View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 19, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
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	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		16,797,618
Entity Public Float			$ 622,261,000

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 140,960	$ 106,169
Short-term investments	10,997	42,942
Accounts receivable, net	72,105	61,364
Inventories, net	53,786	51,886
Prepaid expenses and other current assets	16,311	16,304
Total current assets	294,159	278,665
Property and equipment:
Machinery and equipment	66,514	57,063
Furniture and fixtures	6,945	6,099
Leasehold improvements	19,872	18,778
Property and equipment at cost	93,331	81,940
Less: accumulated depreciation and amortization	(61,452)	(50,262)
Property and equipment, net	31,879	31,678
Goodwill	52,750	46,744
Intangible assets, net	22,540	22,279
Service and sales demonstration inventory, net	39,614	29,136
Deferred income tax assets, net	15,606	14,307
Other long-term assets	2,030	905
Total assets	458,578	423,714
Current liabilities:
Accounts payable	11,569	11,126
Accrued liabilities	27,362	24,572
Income taxes payable	4,676	618
Current portion of unearned service revenues	29,674	27,422
Customer deposits	2,604	2,872
Total current liabilities	75,885	66,610
Unearned service revenues - less current portion	11,815	13,813
Deferred income tax liabilities	695	1,409
Income taxes payable - less current portion	15,952	0
Other long-term liabilities	2,165	2,225
Total liabilities	106,512	84,057
Commitments and contingencies
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; 18,277,142 and 18,170,267 issued; 16,796,884 and 16,680,791 outstanding, respectively	18	18
Additional paid-in capital	223,055	212,602
Retained earnings	168,624	183,436
Accumulated other comprehensive loss	(7,822)	(24,561)
Common stock in treasury, at cost - 1,480,258 shares and 1,489,476, respectively	(31,809)	(31,838)
Total shareholders’ equity	352,066	339,657
Total liabilities and shareholders’ equity	$ 458,578	$ 423,714

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,277,142	18,170,267
Common stock, shares outstanding	16,796,884	16,680,791
Treasury stock, shares	1,480,258	1,489,476

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SALES
Product	$ 277,922	$ 256,010	$ 259,842
Service	82,995	69,574	57,706
Total sales	360,917	325,584	317,548
COST OF SALES
Product	110,143	107,965	114,257
Service	46,137	39,659	36,055
Total cost of sales (exclusive of depreciation and amortization, shown separately below)	156,280	147,624	150,312
GROSS PROFIT	204,637	177,960	167,236
OPERATING EXPENSES
Selling and marketing	103,544	79,870	79,837
General and administrative	43,807	40,813	36,370
Depreciation and amortization	16,588	13,868	11,217
Research and development	35,376	30,125	26,690
Total operating expenses	199,315	164,676	154,114
INCOME FROM OPERATIONS	5,322	13,284	13,122
OTHER EXPENSE (INCOME)
Interest income	(319)	(212)	(111)
Other (income) expense, net	(190)	822	371
Interest expense	4	48	56
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)	5,827	12,626	12,806
INCOME TAX EXPENSE (BENEFIT)	20,343	1,519	(7)
NET (LOSS) INCOME	$ (14,516)	$ 11,107	$ 12,813
NET (LOSS) INCOME PER SHARE - BASIC (in dollars per share)	$ (0.87)	$ 0.67	$ 0.74
NET (LOSS) INCOME PER SHARE - DILUTED (in dollars per share)	$ (0.87)	$ 0.67	$ 0.74
Weighted average shares - Basic (in shares)	16,711,534	16,654,786	17,288,665
Weighted average shares - Diluted (in shares)	16,711,534	16,681,710	17,389,473

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (14,516)	$ 11,107	$ 12,813
Currency translation adjustments, net of income tax	16,739	(4,700)	(13,166)
Comprehensive income (loss)	$ 2,223	$ 6,407	$ (353)

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, 2014		17,317,430
Beginning Balance at Dec. 31, 2014	$ 343,854	$ 18	$ 200,090	$ 159,516	$ (6,695)	$ (9,075)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	12,813			12,813
Currency translation adjustment, net of income 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, net of shares withheld for employee taxes (in shares)		66,786
Stock options exercised, net of shares withheld for employee taxes	2,287		2,287
Tax impact from restricted stock and stock options	313		313
Repurchase of common stock (in shares)		(809,241)
Repurchase of common stock	(22,763)					(22,763)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	11,107			11,107
Currency translation adjustment, net of income tax	(4,700)				(4,700)
Restricted stock issued and stock based compensation under incentive plans (in shares)		20,925
Restricted stock issued and stock based compensation under incentive plans	5,374		5,374
Stock options exercised, net of shares withheld for employee taxes (in shares)		71,748
Stock options exercised, net of shares withheld for employee taxes	674		674
Tax impact from restricted stock and stock options	$ (442)		(442)
Ending Balance (in shares) at Dec. 31, 2016	16,680,791	16,680,791
Ending Balance at Dec. 31, 2016	$ 339,657	$ 18	212,602	183,436	(24,561)	(31,838)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of the adoption of ASU 2016-09	142		438	(296)
Net (loss) income	(14,516)			(14,516)
Currency translation adjustment, net of income tax	16,739				16,739
Restricted stock issued and stock based compensation under incentive plans (in shares)		19,881
Restricted stock issued and stock based compensation under incentive plans	6,450		6,450
Stock options exercised, net of shares withheld for employee taxes (in shares)		86,994
Stock options exercised, net of shares withheld for employee taxes	3,284		3,284
Reissuance of treasury shares (in shares)		9,218
Reissuance of treasury shares	$ 310		281			29
Ending Balance (in shares) at Dec. 31, 2017	16,796,884	16,796,884
Ending Balance at Dec. 31, 2017	$ 352,066	$ 18	$ 223,055	$ 168,624	$ (7,822)	$ (31,809)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES:
Net (loss) income	$ (14,516)	$ 11,107	$ 12,813
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	16,588	13,868	11,217
Compensation for stock options and restricted stock units	6,450	5,374	4,306
Provision for bad debts (net recovery of)	370	898	346
Loss on disposal of assets	451	860	947
Write-down of inventories	1,734	4,134	10,878
Deferred income tax benefit	(1,740)	(2,002)	(655)
Income tax benefit from exercise of stock options	0	(357)	(313)
Decrease (increase) in:
Accounts receivable, net	(6,766)	6,727	9,584
Inventories, net	(10,926)	(6,729)	(18,021)
Prepaid expenses and other assets	(253)	3,588	(2,834)
(Decrease) increase in:
Accounts payable and accrued liabilities	1,103	534	(6,401)
Income taxes payable	20,011	618	0
Customer deposits	(461)	(1,310)	1,114
Unearned service revenues	(1,690)	273	5,051
Net cash provided by operating activities	10,355	37,583	28,032
INVESTING ACTIVITIES:
Proceeds from sale of investments	32,000	0	22,001
Purchases of property and equipment	(8,970)	(7,720)	(14,169)
Payments for intangible assets	(2,377)	(1,657)	(2,140)
Acquisition of business, net of cash received	(5,596)	(27,708)	(12,066)
Net cash provided by (used in) investing activities	15,057	(37,085)	(6,374)
FINANCING ACTIVITIES:
Payments on capital leases	(108)	(8)	(8)
Payments of contingent consideration for acquisitions	(521)	(774)	0
Repurchase of common stock	0	0	(22,763)
Income tax benefit from exercise of stock options	0	357	313
Proceeds from issuance of stock, net	3,594	674	2,287
Net cash provided by (used in) financing activities	2,965	249	(20,171)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	6,414	(1,934)	(3,420)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	34,791	(1,187)	(1,933)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	106,169	107,356	109,289
CASH AND CASH EQUIVALENTS, END OF YEAR	$ 140,960	$ 106,169	$ 107,356

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business—FARO Technologies, Inc. and its subsidiaries (collectively “FARO,” the “Company,” “us,” “we” or “our”) design, develop, manufacture, market and support software driven, three-dimensional (“3D”) measurement, imaging and realization systems. This technology permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. Our devices are used for inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volume or structures in 3D, surveying and construction as well as for investigation and reconstruction of accident sites or crime scenes. 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 forensics, cultural heritage and other applications. Our FaroArm®, FARO ScanArm^®, FARO Gage^®, FARO Laser Tracker^TM, FARO Cobalt Array Imager, FARO Laser Projector, and their companion CAM2^®, BuildIT, and RayTracer^TM software solutions, provide for Computer-Aided Design (“CAD”) based inspection, factory-level statistical process control, high-density surveying and laser-guided assembly and production. Together, these products integrate the measurement, quality inspection, and reverse engineering functions with CAD and 3D software to improve productivity, enhance product quality, and decrease rework and scrap in the manufacturing process, mainly supporting applications in our Factory Metrology vertical. Our FARO Focus and FARO Scanner Freestyle^3DX laser scanners, and their companion FARO SCENE, FARO PointSense, and FARO Zone public safety forensics software offerings, are utilized for a wide variety of 3D modeling, documentation and high-density surveying applications in our Construction Building Information Modeling-Construction Information Management (“Construction BIM-CIM”) and Public Safety Forensics verticals. Our FARO ScanArm^®, FARO Cobalt Array Imager, FARO Scanner Freestyle^3DX laser scanners and their companion SCENE software also enable a fully digital workflow used to capture real world geometry for the purpose of empowering design, enabling innovation, and speeding up the design cycle, supporting our Product Design vertical. FARO Visual Inspect^TM enables large, complex 3D CAD data to be transferred to a tablet device and then used for mobile visualization and comparison to real world conditions, facilitating in-process inspection, assembly, guidance and positioning for applications in our Factory Metrology and Construction BIM-CIM verticals. Our line of galvanometer-based scan heads and laser scan controllers are used in a variety of laser applications and are integrated into larger components and systems.

Reportable Segments—During fiscal 2016, we evaluated our reportable segment structure based on our new management organization and the changes implemented in connection with our initiatives to reorganize our business around certain vertical markets. As a result of this assessment, we report our activities in the following three reportable segments:


•	The Factory Metrology segment provides solutions for manual and automated measurement and inspection in an industrial or manufacturing environment. Applications include alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and set-up, and assembly guidance.

•

The Construction BIM-CIM segment provides solutions for as-built data capturing and 3D visualization in building information modeling and construction information management applications, allowing our customers in our architecture, engineering and construction markets to quickly and accurately extract 2D and 3D measurement points. Applications include as-built documentation, construction monitoring, surveying, asset and facility management, and heritage preservation.

•

The Other segment includes our Product Design, Public Safety Forensics and 3D Machine Vision operating segments. Our Product Design operating segment provides advanced 3D solutions to assist in the engineering or design of a movable object, enabling a full digital workflow for applications that include reverse engineering and virtual simulation. Our Public Safety Forensics operating segment provides solutions to public safety officials and professionals to capture environmental or situational scenes in 2D and 3D for crime, crash and fire scene investigations and environmental safety evaluations. Our 3D Machine Vision operating segment provides solutions to customers who require customized 3D measurement and realization solutions not otherwise addressed by our off-the-shelf product offerings.

All operating segments that do not meet the criteria to be reportable segments are aggregated in the Other category and have been combined based on the aggregation criteria and quantitative thresholds in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, “Segment Reporting” (“FASB ASC Topic 280”). Our reportable segments have been determined in accordance with our internal management structure, which is based on operating activities. We evaluate business performance based upon several metrics, using profitable revenue growth and segment profit as the primary financial measure.

We report our segment information in accordance with the provisions of FASB ASC Topic 280. See Note 16, “Segment Reporting” for further information.

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 loss. Foreign currency transaction gains and losses are included in net (loss) 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. 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 $98.8 million and $87.3 million as of December 31, 2017 and 2016, respectively.

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. Management expects sales demonstration inventory to be held by our sales representatives for up to three years, at which time it is 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. 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. See Note 5, "Inventories" for further information regarding inventories.

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 $12.3 million, $10.9 million and $9.2 million in 2017, 2016 and 2015, 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 Intangible Assets—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 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. We have historically evaluated goodwill for impairment annually as of December 31, or when an indicator of impairment exists. During 2017, we changed the date of annual impairment assessment for our reporting units to October 1. This voluntary change in the annual goodwill testing date is a change in accounting policy, which we concluded is preferable as it better aligns the timing of the assessment with our annual budgeting process. This change in the date of the annual impairment assessment was applied prospectively and did not accelerate, delay or avoid a potential impairment charge. 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. See Note 6, "Goodwill" and Note 7, "Intangible Assets" for further information regarding goodwill and intangible assets, respectively.

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, 2017, 2016 and 2015.

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, 2017 and 2016, 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 eight 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 an asset group may not be fully recoverable, comparing projected undiscounted future cash flows to the carrying value of the asset group. Management has concluded that there were no indicators of impairment of these assets during the years ended December 31, 2017, 2016 and 2015.

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. To date, the time incurred between the attainment of the related products' technological feasibility and general release to customers has been short.

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. See Note 11, "Income Taxes" for further information regarding income taxes.

(Loss) Earnings Per Share (EPS)—Basic (loss) earnings per share is computed by dividing net (loss) 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 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. When we report a loss for the period presented, the diluted loss per share calculation does not include our potential common stock as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 14, “(Loss) Earnings Per Share.”

Accounting for Stock-Based Compensation—We have two stock-based employee and director compensation plans, which are described more fully in Note 13, “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.

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 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 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. Effective January 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), simplifying several aspects of the accounting for share-based payment transactions, including the income tax consequences, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. The impacts of adopting ASU 2016-09 are described more fully within the Impact of Recently Adopted Accounting Standards section below.

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 Adopted Accounting Standards — In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Currently, ASC Topic 805 recognizes three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. The new guidance provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business. ASU 2017-01 provides more stringent criteria for sets without outputs and more narrowly defines the term output. ASU 2017-01 became effective for us on January 1, 2018 and was applied prospectively. Our adoption of the new guidance did not have a material impact on our consolidated financial statements.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”), which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This ASU requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized when the transfer occurs, instead of deferred until the transferred asset is sold to a third party or otherwise recovered through use of the asset. The new guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption and is effective for annual periods beginning after December 15, 2017, and interim period therein. ASU 2016-16 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 became effective for us on January 1, 2018 and was applied on a modified retrospective basis. Our adoption of the new guidance did not have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) (“ASU 2014-09”), amending its accounting guidance related to revenue recognition. Under this ASU and subsequently issued amendments, 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. Additional disclosures are required to provide 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.

We have evaluated the effect that this guidance will have on our consolidated financial statements by analyzing both transactional and analytical data for each of our revenue streams. The following is a status of our evaluation of impacts by significant revenue stream:

• Measurement equipment and related software: Under the prior accounting guidance, sales of measurement, imaging and realization equipment and related software sales were generally recognized upon shipment, as we considered the earnings process complete as of the shipping date. The related software sold with our measurement, imaging and realization equipment functions together with such equipment to deliver the tangible product’s essential functionality. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to our measurement, imaging and realization equipment and related software.

• Extended warranties: Under the prior accounting guidance, extended warranty sales were recognized on a straight-line basis over the term of the warranty. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to extended warranties.

• Software: Under the prior accounting guidance, software only sales were recognized when no further significant production, modification or customization of the software was required and when the following criteria were met: persuasive evidence of a sales agreement existed, delivery had occurred, and the sales price was fixed or determinable and deemed collectible. These software arrangements generally include short-term maintenance that is considered post-contract support. Maintenance renewals, when sold, were recognized on a straight-line basis over the term of the maintenance agreement. Our adoption of the new guidance did not result in material changes to our accounting for revenue related to software only sales and maintenance renewals.

Under the prior accounting guidance, we recognized sales commission expense as incurred. Under the new guidance, we will capitalize the commission expense for those sales arrangements that extend beyond one year and amortize such costs ratably over the term of the contract. As a result, we will recognize a deferred cost asset on our consolidated balance sheet upon the adoption of the new guidance; however, the impact of this change on our consolidated balance sheet is not material. The adoption of the new guidance did not have a material change to our results of operations or cash flows. We adopted this guidance utilizing the modified retrospective method but are applying it only to contracts that are not completed as of the date of initial adoption, an option that is available under ASC Topic 606.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 became effective for annual periods beginning after December 15, 2016, and interim periods therein (our fiscal year 2017). We adopted ASU 2016-09 effective January 1, 2017. Under the new guidance, excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis. This is achieved through a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the new guidance is adopted. Historically, we recognized all excess tax benefits when an option was exercised or a share vested since we did not have a U.S. net operating loss carryforward. Therefore, the tax benefit will be allowed under the current guidance and no adjustment to retained earnings is required.

Under the new guidance, all tax-related cash flows resulting from share-based payments are reported as operating activities in the statement of cash flows. Effective January 1, 2017, we adopted this portion of the guidance on a prospective basis. This approach incorporates the net of the inflow and outflow from all tax-related cash flows resulting from share-based payments in the deferred income tax (benefit) expense line item and presents it along with other income tax cash flows as operating activities in the statement of cash flows.

We also elected to account for forfeitures related to the service condition-based awards as they occur effective January 1, 2017, which is a change from our treatment of estimating forfeitures in previous years. However, we continue to assess performance condition-based awards quarterly as required. In adopting the new policy using a modified retrospective approach, we assessed the cumulative effect adjustment and recorded to retaining earnings the difference between the amount of compensation cost previously recorded and the amount that would have been recorded without assuming forfeitures. The cumulative effect adjustment recorded to retained earnings was not material. We will continue to assess the impact of the adopted guidance on a quarterly basis and do not expect the adoption of this guidance 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 (“ASU 2015-11”), 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. We adopted ASU 2015-11 effective January 1, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires that deferred tax liabilities and assets be classified as non-current in a classified balance sheet. ASU 2015-17 became effective for us on January 1, 2017. We adopted this guidance on a retrospective basis, which resulted in the reclassification of current deferred tax assets totaling approximately $7.6 million as of December 31, 2016 from current to non-current in our consolidated financial statements.

Impact of Recently Issued Accounting Standards —In January 2017, the FASB issued ASU No. 2017-04, Intangible - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which is intended to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the current guidance, performance of Step 2 requires us to calculate the implied fair value of goodwill by following procedures that would be required to determine the fair value of assets acquired and liabilities assumed in a business combination. Under the new guidance, we will perform our goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value up to the amount of the goodwill allocated to the reporting unit. The new guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test if it fails the qualitative assessment. As a result, all reporting units will be subject to the same impairment assessment. We will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 becomes effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for annual or any interim goodwill impairment tests after January 1, 2017. The amendments in this ASU will be applied on a prospective basis. Disclosure of the nature and reason for the change in accounting principle is required upon transition. This disclosure is required in the first annual period and in the interim period within the first annual period when we initially adopt the amendments in this ASU. We plan to adopt this guidance for our fiscal year ending December 31, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We plan to adopt ASU 2016-02 in the first quarter of 2019. Although we are in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements, we currently believe the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our balance sheet for real estate operating leases.

Reclassifications—Certain prior year amounts have been reclassified in the accompanying consolidated financial statements to conform to the current period presentation. For example:


•	Deferred income tax assets, net were reclassified from current to non-current in our consolidated balance sheet as of December 31, 2016 as a result of adopting ASU No. 2015-17.


•	Certain reclassifications were made between reporting segments for segment profit during the year ended December 31, 2016 in Note 16, “Segment Reporting” as a result of changes to our methodology for allocating manufacturing variances to our segments. These reclassifications only impacted our segment reporting footnote disclosure.

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

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



	Years ended December 31,
	2017		2016		2015
Supplemental cash flow information:
Cash paid for interest	$	9	$	28	$	55
Cash paid for income taxes	$	2,488	$	2,576	$	4,682
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets	$	2,844	$	511	$	2,979

Allowance for Doubtful Accounts

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Allowance for Doubtful Accounts

ALLOWANCE FOR DOUBTFUL ACCOUNTS

Activity in the allowance for doubtful accounts was as follows:



	Years ended December 31,
	2017			2016			2015
Balance, beginning of year	$	1,829		$	1,417		$	1,844
Provision (net of recovery)	370			898			346
Amounts written off, net of recoveries	(242		)	(486		)	(773		)
Balance, end of year	$	1,957		$	1,829		$	1,417

Short-Term Investments	12 Months Ended
Short-Term Investments	Dec. 31, 2017
Investments Schedule [Abstract]
Short-Term Investments	SHORT-TERM INVESTMENTS Short-term investments at December 31, 2017 consisted of U.S Treasury Bills totaling $11.0 million that matured through January 11, 2018. Short-term investments at December 31, 2016 consisted of U.S. Treasury Bills totaling $42.9 million that matured through June 15, 2017. 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. We do not intend to sell our short-term investments and it is not more likely than not that we will be required to sell such investments before recovery of their amortized cost bases, which may be maturity. The fair value of the U.S. Treasury Bills at December 31, 2017 and December 31, 2016 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 9, “Fair Value Measurements.”

Inventories

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. We have three principal categories of inventory: 1) manufactured product to be sold; 2) sales demonstration inventory - completed product used to support our sales force and demonstrations; and 3) service inventory - completed product and parts used to support our service department. Shipping and handling costs are classified as a component of cost of sales in our consolidated statements of operations. Sales demonstration inventory is held by our sales representatives for up to three years, at which time it is 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 to be sold within 12 months at prices that produce reduced gross margins. Service inventory is 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 and 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 the remaining life, typically three years.

Inventories consist of the following:



	December 31, 2017		December 31, 2016
Raw materials	$	36,328	$	36,760
Finished goods	17,458		15,126
Inventories, net	$	53,786	$	51,886
Service and sales demonstration inventory, net	$	39,614	$	29,136

Goodwill

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

Our goodwill at December 31, 2017 and 2016 is related to our acquisitions. We evaluate each reporting unit’s fair value as compared to its carrying value on October 1st of each year or more frequently if events or changes in circumstances indicate that the carrying value may exceed the fair value. Prior to 2017, we evaluated each reporting unit's fair value as compared to its carrying value on December 31, 2017. During Step 1 of the quantitative goodwill impairment test, the fair value of the reporting units is 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 are selected based on our defined peer group. The resulting multiples are then applied to each reporting unit to determine fair value. Impairments to goodwill are charged against earnings in the period the impairment is identified.

During 2016, we realigned our organizational structure to focus on five operating segments: Factory Metrology, Construction BIM-CIM, Product Design, Public Safety Forensics, and 3D Machine Vision. As a result of the change to our operating segments in 2016, we realigned our reporting units for which goodwill was tested as of December 31, 2016: Factory Metrology, Construction BIM-CIM and Public Safety Forensics as shown in the table below.

As of December 31, 2017 and 2016, we did not have any goodwill that was identified as impaired. The increase in goodwill during 2017 and 2016 reflected the acquisitions completed in those periods and changes in foreign exchange rates.



December 31, 2017	Beginning Balance		Additions		Foreign Currency Translation		Ending Balance
Factory Metrology	$	37,861	$	2,357	$	2,941	$	43,159
Construction BIM-CIM	6,078		—		443		6,521
Public Safety Forensics	$	2,805	$	55	$	210	$	3,070
Total	$	46,744	$	2,412	$	3,594	$	52,750



December 31, 2016	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Factory Metrology	$	21,360	$	16,709	$	(208	)	$	37,861
Construction BIM-CIM	3,429		2,682		(33		)	6,078
Public Safety Forensics	$	1,582	$	1,238	$	(15	)	$	2,805
Total	$	26,371	$	20,629	$	(256	)	$	46,744

Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

INTANGIBLE ASSETS

Intangible assets consist of the following:



	As of December 31, 2017
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	19,459	$	10,885	$	8,574
Patents and trademarks	13,948		5,720		8,228
Customer relationships	5,889		1,685		4,204
Other	7,443		5,909		1,534
Total	$	46,739	$	24,199	$	22,540



	As of December 31, 2016
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	15,700	$	7,614	$	8,086
Patents and trademarks	13,328		4,927		8,401
Customer relationships	5,466		837		4,629
Other	8,013		6,850		1,163
Total	$	42,507	$	20,228	$	22,279

Amortization expense was $4.5 million, $2.9 million and $2.0 million in 2017, 2016 and 2015, respectively. The estimated amortization expense for each of the years 2018 through 2022 and thereafter is as follows:




Years ending December 31,	Amount
2018	$	4,022
2019	3,770
2020	3,311
2021	2,880
2022	2,015
Thereafter	6,542

	$	22,540

Accrued Liabilities

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Liabilities

ACCRUED LIABILITIES

Accrued liabilities consist of the following:



	As of December 31,
	2017		2016
Accrued compensation and benefits	$	16,144	$	13,649
Accrued warranties	2,628		2,594
Professional and legal fees	1,541		1,775
Taxes other than income	3,787		4,026
Other accrued liabilities	3,262		2,528
	$	27,362	$	24,572

Activity related to accrued warranties was as follows:



	Years ended December 31,
	2017			2016			2015
Balance, beginning of year	$	2,594		$	2,309		$	2,719
Provision for warranty expense	4,045			3,544			3,597
Fulfillment of warranty obligations	(4,011		)	(3,259		)	(4,007		)
Balance, end of year	$	2,628		$	2,594		$	2,309

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

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:



	December 31, 2017
	Level 1		Level 2		Level 3
Assets:
Short-term investments (1)	$	10,997	$	—	$	—
Total	$	10,997	$	—	$	—
Liabilities:
Contingent consideration (2)	$	—	$	—	$	412
Total	$	—	$	—	$	412
	December 31, 2016
	Level 1		Level 2		Level 3
Assets:
Short-term investments (1)	$	42,942	$	—	$	—
Total	$	42,942	$	—	$	—
Liabilities:
Contingent consideration (2)	$	—	$	—	$	2,100
Total	$	—	$	—	$	2,100


(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. For the year ended December 31, 2017, we paid $0.5 million as part of these arrangements. For the year ended December 31, 2016, we paid $0.8 million as part of these arrangements. The remaining change in the fair value of the contingent consideration from December 31, 2016 to December 31, 2017 was related to a $1.3 million decrease due to the expiration of the contingent consideration period for one of our acquisitions and changes in foreign currency exchange rates.

- 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, 2017

Other Income and Expenses [Abstract]

Other (Income) Expense, Net

OTHER (INCOME) EXPENSE, NET

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



	Years ended December 31,
	2017			2016			2015
Foreign exchange transaction (gains) losses	$	(162	)	$	1,356		$	377
Other	(28		)	(534		)	(6		)
Total other (income) expense, net	$	(190	)	$	822		$	371

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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



	Years ended December 31,
	2017		2016			2015
Domestic	$	2,468	$	(1,527	)	$	(144	)
Foreign	3,359		14,153			12,950
Income before income taxes	$	5,827	$	12,626		$	12,806

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



	Years ended December 31,
	2017			2016			2015
Current:
Federal	$	18,951		$	409		$	199
State	507			40			78
Foreign	2,072			3,482			562
Current income tax expense	21,530			3,931			839
Deferred:
Federal	1,038			(2,357		)	88
State	(580		)	(229		)	9
Foreign	(1,645		)	174			(943		)
Deferred income tax benefit	(1,187		)	(2,412		)	(846		)
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

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



	Years ended December 31,
	2017			2016			2015
Tax expense at statutory rate of 34%	$	1,981		$	4,427		$	4,354
State income taxes, net of federal benefit	81			(50		)	54
Foreign tax rate difference	(2,057		)	(1,939		)	(3,708		)
Research and development credit	(1,037		)	(917		)	(853		)
Change in valuation allowance	678			162			(28		)
Equity based compensation	33			(255		)	54
Manufacturing credit	(191		)	(61		)	11
Permanent impact of non-deductible cost	766			412			(14		)
Provision to return adjustments	777			(61		)	(59		)
Impact of Tax Cuts and Jobs Act of 2017	19,355			—			—
Other	(43		)	(199		)	182
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

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



	As of December 31,
	2017			2016
Net deferred income tax asset - Non-current
Warranty cost	$	695		$	1,121
Inventory reserve	419			456
Unearned service revenue	5,364			7,088
Employee stock options	4,366			4,501
Tax Credits	1,785			2,035
Loss carryforwards	8,782			8,005
Other, net	1,479			1,213
Total deferred tax assets	22,890			24,419
Valuation Allowance	(1,631		)	(876		)
Total deferred tax assets net of valuation allowance	21,259			23,543
Net deferred income tax liability - Non-current
Bad debt reserve	(2		)	(159		)
Depreciation	(3,675		)	(6,799		)
Goodwill	(1,574		)	(2,279		)
Intangible assets	(1,097		)	(1,409		)
Total deferred tax liabilities	(6,348		)	(10,646		)
Net deferred tax assets	$	14,911		$	12,897

On December 22, 2017, the United States enacted the Tax Cuts Act, resulting in significant modifications to existing law. We follow the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where a company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts Act for the reporting period in which the Tax Cuts Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Cuts Act's December 2017 enactment date and ending when we have obtained, prepared, and analyzed the information needed in order to complete the accounting for such income tax effects, but in no circumstances will the measurement period extend beyond one year from the enactment date.

Under the Tax Cuts Act, changes include lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory tax on accumulated earnings in foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to United States taxation. The statutory corporate tax rate reduction is effective for tax years beginning on or after January 1, 2018. Based on our best estimate, we have calculated the impact of the Tax Cuts Act in our current year-end provision in accordance with our understanding of the Tax Cuts Act and available guidance. As a result, we recorded an amount of $19.4 million as an additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The portion of this provisional amount that related to the transition tax on the mandatory deemed repatriation of foreign earnings was $17.4 million based on our best estimate and guidance available as of the date of this filing. Additional work is necessary to perform a more detailed analysis of historical foreign earnings. Upon gathering all necessary data, interpreting any additional guidance from tax authorities, and completing the analysis, our provisional amount will be adjusted in the measurement period allowable in accordance with SAB 118. Our provisional amount relating to the transition tax may materially differ upon completing the analysis compared to the amount accrued as of December 31, 2017. The portion of the amount that related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $2.0 million.

Our domestic entities had deferred income tax assets in the amount of $7.7 million and $7.8 million as of December 31, 2017 and December 31, 2016, respectively. At December 31, 2017 and 2016, our foreign subsidiaries had deferred tax assets primarily relating to net operating losses of $7.9 million and $6.4 million, respectively, some of which expire in the next 1 to 9 years and others which can be carried forward indefinitely. The valuation allowance for deferred tax assets as of December 31, 2017 and 2016 was $1.6 million and $0.9 million, respectively. The net change in the total valuation allowance for each of the years ended December 31, 2017, 2016 and 2015 was a $0.7 million and a $0.1 million increase, and $1.0 million decrease, respectively.

The valuation allowance as of December 31, 2017 and 2016 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.

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.

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, 2017:



Jurisdiction	Open Years	Examination in Process
United States - Federal Income Tax	2014-2017	N/A
United States - various states	2013-2017	2014-2016
Germany	2013-2017	N/A
Switzerland	2017	N/A
Singapore	2013-2017	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 not material. 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 2014 forward and at the state level are subject to a three to four year statute of limitations depending on the state.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases – We lease buildings and equipment under non-cancellable operating leases through 2026. Some of these leases include cost-escalation clauses. Such cost-escalation clauses are recognized on a straight-line basis over the lease term. 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, 2017:




Years ending December 31,	Amount
2018	$	6,563
2019	4,925
2020	3,123
2021	1,251
2022	1,213
Thereafter	3,564
Total future minimum lease payments	$	20,639

Rent expense for 2017, 2016, and 2015 was $7.5 million, $7.7 million and $6.9 million, 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, 2017, we had approximately $53.3 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, 2017, we also had $0.7 million in long-term commitments for purchases to be delivered after 12 months.

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, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Plans

STOCK COMPENSATION PLANS

We have two 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 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 1,781,546 shares of common stock under the 2009 Plan, as well as any shares underlying awards outstanding under our 2004 Equity Incentive Plan (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 were 390,351 options outstanding at December 31, 2017 under the 2009 Plan at exercise prices between $35.90 and $57.54. The options outstanding under 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 were 766,912 options outstanding at December 31, 2017 under the 2014 Plan at exercise prices between $29.98 and $59.97. The options outstanding under the 2014 Plan have a 7-year term and generally vest over a 3-year period. No awards were outstanding under the 2004 Plan as of December 31, 2017, and we will not make any further grants under the 2004 Plan or the 2009 Plan.

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 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 and restricted stock units to certain new employees throughout the year. Prior to 2016, these awards vested in three equal annual installments beginning one year after the grant date. The fair value of these stock-based awards is determined by using (a) the current market price of our common stock on the grant date in the case of restricted stock units or (b) the Black-Scholes option valuation model in the case of stock options.

In 2015, we granted performance-based stock options and restricted stock units to certain executives. These awards vest in three annual installments beginning one year after the grant date if the applicable performance measures 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 measures or strategic objectives. In addition to certain strategic objectives, the performance-based stock options and restricted stock units granted in 2015 are earned and vest 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. In February 2017, our Compensation Committee determined the number of performance-based stock options and restricted stock units that were earned for the 2016 performance period. Based on the performance and strategic objectives achieved in 2016, 8,590 stock options and 300 restricted stock units were earned and vested and 20,388 stock options and 604 restricted stock units were determined to be unearned, as the required metrics were not achieved.

We did not grant performance-based stock options and restricted stock units to our employees during 2017. Instead, our annual grant in March 2017 consisted of stock options and restricted stock units that are subject to only time-based vesting. The number of stock options and restricted stock units granted was based on the employee’s individual objectives, performance against operational metrics assigned to the employee, and overall contribution over the last year. The restricted stock unit awards vest in full on the three-year anniversary of the grant date. The stock options vest in three equal annual installments beginning one year after the grant date. The fair value of these stock-based awards is determined by using (a) the current market price of our common stock on the grant date in the case of restricted stock units or (b) the Black-Scholes option valuation model in the case of stock options.

The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The weighted-average grant-date fair value of the stock options that were granted during the years ended December 31, 2017, 2016, and 2015 and valued using the Black-Scholes option valuation model was $14.51, $12.90 and $15.08 per option, respectively. For stock options granted during the years ended December 31, 2017, 2016, and 2015 valued using the Black-Scholes option valuation model, we used the following assumptions:



	Years ended December 31,
	2017		2016		2015
Risk-free interest rate	1.88% - 2.02%		1.06% - 1.57%		0.80% - 1.21%
Expected dividend yield	—	%	—	%	—	%
Expected option life	5 years		4 years		3 years
Expected volatility	45.2	%	45.0% - 47.0%		42.3% - 48.5%
Weighted-average expected volatility	45.2	%	46.1	%	43.5	%

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 the 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.

There were no market condition awards granted during the years ended December 31, 2017 and 2016 and, as such, the Monte Carlo Simulation valuation model was not used to determine the fair value of the stock options and restricted stock units granted during 2017. In 2015, we granted performance-based stock options and restricted stock units which included the presence of a market condition and were valued using the Monte Carlo Simulation model. This valuation model incorporates assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. The assumptions used to estimate the fair value of the performance-based stock options and restricted stock units granted during 2015 and valued under the Monte Carlo Simulation model were as follows:



	Years Ended December 31,
	2017		2016		2015
Risk-free interest rate	—	%	—	%	0.95% - 1.48%
Expected dividend yield	—	%	—	%	—	%
Expected option life	—		—		4 years
Expected volatility	—	%	—	%	44.5	%
Weighted-average expected volatility	—	%	—	%	44.5	%

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, 2017
Outstanding at January 1, 2017	1,090,160		$	48.02
Granted	267,794		34.75
Forfeited	(84,591	)	44.39
Exercised	(96,212	)	37.05
Unearned performance-based options	(20,388	)	59.97
Outstanding at December 31, 2017	1,156,763		$	45.93	4.3	$	7,082
Options exercisable at December 31, 2017	914,941		$	42.20	2.3	$	2,369

The aggregate intrinsic value of stock options exercised during the years ended December 31, 2017, 2016, and 2015 was $1.2 million, $1.7 million and $1.7 million, respectively. The total fair value of stock options vested during the years ended December 31, 2017, 2016 and 2015 was $4.1 million, $3.8 million and $3.9 million, respectively.

The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the year ended December 31, 2017:



	Shares		Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2017	150,682		$	33.39
Granted	155,975		35.79
Forfeited	(26,855	)	33.95
Vested	(21,706	)	34.55
Unearned performance-based awards	(604	)	52.83
Non-vested at December 31, 2017	257,492		$	34.75

We recorded total stock-based compensation expense associated with our stock incentive plans of $6.5 million, $5.4 million and $4.3 million in 2017, 2016 and 2015, respectively.

As of December 31, 2017, there was $9.4 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 1.9 years.

(Loss) Earnings Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

(Loss) Earnings Per Share

(LOSS) EARNINGS PER SHARE

Basic (loss) 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 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. When we report a loss for the period presented, the diluted loss per share calculation does not include our potential common stock as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted (loss) earnings per share is presented below:



	Years Ended December 31,
	2017					2016			2015
	Shares		Per-Share Amount			Shares	Per-Share Amount		Shares	Per-Share Amount
Basic (loss) earnings per share	16,711,534		$	(0.87	)	16,654,786	$	0.67	17,288,665	$	0.74
Effect of dilutive securities	—		—			26,924	—		100,808	—
Diluted (loss) earnings per share	16,711,534	—	$	(0.87	)	16,681,710	$	0.67	17,389,473	$	0.74
Securities excluded from the determination of weighted average shares for the calculation of diluted (loss) earnings per share, as they were potentially antidilutive	1,049,563					1,046,947			870,421

Employee Retirement Benefit Plan	12 Months Ended
Employee Retirement Benefit Plan	Dec. 31, 2017
Retirement Benefits [Abstract]
Employee Retirement Benefit Plan	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 2017, 2016, and 2015 aggregated $1.7 million, $1.4 million, and $1.3 million, respectively.

Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

We have three reportable segments: Factory Metrology, Construction BIM-CIM, and Other. These segments are based upon the vertical markets that we currently serve. Business activities that do not meet the criteria to be reportable segments are aggregated in the Other category.

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 reportable segments. 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. We use segment profit to evaluate the performance of our reportable segments. Segment profit is calculated as gross profit, net of selling and marketing expenses, for the reporting segment. Our definition of segment profit may not be comparable to similarly titled measures reported by other companies.

The following tables present information about our reportable segments for the years ended December 31, 2017, 2016, and 2015:



	Factory Metrology		Construction BIM-CIM		Other		Total
2017
Net sales to external customers	$	245,114	$	86,349	$	29,454	$	360,917
Segment profit	$	78,857	$	21,077	$	1,159	$	101,093

General and administrative							43,807
Depreciation and amortization							16,588
Research and development							35,376

Income from operations							$	5,322



	Factory Metrology		Construction BIM-CIM		Other		Total
2016
Net sales to external customers	$	236,313	$	65,056	$	24,215	$	325,584
Segment profit	$	73,656	$	14,799	$	9,635	$	98,090

General and administrative							40,813
Depreciation and amortization							13,868
Research and development							30,125

Income from operations							$	13,284



	Factory Metrology		Construction BIM-CIM		Other		Total
2015
Net sales to external customers	$	222,745	$	70,849	$	23,954	$	317,548
Segment profit	$	63,463	$	16,299	$	7,637	$	87,399

General and administrative							36,370
Depreciation and amortization							11,217
Research and development							26,690

Income from operations							$	13,122

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



	For the Years Ended December 31,
	2017		2016		2015
Net sales to external customers
United States	$	141,595	$	133,924	$	131,670
Americas-Other	13,531		11,815		11,718
Germany	49,860		44,041		41,151
Europe-Other	65,201		57,710		62,032
Japan	35,270		32,530		24,018
Asia-Other	55,460		45,564		46,959
	$	360,917	$	325,584	$	317,548

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 applicable.



	As of December 31,
	2017		2016		2015
Long-Lived Assets
United States	$	54,703	$	54,157	$	39,973
Americas-Other	13,834		13,486		9,447
Germany	26,611		23,734		24,637
Europe-Other	9,124		6,949		1,146
Japan	558		460		517
Asia-Other	2,246		1,915		2,582
	$	107,076	$	100,701	$	78,302

Business Combinations

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Business Combinations

BUSINESS COMBINATIONS

In April 2017, we completed the acquisition of substantially all of the assets of Instrument Associates, LLC d/b/a Nutfield Technology (“Nutfield”), a component technology business located in Hudson, New Hampshire, which specializes in the design and manufacture of advanced galvanometer-based optical scanners, scan heads and laser kits, for a total purchase price of approximately $5.5 million. This acquisition supports our long-term strategy to expand our presence in key markets and improve our existing product lines with innovative technology. The results of the acquired business’ operations as of and after the date of acquisition have been included in our consolidated financial statements for the year ended December 31, 2017.

In December 2016, we acquired MWF-technology, GmbH (“MWF”) for a purchase price, net of cash acquired, of approximately $6.6 million, paid with cash on hand. MWF, an innovator in mobile augmented reality solutions located near Frankfurt, Germany, provides technology that enables large, complex 3D CAD data to be transferred to a tablet device for use in mobile visualization and comparison to real world conditions. This enables real time, actionable manufacturing insight for in-process inspection, assembly, guidance and positioning.

In August 2016, we acquired Laser Projection Technologies, Inc. (“LPT”) for a purchase price, net of cash acquired, of approximately $17.2 million, paid with cash on hand. LPT, located in Londonderry, New Hampshire, specializes in laser projection and measurement systems used throughout manufacturing environments around the globe to maximize productivity and efficiency. The acquisition enhances our portfolio of 3D measurement solutions and supports our long-term strategy to expand our presence in key markets.

In July 2016, we acquired BuildIT Software & Solutions Ltd. (“BuildIT”) for a purchase price, net of cash acquired, of approximately $3.9 million, paid with cash on hand. BuildIT, a software solutions business located in Montreal, Canada, specializes in process-configurable 3D metrology software solutions with hardware agnostic interfaces. The addition of BuildIT enhances our metrology portfolio, providing customers greater software options to use in a variety of applications to reduce inspection and assembly times and increase productivity.

The acquisitions of Nutfield, MWF, LPT, and BuildIT constitute business combinations as defined by FASB 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 allocations of the purchase price to the fair values of the assets acquired and liabilities assumed as of the date of each acquisition:



	BuildIt			LPT			MWF			Nutfield

Accounts receivable	$	237		$	54		$	150		$	160
Inventory	—			322			—			539
Other assets	36			160			666			96
Deferred income tax assets	—			1,112			—			131
Intangible assets	1,015			5,474			1,816			2,329
Goodwill (1)	3,393			11,922			5,364			2,357
Accounts payable and accrued liabilities	(95		)	(747		)	(700		)	(12		)
Other liabilities	(471		)	(1,086		)	(345		)	(104		)
Deferred income tax liabilities	(205		)	—			(364		)	—

Total purchase price, net of cash acquired	$	3,910		$	17,211		$	6,587		$	5,496


(1)	The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. A portion of the goodwill is expected to be tax deductible for both the LPT and Nutfield acquisitions.

Following are the details of the purchase price allocated to the intangible assets acquired for the acquisitions noted above:



	BuildIt			LPT			MWF			Nutfield
	Amount		Weighted Average Life	Amount		Weighted Average Life	Amount		Weighted Average Life	Amount		Weighted Average Life
Trade name	$	346	7	$	64	1	$	36	1	$	29	1
Non-competition agreement	31		5	—		0	3		2	144		5
Technology	361		7	4,260		7	951		5	1,970		10
Customer relationships	277		7	1,150		7	826		5	95		10
Favorable in-place lease	—		0	—		0	—		0	91		12
Fair value of intangible assets acquired	$	1,015	7	$	5,474	7	$	1,816	5	$	2,329	10

The goodwill for the Nutfield acquisition has been allocated to the Factory Metrology reporting segment. The goodwill for the BuildIT, LPT and MWF acquisitions was allocated to the appropriate operating segments using the relative fair value approach in 2016. 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 $0.9 million in acquisition and integration costs for the BuildIT, LPT, MWF and Nutfield acquisitions. Pro forma financial results for BuildIT, LPT, MWF and Nutfield have not been presented because the effects of these transactions, individually and in the aggregate, were not material to our consolidated results of operations.

Quarterly Result of Operations (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Result of Operations (Unaudited)

QUARTERLY RESULT OF OPERATIONS (UNAUDITED)



Quarter ended	March 31, 2017			June 30, 2017			September 30, 2017		December 31, 2017
Sales	$	81,562		$	82,682		$	90,250	$	106,423
Gross profit	43,749			46,760			52,034		62,094
Net (loss) income	(1,461		)	(3,625		)	1,628		(11,058		)
Net (loss) income per share:
Basic	$	(0.09	)	$	(0.22	)	$	0.10	$	(0.66	)
Diluted	$	(0.09	)	$	(0.22	)	$	0.10	$	(0.66	)



Quarter ended	March 31, 2016		June 30, 2016		September 30, 2016		December 31, 2016
Sales	$	75,748	$	78,538	$	79,600	$	91,698
Gross profit	42,671		43,934		42,678		48,677
Net income	3,080		3,392		1,090		3,545
Net income per share:
Basic	$	0.19	$	0.20	$	0.07	$	0.21
Diluted	$	0.19	$	0.20	$	0.07	$	0.21

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Reportable Segments Policy

During fiscal 2016, we evaluated our reportable segment structure based on our new management organization and the changes implemented in connection with our initiatives to reorganize our business around certain vertical markets. As a result of this assessment, we report our activities in the following three reportable segments:


•	The Factory Metrology segment provides solutions for manual and automated measurement and inspection in an industrial or manufacturing environment. Applications include alignment, part inspection, dimensional analysis, first article inspection, incoming and in-process inspection, machine calibration, non-contact inspection, robot calibration, tool building and set-up, and assembly guidance.

•

We report our segment information in accordance with the provisions of FASB ASC Topic 280. See Note 16, “Segment Reporting” for further information.

Principles of Consolidation Policy

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.

Foreign Currency Translations Policy

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 loss. Foreign currency transaction gains and losses are included in net (loss) income.

Revenue Recognition, Product Warranty and Extended Warranty Contracts Policy

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. Revenues are presented net of sales-related taxes.

Cash and Cash Equivalents Policy

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.

Accounts Receivable and Related Allowance for Doubtful Accounts Policy

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 Policy

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. Management expects sales demonstration inventory to be held by our sales representatives for up to three years, at which time it is 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. Sales demonstration inventory remains classified as inventory, as it is available for sale and any required refurbishment prior to sale is minimal.

Reserve for Excess and Obsolete Inventory Policy

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 Policy

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.

Business Combinations Policy

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 Intangible Assets Policy

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 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. We have historically evaluated goodwill for impairment annually as of December 31, or when an indicator of impairment exists. During 2017, we changed the date of annual impairment assessment for our reporting units to October 1. This voluntary change in the annual goodwill testing date is a change in accounting policy, which we concluded is preferable as it better aligns the timing of the assessment with our annual budgeting process. This change in the date of the annual impairment assessment was applied prospectively and did not accelerate, delay or avoid a potential impairment charge. 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. See Note 6, "Goodwill" and Note 7, "Intangible Assets" for further information regarding goodwill and intangible assets, respectively.

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 eight years.

Long-Lived Assets Policy

Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in business circumstances indicate that the carrying amount of an asset group may not be fully recoverable, comparing projected undiscounted future cash flows to the carrying value of the asset group.

Research and Development Policy

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 Policy

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 Policy

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.

(Loss) Earnings Per Share Policy

Basic (loss) earnings per share is computed by dividing net (loss) 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 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. When we report a loss for the period presented, the diluted loss per share calculation does not include our potential common stock as the inclusion of these shares in the calculation would have an anti-dilutive effect. A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented in Note 14, “(Loss) Earnings Per Share.

Accounting for Stock-Based Compensation Policy

Concentration of Credit Risk Policy

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 Policy

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 Policy

In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”) in order to clarify the definition of a business and provide additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Currently, ASC Topic 805 recognizes three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the new guidance (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace missing elements. The new guidance provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This framework includes two sets of criteria to consider that depend on whether a set has outputs. Although outputs are not required for a set to be a business, outputs generally are a key element of a business. ASU 2017-01 provides more stringent criteria for sets without outputs and more narrowly defines the term output. ASU 2017-01 became effective for us on January 1, 2018 and was applied prospectively. Our adoption of the new guidance did not have a material impact on our consolidated financial statements.

Reclassifications Policy

Certain prior year amounts have been reclassified in the accompanying consolidated financial statements to conform to the current period presentation. For example:


•	Deferred income tax assets, net were reclassified from current to non-current in our consolidated balance sheet as of December 31, 2016 as a result of adopting ASU No. 2015-17.


•	Certain reclassifications were made between reporting segments for segment profit during the year ended December 31, 2016 in Note 16, “Segment Reporting” as a result of changes to our methodology for allocating manufacturing variances to our segments. These reclassifications only impacted our segment reporting footnote disclosure.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

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, 2017

Supplemental Cash Flow Elements [Abstract]

Schedule of cash Payments and Non-Cash Activity

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



	Years ended December 31,
	2017		2016		2015
Supplemental cash flow information:
Cash paid for interest	$	9	$	28	$	55
Cash paid for income taxes	$	2,488	$	2,576	$	4,682
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets	$	2,844	$	511	$	2,979

Allowance for Doubtful Accounts (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Allowance for Doubtful Accounts Roll Forward

Activity in the allowance for doubtful accounts was as follows:



	Years ended December 31,
	2017			2016			2015
Balance, beginning of year	$	1,829		$	1,417		$	1,844
Provision (net of recovery)	370			898			346
Amounts written off, net of recoveries	(242		)	(486		)	(773		)
Balance, end of year	$	1,957		$	1,829		$	1,417

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consist of the following:



	December 31, 2017		December 31, 2016
Raw materials	$	36,328	$	36,760
Finished goods	17,458		15,126
Inventories, net	$	53,786	$	51,886
Service and sales demonstration inventory, net	$	39,614	$	29,136

Goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill by Reporting Units



December 31, 2017	Beginning Balance		Additions		Foreign Currency Translation		Ending Balance
Factory Metrology	$	37,861	$	2,357	$	2,941	$	43,159
Construction BIM-CIM	6,078		—		443		6,521
Public Safety Forensics	$	2,805	$	55	$	210	$	3,070
Total	$	46,744	$	2,412	$	3,594	$	52,750



December 31, 2016	Beginning Balance		Additions		Foreign Currency Translation			Ending Balance
Factory Metrology	$	21,360	$	16,709	$	(208	)	$	37,861
Construction BIM-CIM	3,429		2,682		(33		)	6,078
Public Safety Forensics	$	1,582	$	1,238	$	(15	)	$	2,805
Total	$	26,371	$	20,629	$	(256	)	$	46,744

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Schedule

Intangible assets consist of the following:



	As of December 31, 2017
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	19,459	$	10,885	$	8,574
Patents and trademarks	13,948		5,720		8,228
Customer relationships	5,889		1,685		4,204
Other	7,443		5,909		1,534
Total	$	46,739	$	24,199	$	22,540



	As of December 31, 2016
	Carrying Value		Accumulated Amortization		Net Intangible
Amortizable intangible assets:
Product technology	$	15,700	$	7,614	$	8,086
Patents and trademarks	13,328		4,927		8,401
Customer relationships	5,466		837		4,629
Other	8,013		6,850		1,163
Total	$	42,507	$	20,228	$	22,279

Estimated Amortization Expense Schedule

The estimated amortization expense for each of the years 2018 through 2022 and thereafter is as follows:




Years ending December 31,	Amount
2018	$	4,022
2019	3,770
2020	3,311
2021	2,880
2022	2,015
Thereafter	6,542

	$	22,540

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Payables and Accruals [Abstract]

Accrued Liabilities Schedule

Accrued liabilities consist of the following:



	As of December 31,
	2017		2016
Accrued compensation and benefits	$	16,144	$	13,649
Accrued warranties	2,628		2,594
Professional and legal fees	1,541		1,775
Taxes other than income	3,787		4,026
Other accrued liabilities	3,262		2,528
	$	27,362	$	24,572

Schedule of Activity Related to Accrued Warranties

Activity related to accrued warranties was as follows:



	Years ended December 31,
	2017			2016			2015
Balance, beginning of year	$	2,594		$	2,309		$	2,719
Provision for warranty expense	4,045			3,544			3,597
Fulfillment of warranty obligations	(4,011		)	(3,259		)	(4,007		)
Balance, end of year	$	2,628		$	2,594		$	2,309

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of 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:



	December 31, 2017
	Level 1		Level 2		Level 3
Assets:
Short-term investments (1)	$	10,997	$	—	$	—
Total	$	10,997	$	—	$	—
Liabilities:
Contingent consideration (2)	$	—	$	—	$	412
Total	$	—	$	—	$	412
	December 31, 2016
	Level 1		Level 2		Level 3
Assets:
Short-term investments (1)	$	42,942	$	—	$	—
Total	$	42,942	$	—	$	—
Liabilities:
Contingent consideration (2)	$	—	$	—	$	2,100
Total	$	—	$	—	$	2,100


(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, 2017

Other Income and Expenses [Abstract]

Schedule of Other (Income) Expense, Net

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



	Years ended December 31,
	2017			2016			2015
Foreign exchange transaction (gains) losses	$	(162	)	$	1,356		$	377
Other	(28		)	(534		)	(6		)
Total other (income) expense, net	$	(190	)	$	822		$	371

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017		2016			2015
Domestic	$	2,468	$	(1,527	)	$	(144	)
Foreign	3,359		14,153			12,950
Income before income taxes	$	5,827	$	12,626		$	12,806

Schedule of Components of Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017			2016			2015
Current:
Federal	$	18,951		$	409		$	199
State	507			40			78
Foreign	2,072			3,482			562
Current income tax expense	21,530			3,931			839
Deferred:
Federal	1,038			(2,357		)	88
State	(580		)	(229		)	9
Foreign	(1,645		)	174			(943		)
Deferred income tax benefit	(1,187		)	(2,412		)	(846		)
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

Reconciliation of Income Tax Expense (Benefit)

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



	Years ended December 31,
	2017			2016			2015
Tax expense at statutory rate of 34%	$	1,981		$	4,427		$	4,354
State income taxes, net of federal benefit	81			(50		)	54
Foreign tax rate difference	(2,057		)	(1,939		)	(3,708		)
Research and development credit	(1,037		)	(917		)	(853		)
Change in valuation allowance	678			162			(28		)
Equity based compensation	33			(255		)	54
Manufacturing credit	(191		)	(61		)	11
Permanent impact of non-deductible cost	766			412			(14		)
Provision to return adjustments	777			(61		)	(59		)
Impact of Tax Cuts and Jobs Act of 2017	19,355			—			—
Other	(43		)	(199		)	182
Income tax expense (benefit)	$	20,343		$	1,519		$	(7	)

Schedule of 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,
	2017			2016
Net deferred income tax asset - Non-current
Warranty cost	$	695		$	1,121
Inventory reserve	419			456
Unearned service revenue	5,364			7,088
Employee stock options	4,366			4,501
Tax Credits	1,785			2,035
Loss carryforwards	8,782			8,005
Other, net	1,479			1,213
Total deferred tax assets	22,890			24,419
Valuation Allowance	(1,631		)	(876		)
Total deferred tax assets net of valuation allowance	21,259			23,543
Net deferred income tax liability - Non-current
Bad debt reserve	(2		)	(159		)
Depreciation	(3,675		)	(6,799		)
Goodwill	(1,574		)	(2,279		)
Intangible assets	(1,097		)	(1,409		)
Total deferred tax liabilities	(6,348		)	(10,646		)
Net deferred tax assets	$	14,911		$	12,897

Summary of Income Tax Examinations

The table below summarizes the open tax years and ongoing tax examinations in major jurisdictions as of December 31, 2017:



Jurisdiction	Open Years	Examination in Process
United States - Federal Income Tax	2014-2017	N/A
United States - various states	2013-2017	2014-2016
Germany	2013-2017	N/A
Switzerland	2017	N/A
Singapore	2013-2017	N/A

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

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, 2017:




Years ending December 31,	Amount
2018	$	6,563
2019	4,925
2020	3,123
2021	1,251
2022	1,213
Thereafter	3,564
Total future minimum lease payments	$	20,639

Stock Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Valuation Assumptions

For stock options granted during the years ended December 31, 2017, 2016, and 2015 valued using the Black-Scholes option valuation model, we used the following assumptions:



	Years ended December 31,
	2017		2016		2015
Risk-free interest rate	1.88% - 2.02%		1.06% - 1.57%		0.80% - 1.21%
Expected dividend yield	—	%	—	%	—	%
Expected option life	5 years		4 years		3 years
Expected volatility	45.2	%	45.0% - 47.0%		42.3% - 48.5%
Weighted-average expected volatility	45.2	%	46.1	%	43.5	%

Schedule of Stock Option Activity and Weighted Average Exercise Prices

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, 2017
Outstanding at January 1, 2017	1,090,160		$	48.02
Granted	267,794		34.75
Forfeited	(84,591	)	44.39
Exercised	(96,212	)	37.05
Unearned performance-based options	(20,388	)	59.97
Outstanding at December 31, 2017	1,156,763		$	45.93	4.3	$	7,082
Options exercisable at December 31, 2017	914,941		$	42.20	2.3	$	2,369

Schedule of Restricted Stock and Restricted Stock Units Activity and Weighted-Average Grant Date Fair Value

The following table summarizes the restricted stock and restricted stock unit activity and weighted average grant-date fair values for the year ended December 31, 2017:



	Shares		Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2017	150,682		$	33.39
Granted	155,975		35.79
Forfeited	(26,855	)	33.95
Vested	(21,706	)	34.55
Unearned performance-based awards	(604	)	52.83
Non-vested at December 31, 2017	257,492		$	34.75

Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Valuation Assumptions

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



	Years Ended December 31,
	2017		2016		2015
Risk-free interest rate	—	%	—	%	0.95% - 1.48%
Expected dividend yield	—	%	—	%	—	%
Expected option life	—		—		4 years
Expected volatility	—	%	—	%	44.5	%
Weighted-average expected volatility	—	%	—	%	44.5	%

(Loss) Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule of 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 (loss) earnings per share is presented below:



	Years Ended December 31,
	2017					2016			2015
	Shares		Per-Share Amount			Shares	Per-Share Amount		Shares	Per-Share Amount
Basic (loss) earnings per share	16,711,534		$	(0.87	)	16,654,786	$	0.67	17,288,665	$	0.74
Effect of dilutive securities	—		—			26,924	—		100,808	—
Diluted (loss) earnings per share	16,711,534	—	$	(0.87	)	16,681,710	$	0.67	17,389,473	$	0.74
Securities excluded from the determination of weighted average shares for the calculation of diluted (loss) earnings per share, as they were potentially antidilutive	1,049,563					1,046,947			870,421

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Schedule of Reportable Segment Information

The following tables present information about our reportable segments for the years ended December 31, 2017, 2016, and 2015:



	Factory Metrology		Construction BIM-CIM		Other		Total
2017
Net sales to external customers	$	245,114	$	86,349	$	29,454	$	360,917
Segment profit	$	78,857	$	21,077	$	1,159	$	101,093

General and administrative							43,807
Depreciation and amortization							16,588
Research and development							35,376

Income from operations							$	5,322



	Factory Metrology		Construction BIM-CIM		Other		Total
2016
Net sales to external customers	$	236,313	$	65,056	$	24,215	$	325,584
Segment profit	$	73,656	$	14,799	$	9,635	$	98,090

General and administrative							40,813
Depreciation and amortization							13,868
Research and development							30,125

Income from operations							$	13,284



	Factory Metrology		Construction BIM-CIM		Other		Total
2015
Net sales to external customers	$	222,745	$	70,849	$	23,954	$	317,548
Segment profit	$	63,463	$	16,299	$	7,637	$	87,399

General and administrative							36,370
Depreciation and amortization							11,217
Research and development							26,690

Income from operations							$	13,122

Schedule of 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,
	2017		2016		2015
Net sales to external customers
United States	$	141,595	$	133,924	$	131,670
Americas-Other	13,531		11,815		11,718
Germany	49,860		44,041		41,151
Europe-Other	65,201		57,710		62,032
Japan	35,270		32,530		24,018
Asia-Other	55,460		45,564		46,959
	$	360,917	$	325,584	$	317,548

Schedule of Long Lived Assets Attributed to Geographic Area



	As of December 31,
	2017		2016		2015
Long-Lived Assets
United States	$	54,703	$	54,157	$	39,973
Americas-Other	13,834		13,486		9,447
Germany	26,611		23,734		24,637
Europe-Other	9,124		6,949		1,146
Japan	558		460		517
Asia-Other	2,246		1,915		2,582
	$	107,076	$	100,701	$	78,302

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

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

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



	BuildIt			LPT			MWF			Nutfield

Accounts receivable	$	237		$	54		$	150		$	160
Inventory	—			322			—			539
Other assets	36			160			666			96
Deferred income tax assets	—			1,112			—			131
Intangible assets	1,015			5,474			1,816			2,329
Goodwill (1)	3,393			11,922			5,364			2,357
Accounts payable and accrued liabilities	(95		)	(747		)	(700		)	(12		)
Other liabilities	(471		)	(1,086		)	(345		)	(104		)
Deferred income tax liabilities	(205		)	—			(364		)	—

Total purchase price, net of cash acquired	$	3,910		$	17,211		$	6,587		$	5,496


(1)	The goodwill arising from the acquisitions consists largely of the expected synergies from combining operations as well as the value of the workforce. A portion of the goodwill is expected to be tax deductible for both the LPT and Nutfield acquisitions.

Summary of the Purchase Price Preliminarily Allocated to the Intangible Assets Acquired for the Acquisitions

Following are the details of the purchase price allocated to the intangible assets acquired for the acquisitions noted above:



	BuildIt			LPT			MWF			Nutfield
	Amount		Weighted Average Life	Amount		Weighted Average Life	Amount		Weighted Average Life	Amount		Weighted Average Life
Trade name	$	346	7	$	64	1	$	36	1	$	29	1
Non-competition agreement	31		5	—		0	3		2	144		5
Technology	361		7	4,260		7	951		5	1,970		10
Customer relationships	277		7	1,150		7	826		5	95		10
Favorable in-place lease	—		0	—		0	—		0	91		12
Fair value of intangible assets acquired	$	1,015	7	$	5,474	7	$	1,816	5	$	2,329	10

Quarterly Result of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations



Quarter ended	March 31, 2017			June 30, 2017			September 30, 2017		December 31, 2017
Sales	$	81,562		$	82,682		$	90,250	$	106,423
Gross profit	43,749			46,760			52,034		62,094
Net (loss) income	(1,461		)	(3,625		)	1,628		(11,058		)
Net (loss) income per share:
Basic	$	(0.09	)	$	(0.22	)	$	0.10	$	(0.66	)
Diluted	$	(0.09	)	$	(0.22	)	$	0.10	$	(0.66	)



Quarter ended	March 31, 2016		June 30, 2016		September 30, 2016		December 31, 2016
Sales	$	75,748	$	78,538	$	79,600	$	91,698
Gross profit	42,671		43,934		42,678		48,677
Net income	3,080		3,392		1,090		3,545
Net income per share:
Basic	$	0.19	$	0.20	$	0.07	$	0.21
Diluted	$	0.19	$	0.20	$	0.07	$	0.21

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) segment plan	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments \| segment	3
Standard product warranty period	1 year
Deposits with foreign banks	$ 98,800,000	$ 87,300,000
Sales demonstration inventory turnover period (up to)	3 years
Refurbished sales demonstration inventory turnover period	12 months
Service inventory turnover period	12 months
Service inventory not for sale, useful life	3 years
Reserve percentage of FIFO obsolete and excess inventory	100.00%
Depreciation expense	$ 12,300,000	10,900,000	$ 9,200,000
Indefinite-lived intangible assets	$ 0	0
Intangible assets weighted-average amortization period	8 years
Number of compensation plans \| plan	2
Performance Shares
Summary Of Significant Accounting Policies [Line Items]
Vesting period, years	3 years
Long Lived Assets
Summary Of Significant Accounting Policies [Line Items]
Assets impairment charges	$ 0	0	$ 0
Minimum
Summary Of Significant Accounting Policies [Line Items]
Account receivable period due	30 days
Other intangible assets, useful life	3 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]
Account receivable 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
Accounting Standards Update 2015-17
Summary Of Significant Accounting Policies [Line Items]
Reclassification of deferred tax assets		$ 7,600,000

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2017
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

Supplemental Cash Flow Information - Cash Payments and Non-Cash Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental cash flow information:
Cash paid for interest	$ 9	$ 28	$ 55
Cash paid for income taxes	2,488	2,576	4,682
Supplemental noncash investing and financing activities:
Transfer of service and sales demonstration inventory to fixed assets	$ 2,844	$ 511	$ 2,979

Allowance for Doubtful Accounts Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts
Balance, beginning of year	$ 1,829	$ 1,417	$ 1,844
Provision (net of recovery)	370	898	346
Amounts written off, net of recoveries	(242)	(486)	(773)
Balance, end of year	$ 1,957	$ 1,829	$ 1,417

Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities Purchased Under Agreements to Resell and Other Short Term Investment Securities [Line Items]
Short-term investments	$ 10,997	$ 42,942
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	$ 11,000	$ 42,900

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Raw materials	$ 36,328	$ 36,760
Finished goods	17,458	15,126
Inventories, net	53,786	51,886
Service and sales demonstration inventory, net	$ 39,614	$ 29,136
Service Inventory
Property, Plant and Equipment [Line Items]
Inventory, remaining life	3 years

Goodwill - Additional Information (Details)	12 Months Ended
Goodwill - Additional Information (Details)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments \| segment		5
Goodwill impairment loss \| $	$ 0	$ 0	$ 0

Goodwill - Changes in Goodwill by Reporting Units (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Beginning Balance	$ 46,744	$ 26,371
Additions	2,412	20,629
Foreign Currency Translation	3,594	(256)
Ending Balance	52,750	46,744
Factory Metrology
Goodwill [Roll Forward]
Beginning Balance	37,861	21,360
Additions	2,357	16,709
Foreign Currency Translation	2,941	(208)
Ending Balance	43,159	37,861
Construction BIM-CIM
Goodwill [Roll Forward]
Beginning Balance	6,078	3,429
Additions	0	2,682
Foreign Currency Translation	443	(33)
Ending Balance	6,521	6,078
Public Safety Forensics
Goodwill [Roll Forward]
Beginning Balance	2,805	1,582
Additions	55	1,238
Foreign Currency Translation	210	(15)
Ending Balance	$ 3,070	$ 2,805

Intangible Assets - Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, carrying Value	$ 46,739	$ 42,507
Amortizable intangible assets, accumulated Amortization	24,199	20,228
Amortizable intangible assets, net Intangible	22,540	22,279
Product technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, carrying Value	19,459	15,700
Amortizable intangible assets, accumulated Amortization	10,885	7,614
Amortizable intangible assets, net Intangible	8,574	8,086
Patents and trademarks
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, carrying Value	13,948	13,328
Amortizable intangible assets, accumulated Amortization	5,720	4,927
Amortizable intangible assets, net Intangible	8,228	8,401
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, carrying Value	5,889	5,466
Amortizable intangible assets, accumulated Amortization	1,685	837
Amortizable intangible assets, net Intangible	4,204	4,629
Other
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, carrying Value	7,443	8,013
Amortizable intangible assets, accumulated Amortization	5,909	6,850
Amortizable intangible assets, net Intangible	$ 1,534	$ 1,163

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of intangible assets	$ 4.5	$ 2.9	$ 2.0

Intangible Assets - Estimated Amortization Expense Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 4,022
2019	3,770
2020	3,311
2021	2,880
2022	2,015
Thereafter	6,542
Amortizable intangible assets, net Intangible	$ 22,540	$ 22,279

Accrued Liabilities - Accrued Liabilities Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 16,144	$ 13,649
Accrued warranties	2,628	2,594	$ 2,309	$ 2,719
Professional and legal fees	1,541	1,775
Taxes other than income	3,787	4,026
Other accrued liabilities	3,262	2,528
Total accrued liabilities	$ 27,362	$ 24,572

Accrued Liabilities - Activity Related to Accrued Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning Balance	$ 2,594	$ 2,309	$ 2,719
Provision for warranty expense	4,045	3,544	3,597
Fulfillment of warranty obligations	(4,011)	(3,259)	(4,007)
Ending Balance	$ 2,628	$ 2,594	$ 2,309

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Liabilities:
Payment for contingent consideration	$ 500	$ 800
Decrease in contingent consideration related to expiration of contingent consideration period	1,300
Level 1 \| Fair Value, Measurements, Recurring
Assets:
Short-term investments	10,997	42,942
Total	10,997	42,942
Level 3 \| Fair Value, Measurements, Recurring
Liabilities:
Contingent consideration	412	2,100
Total	$ 412	$ 2,100

Other (Income) Expense, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Income and Expenses [Abstract]
Foreign exchange transaction (gains) losses	$ (162)	$ 1,356	$ 377
Other	(28)	(534)	(6)
Total other (income) expense, net	$ (190)	$ 822	$ 371

Income Taxes - Income (Loss) Before Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Domestic	$ 2,468	$ (1,527)	$ (144)
Foreign	3,359	14,153	12,950
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)	$ 5,827	$ 12,626	$ 12,806

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 18,951	$ 409	$ 199
State	507	40	78
Foreign	2,072	3,482	562
Current income tax expense	21,530	3,931	839
Deferred:
Federal	1,038	(2,357)	88
State	(580)	(229)	9
Foreign	(1,645)	174	(943)
Deferred income tax benefit	(1,187)	(2,412)	(846)
Income tax expense (benefit)	$ 20,343	$ 1,519	$ (7)

Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Tax expense at statutory rate of 34%	$ 1,981	$ 4,427	$ 4,354
Tax expense (benefit), statutory rate	34.00%	34.00%	34.00%
State income taxes, net of federal benefit	$ 81	$ (50)	$ 54
Foreign tax rate difference	(2,057)	(1,939)	(3,708)
Research and development credit	(1,037)	(917)	(853)
Change in valuation allowance	678	162	(28)
Equity based compensation	33	(255)	54
Manufacturing credit	(191)	(61)	11
Permanent impact of non-deductible cost	766	412	(14)
Provision to return adjustments	777	(61)	(59)
Impact of Tax Cuts and Jobs Act of 2017	19,355	0	0
Other	(43)	(199)	182
Income tax expense (benefit)	$ 20,343	$ 1,519	$ (7)

Income Taxes - Components of Net Deferred Income Tax Asset and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Net deferred income tax asset - Non-current
Warranty cost	$ 695	$ 1,121
Inventory reserve	419	456
Unearned service revenue	5,364	7,088
Employee stock options	4,366	4,501
Tax Credits	1,785	2,035
Loss carryforwards	8,782	8,005
Other, net	1,479	1,213
Deferred income tax asset - Non-current	22,890	24,419
Valuation Allowance	(1,631)	(876)
Net deferred income tax asset - Non-current	21,259	23,543
Bad debt reserve	(2)	(159)
Depreciation	(3,675)	(6,799)
Goodwill amortization	(1,574)	(2,279)
Intangible assets	(1,097)	(1,409)
Deferred Tax Liabilities, Gross, Noncurrent	6,348	10,646
Net deferred tax assets	$ 14,911	$ 12,897

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense	$ 19,400
Tax cuts and jobs act of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional income tax expense	17,400
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit)	(2,000)
Deferred income tax assets, domestic	7,700	$ 7,800
Deferred income tax assets, foreign	7,900	6,400
Deferred tax assets, valuation allowance, noncurrent	1,631	876
Net increase (decrease) in total valuation allowance	$ (700)	$ (100)	$ 1,000
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	9 years
Tax returns examination statute of limitations period	4 years

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Required under Non-Cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 6,563
2019	4,925
2020	3,123
2021	1,251
2022	1,213
Thereafter	3,564
Total future minimum lease payments	$ 20,639

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies [Line Items]
Rent expense	$ 7.5	$ 7.7	$ 6.9
Purchase commitment, due in next twelve months	53.3
Long-term purchase commitments	$ 0.7
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

Stock Compensation Plans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) plan $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares	May 31, 2014 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of compensation plans \| plan	2
Total intrinsic value of stock options exercised \| $	$ 1,200,000	$ 1,700,000	$ 1,700,000
Fair value of stock options vested \| $	4,100,000	3,800,000	3,900,000
Allocated share-based compensation expense \| $	6,500,000	$ 5,400,000	$ 4,300,000
Unrecognized stock-based compensation expense \| $	$ 9,400,000
Weighted average, expected recognition period	1 year 10 months 24 days
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding	1,156,763	1,090,160
Number of stock options unvested (in shares)	20,388
Employee Stock Option \| Black-Scholes Option Valuation Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option weighted average grant date fair value (in dollars per share) \| $ / shares	$ 14.51	$ 12.90	$ 15.08
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	3 years
Number of restricted stock units vested (in shares)	21,706
Number of restricted stock units unvested (in shares)	604
Number of performance based shares granted (in shares)	155,975
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units vested (in shares)		300
Number of restricted stock units unvested (in shares)		604
Performance Based Restricted Stock Units \| Share-based Compensation Award, Tranche One \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Based Restricted Stock Units \| Share-based Compensation Award, Tranche Two \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Based Restricted Stock Units \| Share-based Compensation Award, Tranche Three \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Based Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options vested (in shares)		8,590
Number of stock options unvested (in shares)		20,388
Performance Based Employee Stock Options \| Share-based Compensation Award, Tranche One \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Based Employee Stock Options \| Share-based Compensation Award, Tranche Two \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Based Employee Stock Options \| Share-based Compensation Award, Tranche Three \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	3 years
Number of performance based shares granted (in shares)	0	0
Prior to Fiscal Year 2016 \| Employee Stock Option \| Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Prior to Fiscal Year 2016 \| Employee Stock Option \| Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Prior to Fiscal Year 2016 \| Employee Stock Option \| Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Prior to Fiscal Year 2016 \| Restricted Stock Units (RSUs) \| Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Prior to Fiscal Year 2016 \| Restricted Stock Units (RSUs) \| Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Prior to Fiscal Year 2016 \| Restricted Stock Units (RSUs) \| Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Fiscal Year 2017 \| Employee Stock Option \| Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Fiscal Year 2017 \| Employee Stock Option \| Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
Fiscal Year 2017 \| Employee Stock Option \| Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting installment percentage	33.33%
2004 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding	0
2009 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for grant awards	1,781,546
Options outstanding	390,351
Exercise price, lower range \| $ / shares	$ 35.90
Exercise price, upper range \| $ / shares	$ 57.54
Expiration period, years	10 years
2009 Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	3 years
2009 Plan \| 2010 Change In Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period, years	7 years
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for grant awards				1,974,543
Options outstanding	766,912
Exercise price, lower range \| $ / shares	$ 29.98
Exercise price, upper range \| $ / shares	$ 59.97
Expiration period, years	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]
Restricted shares granted based on percent of director compensation	50.00%
Director's Plan, Per Director \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, years	3 years
Value of shares granted upon election \| $	$ 100,000

Stock Compensation Plans - Assumptions Used to Estimate The Fair Value of Time-Based Stock Options (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected volatility	45.20%
Employee Stock Option
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum	1.88%	1.06%	0.80%
Risk-free interest rate, maximum	2.02%	1.57%	1.21%
Expected dividend yield	0.00%	0.00%	0.00%
Expected option life	5 years	4 years	3 years
Expected volatility, minimum		45.00%	42.30%
Expected volatility, maximum		47.00%	48.50%
Weighted-average expected volatility	45.20%	46.10%	43.50%
Performance Shares
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum			0.95%
Risk-free interest rate, maximum			1.48%
Expected dividend yield			0.00%
Expected option life			4 years
Expected volatility			44.50%
Weighted-average expected volatility			44.50%

Stock Compensation Plans - Assumptions Used to Estimate The Fair Value of The Performance-based Stock Options and Restricted Stock Units (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected volatility	45.20%
Employee Stock Option
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum	1.88%	1.06%	0.80%
Risk-free interest rate, maximum	2.02%	1.57%	1.21%
Expected dividend yield	0.00%	0.00%	0.00%
Expected option life	5 years	4 years	3 years
Weighted-average expected volatility	45.20%	46.10%	43.50%
Performance Shares
Fair Value, Option, Quantitative Disclosures [Line Items]
Risk-free interest rate, minimum			0.95%
Risk-free interest rate, maximum			1.48%
Expected dividend yield			0.00%
Expected option life			4 years
Expected volatility			44.50%
Weighted-average expected volatility			44.50%

Stock Compensation Plans - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Options
Outstanding at January 1, 2016 (in shares) \| shares	1,090,160
Granted (in shares) \| shares	267,794
Forfeited (in shares) \| shares	(84,591)
Exercised (in shares) \| shares	(96,212)
Unearned performance-based options (in shares) \| shares	(20,388)
Outstanding at December 31, 2016 (in shares) \| shares	1,156,763
Options exercisable at December 31, 2016 \| shares	914,941
Weighted- Average Exercise Price
Outstanding at January 1, 2017 (in dollars per share) \| $ / shares	$ 48.02
Granted (in dollars per share) \| $ / shares	34.75
Forfeited (in dollars per share) \| $ / shares	44.39
Exercised (in dollars per share) \| $ / shares	37.05
Unearned performance-based options (in dollars per share) \| $ / shares	59.97
Outstanding at December 31, 2017 (in dollars per share) \| $ / shares	45.93
Options exercisable at December 31, 2017 (in dollars per share) \| $ / shares	$ 42.20
Weighted-Average Remaining Contractual Term (Years)
Weighted-average remaining contractual term in years outstanding at December 31, 2017	4 years 3 months 18 days
Weighted-average remaining contractual term in years options exercisable at December 31, 2017	2 years 3 months 18 days
Aggregate Intrinsic Value as of December 31, 2017
Aggregate intrinsic value outstanding at December 31, 2017 \| $	$ 7,082
Aggregate intrinsic value of options exercisable at December 31, 2017 \| $	$ 2,369

Stock Compensation Plans - Schedule of Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value (Details) - Restricted Stock Units (RSUs)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Shares
Non-vested at January 1, 2017 (in shares) \| shares	150,682
Granted (in shares) \| shares	155,975
Forfeited (in shares) \| shares	(26,855)
Vested (in shares) \| shares	(21,706)
Unearned performance-based awards (in shares) \| shares	(604)
Non-vested at December 31, 2017 (in shares) \| shares	257,492
Weighted-Average Grant Date Fair Value
Non-vested at January 1, 2017 (in dollars per share) \| $ / shares	$ 33.39
Granted (in dollars per share) \| $ / shares	35.79
Forfeited (in dollars per share) \| $ / shares	33.95
Vested (in dollars per share) \| $ / shares	34.55
Unearned performance-based awards (in dollars per share) \| $ / shares	52.83
Non-vested at December 31, 2017 (in dollars per share) \| $ / shares	$ 34.75

(Loss) Earnings Per Share - Reconciliation of Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (EPS) (Details) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Basic ((loss) EPS (in shares)									16,711,534	16,654,786	17,288,665
Effect of dilutive securities (in shares)									0	26,924	100,808
Diluted (loss) EPS (in shares)									16,711,534	16,681,710	17,389,473
Securities excluded from the determination of weighted average shares for the calculation of diluted (loss) EPS, as they were antidilutive (in shares)									1,049,563	1,046,947	870,421
Basic (loss) EPS (in dollars per share)	$ (0.66)	$ 0.10	$ (0.22)	$ (0.09)	$ 0.21	$ 0.07	$ 0.20	$ 0.19	$ (0.87)	$ 0.67	$ 0.74
Effect of dilutive securities (in dollars per share)									0.00	0.00	0.00
Diluted (loss) EPS (in dollars per share)	$ (0.66)	$ 0.10	$ (0.22)	$ (0.09)	$ 0.21	$ 0.07	$ 0.20	$ 0.19	$ (0.87)	$ 0.67	$ 0.74

Employee Retirement Benefit Plan - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Benefits [Abstract]
401(K) plan costs	$ 1.7	$ 1.4	$ 1.3

Segment Reporting - Additional Information (Details)	12 Months Ended
Segment Reporting - Additional Information (Details)	Dec. 31, 2017 segment
Segment Reporting Information [Line Items]
Number of reportable segments	3
Minimum
Segment Reporting Information [Line Items]
Percentage of product sales to consolidated sales	99.00%

Segment Reporting - Reportable Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net sales to external customers	$ 106,423	$ 90,250	$ 82,682	$ 81,562	$ 91,698	$ 79,600	$ 78,538	$ 75,748	$ 360,917	$ 325,584	$ 317,548
Segment profit	$ 62,094	$ 52,034	$ 46,760	$ 43,749	$ 48,677	$ 42,678	$ 43,934	$ 42,671	204,637	177,960	167,236
General and administrative									43,807	40,813	36,370
Depreciation and amortization									16,588	13,868	11,217
Research and development									35,376	30,125	26,690
Income from operations									5,322	13,284	13,122
Operating Segments
Segment Reporting Information [Line Items]
Segment profit									101,093	98,090	87,399
Factory Metrology
Segment Reporting Information [Line Items]
Net sales to external customers									245,114	236,313	222,745
Factory Metrology \| Operating Segments
Segment Reporting Information [Line Items]
Segment profit									78,857	73,656	63,463
Construction BIM-CIM
Segment Reporting Information [Line Items]
Net sales to external customers									86,349	65,056	70,849
Construction BIM-CIM \| Operating Segments
Segment Reporting Information [Line Items]
Segment profit									21,077	14,799	16,299
Other
Segment Reporting Information [Line Items]
Net sales to external customers									29,454	24,215	23,954
Other \| Operating Segments
Segment Reporting Information [Line Items]
Segment profit									$ 1,159	$ 9,635	$ 7,637

Segment Reporting - Net Sales to External Customers Based Upon Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Geographic Reporting Disclosure [Line Items]
Net sales to external customers	$ 106,423	$ 90,250	$ 82,682	$ 81,562	$ 91,698	$ 79,600	$ 78,538	$ 75,748	$ 360,917	$ 325,584	$ 317,548
United States
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									141,595	133,924	131,670
Americas-Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									13,531	11,815	11,718
Germany
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									49,860	44,041	41,151
Europe-Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									65,201	57,710	62,032
Japan
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									35,270	32,530	24,018
Asia-Other
Geographic Reporting Disclosure [Line Items]
Net sales to external customers									$ 55,460	$ 45,564	$ 46,959

Segment Reporting - Long Lived Assets Attributed to Geographic Area (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	$ 107,076	$ 100,701	$ 78,302
United States
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	54,703	54,157	39,973
Americas-Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	13,834	13,486	9,447
Germany
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	26,611	23,734	24,637
Europe-Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	9,124	6,949	1,146
Japan
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	558	460	517
Asia-Other
Long-Lived Assets by Geographical Areas [Line Items]
Long-lived assets	$ 2,246	$ 1,915	$ 2,582

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended				12 Months Ended
	Apr. 30, 2017	Dec. 31, 2016	Aug. 31, 2016	Jul. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Payment to acquire business, paid with cash on hand					$ 5,596	$ 27,708	$ 12,066
Acquisition and integration costs					$ 900
Nutfield
Business Acquisition [Line Items]
Payment to acquire business, paid with cash on hand	$ 5,496
MWF
Business Acquisition [Line Items]
Payment to acquire business, paid with cash on hand		$ 6,587
LPT
Business Acquisition [Line Items]
Payment to acquire business, paid with cash on hand			$ 17,211
BuildIt
Business Acquisition [Line Items]
Payment to acquire business, paid with cash on hand				$ 3,910

Business Combinations - Schedule of Purchase Price Allocation to the Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	1 Months Ended				12 Months Ended
	Apr. 30, 2017	Dec. 31, 2016	Aug. 31, 2016	Jul. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 46,744			$ 52,750	$ 46,744	$ 26,371
Total purchase price, net of cash acquired					$ 5,596	27,708	$ 12,066
BuildIt
Business Acquisition [Line Items]
Accounts receivable				$ 237
Inventory				0
Other assets				36
Deferred income tax assets				0
Intangible assets				1,015
Goodwill				3,393
Accounts payable and accrued liabilities				(95)
Other liabilities				(471)
Deferred income tax liabilities				(205)
Total purchase price, net of cash acquired				$ 3,910
LPT
Business Acquisition [Line Items]
Accounts receivable			$ 54
Inventory			322
Other assets			160
Deferred income tax assets			1,112
Intangible assets			5,474
Goodwill			11,922
Accounts payable and accrued liabilities			(747)
Other liabilities			(1,086)
Deferred income tax liabilities			0
Total purchase price, net of cash acquired			$ 17,211
MWF
Business Acquisition [Line Items]
Accounts receivable		150				150
Inventory		0				0
Other assets		666				666
Deferred income tax assets		0				0
Intangible assets		1,816				1,816
Goodwill		5,364				5,364
Accounts payable and accrued liabilities		(700)				(700)
Other liabilities		(345)				(345)
Deferred income tax liabilities		(364)				$ (364)
Total purchase price, net of cash acquired		$ 6,587
Nutfield
Business Acquisition [Line Items]
Accounts receivable	$ 160
Inventory	539
Other assets	96
Deferred income tax assets	131
Intangible assets	2,329
Goodwill	2,357
Accounts payable and accrued liabilities	(12)
Other liabilities	(104)
Deferred income tax liabilities	0
Total purchase price, net of cash acquired	$ 5,496

Business Combinations - Summary of the Purchase Price Preliminarily Allocated to the Intangible Assets Acquired for the Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended				12 Months Ended
	Apr. 30, 2017	Dec. 31, 2016	Aug. 31, 2016	Jul. 31, 2016	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired, weighted average life					8 years
BuildIt
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 1,015
Intangible assets acquired, weighted average life				7 years
BuildIt \| Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 346
Intangible assets acquired, weighted average life				7 years
BuildIt \| Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 31
Intangible assets acquired, weighted average life				5 years
BuildIt \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 361
Intangible assets acquired, weighted average life				7 years
BuildIt \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired				$ 277
Intangible assets acquired, weighted average life				7 years
LPT
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired			$ 5,474
Intangible assets acquired, weighted average life			7 years
LPT \| Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired			$ 64
Intangible assets acquired, weighted average life			1 year
LPT \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired			$ 4,260
Intangible assets acquired, weighted average life			7 years
LPT \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired			$ 1,150
Intangible assets acquired, weighted average life			7 years
MWF
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired		$ 1,816
Intangible assets acquired, weighted average life		5 years
MWF \| Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired		$ 36
Intangible assets acquired, weighted average life		1 year
MWF \| Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired		$ 3
Intangible assets acquired, weighted average life		2 years
MWF \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired		$ 951
Intangible assets acquired, weighted average life		5 years
MWF \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired		$ 826
Intangible assets acquired, weighted average life		5 years
Nutfield
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 2,329
Intangible assets acquired, weighted average life	10 years
Nutfield \| Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 29
Intangible assets acquired, weighted average life	1 year
Nutfield \| Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 144
Intangible assets acquired, weighted average life	5 years
Nutfield \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 1,970
Intangible assets acquired, weighted average life	10 years
Nutfield \| Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 95
Intangible assets acquired, weighted average life	10 years
Nutfield \| Favorable in-place lease
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 91
Intangible assets acquired, weighted average life	12 years

Quarterly Result of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Sales	$ 106,423	$ 90,250	$ 82,682	$ 81,562	$ 91,698	$ 79,600	$ 78,538	$ 75,748	$ 360,917	$ 325,584	$ 317,548
Segment profit	62,094	52,034	46,760	43,749	48,677	42,678	43,934	42,671	204,637	177,960	167,236
Net income	$ (11,058)	$ 1,628	$ (3,625)	$ (1,461)	$ 3,545	$ 1,090	$ 3,392	$ 3,080	$ (14,516)	$ 11,107	$ 12,813
Net (loss) income per share:
Basic (loss) EPS (in dollars per share)	$ (0.66)	$ 0.10	$ (0.22)	$ (0.09)	$ 0.21	$ 0.07	$ 0.20	$ 0.19	$ (0.87)	$ 0.67	$ 0.74
Diluted EPS (in dollars per share)	$ (0.66)	$ 0.10	$ (0.22)	$ (0.09)	$ 0.21	$ 0.07	$ 0.20	$ 0.19	$ (0.87)	$ 0.67	$ 0.74