility		42.3% - 48.5	%		42.5% - 45.4	%		46.1% - 48.4	%
Weighted-average expected volatility		43.5	%		42.6	%		48.2	%

Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The risk-free interest rate was based on yields of U.S. zero coupon issues and U.S. Treasury issues, with a term equal to the expected life of the option being valued.

A summary of stock option activity and weighted average exercise prices follows:


	Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value as of December 31, 2015
Outstanding at January 1, 2015		898,429		$	44.40
Granted		528,005			55.21
Forfeited		(181,063	)		55.68
Exercised		(66,786	)		33.11

Outstanding at December 31, 2015		1,178,585		$	48.14		4.2	$	1,382


Options exercisable at December 31, 2015		566,428		$	42.14		2.4	$	1,382

The weighted-average grant-date fair value of the stock options granted during the years ended December 31, 2015, 2014 and 2013 were $15.08, $19.38 and $14.41, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2015, 2014 and 2013 was $1.7 million, $2.2 million and $3.7 million, respectively. The total fair value of stock options using the Black-Scholes option pricing model vested during the years ended December 31, 2015, 2014 and 2013 was $3.9 million, $3.7 million and $3.3 million, respectively.

The following table summarizes the restricted stock activity and weighted average grant-date fair values for the year ended December 31, 2015:


	Shares			Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2015		13,955		$	43.57
Granted		16,892			43.26
Forfeited		(1,582	)		46.15
Vested		(13,349	)		42.99

Non-vested at December 31, 2015		15,916		$	43.47

We recorded total stock-based compensation expense associated with our stock incentive plans of $4,306, $4,678 and $4,409 in 2015, 2014 and 2013, respectively.

As of December 31, 2015, there was $7.0 million in total unrecognized stock-based compensation expense related to non-vested stock-based compensation arrangements. The expense is expected to be recognized over a weighted average period of 1.7 years.

Earnings Per Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share

15. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of shares outstanding. Diluted earnings per share is computed by also considering the impact of potential common stock on both net income and the weighted average number of shares outstanding. Our potential common stock consists of employee and director stock options, restricted stock, restricted stock units and performance-based awards. Our potential common stock is excluded from the basic earnings per share calculation and is included in the diluted earnings per share calculation when doing so would not be anti-dilutive. Performance-based awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (EPS) is presented below:


	Years Ended December 31,
	2015				2014					2013
	Shares		Per-Share Amount		Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,288,665	$	0.74		17,247,727	$	1.95			17,087,104	$	1.26
Effect of dilutive securities		100,808		0.00		168,726		(0.02	)		154,011		(0.01	)


Diluted EPS		17,389,473	$	0.74		17,416,453	$	1.93			17,241,115	$	1.25


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were potentially antidilutive		870,421				520,739					403,649

Employee Retirement Benefit Plan

12 Months Ended

Dec. 31, 2015

Employee Retirement Benefit Plan

16.

EMPLOYEE RETIREMENT BENEFIT PLAN

We maintain a 401(k) defined contribution retirement plan for our eligible U.S. employees. Costs charged to operations in connection with the 401(k) plan during 2015, 2014, and 2013 aggregated $1,334, $1,127, and $934, respectively.

Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting

17.

SEGMENT REPORTING

We have three reportable segments based upon geographic regions: Americas, Europe/Africa and Asia-Pacific. We include costs related to Corporate in our Americas region. We do not incur research and development expenses in our Asia-Pacific region.

We develop, manufacture, market, support and sell CAD-based quality assurance products integrated with CAD-based inspection and statistical process control software, and three-dimensional documentation systems in each of these regions. These activities represent more than 99% of consolidated sales. Our Chief Operating Decision Maker (CODM), our Chief Executive Officer, evaluates segment performance and allocates resources based upon profitable growth and assets deployed. Each of our segments employ consistent accounting policies.

The following table presents information about our reportable segments:


	As of and for the Years Ended December 31,
	2015			2014		2013
Americas Region
Net sales to external customers	$	143,388		$	138,968	$	120,435
Depreciation and amortization		6,799			3,989		4,012
Operating income		(46	)		7,490		6,270
Long-lived assets		49,420			37,013		23,791
Capital expenditures		7,084			12,347		3,563
Total assets		193,270			222,273		201,679

Europe/Africa Region
Net sales to external customers	$	103,183		$	120,179	$	103,415
Depreciation and amortization		3,065			2,090		1,880
Operating income		(4,442	)		8,811		6,417
Long-lived assets		25,783			17,599		17,409
Capital expenditures		6,118			4,799		1,558
Total assets		133,502			124,535		122,197

Asia-Pacific Region
Net sales to external customers	$	70,977		$	82,679	$	67,934
Depreciation and amortization		1,353			1,349		1,146
Operating income		17,610			21,039		17,467
Long-lived assets		3,099			3,047		2,721
Capital expenditures		967			1,576		1,319
Total assets		82,414			78,655		67,620

Totals
Net sales to external customers	$	317,548		$	341,826	$	291,784
Depreciation and amortization		11,217			7,428		7,038
Operating income		13,122			37,340		30,154
Long-lived assets		78,302			57,659		43,921
Capital expenditures		14,169			18,722		6,440
Total assets		409,186			425,463		391,496

The geographical sales information presented above represents sales to customers located in each respective region, whereas the long-lived assets information represents assets held in the respective regions. There were no customers that individually accounted for 10% or more of total consolidated revenue.

Net sales to external customers is based upon the geographic location of the customer.


	For the Years Ended December 31,
	2015		2014		2013
Net sales to external customers
United States	$	131,670	$	124,851	$	109,757
Americas-Other		11,718		14,117		10,678
Germany		41,151		50,437		42,471
Europe-Other		62,032		69,742		60,944
Japan		24,018		32,531		23,795
Asia-Other		46,959		50,148		44,139

	$	317,548	$	341,826	$	291,784

Long lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated.


	As of December 31,
	2015		2014		2013
Long-Lived Assets
United States	$	39,973	$	35,900	$	22,720
Americas-Other		9,447		1,113		1,071
Germany		24,637		17,351		17,294
Europe-Other		1,146		248		115
Japan		517		599		434
Asia-Other		2,582		2,448		2,287

	$	78,302	$	57,659	$	43,921

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations

18.

BUSINESS COMBINATIONS

In February 2015, we completed the acquisition of ARAS 360 Technologies Inc. (“ARAS”) for a purchase price of $7.7 million, paid with cash on hand, subject to certain additional post-closing adjustments, and up to an additional $4.0 million in contingent consideration that may be earned over a two-year period. ARAS, a privately-held business headquartered in Canada, produces a full suite of accident and crime reconstruction software tools that offer advanced graphics, analytical tools, and the ability to work with large point cloud data. The acquisition is expected to complement our portfolio within the public safety market.

In March 2015, we completed the acquisition of kubit GmbH for a purchase price of $4.5 million, paid with cash on hand, subject to certain additional post-closing adjustments, and up to an additional $3.3 million in contingent consideration that may be earned over a three-year period. The acquisition also included substantially all of the assets of kubit GmbH’s U.S. distributor kubit USA, Inc. (collectively “kubit”). Kubit, a privately-held business with operating facilities in Germany and the United States, develops software for surveying and as-built documentation. The acquisition is expected to complement our portfolio of software products, specifically in the building information modeling/ construction information management market.

The acquisition of each of ARAS and kubit constitutes a business combination as defined by the FASB Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition. Following is a summary of our allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition:


	ARAS			kubit

Tangible assets acquired:
Accounts receivable	$	294		$	136
Other assets		—		$	246

Total assets acquired		294			382


Liabilities assumed:
Accounts payable and accrued liabilities		27			182
Other liabilities		219			489

Total liabilities assumed		246			671


Intangible assets
Trade name		509			658
Non-competition agreement		540			272
Technology		2,052			945
Customer relationship		2,250			696

Total intangible assets		5,351			2,571



Net assets acquired		5,399			2,282


Deferred tax liability		(1,385	)		(674	)
Goodwill		4,964			3,805
Contingent consideration		(1,338	)		(987	)

Purchase price, net of cash acquired and post-closing adjustments	$	7,640		$	4,426

The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. Intangible assets acquired with ARAS and kubit will be amortized over a weighted-average life of about 8 years. The intangible assets and goodwill of ARAS were assigned to the Americas reporting unit and the kubit intangible assets and goodwill were mainly assigned to the Europe/Africa reporting unit. The goodwill value is not expected to be tax deductible. Acquisition and integration costs are not included as components of consideration transferred, but are recorded as expense in the period in which such costs are incurred. To date, we have incurred approximately $0.2 million in acquisition and integration costs for each of the ARAS and kubit acquisitions.

We have not furnished pro forma financial information related to our acquisitions of ARAS and kubit because such information is not material individually or in the aggregate to our overall financial results.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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+ Details

Quarterly Results of Operations

12 Months Ended

Dec. 31, 2015

Quarterly Results of Operations

19.

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)


Quarter ended	March 28, 2015		June 27, 2015		September 26, 2015			December 31, 2015
Sales	$	69,939	$	83,775	$	72,507		$	91,327
Gross profit		39,611		44,546		34,871			48,649
Net income (loss)		664		4,148		(884	)		8,885
Net income (loss) per share:
Basic	$	0.04	$	0.24	$	(0.05	)	$	0.52
Diluted	$	0.04	$	0.24	$	(0.05	)	$	0.52


Quarter ended	March 29, 2014		June 28, 2014		September 27, 2014		December 31, 2014
Sales	$	73,374	$	82,060	$	82,239	$	104,153
Gross profit		40,083		45,517		46,041		57,273
Net income		4,976		6,328		11,223		11,122
Net income per share:
Basic	$	0.29	$	0.37	$	0.65	$	0.64
Diluted	$	0.29	$	0.36	$	0.64	$	0.64

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Description of Business

Description of Business—FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. We sell the majority of our products through a direct sales force across a broad number of customers in a range of manufacturing, industrial, architecture, surveying, building information modeling, construction, public safety, cultural heritage and other applications. Our FaroArm^®, FARO Laser ScanArm^®, FARO Gage, FARO Laser Tracker™, FARO Cobalt Array 3D Imager, and their companion CAM2^®software provide for Computer-Aided Design, or CAD, based inspection and/or factory-level statistical process control and high-density surveying. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. Our FARO Focus^3D and FARO Freestyle^3D laser scanners, and their companion SCENE, FARO public safety software, and FARO 3D software are utilized for a wide variety of 3D modeling, documentation and high-density surveying applications, including in two of our key vertical markets – Building Information Modeling (BIM)/Construction Information Management (CIM) and public safety.

Principles of Consolidation

Revenue Recognition, Product Warranty and Extended Warranty Contracts

Cash and Cash Equivalents

Accounts Receivable and Related Allowance for Doubtful Accounts

Inventories

Reserve for Excess and Obsolete Inventory

Property and Equipment


Machinery, equipment and software		2 to 5 years
Furniture and fixtures		3 to 10 years

Leasehold improvements are amortized on a straight-line basis over the lesser of the life of the asset or the remaining term of the lease.

Goodwill and Intangibles

Product technology and patents are recorded at cost. Amortization is computed using the straight-line method over the lives of the product technology and patents of 7 to 20 years.

The remaining weighted-average amortization period for all our intangible assets is nine years.

Long-Lived Assets

Research and Development

Reserve for Warranties

Income Taxes

Earnings Per Share

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation—We have several stock-based employee and director compensation plans, which are described more fully in Note 14, Stock Compensation Plans.

Concentration of Credit Risk

Estimates

Impact of Recently Issued Accounting Standards

Reclassifications

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Depreciation Computed Beginning On the Date Asset Placed Into Service Using Straight-Line Method

Depreciation is computed beginning on the date that the asset is placed into service using the straight-line method over the estimated useful lives of the various classes of assets as follows:


Machinery, equipment and software		2 to 5 years
Furniture and fixtures		3 to 10 years

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2015

Cash Payments and Non-Cash Activity

Selected cash payments and non-cash activities were as follows:


	Years ended December 31,
	2015		2014		2013
Supplemental cash flow information:
Cash paid for interest	$	55	$	7	$	8
Cash paid for income taxes		4,682		10,844		10,286
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets		2,979		41		383

Allowance for Doubtful Accounts (Tables)

12 Months Ended

Dec. 31, 2015

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts was as follows:


	Years ended December 31,
	2015			2014			2013
Balance, beginning of year	$	1,844		$	3,686		$	3,780
Provision (net of recovery)		346			(306	)		1,001
Amounts written off, net of recoveries		(773	)		(1,536	)		(1,095	)

Balance, end of year	$	1,417		$	1,844		$	3,686

Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventories

Inventories consist of the following:


	As of December 31, 2015		As of December 31, 2014
Raw materials	$	28,190	$	27,266
Finished goods		17,381		15,828

Inventories, net	$	45,571	$	43,094


Service and sales demonstration inventory, net	$	33,709	$	36,886

Goodwill (Tables)

12 Months Ended

Dec. 31, 2015

Changes in Goodwill by Reporting Units


December 31, 2015	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Americas Region	$	8,366	$	4,964	$	(389	)	$	12,941
Europe/Africa region		10,839		3,805		(1,214	)		13,430
Asia Pacific Region		—		—		—			—

Total	$	19,205	$	8,769	$	(1,603	)	$	26,371


December 31, 2014	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Americas Region	$	6,994	$	1,372	$	—		$	8,366
Europe/Africa region		12,364		—		(1,525	)		10,839
Asia Pacific Region		—		—		—			—

Total	$	19,358	$	1,372	$	(1,525	)	$	19,205

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Intangible Assets

Intangible assets consist of the following:


	As of December 31, 2015
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	10,494	$	7,204	$	3,290
Patents and trademarks		13,048		4,130		8,918
Other		10,757		6,980		3,777

Total	$	34,299	$	18,314	$	15,985


	As of December 31, 2014
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	9,065	$	8,215	$	850
Patents and trademarks		12,169		4,621		7,548
Other		8,010		7,299		711

Total	$	29,244	$	20,135	$	9,109

Estimated Amortization Expense

The estimated amortization expense for each of the years 2016 through 2020 and thereafter is as follows:


Years ending December 31,	Amount
2016	$	2,051
2017		2,017
2018		1,803
2019		1,742
2020		1,718
Thereafter		6,654

	$	15,985

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Accrued Liabilities

Accrued liabilities consist of the following:


	As of December 31,
	2015		2014
Accrued compensation and benefits	$	12,798	$	17,544
Accrued warranties		2,309		2,719
Professional and legal fees		2,014		1,475
Other accrued liabilities		5,453		4,389

	$	22,574	$	26,127

Activity Related to Accrued Warranties

Activity related to accrued warranties was as follows:


	Years ended December 31,
	2015			2014			2013
Balance, beginning of year	$	2,719		$	2,364		$	2,359
Provision for warranty expense		3,597			3,848			3,541
Fulfillment of warranty obligations		(4,007	)		(3,493	)		(3,536	)

Balance, end of year	$	2,309		$	2,719		$	2,364

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations:


	Years ended December 31, 2015
	Level 1		Level 2		Level 3

Assets:
Short-term investments (1)	$	42,994	$	—	$	—

Total	$	42,994	$	—	$	—


Liabilities:
Contingent consideration (2)	$	—	$	—	$	2,695

Total	$	—	$	—	$	2,695


	Years ended December 31, 2014
	Level 1		Level 2		Level 3

Assets:
Short-term investments (1)	$	64,995	$	—	$	—

Total	$	64,995	$	—	$	—


Liabilities:
Contingent consideration (2)	$	—	$	—	$	600

Total	$	—	$	—	$	600

(1)	Short-term investments in the accompanying consolidated balance sheets are six-month U.S. Treasury Bills. The fair values of these assets are based on Level 1 inputs in the fair value hierarchy.

(2)

Other (Income) Expense, Net (Tables)

12 Months Ended

Dec. 31, 2015

Other (Income) Expense, Net

Other (income) expense, net consists of the following:


	Years ended December 31,
	2015			2014			2013
Foreign exchange transaction (gains) losses	$	377		$	(103	)	$	1,307
Other		(6	)		9			50

Total other (income) expense, net	$	371		$	(94	)	$	1,357

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income (Loss) Before Income Tax (Benefit) Expense

Income (loss) before income tax (benefit) expense consists of the following:


	Years ended December 31,
	2015			2014		2013
Domestic	$	(144	)	$	12,877	$	14,842
Foreign		12,950			24,645		14,020

Income before income taxes	$	12,806		$	37,522	$	28,862

Components of Income Tax (Benefit) Expense

The components of the income tax (benefit) expense for income taxes are as follows:


	Years ended December 31,
	2015			2014			2013
Current:
Federal	$	199		$	3,780		$	4,859
State		78			367			472
Foreign		562			4,433			3,751

Current income tax expense		839			8,580			9,082
Deferred:
Federal		88			306			(1,105	)
State		9			30			(108	)
Foreign		(943	)		(5,043	)		(516	)

Deferred income tax benefit		(846	)		(4,707	)		(1,729	)

Income tax (benefit) expense	$	(7	)	$	3,873		$	7,353

Reconciliation of Income Tax (Benefit) Expense

Reconciliations of the income tax expense at the U.S. federal statutory income tax rate compared to our actual income tax (benefit) expense are summarized below:


	Years ended December 31,
	2015			2014			2013
Tax expense at statutory rate of 34%	$	4,354		$	12,757		$	9,813
State income taxes, net of federal benefit		54			425			490
Foreign tax rate difference		(3,708	)		(2,917	)		(1,345	)
Research and development credit		(853	)		(583	)		(957	)
Change in valuation allowance		(28	)		(5,392	)		(187	)
Equity based compensation		54			880			(212	)
Manufacturing credit		11			(721	)		(249	)
Other		109			(576	)		—

Total income tax (benefit) expense	$	(7	)	$	3,873		$	7,353

Components of Net Deferred Income Tax Assets and Liabilities

The components of our net deferred income tax asset and liabilities are as follows:


	As of December 31,
	2015			2014
Net deferred income tax asset - Current
Warranty cost	$	657		$	404
Bad debt reserve		21			30
Inventory reserve		774			512
Unearned service revenue		4,319			3,474
Other, net		2,021			1,516

Net deferred income tax asset - Current	$	7,792		$	5,936


Net deferred income tax asset - Non-current
Depreciation	$	(5,658	)	$	(3,195	)
Goodwill amortization		(2,076	)		(2,007	)
Employee stock options		3,664			2,756
Unearned service revenue		2,337			1,649
Loss carryforwards		6,568			9,240

Deferred income tax asset - Non-current		4,835			8,443

Valuation Allowance		(785	)		(1,819	)

Net deferred income tax asset - Non-current	$	4,050		$	6,624


Net deferred income tax liability - Non-current

Intangible assets	$	(686	)	$	—

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Years ended December 31,
	2015		2014		2013

Balance at January 1,	$	265	$	265	$	265
Additions based on tax positions related to the current year		—		—		—
Additions for tax positions of prior years		—		—		—
Reductions for tax positions of prior years		—		—		—
Settlements		—		—		—

Balance at December 31,	$	265	$	265	$	265

Open Tax Years and Ongoing Tax Examinations in Major Jurisdictions

The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2015:


Jurisdiction	Open Years		Examination in Process
United States - Federal Income Tax		2012-2015		N/A
United States - various states		2011-2015		N/A
Germany		2010-2015		2010-2012
Switzerland		2014-2015		N/A
Singapore		2011-2015		N/A

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Future Minimum Lease Payments Required under Non-Cancelable Operating Leases

The following is a schedule of future minimum lease payments required under non-cancelable operating leases with initial terms in excess of one year, in effect at December 31, 2015:


Years ending December 31,	Amount
2016	$	6,737
2017		5,799
2018		4,331
2019		3,481
2020		2,532
Thereafter		5,722

Total future minimum lease payments	$	28,602

Stock Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2015

Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units

The assumptions used to estimate the fair value of the performance-based stock options and restricted stock units granted in 2015 under the Monte Carlo Simulation model are as follows:


	Years Ended December 31,
	2015			2014		2013
Risk-free interest rate		0.95% - 1.48	%		—		—
Expected dividend yield		0	%		—		—
Expected option life		4 years			—		—
Expected volatility		44.5	%		—		—
Weighted-average expected volatility		44.5	%		—		—

Fair Value of Options Granted

For stock options granted using the Black-Scholes option-pricing model, we used the following assumptions:


	Years Ended December 31,
	2015			2014			2013
Risk-free interest rate		0.80% - 1.21	%		0.95% - 1.32	%		0.55% - 1.03	%
Expected dividend yield		0	%		0	%		0	%
Expected option life		3 years			3-4 years			4 years
Expected volatility		42.3% - 48.5	%		42.5% - 45.4	%		46.1% - 48.4	%
Weighted-average expected volatility		43.5	%		42.6	%		48.2	%

Summary of Stock Option Activity

A summary of stock option activity and weighted average exercise prices follows:


	Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value as of December 31, 2015
Outstanding at January 1, 2015		898,429		$	44.40
Granted		528,005			55.21
Forfeited		(181,063	)		55.68
Exercised		(66,786	)		33.11

Outstanding at December 31, 2015		1,178,585		$	48.14		4.2	$	1,382


Options exercisable at December 31, 2015		566,428		$	42.14		2.4	$	1,382

Summary of Restricted Stock Activity

The following table summarizes the restricted stock activity and weighted average grant-date fair values for the year ended December 31, 2015:


	Shares			Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2015		13,955		$	43.57
Granted		16,892			43.26
Forfeited		(1,582	)		46.15
Vested		(13,349	)		42.99

Non-vested at December 31, 2015		15,916		$	43.47

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS)

A reconciliation of the number of common shares used in the calculation of basic and diluted earnings per share (EPS) is presented below:


	Years Ended December 31,
	2015				2014					2013
	Shares		Per-Share Amount		Shares		Per-Share Amount			Shares		Per-Share Amount

Basic EPS		17,288,665	$	0.74		17,247,727	$	1.95			17,087,104	$	1.26
Effect of dilutive securities		100,808		0.00		168,726		(0.02	)		154,011		(0.01	)


Diluted EPS		17,389,473	$	0.74		17,416,453	$	1.93			17,241,115	$	1.25


Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were potentially antidilutive		870,421				520,739					403,649

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting Information

The following table presents information about our reportable segments:


	As of and for the Years Ended December 31,
	2015			2014		2013
Americas Region
Net sales to external customers	$	143,388		$	138,968	$	120,435
Depreciation and amortization		6,799			3,989		4,012
Operating income		(46	)		7,490		6,270
Long-lived assets		49,420			37,013		23,791
Capital expenditures		7,084			12,347		3,563
Total assets		193,270			222,273		201,679

Europe/Africa Region
Net sales to external customers	$	103,183		$	120,179	$	103,415
Depreciation and amortization		3,065			2,090		1,880
Operating income		(4,442	)		8,811		6,417
Long-lived assets		25,783			17,599		17,409
Capital expenditures		6,118			4,799		1,558
Total assets		133,502			124,535		122,197

Asia-Pacific Region
Net sales to external customers	$	70,977		$	82,679	$	67,934
Depreciation and amortization		1,353			1,349		1,146
Operating income		17,610			21,039		17,467
Long-lived assets		3,099			3,047		2,721
Capital expenditures		967			1,576		1,319
Total assets		82,414			78,655		67,620

Totals
Net sales to external customers	$	317,548		$	341,826	$	291,784
Depreciation and amortization		11,217			7,428		7,038
Operating income		13,122			37,340		30,154
Long-lived assets		78,302			57,659		43,921
Capital expenditures		14,169			18,722		6,440
Total assets		409,186			425,463		391,496

Net Sales to External Customers Based Upon Geographic Location

Net sales to external customers is based upon the geographic location of the customer.


	For the Years Ended December 31,
	2015		2014		2013
Net sales to external customers
United States	$	131,670	$	124,851	$	109,757
Americas-Other		11,718		14,117		10,678
Germany		41,151		50,437		42,471
Europe-Other		62,032		69,742		60,944
Japan		24,018		32,531		23,795
Asia-Other		46,959		50,148		44,139

	$	317,548	$	341,826	$	291,784

Long Lived Assets Attributed to Geographic Area

Long lived assets consist primarily of property, plant, and equipment, goodwill, and intangible assets, and are attributed to the geographic area in which they are located or originated.


	As of December 31,
	2015		2014		2013
Long-Lived Assets
United States	$	39,973	$	35,900	$	22,720
Americas-Other		9,447		1,113		1,071
Germany		24,637		17,351		17,294
Europe-Other		1,146		248		115
Japan		517		599		434
Asia-Other		2,582		2,448		2,287

	$	78,302	$	57,659	$	43,921

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2015

Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed

Following is a summary of our allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition:


	ARAS			kubit

Tangible assets acquired:
Accounts receivable	$	294		$	136
Other assets		—		$	246

Total assets acquired		294			382


Liabilities assumed:
Accounts payable and accrued liabilities		27			182
Other liabilities		219			489

Total liabilities assumed		246			671


Intangible assets
Trade name		509			658
Non-competition agreement		540			272
Technology		2,052			945
Customer relationship		2,250			696

Total intangible assets		5,351			2,571



Net assets acquired		5,399			2,282


Deferred tax liability		(1,385	)		(674	)
Goodwill		4,964			3,805
Contingent consideration		(1,338	)		(987	)

Purchase price, net of cash acquired and post-closing adjustments	$	7,640		$	4,426

Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Results of Operations

Quarter ended	March 28, 2015		June 27, 2015		September 26, 2015			December 31, 2015
Sales	$	69,939	$	83,775	$	72,507		$	91,327
Gross profit		39,611		44,546		34,871			48,649
Net income (loss)		664		4,148		(884	)		8,885
Net income (loss) per share:
Basic	$	0.04	$	0.24	$	(0.05	)	$	0.52
Diluted	$	0.04	$	0.24	$	(0.05	)	$	0.52


Quarter ended	March 29, 2014		June 28, 2014		September 27, 2014		December 31, 2014
Sales	$	73,374	$	82,060	$	82,239	$	104,153
Gross profit		40,083		45,517		46,041		57,273
Net income		4,976		6,328		11,223		11,122
Net income per share:
Basic	$	0.29	$	0.37	$	0.65	$	0.64
Diluted	$	0.29	$	0.36	$	0.64	$	0.64

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies [Line Items]
Standard product warranty period	1 year
Deposit with financial institutions maturities period, months	3 months
Deposits with foreign Banks	$ 71,200,000	$ 58,900,000
Demonstration inventory shelf life	3 years
Refurbished demonstration inventory selling period	12 months
Inventories, net	$ 45,571,000	43,094,000
Property, plant and equipment, estimated useful lives	3 years
Percentage of FIFO Inventory	100.00%
Depreciation expense	$ 9,238,000	6,171,000	$ 5,825,000
Maximum measurement period after the acquisition date	1 year
Goodwill impairment loss	$ 0	0	0
Indefinite -lived intangible assets	$ 0
Intangible assets acquired, weighted-average amortization period	9 years
Tax benefit related to uncertain tax positions	$ 0
Finished goods
Summary Of Significant Accounting Policies [Line Items]
Demonstration inventory		3,000,000
Service and Sales Demonstration Inventory, Net \| Sales Demonstration Inventory
Summary Of Significant Accounting Policies [Line Items]
Inventories, net	18,500,000	16,200,000
Property and equipment, net
Summary Of Significant Accounting Policies [Line Items]
Service inventory	3,000,000
Long Lived Assets
Summary Of Significant Accounting Policies [Line Items]
Assets impairment charges	$ 0	$ 0	$ 0
Minimum
Summary Of Significant Accounting Policies [Line Items]
Trade receivable time period due	30 days
Other intangible assets, useful life	3 years
Valuation allowance, net deferred tax assets criterion, years	2 years
Minimum \| Product technology and patents
Summary Of Significant Accounting Policies [Line Items]
Other intangible assets, useful life	7 years
Maximum
Summary Of Significant Accounting Policies [Line Items]
Trade receivable time period due	90 days
Other intangible assets, useful life	20 years
Maximum \| Product technology and patents
Summary Of Significant Accounting Policies [Line Items]
Other intangible assets, useful life	20 years

Depreciation Computed Beginning On the Date Asset Placed Into Service Using Straight-Line Method (Detail)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	3 years
Machinery Equipment And Software \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	2 years
Machinery Equipment And Software \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	5 years
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	3 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	10 years

Cash Payments and Non-Cash Activity (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental cash flow information:
Cash paid for interest	$ 55	$ 7	$ 8
Cash paid for income taxes	4,682	10,844	10,286
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets	$ 2,979	$ 41	$ 383

Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts
Balance, beginning of year	$ 1,844	$ 3,686	$ 3,780
Provision (net of recovery)	346	(306)	1,001
Amounts written off, net of recoveries	(773)	(1,536)	(1,095)
Balance, end of year	$ 1,417	$ 1,844	$ 3,686

Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 42,994	$ 64,995
Weighted average interest rate on U.S. Treasury bills, maximum	1.00%	1.00%
US Treasury Bill Securities
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 42,994	$ 64,995
Maturity of short term investment	6 months

Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory [Line Items]
Raw materials	$ 28,190	$ 27,266
Finished goods	17,381	15,828
Inventories, net	45,571	43,094
Service and sales demonstration inventory, net	$ 33,709	$ 36,886

Inventories - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 26, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Inventory [Line Items]
Write-down of inventories		$ 10,878	$ 3,272	$ 1,167
Excess Inventory
Inventory [Line Items]
Write-down of inventories	$ 5,900
Purchase Commitment Inventory
Inventory [Line Items]
Write-down of inventories	$ 2,000
Excess Inventory and Purchase Commitment Inventory
Inventory [Line Items]
Write-down of inventories		$ 7,900

Changes in Goodwill by Reporting Units (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Line Items]
Beginning Balance	$ 19,205	$ 19,358
Additions	8,769	1,372
Foreign Currency Translation	(1,603)	(1,525)
Ending Balance	26,371	19,205
Americas Region
Goodwill [Line Items]
Beginning Balance	8,366	6,994
Additions	4,964	1,372
Foreign Currency Translation	(389)
Ending Balance	12,941	8,366
Europe/Africa Region
Goodwill [Line Items]
Beginning Balance	10,839	12,364
Additions	3,805
Foreign Currency Translation	(1,214)	(1,525)
Ending Balance	$ 13,430	$ 10,839

Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets Net Excluding Goodwill [Line Items]
Amortizable intangible assets, carrying Value	$ 34,299	$ 29,244
Amortizable intangible assets, accumulated Amortization	18,314	20,135
Amortizable intangible assets, net Intangible	15,985	9,109
Product Technology
Intangible Assets Net Excluding Goodwill [Line Items]
Amortizable intangible assets, carrying Value	10,494	9,065
Amortizable intangible assets, accumulated Amortization	7,204	8,215
Amortizable intangible assets, net Intangible	3,290	850
Patents and trademarks
Intangible Assets Net Excluding Goodwill [Line Items]
Amortizable intangible assets, carrying Value	13,048	12,169
Amortizable intangible assets, accumulated Amortization	4,130	4,621
Amortizable intangible assets, net Intangible	8,918	7,548
Other
Intangible Assets Net Excluding Goodwill [Line Items]
Amortizable intangible assets, carrying Value	10,757	8,010
Amortizable intangible assets, accumulated Amortization	6,980	7,299
Amortizable intangible assets, net Intangible	$ 3,777	$ 711

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 1,979	$ 1,257	$ 1,213

Schedule of Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2016	$ 2,051
2017	2,017
2018	1,803
2019	1,742
2020	1,718
Thereafter	6,654
Amortizable intangible assets, net Intangible	$ 15,985	$ 9,109

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule of Accrued Liabilities [Line Items]
Accrued compensation and benefits	$ 12,798	$ 17,544
Accrued warranties	2,309	2,719	$ 2,364	$ 2,359
Professional and legal fees	2,014	1,475
Other accrued liabilities	5,453	4,389
Accrued liabilities	$ 22,574	$ 26,127

Activity Related to Accrued Warranties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Product Warranty Liability [Line Items]
Beginning Balance	$ 2,719	$ 2,364	$ 2,359
Provision for warranty expense	3,597	3,848	3,541
Fulfillment of warranty obligations	(4,007)	(3,493)	(3,536)
Ending Balance	$ 2,309	$ 2,719	$ 2,364

Line of Credit - Additional Information (Detail)	12 Months Ended
Line of Credit - Additional Information (Detail)	Dec. 31, 2015 USD ($)
Line of Credit Facility [Line Items]
Available line of credit	$ 30,000,000
Line of credit, variable rate basis	LIBOR plus a fixed percentage between 1.50% and 2.00%
Minimum cash balance required to maintain under the credit agreement	$ 25,000,000
Line of credit, expiration date	Mar. 31, 2015
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	1.50%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Line of credit basis spread on variable rate	2.00%

Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Monte Carlo Simulation Valuation Model

Liabilities:

Undiscounted maximum payment under the contingent consideration arrangements

$ 7,900

Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring [Member]

Assets:

Short-term investments

^[1]

42,994

64,995

Total

42,994

64,995

Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring [Member]

Liabilities:

Contingent consideration

^[2]

2,695

600

Total

$ 2,695

$ 600

[1]

Short-term investments in the accompanying consolidated balance sheets are six-month U.S. Treasury Bills. The fair values of these assets are based on Level 1 inputs in the fair value hierarchy.

[2]

Components of Other (income) Expense, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income And Other Expense Disclosure [Line Items]
Foreign exchange transaction (gains) losses	$ 377	$ (103)	$ 1,307
Other	(6)	9	50
Total other (income) expense, net	$ 371	$ (94)	$ 1,357

Income (Loss) Before Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Income Before Income Tax [Line Items]
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE, DOMESTIC	$ (144)	$ 12,877	$ 14,842
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE, FOREIGN	12,950	24,645	14,020
INCOME BEFORE INCOME TAX (BENEFIT) EXPENSE	$ 12,806	$ 37,522	$ 28,862

Components of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ 199	$ 3,780	$ 4,859
State	78	367	472
Foreign	562	4,433	3,751
Current income tax expense	839	8,580	9,082
Deferred:
Federal	88	306	(1,105)
State	9	30	(108)
Foreign	(943)	(5,043)	(516)
Deferred income tax benefit	(846)	(4,707)	(1,729)
Income tax (benefit) expense	$ (7)	$ 3,873	$ 7,353

Reconciliation of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Statutory Federal Tax Rate [Line Items]
Tax expense at statutory rate of 34%	$ 4,354	$ 12,757	$ 9,813
State income taxes, net of federal benefit	54	425	490
Foreign tax rate difference	(3,708)	(2,917)	(1,345)
Research and development credit	(853)	(583)	(957)
Change in valuation allowance	(28)	(5,392)	(187)
Equity based compensation	54	880	(212)
Manufacturing credit	11	(721)	(249)
Other	109	(576)
Income tax (benefit) expense	$ (7)	$ 3,873	$ 7,353

Reconciliation of Income Tax (Benefit) Expense (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Statutory Federal Tax Rate [Line Items]
Tax expense (benefit), statutory rate	34.00%	34.00%	34.00%

Components of Net Deferred Income Tax Asset and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Net deferred income tax asset-Current
Warranty cost	$ 657	$ 404
Bad debt reserve	21	30
Inventory reserve	774	512
Unearned service revenue	4,319	3,474
Other, net	2,021	1,516
Net deferred income tax asset-Current	7,792	5,936
Net deferred income tax asset-Non-current
Depreciation	(5,658)	(3,195)
Goodwill amortization	(2,076)	(2,007)
Employee stock options	3,664	2,756
Unearned service revenue	2,337	1,649
Loss carryforwards	6,568	9,240
Deferred income tax asset-Non-current	4,835	8,443
Valuation Allowance	(785)	(1,819)
Net deferred income tax asset-Non-current	4,050	$ 6,624
Net deferred income tax liability-Non-current
Intangible assets	$ (686)

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Deferred tax assets, domestic	$ 5,200	$ 5,200
Deferred income tax assets, net operating loss carryforwards	6,568	9,240
Valuation Allowance	800	1,800
Valuation Allowance, Deferred Tax Asset, Change in Amount	(1,000)	(5,000)	$ (200)
Decrease in deferred tax assets and the related valuation allowance		4,700
Discrete tax adjustment		4,500
Undistributed international earnings	119,500	106,200
Effective tax rate due by recognized tax benefits	300	300
Unrecognized tax benefits,interest and penalties	$ 30	30
Minimum
Income Taxes [Line Items]
Deferred income tax assets, operating loss carryforwards expiration period	1 year
Tax returns examination statute of limitations period	3 years
Maximum
Income Taxes [Line Items]
Deferred income tax assets, operating loss carryforwards expiration period	18 years
Tax returns examination statute of limitations period	4 years
Switzerland
Income Taxes [Line Items]
Income tax holiday, aggregate dollar amount	$ 2,700	$ 1,900	$ 1,500
Income tax holiday, income tax benefits per share	$ 0.16	$ 0.11	$ 0.09

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits [Line Items]
Balance at January 1,	$ 265	$ 265	$ 265
Additions based on tax positions related to the current year
Additions for tax positions of prior years	0	0	0
Reductions for tax positions of prior years	0	0	0
Settlements	0	0	0
Balance at December 31,	$ 265	$ 265	$ 265

Open Tax Years and Ongoing Tax Examinations in Major Jurisdictions (Detail)	12 Months Ended
	Dec. 31, 2015
Earliest Tax Year \| Germany
Income Tax Examination [Line Items]
Open Years	2010
Examination in Process	2010
Earliest Tax Year \| Switzerland
Income Tax Examination [Line Items]
Open Years	2014
Earliest Tax Year \| Singapore
Income Tax Examination [Line Items]
Open Years	2011
Earliest Tax Year \| United States - Federal Income Tax
Income Tax Examination [Line Items]
Open Years	2012
Earliest Tax Year \| United States - Various States
Income Tax Examination [Line Items]
Open Years	2011
Latest Tax Year \| Germany
Income Tax Examination [Line Items]
Open Years	2015
Examination in Process	2012
Latest Tax Year \| Switzerland
Income Tax Examination [Line Items]
Open Years	2015
Latest Tax Year \| Singapore
Income Tax Examination [Line Items]
Open Years	2015
Latest Tax Year \| United States - Federal Income Tax
Income Tax Examination [Line Items]
Open Years	2015
Latest Tax Year \| United States - Various States
Income Tax Examination [Line Items]
Open Years	2015

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies [Line Items]
Operating Leases, Rent Expense	$ 6,874	$ 6,119	$ 5,227
Purchase commitment, due in next twelve months	10,700
Long-term purchase commitments	$ 4,500
Long-term purchase commitments, maturity year	2017
Buildings And Equipment
Commitments and Contingencies [Line Items]
Lease future expiration date, year	2026
Minimum
Commitments and Contingencies [Line Items]
Length of purchase commitments, in days	60 days
Maximum
Commitments and Contingencies [Line Items]
Length of purchase commitments, in days	120 days

Future Minimum Lease Payments Required under Non-Cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2015 USD ($)
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items]
2016	$ 6,737
2017	5,799
2018	4,331
2019	3,481
2020	2,532
Thereafter	5,722
Total future minimum lease payments	$ 28,602

Stock - Compensation Plans - Additional Information (Detail)	1 Months Ended	12 Months Ended
	May 31, 2014 $ / shares shares	Dec. 31, 2015 USD ($) OptionPlan Installment $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Compensation Plans \| OptionPlan		3
Common stock, outstanding \| shares		1,178,585	898,429
Vesting period, years		3 years
Weighted average remaining contractual term		2 years 4 months 24 days
Share based awards, number of equal annual installments \| Installment		3
Weighted-average grant-date fair value		$ 15.08	$ 19.38	$ 14.41
Weighted-average grant-date fair value of restricted stock unit granted		$ 43.26
Total intrinsic value of stock options exercised \| $		$ 1,700,000	$ 2,200,000	$ 3,700,000
Fair value of stock options vested \| $		3,900,000	3,700,000	3,300,000
Allocated Share-based compensation expense \| $		4,306,000	4,678,000	$ 4,409,000
Unrecognized stock-based compensation expense \| $		$ 7,000,000
Weighted average, expected recognition period		1 year 8 months 12 days
Monte Carlo Simulation Valuation Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value		$ 19.97
Weighted-average grant-date fair value of restricted stock unit granted		$ 44.45
2004 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted awards, authorized \| shares		1,750,000
Common stock, outstanding \| shares		69,587
Exercise price, lower range		$ 13.04
Exercise price, upper range		$ 24.36
Weighted average remaining contractual term		10 years
2004 Plan \| 2010 Change In Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term		7 years
2004 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
2009 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted awards, authorized \| shares		1,781,546
Common stock, outstanding \| shares		677,869
Exercise price, lower range		$ 24.30
Exercise price, upper range		$ 57.54
Weighted average remaining contractual term		10 years
2009 Plan \| 2010 Change In Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term		7 years
2009 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years		3 years
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted awards, authorized \| shares	1,974,543
Common stock, outstanding \| shares	339,452
Exercise price, lower range	$ 29.98
Exercise price, upper range	$ 62.63
Weighted average remaining contractual term	7 years
2014 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	3 years
Director's Plan, Per Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The terms for value of shares to be granted upon election \| $			$ 100,000
Percentage of restricted shares granted			50.00%

Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units (Detail) - Performance-Based Stock Options and Restricted Stock Units	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate	0.00%	0.00%	0.00%
Risk-free interest rate, minimum	0.95%
Risk-free interest rate, maximum	1.48%
Expected dividend yield	0.00%
Expected option life	4 years	0 years	0 years
Expected volatility	44.50%
Weighted-average expected volatility	44.50%

Fair Value of Option Granted (Detail) - Equity Option	12 Months Ended
Fair Value of Option Granted (Detail) - Equity Option	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum	0.80%	0.95%	0.55%
Risk-free interest rate, maximum	1.21%	1.32%	1.03%
Expected dividend yield	0.00%	0.00%	0.00%
Expected option life	3 years		4 years
Expected volatility, minimum	42.30%	42.50%	46.10%
Expected volatility, maximum	48.50%	45.40%	48.40%
Weighted-average expected volatility	43.50%	42.60%	48.20%
Minimum
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected option life		3 years
Maximum
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected option life		4 years

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Options Outstanding
Outstanding, beginning balance \| shares	898,429
Granted \| shares	528,005
Forfeited \| shares	(181,063)
Exercised \| shares	(66,786)
Outstanding, ending balance \| shares	1,178,585
Options exercisable at end of period \| shares	566,428
Weighted-Average Exercise Price
Outstanding, beginning balance \| $ / shares	$ 44.40
Granted \| $ / shares	55.21
Forfeited \| $ / shares	55.68
Exercised \| $ / shares	33.11
Outstanding, ending balance \| $ / shares	48.14
Options exercisable at end of period \| $ / shares	$ 42.14
Weighted-Average Remaining Contractual Term
Outstanding at end of period	4 years 2 months 12 days
Options exercisable at end of period	2 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at end of period \| $	$ 1,382
Options exercisable at end of period \| $	$ 1,382

Summary of Restricted Stock Activity (Detail)	12 Months Ended
Summary of Restricted Stock Activity (Detail)	Dec. 31, 2015 $ / shares shares
Shares
Non-vested at beginning of period \| shares	13,955
Granted \| shares	16,892
Forfeited \| shares	(1,582)
Vested \| shares	(13,349)
Non-vested at end of period \| shares	15,916
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period \| $ / shares	$ 43.57
Granted \| $ / shares	43.26
Forfeited \| $ / shares	46.15
Vested \| $ / shares	42.99
Non-vested at end of period \| $ / shares	$ 43.47

Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Detail) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Line Items]
Weighted average shares - Basic									17,288,665	17,247,727	17,087,104
Effect of dilutive securities, shares									100,808	168,726	154,011
Diluted EPS, shares									17,389,473	17,416,453	17,241,115
Securities excluded from the determination of weighted average shares for the calculation of diluted EPS, as they were antidilutive									870,421	520,739	403,649
Basic EPS	$ 0.52	$ (0.05)	$ 0.24	$ 0.04	$ 0.64	$ 0.65	$ 0.37	$ 0.29	$ 0.74	$ 1.95	$ 1.26
Effect of dilutive securities									0.00	(0.02)	(0.01)
Diluted EPS	$ 0.52	$ (0.05)	$ 0.24	$ 0.04	$ 0.64	$ 0.64	$ 0.36	$ 0.29	$ 0.74	$ 1.93	$ 1.25

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

Employee Retirement Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
401(K) costs	$ 1,334	$ 1,127	$ 934

Segment Reporting - Additional Information (Detail)	12 Months Ended
Segment Reporting - Additional Information (Detail)	Dec. 31, 2015 Segment Customer
Segment Reporting Information [Line Items]
Number of reportable segments \| Segment	3
Customers that individually accounted for 10% or more of total consolidated revenue \| Customer	0
Minimum
Segment Reporting Information [Line Items]
Percentage of product sales to consolidated sales	99.00%

Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net sales to external customers	$ 91,327	$ 72,507	$ 83,775	$ 69,939	$ 104,153	$ 82,239	$ 82,060	$ 73,374	$ 317,548	$ 341,826	$ 291,784
Depreciation and amortization									11,217	7,428	7,038
Operating income									13,122	37,340	30,154
Long-lived assets	78,302				57,659				78,302	57,659	43,921
Capital expenditures									14,169	18,722	6,440
Total assets	409,186				425,463				409,186	425,463	391,496
Americas Region
Segment Reporting Information [Line Items]
Net sales to external customers									143,388	138,968	120,435
Depreciation and amortization									6,799	3,989	4,012
Operating income									(46)	7,490	6,270
Long-lived assets	49,420				37,013				49,420	37,013	23,791
Capital expenditures									7,084	12,347	3,563
Total assets	193,270				222,273				193,270	222,273	201,679
Europe/Africa Region
Segment Reporting Information [Line Items]
Net sales to external customers									103,183	120,179	103,415
Depreciation and amortization									3,065	2,090	1,880
Operating income									(4,442)	8,811	6,417
Long-lived assets	25,783				17,599				25,783	17,599	17,409
Capital expenditures									6,118	4,799	1,558
Total assets	133,502				124,535				133,502	124,535	122,197
Asia-Pacific Region
Segment Reporting Information [Line Items]
Net sales to external customers									70,977	82,679	67,934
Depreciation and amortization									1,353	1,349	1,146
Operating income									17,610	21,039	17,467
Long-lived assets	3,099				3,047				3,099	3,047	2,721
Capital expenditures									967	1,576	1,319
Total assets	$ 82,414				$ 78,655				$ 82,414	$ 78,655	$ 67,620

Net Sales to External Customers Based upon Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Geographic Reporting Disclosure [Line Items]
Net sales to external customers	$ 91,327	$ 72,507	$ 83,775	$ 69,939	$ 104,153	$ 82,239	$ 82,060	$ 73,374	$ 317,548	$ 341,826	$ 291,784
UNITED STATES
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									131,670	124,851	109,757
Americas-Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									11,718	14,117	10,678
Germany
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									41,151	50,437	42,471
Europe-Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									62,032	69,742	60,944
JAPAN
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									24,018	32,531	23,795
Asia And Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									$ 46,959	$ 50,148	$ 44,139

Long Lived Assets Attributed to Geographic Area (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	$ 78,302	$ 57,659	$ 43,921
UNITED STATES
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	39,973	35,900	22,720
Americas-Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	9,447	1,113	1,071
Germany
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	24,637	17,351	17,294
Europe-Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	1,146	248	115
JAPAN
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	517	599	434
Asia And Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	$ 2,582	$ 2,448	$ 2,287

Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 28, 2015	Feb. 28, 2015	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Business acquisition, cash			$ 12,066	$ 1,150
Intangible assets acquired, weighted-average amortization period			9 years
Business acquisition, acquisition and integration costs			$ 200
ARAS
Business Acquisition [Line Items]
Business acquisition, cash		$ 7,700
Business acquisition, contingent consideration		$ 4,000
Earn out period for contingent consideration		2 years
Intangible assets acquired, weighted-average amortization period			8 years
Kubit GmbH
Business Acquisition [Line Items]
Business acquisition, cash	$ 4,500
Business acquisition, contingent consideration	$ 3,300
Earn out period for contingent consideration	3 years
Intangible assets acquired, weighted-average amortization period			8 years

Preliminary Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Intangible assets
Goodwill	$ 26,371	$ 19,205	$ 19,358
ARAS
Tangible assets acquired:
Accounts receivable	294
Total assets acquired	294
Liabilities assumed:
Accounts payable and accrued liabilities	27
Other liabilities	219
Total liabilities assumed	246
Intangible assets
Intangible assets	5,351
Net assets acquired	5,399
Deferred tax liability	(1,385)
Goodwill	4,964
Contingent consideration	(1,338)
Purchase price, net of cash acquired and post-closing adjustments	7,640
ARAS \| Trade Names
Intangible assets
Intangible assets	509
ARAS \| Noncompete Agreements
Intangible assets
Intangible assets	540
ARAS \| Technology-Based Intangible Assets
Intangible assets
Intangible assets	2,052
ARAS \| Customer Relationships
Intangible assets
Intangible assets	2,250
Kubit GmbH
Tangible assets acquired:
Accounts receivable	136
Other assets	246
Total assets acquired	382
Liabilities assumed:
Accounts payable and accrued liabilities	182
Other liabilities	489
Total liabilities assumed	671
Intangible assets
Intangible assets	2,571
Net assets acquired	2,282
Deferred tax liability	(674)
Goodwill	3,805
Contingent consideration	(987)
Purchase price, net of cash acquired and post-closing adjustments	4,426
Kubit GmbH \| Trade Names
Intangible assets
Intangible assets	658
Kubit GmbH \| Noncompete Agreements
Intangible assets
Intangible assets	272
Kubit GmbH \| Technology-Based Intangible Assets
Intangible assets
Intangible assets	945
Kubit GmbH \| Customer Relationships
Intangible assets
Intangible assets	$ 696

Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 31, 2014	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Information [Line Items]
Sales	$ 91,327	$ 72,507	$ 83,775	$ 69,939	$ 104,153	$ 82,239	$ 82,060	$ 73,374	$ 317,548	$ 341,826	$ 291,784
Gross profit	48,649	34,871	44,546	39,611	57,273	46,041	45,517	40,083	167,677	188,914	161,893
Net income	$ 8,885	$ (884)	$ 4,148	$ 664	$ 11,122	$ 11,223	$ 6,328	$ 4,976	$ 12,813	$ 33,649	$ 21,509
Net income (loss) per share:
Basic	$ 0.52	$ (0.05)	$ 0.24	$ 0.04	$ 0.64	$ 0.65	$ 0.37	$ 0.29	$ 0.74	$ 1.95	$ 1.26
Diluted	$ 0.52	$ (0.05)	$ 0.24	$ 0.04	$ 0.64	$ 0.64	$ 0.36	$ 0.29	$ 0.74	$ 1.93	$ 1.25

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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