falsedesktopNATI2020-09-30000093549420000060{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Delaware\t74-1871327\n(State or other jurisdiction of incorporation or organization)\t(I.R.S. Employer Identification Number)\n\t\n11500 North MoPac Expressway\t\nAustin\t78759\nTexas\t\n(Address of principal executive offices)\t(Zip Code)\n", "q10k_tbl_1": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "PART I. FINANCIAL INFORMATION\t\tPage No.\n\t\t\nItem 1\tFinancial Statements:\t\n\t\t\n\tConsolidated Balance Sheets\t\n\tSeptember 30 2020 (unaudited) and December 31 2019\t3\n\t\t\n\tConsolidated Statements of Income\t\n\t(unaudited) for the three and nine months ended September 30 2020 and 2019\t4\n\t\t\n\tConsolidated Statements of Comprehensive Income\t\n\t(unaudited) for the three and nine months ended September 30 2020 and 2019\t5\n\t\t\n\tConsolidated Statements of Cash Flows\t\n\t(unaudited) for the nine months ended September 30 2020 and 2019\t6\n\tConsolidated Statements of Stockholders' Equity\t\n\t(unaudited) for the three and nine months ended September 30 2020 and 2019\t7\n\t\t\n\tNotes to Consolidated Financial Statements\t9\n\t\t\nItem 2\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t33\n\t\t\nItem 3\tQuantitative and Qualitative Disclosures about Market Risk\t49\n\t\t\nItem 4\tControls and Procedures\t50\n\t\t\n\t\t\nPART II. OTHER INFORMATION\t\t\n\t\t\nItem 1\tLegal Proceedings\t50\n\t\t\nItem 1A\tRisk Factors\t50\n\t\t\nItem 2\tUnregistered Sales of Equity Securities and Use of Proceeds\t55\nItem 5\tOther Information\t55\n\t\t\nItem 6\tExhibits\t56\n\tSignatures and Certifications\t57\n", "q10k_tbl_3": "\tSeptember 30\tDecember 31\n\t2020\t2019\nAssets\t(unaudited)\t\nCurrent assets:\t\t\nCash and cash equivalents\t197319\t194616\nShort-term investments\t92853\t237983\nAccounts receivable net\t214620\t248872\nInventories net\t209558\t200410\nPrepaid expenses and other current assets\t72956\t65477\nTotal current assets\t787306\t947358\nProperty and equipment net\t253073\t243717\nGoodwill\t487101\t262242\nIntangible assets net\t183067\t84083\nOperating lease right-of-use assets\t69395\t70407\nOther long-term assets\t63930\t44082\nTotal assets\t1843872\t1651889\nLiabilities and stockholders' equity\t\t\nCurrent liabilities:\t\t\nAccounts payable and accrued expenses\t48886\t52192\nAccrued compensation\t53496\t47732\nDeferred revenue - current\t116871\t131445\nOperating lease liabilities - current\t16177\t13431\nOther taxes payable\t41604\t40607\nDebt current\t3500\t0\nOther current liabilities\t50259\t20716\nTotal current liabilities\t330793\t306123\nDeferred income taxes\t41514\t14065\nIncome tax payable - non-current\t61628\t69151\nLiability for uncertain tax positions\t6867\t6652\nDeferred revenue - non-current\t34210\t33480\nOperating lease liabilities - non-current\t37767\t40650\nDebt non-current\t84289\t0\nOther long-term liabilities\t7606\t5418\nTotal liabilities\t604674\t475539\nCommitments and contingencies\t\t\nStockholders' equity:\t\t\nPreferred stock: par value $0.01; 5000000 shares authorized; none issued and outstanding\t0\t0\nCommon stock: par value $0.01; 360000000 shares authorized; 131245640 shares and 130504535 shares issued and outstanding respectively\t1312\t1305\nAdditional paid-in capital\t1012656\t953578\nRetained earnings\t247970\t242537\nAccumulated other comprehensive loss\t(22740)\t(21070)\nTotal stockholders' equity\t1239198\t1176350\nTotal liabilities and stockholders' equity\t1843872\t1651889\n", "q10k_tbl_4": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t\t\t\t\nNet sales:\t\t\t\t\nProduct\t269651\t305247\t809890\t882747\nSoftware maintenance\t38473\t35195\t108944\t103000\nTotal net sales\t308124\t340442\t918834\t985747\n\t\t\t\t\nCost of sales:\t\t\t\t\nProduct\t88370\t84127\t254236\t240056\nSoftware maintenance\t3893\t1788\t7689\t5700\nTotal cost of sales\t92263\t85915\t261925\t245756\n\t\t\t\t\nGross profit\t215861\t254527\t656909\t739991\n\t\t\t\t\nOperating expenses:\t\t\t\t\nSales and marketing\t109774\t113922\t330939\t352340\nResearch and development\t70802\t66558\t206648\t200981\nGeneral and administrative\t37431\t35711\t92980\t92639\nTotal operating expenses\t218007\t216191\t630567\t645960\nGain on sale of business/asset\t0\t26842\t159753\t26842\nOperating (loss) income\t(2146)\t65178\t186095\t120873\nOther (expense) income\t(2001)\t2249\t(2584)\t5379\nIncome before income taxes\t(4147)\t67427\t183511\t126252\nProvision for income taxes\t475\t15783\t44588\t22697\n\t\t\t\t\nNet (loss) income\t(4622)\t51644\t138923\t103555\n\t\t\t\t\nBasic (loss) earnings per share\t(0.04)\t0.39\t1.06\t0.79\n\t\t\t\t\nWeighted average shares outstanding - basic\t131419\t131385\t131017\t131896\n\t\t\t\t\nDiluted (loss) earnings per share\t(0.04)\t0.39\t1.06\t0.78\n\t\t\t\t\nWeighted average shares outstanding - diluted\t131419\t131889\t131671\t132890\n\t\t\t\t\nDividends declared per share\t0.26\t0.25\t0.78\t0.75\n", "q10k_tbl_5": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t\t\t\t\nNet (loss) income\t(4622)\t51644\t138923\t103555\nOther comprehensive income (loss) before tax and net of reclassification adjustments:\t\t\t\t\nForeign currency translation adjustment\t8483\t(8500)\t6507\t(9303)\nUnrealized (loss) gain on securities available-for-sale\t(163)\t(419)\t(317)\t1494\nUnrealized (loss) gain on derivative instruments\t(9530)\t1627\t(10128)\t1359\nOther comprehensive (loss) income before tax\t(1210)\t(7292)\t(3938)\t(6450)\nTax (benefit) expense related to items of other comprehensive income\t(2335)\t414\t(2268)\t355\nOther comprehensive income (loss) net of tax\t1125\t(7706)\t(1670)\t(6805)\nComprehensive (loss) income\t(3497)\t43938\t137253\t96750\n", "q10k_tbl_6": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nCash flow from operating activities:\t\t\nNet income\t138923\t103555\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDisposal gain on sale of business/asset\t(159753)\t(26842)\nDepreciation and amortization\t61228\t54546\nStock-based compensation\t42556\t38054\nDeferred income taxes\t(932)\t(1461)\nChanges in operating assets and liabilities\t26762\t(18507)\nNet cash provided by operating activities\t108784\t149345\n\t\t\nCash flow from investing activities:\t\t\nAcquisitions net of cash acquired\t(334981)\t0\nCapital expenditures\t(36573)\t(47183)\nProceeds from sale of assets/business net of cash divested\t160266\t32492\nCapitalization of internally developed software\t(2806)\t(7179)\nAdditions to other intangibles\t(1045)\t(1132)\nAcquisitions of equity-method investments\t(7502)\t(13670)\nPurchases of short-term investments\t(206330)\t(141074)\nSales and maturities of short-term investments\t351597\t204046\nNet cash (used in) provided by investing activities\t(77374)\t26300\n\t\t\nCash flow from financing activities:\t\t\nProceeds from revolving line of credit\t20000\t0\nProceeds from term loan\t70000\t0\nPayments on term loan\t(875)\t0\nDebt issuance costs\t(1480)\t0\nProceeds from issuance of common stock\t24971\t25823\nRepurchase of common stock\t(39244)\t(137171)\nDividends paid\t(102396)\t(99083)\nNet cash used in financing activities\t(29024)\t(210431)\n\t\t\nEffect of exchange rate changes on cash\t317\t(1827)\n\t\t\nNet change in cash and cash equivalents\t2703\t(36613)\nCash and cash equivalents at beginning of period\t194616\t259386\nCash and cash equivalents at end of period\t197319\t222773\n", "q10k_tbl_7": "\tSeptember 30 2020\t\t\t\t\t\n\t(Unaudited)\t\t\t\t\t\n\tCommon Stock Shares\tCommon Stock Amount\tAdditional-Paid in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income/(Loss)\tTotal Stockholders' Equity\nBalance at June 30 2020\t131436108\t1314\t993058\t299132\t(23865)\t1269639\nNet loss\t0\t0\t0\t(4622)\t0\t(4622)\nOther comprehensive income net of tax\t0\t0\t0\t0\t1125\t1125\nIssuance of common stock under employee plans including tax benefits\t256034\t2\t7715\t0\t0\t7717\nStock-based compensation\t0\t0\t15142\t0\t0\t15142\nRepurchase of common stock\t(446502)\t(4)\t(3259)\t(12300)\t0\t(15563)\nDividends paid (1)\t0\t0\t0\t(34240)\t0\t(34240)\nBalance at September 30 2020\t131245640\t1312\t1012656\t247970\t(22740)\t1239198\n\tCommon Stock Shares\tCommon Stock Amount\tAdditional-Paid in Capital\tRetained Earnings\tAccumulated Other Comprehensive Loss\tTotal Stockholders' Equity\nBalance at December 31 2019\t130504535\t1305\t953578\t242537\t(21070)\t1176350\nNet income\t0\t0\t0\t138923\t0\t138923\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(1670)\t(1670)\nIssuance of common stock under employee plans including tax benefits\t1855806\t18\t24953\t0\t0\t24971\nStock-based compensation\t0\t0\t42264\t0\t0\t42264\nRepurchase of common stock\t(1114701)\t(11)\t(8139)\t(31094)\t0\t(39244)\nDividends paid (1)\t0\t0\t0\t(102396)\t0\t(102396)\nBalance at September 30 2020\t131245640\t1312\t1012656\t247970\t(22740)\t1239198\n", "q10k_tbl_8": "\tSeptember 30 2019\t\t\t\t\t\n\t(Unaudited)\t\t\t\t\t\n\tCommon Stock Shares\tCommon Stock Amount\tAdditional-Paid in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income/(Loss)\tTotal Stockholders' Equity\nBalance at June 30 2019\t131884775\t1319\t924801\t264484\t(16030)\t1174574\nNet income\t0\t0\t0\t51644\t0\t51644\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(7706)\t(7706)\nIssuance of common stock under employee plans including tax benefits\t230400\t3\t8175\t0\t0\t8178\nStock-based compensation\t0\t0\t13284\t0\t0\t13284\nRepurchase of common stock\t(1056078)\t(11)\t(7139)\t(37647)\t0\t(44797)\nDividends paid (1)\t0\t0\t0\t(33016)\t0\t(33016)\nBalance at September 30 2019\t131059097\t1311\t939121\t245465\t(23736)\t1162161\n\tCommon Stock Shares\tCommon Stock Amount\tAdditional-Paid in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income/(Loss)\tTotal Stockholders' Equity\nBalance at December 31 2018\t132655941\t1327\t897544\t356418\t(16931)\t1238358\nNet income\t0\t0\t0\t103555\t0\t103555\nOther comprehensive loss net of tax\t0\t0\t0\t0\t(6805)\t(6805)\nIssuance of common stock under employee plans including tax benefits\t1608832\t16\t25807\t0\t0\t25823\nStock-based compensation\t0\t0\t37484\t0\t0\t37484\nRepurchase of common stock\t(3205676)\t(32)\t(21714)\t(115425)\t0\t(137171)\nDividends paid (1)\t0\t0\t0\t(99083)\t0\t(99083)\nBalance at September 30 2019\t131059097\t1311\t939121\t245465\t(23736)\t1162161\n", "q10k_tbl_9": "Cash\t1027\nAccounts receivable net\t7233\nPrepaid and other current assets\t283\nGoodwill\t7221\nOther non-current assets\t556\nTotal Assets\t16320\nDeferred revenue\t15296\nOther current liabilities\t940\nCumulative translation adjustment\t(660)\nTotal liabilities and stockholders' equity\t15576\nTotal assets divested net (including cash)\t744\n", "q10k_tbl_10": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nInterest income\t414\t1930\t3724\t6187\nInterest expense\t(973)\t0\t(1115)\t0\nLoss from equity-method investments\t(627)\t(239)\t(2559)\t(406)\nNet foreign exchange loss\t(676)\t(378)\t(2019)\t(1623)\nOther\t(139)\t936\t(615)\t1221\nOther (expense) income net\t(2001)\t2249\t(2584)\t5379\n", "q10k_tbl_11": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nWeighted average shares outstanding-basic\t131419\t131385\t131017\t131896\nPlus: Common share equivalents\t\t\t\t\nRSUs\t0\t504\t654\t994\nWeighted average shares outstanding-diluted\t131419\t131889\t131671\t132890\n", "q10k_tbl_12": "\tAs of September 30 2020\tAs of December 31\n\t(unaudited)\t2019\nIncome taxes payable - current\t23487\t6791\nOther\t26772\t13925\nTotal\t50259\t20716\n", "q10k_tbl_13": "\t\tThree Months Ended September 30\t\t\t\t\n(In thousands)\t\t(Unaudited)\t\t\t\t\n\t2020\t\t\t2019\t\t\nNet sales:\tPoint-in-Time(1)\tOver Time\tTotal\tPoint-in-Time(1)\tOver Time\tTotal\nAmericas\t107808\t19241\t127049\t119895\t23222\t143117\nEMEA\t57988\t20551\t78539\t70076\t19662\t89738\nAPAC\t92050\t10486\t102536\t98161\t9426\t107587\nTotal net sales(1)\t257846\t50278\t308124\t288132\t52310\t340442\n(1) Net sales contains hedging gains and losses which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations.\t\t\t\t\t\t\n", "q10k_tbl_14": "\t\tNine Months Ended September 30\t\t\t\t\n(In thousands)\t\t(Unaudited)\t\t\t\t\n\t2020\t\t\t2019\t\t\nNet sales:\tPoint-in-Time(1)\tOver Time\tTotal\tPoint-in-Time(1)\tOver Time\tTotal\nAmericas\t316220\t57554\t373774\t325349\t69337\t394686\nEMEA\t181330\t58594\t239924\t216644\t57411\t274055\nAPAC\t274341\t30795\t305136\t290140\t26866\t317006\nTotal net sales(1)\t771891\t146943\t918834\t832133\t153614\t985747\n(1) Net sales contains hedging gains and losses which do not represent revenues recognized from customers. See Note - 5 Derivatives instruments and hedging activities of Notes to Consolidated Financial Statements for more information on the impact of our hedging activities on our results of operations.\t\t\t\t\t\t\n", "q10k_tbl_15": "\tAmount\n\t(In thousands)\nBalance as of December 31 2019\t164925\nDeferral of revenue billed in current period net of recognition\t95934\nRecognition of revenue deferred in prior periods\t(103274)\nAcquisitions/Divestitures\t(7955)\nForeign currency translation impact\t1451\nBalance as of September 30 2020 (unaudited)\t151081\n", "q10k_tbl_16": "\tAs of September 30 2020\t\t\t\n(In thousands)\t(Unaudited)\t\t\t\n\t\tGross\tGross\t\n\tAdjusted Cost\tUnrealized Gain\tUnrealized Loss\tFair Value\nCorporate bonds\t92610\t245\t(2)\t92853\nTotal Short-term investments\t92610\t245\t(2)\t92853\n", "q10k_tbl_17": "(In thousands)\tAs of December 31 2019\t\t\t\n\t\tGross\tGross\t\n\tAdjusted Cost\tUnrealized Gain\tUnrealized Loss\tFair Value\nCorporate bonds\t237423\t628\t(68)\t237983\nTotal Short-term investments\t237423\t628\t(68)\t237983\n", "q10k_tbl_18": "\tAs of September 30 2020\t\n(In thousands)\t(Unaudited)\t\n\tAdjusted Cost\tFair Value\nDue in less than 1 year\t88194\t88438\nDue in 1 to 5 years\t4416\t4415\nTotal available-for-sale debt securities\t92610\t92853\n\t\t\nDue in less than 1 year\tAdjusted Cost\tFair Value\nCorporate bonds\t88194\t88438\nTotal available-for-sale debt securities\t88194\t88438\n\t\t\nDue in 1 to 5 years\tAdjusted Cost\tFair Value\nCorporate bonds\t4416\t4415\nTotal available-for-sale debt securities\t4416\t4415\n", "q10k_tbl_19": "\tFair Value Measurements at Reporting Date Using\t\t\t\n(In thousands)\t(Unaudited)\t\t\t\nDescription\tSeptember 30 2020\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tSignificant Unobservable Inputs (Level 3)\nAssets\t\t\t\t\nCash and cash equivalents available for sale:\t\t\t\t\nMoney Market Funds\t82730\t82730\t0\t0\nShort-term investments available for sale:\t\t\t\t\nCorporate notes and bonds\t92853\t0\t92853\t0\nDerivatives\t5363\t0\t5363\t0\nTotal Assets\t180946\t82730\t98216\t0\n\t\t\t\t\nLiabilities\t\t\t\t\nDerivatives\t(10777)\t0\t(10777)\t0\nTotal Liabilities\t(10777)\t0\t(10777)\t0\n", "q10k_tbl_20": "(In thousands)\tFair Value Measurements at Reporting Date Using\t\t\t\nDescription\tDecember 31 2019\tQuoted Prices in Active Markets for Identical Assets (Level 1)\tSignificant Other Observable Inputs (Level 2)\tSignificant Unobservable Inputs (Level 3)\nAssets\t\t\t\t\nCash and cash equivalents available for sale:\t\t\t\t\nMoney Market Funds\t87397\t87397\t0\t0\nCorporate notes and bonds\t9962\t0\t9962\t0\nShort-term investments available for sale:\t\t\t\t\nCorporate bonds\t237983\t0\t237983\t0\nDerivatives\t8209\t0\t8209\t0\nTotal Assets\t343551\t87397\t256154\t0\n\t\t\t\t\nLiabilities\t\t\t\t\nDerivatives\t(2872)\t0\t(2872)\t0\nTotal Liabilities\t(2872)\t0\t(2872)\t0\n", "q10k_tbl_21": "(In thousands)\tUS Dollar Equivalent\t\n\tAs of September 30 2020\tAs of December 31\n\t(Unaudited)\t2019\nBritish pound\t23251\t13988\nChinese yuan\t57943\t32970\nEuro\t209385\t130122\nHungarian forint\t89962\t95228\nJapanese yen\t83503\t53527\nKorean won\t26918\t24728\nMalaysian ringgit\t41681\t32725\nTotal forward contracts notional amount\t532643\t383288\n", "q10k_tbl_22": "\tAsset Derivatives\t\t\t\n\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands)\t(Unaudited)\t\t\t\n\tBalance Sheet Location\tFair Value\tBalance Sheet Location\tFair Value\nDerivatives designated as hedging instruments\t\t\t\t\nForeign exchange contracts - ST forwards\tPrepaid expenses and other current assets\t2314\tPrepaid expenses and other current assets\t7039\nForeign exchange contracts - LT forwards\tOther long-term assets\t2639\tOther long-term assets\t970\nTotal derivatives designated as hedging instruments\t\t4953\t\t8009\nDerivatives not designated as hedging instruments\t\t\t\t\nForeign exchange contracts - ST forwards\tPrepaid expenses and other current assets\t411\tPrepaid expenses and other current assets\t200\nTotal derivatives not designated as hedging instruments\t\t411\t\t200\nTotal derivatives\t\t5364\t\t8209\n", "q10k_tbl_23": "\tLiability Derivatives\t\t\t\n\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands)\t(Unaudited)\t\n\tBalance Sheet Location\tFair Value\tBalance Sheet Location\tFair Value\nDerivatives designated as hedging instruments\t\t\t\t\nForeign exchange contracts - ST forwards\tOther current liabilities\t(5305)\tOther current liabilities\t(2089)\n\t\t\t\t\nForeign exchange contracts - LT forwards\tOther long-term liabilities\t(4230)\tOther long-term liabilities\t(351)\nTotal derivatives designated as hedging instruments\t\t(9535)\t\t(2440)\n\t\t\t\t\nDerivatives not designated as hedging instruments\t\t\t\t\n\t\t\t\t\nForeign exchange contracts - ST forwards\tOther current liabilities\t(1241)\tOther current liabilities\t(432)\nTotal derivatives not designated as hedging instruments\t\t(1241)\t\t(432)\n\t\t\t\t\nTotal derivatives\t\t(10776)\t\t(2872)\n", "q10k_tbl_24": "September 30 2020\t\t\t\n(In thousands)\t\t\t\n(Unaudited)\t\t\t\nDerivatives in Cash Flow Hedging Relationship\tGain or (Loss) Recognized in OCI on Derivative\tLocation of Gain or (Loss) Reclassified from Accumulated OCI into Income\tGain or (Loss) Reclassified from Accumulated OCI into Income\nForeign exchange contracts - forwards\t(12524)\tNet sales\t334\n\t\t\t\nForeign exchange contracts - forwards\t1849\tCost of sales\t(448)\n\t\t\t\nForeign exchange contracts - forwards\t1144\tOperating expenses\t(266)\nTotal\t(9531)\t\t(380)\n", "q10k_tbl_25": "September 30 2019\t\t\t\n(In thousands)\t\t\t\n(Unaudited)\t\t\t\nDerivatives in Cash Flow Hedging Relationship\tGain or (Loss) Recognized in OCI on Derivative\tLocation of Gain or (Loss) Reclassified from Accumulated OCI into Income\tGain or (Loss) Reclassified from Accumulated OCI into Income\nForeign exchange contracts - forwards\t6736\tNet sales\t3291\n\t\t\t\nForeign exchange contracts - forwards\t(2946)\tCost of sales\t(176)\n\t\t\t\nForeign exchange contracts - forwards\t(2163)\tOperating expenses\t(112)\nTotal\t1627\t\t3003\n", "q10k_tbl_26": "(In thousands)\t\t\t\nDerivatives not Designated as Hedging Instruments\tLocation of Gain (Loss) Recognized in Income\tAmount of Gain (Loss) Recognized in Income\tAmount of Gain (Loss) Recognized in Income\n\t\tSeptember 30 2020\tSeptember 30 2019\n\t\t(Unaudited)\t(Unaudited)\nForeign exchange contracts - forwards\tOther expense (income)\t(267)\t287\n\t\t\t\nTotal\t\t(267)\t287\n", "q10k_tbl_27": "September 30 2020\t\t\t\n(In thousands)\t\t\t\n(Unaudited)\t\t\t\nDerivatives in Cash Flow Hedging Relationship\tGain or (Loss) Recognized in OCI on Derivative\tLocation of Gain or (Loss) Reclassified from Accumulated OCI into Income\tGain or (Loss) Reclassified from Accumulated OCI into Income\nForeign exchange contracts - forwards\t(6800)\tNet sales\t5594\n\t\t\t\nForeign exchange contracts - forwards\t(1898)\tCost of sales\t(1817)\n\t\t\t\nForeign exchange contracts - forwards\t(1430)\tOperating expenses\t(1348)\nTotal\t(10128)\t\t2429\n", "q10k_tbl_28": "September 30 2019\t\t\t\n(In thousands)\t\t\t\n(Unaudited)\t\t\t\nDerivatives in Cash Flow Hedging Relationship\tGain or (Loss) Recognized in OCI on Derivative\tLocation of Gain or (Loss) Reclassified from Accumulated OCI into Income\tGain or (Loss) Reclassified from Accumulated OCI into Income\nForeign exchange contracts - forwards\t7186\tNet sales\t7687\n\t\t\t\nForeign exchange contracts - forwards\t(3386)\tCost of sales\t(217)\n\t\t\t\nForeign exchange contracts - forwards\t(2441)\tOperating expenses\t(158)\nTotal\t1359\t\t7312\n", "q10k_tbl_29": "(In thousands)\t\t\t\nDerivatives not Designated as Hedging Instruments\tLocation of Gain (Loss) Recognized in Income\tAmount of Gain (Loss) Recognized in Income\tAmount of Gain (Loss) Recognized in Income\n\t\tSeptember 30 2020\tSeptember 30 2019\n\t\t(Unaudited)\t(Unaudited)\nForeign exchange contracts - forwards\tOther income (expense)\t(163)\t(82)\nTotal\t\t(163)\t(82)\n", "q10k_tbl_30": "\tSeptember 30 2020\tDecember 31\n(In thousands)\t(Unaudited)\t2019\n\t\t\nRaw materials\t110773\t110078\nWork-in-process\t12235\t10613\nFinished goods\t86550\t79719\nTotal\t209558\t200410\n", "q10k_tbl_31": "\tSeptember 30 2020\t\t\t\t\t\n(In thousands)\t(Unaudited)\t\t\tDecember 31 2019\t\t\n\tGross Carrying Amount\tAccumulated Amortization\tNet Carrying Amount\tGross Carrying Amount\tAccumulated Amortization\tNet Carrying Amount\nCapitalized software development costs\t123483\t(86096)\t37387\t132789\t(76910)\t55879\nAcquired technology\t105008\t(14726)\t90282\t91900\t(87917)\t3983\nPatents\t36531\t(26008)\t10523\t35609\t(23993)\t11616\nOther\t74671\t(29796)\t44875\t44490\t(31885)\t12605\nTotal\t339693\t(156626)\t183067\t304788\t(220705)\t84083\n", "q10k_tbl_32": "\tAmount\n\t(In thousands)\nBalance as of December 31 2019\t262242\nAcquisition\t227280\nForeign currency translation impact\t4800\nDivestiture\t(7221)\nBalance as of September 30 2020 (unaudited)\t487101\n", "q10k_tbl_33": "\tThree Months Ended\t\tNine Months Ended\t\n(In thousands)\tSeptember 30 2020\tSeptember 30 2019\tSeptember 30 2020\tSeptember 30 2019\nOperating Lease Cost (a)\t4869\t5456\t15941\t16951\n(a) includes variable and short-term lease costs\t\t\t\t\n", "q10k_tbl_34": "(In thousands)\t\nYears ending December 31\tOperating Leases\n2020 (Excluding the nine months ended September 30 2020)\t7012\n2021\t17340\n2022\t11465\n2023\t8229\n2024\t7062\nThereafter\t14161\nTotal future minimum lease payments\t65269\nLess imputed interest\t(11325)\nTotal\t53944\n", "q10k_tbl_35": "\tSeptember 30 2020\t\t\t\n\t(Unaudited)\t\t\t\n(In thousands)\tCurrency translation adjustment\tInvestments\tDerivative instruments\tAccumulated other comprehensive income/(loss)\nBalance as of December 31 2019\t(25831)\t(85)\t4846\t(21070)\nCurrent-period other comprehensive income (loss)\t6507\t(317)\t(7699)\t(1509)\nReclassified from accumulated OCI into income\t0\t0\t(2429)\t(2429)\nIncome tax (benefit) expense\t0\t(45)\t(2223)\t(2268)\nBalance as of September 30 2020\t(19324)\t(357)\t(3059)\t(22740)\n", "q10k_tbl_36": "\tSeptember 30 2019\t\t\t\n\t(Unaudited)\t\t\t\n(In thousands)\tCurrency translation adjustment\tInvestments\tDerivative instruments\tAccumulated other comprehensive income/(loss)\nBalance as of December 31 2018\t(22485)\t(1308)\t6862\t(16931)\nCurrent-period other comprehensive (loss) income\t(9303)\t1494\t8671\t862\nReclassified from accumulated OCI into income\t0\t0\t(7312)\t(7312)\nIncome tax (benefit) expense\t0\t(11)\t366\t355\nBalance as of September 30 2019\t(31788)\t197\t7855\t(23736)\n", "q10k_tbl_37": "\tNine Months Ended\t\n\t(unaudited)\t\n\tSeptember 30 2020\tSeptember 30 2019\nNumber of simulations\t100000\t100000\nExpected volatility\t27.41%\t26.08%\nExpected life in years\t2.92 years\t2.94 years\nRisk-free interest rate\t1.38%\t2.52%\nDividend yield\t2.32%\t1.96%\n", "q10k_tbl_38": "\tSeptember 30\tDecember 31\n\t2020\t2019\nSecured\t\t\n2020 term loan (effective interest rate of 3.0%)\t69125\t0\n2020 revolving loan facility (effective interest rate of 3.0%)\t20000\t0\nTotal Debt\t89125\t0\nLess: Unamortized debt issuance costs\t(1336)\t0\nLess: Current Portion of Total Debt\t(3500)\t0\nTotal Debt non-current\t84289\t0\n", "q10k_tbl_39": "\tNine Months Ended September 30\t\n(In thousands)\t(Unaudited)\t\n\t2020\t2019\nBalance at the beginning of the period\t2561\t3173\nAccruals for warranties issued during the period\t1824\t1665\nAccruals related to pre-existing warranties\t405\t(441)\nSettlements made (in cash or in kind) during the period\t(2088)\t(1899)\nBalance at the end of the period\t2702\t2498\n", "q10k_tbl_40": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(In thousands)\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nCost of sales\t(13)\t0\t7\t0\nResearch and development\t38\t34\t4716\t690\nSales and marketing\t512\t2993\t8055\t7958\nGeneral and administrative\t121\t990\t683\t2512\nTotal restructuring and other related costs\t658\t4017\t13461\t11160\n", "q10k_tbl_41": "\tRestructuring Liability\n\t(in thousands)\nBalance as of December 31 2019\t9527\nIncome statement expense\t13461\nCash payments\t(19651)\nBalance as of September 30 2020\t3337\n", "q10k_tbl_42": "\tJuly 2 2020\nConsideration Transferred\t352642\nCash\t17661\nIntangible assets\t127600\nGoodwill\t227280\nContract assets\t15454\nDeferred revenue\t(7341)\nAccounts receivable\t4927\nOther assets and liabilities\t(2545)\nDeferred tax liabilities\t(30394)\nNet assets acquired\t352642\n", "q10k_tbl_43": "\tEstimated Fair Value\tEstimated Useful Lives (in years)\nCustomer relationships\t30100\t5\nDeveloped technology\t81400\t6\nIn-process research and development (IPR&D)\t10200\t6\nOther intangibles\t5900\t3-5\nTotal\t127600\t\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\n(in thousands)\t(unaudited)\t\t(unaudited)\t\nNet sales\t309142\t348401\t929381\t1009102\nNet income\t4907\t42522\t123766\t65796\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nNet sales:\t\t\t\t\nAmericas\t41.2%\t42.0%\t40.7%\t40.0%\nEMEA\t25.5\t26.4\t26.1\t27.8\nAPAC\t33.3\t31.6\t33.2\t32.2\nTotal net sales\t100.0\t100.0\t100.0\t100.0\nCost of sales\t29.9\t25.2\t28.5\t24.9\nGross profit\t70.1\t74.8\t71.5\t75.1\nOperating expenses:\t\t\t\t\nSales and marketing\t35.6\t33.5\t36.0\t35.7\nResearch and development\t23.0\t19.6\t22.5\t20.4\nGeneral and administrative\t12.1\t10.5\t10.1\t9.4\nTotal operating expenses\t70.8\t63.5\t68.6\t65.5\nGain on sale of business/asset\t0\t7.9\t17.4\t2.7\nOperating (loss) income\t(0.7)\t19.1\t20.3\t12.3\nOther (expense) income\t(0.6)%\t0.7%\t(0.3)%\t0.5%\nIncome before income taxes\t(1.3)\t19.8\t20.0\t12.8\nProvision for income taxes\t0.2\t4.6\t4.9\t2.3\nNet (loss) income\t(1.5)%\t15.2%\t15.1%\t10.5%\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\t\n\t(Unaudited)\t\t\t\t(Unaudited)\t\t\t\n\t\t\tChange\t\t\t\tChange\t\n(In millions)\t2020\t2019\tDollars\tPercentage\t2020\t2019\tDollars\tPercentage\n\t\t\t\t\t\t\t\t\nProduct sales\t269.7\t305.2\t(35.6)\t(12)%\t809.9\t882.7\t(72.9)\t(8)%\nSoftware maintenance sales\t38.5\t35.2\t3.3\t9%\t108.9\t103.0\t5.9\t6%\nTotal net sales\t308.1\t340.4\t(32.3)\t(9)%\t918.8\t985.7\t(66.9)\t(7)%\n", "q10k_tbl_47": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\t\n\t(Unaudited)\t\t\t\t(Unaudited)\t\t\t\n\t\t\tChange\t\t\t\tChange\t\n(In millions)\t2020\t2019\tDollars\tPercentage\t2020\t2019\tDollars\tPercentage\n\t\t\t\t\t\t\t\t\nAmericas\t127.0\t143.1\t(16.1)\t(11)%\t373.8\t394.7\t(20.9)\t(5)%\nPercentage of total net sales\t41.2%\t42.0%\t\t\t40.7%\t40.0%\t\t\n\t\t\t\t\t\t\t\t\nEMEA\t78.5\t89.7\t(11.2)\t(12)%\t239.9\t274.1\t(34.1)\t(12)%\nPercentage of total net sales\t25.5%\t26.4%\t\t\t26.1%\t27.8%\t\t\n\t\t\t\t\t\t\t\t\nAPAC\t102.5\t107.6\t(5.1)\t(5)%\t305.1\t317.0\t(11.9)\t(4)%\nPercentage of total net sales\t33.3%\t31.6%\t\t\t33.2%\t32.2%\t\t\n", "q10k_tbl_48": "\tThree Months Ended September 30 2019\tChange in Constant Dollars\t\tImpact of changes in foreign currency exchange rates on net sales\t\tThree Months Ended September 30 2020\n(In millions)\tGAAP Net Sales\tDollars\tPercentage\tDollars\tPercentage\tGAAP Net Sales\n\t\t\t\t\t\t\nAmericas\t143.1\t(15.8)\t(11.0)%\t(0.3)\t(0.2)%\t127.0\nEMEA\t89.7\t(11.5)\t(12.8)%\t0.3\t0.3%\t78.5\nAPAC\t107.6\t(3.1)\t(2.9)%\t(1.9)\t(1.8)%\t102.5\nTotal net sales\t340.4\t(30.4)\t(8.9)%\t(2.0)\t(0.7)%\t308.1\n\t\t\t\t\t\t\n\tNine Months Ended September 30 2019\tChange in Constant Dollars\t\tImpact of changes in foreign currency exchange rates on net sales\t\tNine Months Ended September 30 2020\n(In millions)\tGAAP Net Sales\tDollars\tPercentage\tDollars\tPercentage\tGAAP Net Sales\n\t\t\t\t\t\t\nAmericas\t394.7\t(20.1)\t(5.1)%\t(0.8)\t(0.2)%\t373.8\nEMEA\t274.1\t(31.4)\t(11.5)%\t(2.7)\t(1.0)%\t239.9\nAPAC\t317.0\t(6.2)\t(2.0)%\t(5.7)\t(1.8)%\t305.1\nTotal net sales\t985.7\t(57.7)\t(5.9)%\t(9.2)\t(1.0)%\t918.8\n", "q10k_tbl_49": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t\t\t\t\n(In millions)\t2020\t2019\t2020\t2019\n\t\t\t\t\nGross Profit\t215.9\t254.5\t656.9\t740.0\n% change compared with prior period\t(15.2)%\t\t(11.2)%\t\nGross Profit as a percentage of net sales\t70.1%\t74.8%\t71.5%\t75.1%\n", "q10k_tbl_50": "\tThree Months Ended\tNine Months Ended\n\t(Unaudited)\t(Unaudited)\nSeptember 30 2019\t74.8%\t75.1%\nImpact of acquisition-related intangible amortization fair value adjustments and sales mix related to OptimalPlus\t(1.7)%\t(0.5)%\nChanges in sales mix related to recently divested AWR business (included in comparative period)\t(0.6)%\t(0.6)%\nChanges in sales mix related to service cost reallocation\t(0.9)%\t(0.9)%\nIncrease in outbound freight and other logistics costs due to COVID-19 pandemic\t(0.7)%\t(0.8)%\nChanges in foreign currency exchange rates\t(0.2)%\t(0.3)%\nOther product material variances and reserves\t(0.6)%\t(0.5)%\nSeptember 30 2020\t70.1%\t71.5%\n", "q10k_tbl_51": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t(Unaudited)\t\t\t(Unaudited)\t\t\n(In thousands)\t2020\t2019\tChange\t2020\t2019\tChange\n\t\t\t\t\t\t\nSales and marketing\t109774\t113922\t(4)%\t330939\t352340\t(6)%\nPercentage of total net sales\t36%\t33%\t\t36%\t36%\t\n\t\t\t\t\t\t\nResearch and development\t70802\t66558\t6%\t206648\t200981\t3%\nPercentage of total net sales\t23%\t20%\t\t22%\t20%\t\n\t\t\t\t\t\t\nGeneral and administrative\t37431\t35711\t5%\t92980\t92639\t-%\nPercentage of total net sales\t12%\t10%\t\t10%\t9%\t\n\t\t\t\t\t\t\nTotal operating expenses\t218007\t216191\t1%\t630567\t645960\t(2)%\nPercentage of total net sales\t71%\t64%\t\t69%\t66%\t\n", "q10k_tbl_52": "\tThree Months Ended\tNine Months Ended\n\tSeptember 30 2020\tSeptember 30 2020\n\t(Unaudited)\t(Unaudited)\nEffective tax rate at September 30 2019\t23%\t18%\nForeign taxes greater than federal statutory rate\t(29)\t8\nGlobal intangible low-taxed income inclusion (\"GILTI\")\t(6)\t(1)\nForeign-derived intangible income deduction\t(10)\t(6)\nNondeductible officer compensation\t2\t2\nChange in unrecognized tax benefits\t0\t2\nEmployee share-based compensation\t6\t5\nResearch and development tax credit\t(1)\t(4)\nState income taxes net of federal benefit\t3\t1\nChange in intercompany prepaid tax asset\t1\t1\nGain on sale of AWR business\t0\t(5)\nTransition tax on deferred foreign income\t(4)\t(2)\nNondeductible acquisition costs\t5\t5\nCapital gain on asset sale\t(1)\t0\nEffective tax rate at September 30 2020\t(11)%\t24%\n", "q10k_tbl_53": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nStock-based compensation\t\t\t\t\nCost of sales\t1051\t904\t2787\t2587\nSales and marketing\t5184\t5231\t16826\t14745\nResearch and development\t4692\t4099\t12640\t12029\nGeneral and administrative\t4293\t3158\t10301\t8693\nProvision for income taxes\t(3854)\t(2128)\t(8260)\t(7904)\nTotal\t11366\t11264\t34294\t30150\n", "q10k_tbl_54": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nAmortization of acquisition-related intangibles\t\t\t\t\nRevenue\t1299\t0\t1299\t0\nCost of sales\t4198\t833\t5579\t2525\nSales and marketing\t2334\t492\t3300\t1485\nResearch and development\t28\t28\t84\t84\nOther income net\t121\t124\t363\t285\nProvision for income taxes\t(1658)\t(190)\t(1948)\t(576)\nTotal\t6322\t1287\t8677\t3803\n", "q10k_tbl_55": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nAcquisition transaction costs restructuring charges and other\t\t\t\t\nCost of sales\t(13)\t0\t7\t0\nSales and marketing\t1158\t2993\t8771\t8290\nResearch and development\t374\t244\t5190\t899\nGeneral and administrative\t10210\t7998\t12595\t9525\nGain on sale of business\t0\t(26842)\t(159753)\t(26842)\nOther (income) expense net\t270\t0\t397\t0\nProvision for income taxes\t(712)\t3090\t33965\t1240\nTotal\t11287\t(12517)\t(98828)\t(6888)\n", "q10k_tbl_56": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t(Unaudited)\t\t(Unaudited)\t\n\t2020\t2019\t2020\t2019\nCapitalization and amortization of internally developed software costs\t\t\t\t\nCost of sales\t6769\t6954\t20995\t20073\nResearch and development\t302\t(2682)\t(2794)\t(7179)\nProvision for income taxes\t(1485)\t(897)\t(3822)\t(2708)\nTotal\t5586\t3375\t14379\t10186\n", "q10k_tbl_57": "\tDomestic\tInternational\tTotal\nCash and cash equivalents\t77.8\t119.5\t197.3\n\t39%\t61%\t\nShort-term investments\t68.8\t24.1\t92.9\n\t74%\t26%\t\nTotal cash cash equivalents and short-term investments\t146.6\t143.6\t290.2\n\t51%\t49%\t\n", "q10k_tbl_58": "\tSeptember 30 2020\tDecember 31\tIncrease/\n(In thousands)\t(unaudited)\t2019\t(Decrease)\n\t\t\t\nWorking capital\t456513\t641235\t(184722)\nCash and cash equivalents (1)\t197319\t194616\t2703\nShort-term investments (1)\t92853\t237983\t(145130)\nTotal cash cash equivalents and short-term investments\t290172\t432599\t(142427)\n\t\t\t\n(1) Included in working capital\t\t\t\n", "q10k_tbl_59": "\t\t\n\tNine Months Ended September 30\t\n(In thousands)\t(unaudited)\t\n\t2020\t2019\nCash provided by operating activities\t108784\t149345\nCash (used in) provided by investing activities\t(77374)\t26300\nCash used in financing activities\t(29024)\t(210431)\nEffect of exchange rate changes on cash\t317\t(1827)\nNet change in cash and cash equivalents\t2703\t(36613)\nCash and cash equivalents at beginning of year\t194616\t259386\nCash and cash equivalents at end of period\t197319\t222773\n", "q10k_tbl_60": "\tPayments due by period\t\t\t\t\t\t\n(In thousands)\tTotal\t2020\t2021\t2022\t2023\t2024\tBeyond\nTerm Loan\t69125\t875\t3500\t3500\t61250\t\t\nRevolving Loan\t20000\t0\t0\t0\t20000\t0\t0\n", "q10k_tbl_61": "Period\tTotal number of shares purchased\tAverage price paid per share\tTotal number of shares purchased as part of publicly announced plans or programs\tMaximum number of shares that may yet be purchased under the plans or programs (1)\n\t\t\t\t\nJuly 1 2020 to July 31 2020\t0\t0\t0\t2331801\n\t\t\t\t\nAugust 1 2020 to August 31 2020\t446502\t34.86\t446502\t1885299\n\t\t\t\t\nSeptember 1 2020 to September 30 2020\t0\t0\t0\t1885299\nTotal\t446502\t34.86\t446502\t1885299\n(1) On April 21 2010 our Board of Directors authorized a program to repurchase shares of our common stock from time to time depending on market conditions and other factors. On October 23 2019 our Board of Directors amended our stock repurchase program to increase the number of shares that may be repurchased by 3000000 shares. At September 30 2020 there were 1885299 shares available for repurchase under our repurchase program. This repurchase plan does not have an expiration date.\t\t\t\t\n", "q10k_tbl_62": "EXHIBITS\t\n3.1(1)\tCertificate of Incorporation as amended of Registrant effective May 14 2013\n3.2(2)\tAmended and Restated Bylaws of Registrant\n31.1\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n31.2\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\n32.1\tCertification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*\n101.INS\tXBRL Instance Document\n101.SCH\tXBRL Taxonomy Extension Schema Document\n101.CAL\tXBRL Taxonomy Extension Calculation Linkbase Document\n101.DEF\tXBRL Taxonomy Extension Definition Linkbase Document\n101.LAB\tXBRL Taxonomy Extension Label Linkbase Document\n101.PRE\tXBRL Taxonomy Extension Presentation Linkbase Document\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n(1)\tIncorporated by reference to Exhibit 3.1 filed with the Company's Form 10-K for the fiscal year ended December 31 2013 filed with the Commission on February 20 2014\n(2)\tIncorporated by reference to Exhibit 3.1 filed with the Company's Form 8-K on January 28 2019\n**The exhibits required to be filed pursuant to the requirements of Item 601 of Regulation S-K are set forth in the Exhibit Index list noted above and are incorporated herein by reference. Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request.\t\n*furnished herewith\t\n†\tManagement Contract or Compensatory Plan or Arrangement\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_4", "cf": "q10k_tbl_6"}None
☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended: September 30, 2020 or
☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________________ to ________________
Commission file number: 0-25426
NATIONAL INSTRUMENTS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
74-1871327
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
11500 North MoPac Expressway
Austin,
78759
Texas
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (512) 683-0100
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of exchange on which registered
Common Stock, $0.01 par value
NATI
Nasdaq Stock Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Preferred stock: par value $0.01; 5,000,000 shares authorized; none issued and outstanding
—
—
Common stock: par value $0.01; 360,000,000 shares authorized; 131,245,640 shares and 130,504,535 shares issued and outstanding, respectively
1,312
1,305
Additional paid-in capital
1,012,656
953,578
Retained earnings
247,970
242,537
Accumulated other comprehensive loss
(22,740)
(21,070)
Total stockholders’ equity
1,239,198
1,176,350
Total liabilities and stockholders’ equity
$
1,843,872
$
1,651,889
The accompanying notes are an integral part of the financial statements.
3
NATIONAL INSTRUMENTS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net sales:
Product
$
269,651
$
305,247
$
809,890
$
882,747
Software maintenance
38,473
35,195
108,944
103,000
Total net sales
308,124
340,442
918,834
985,747
Cost of sales:
Product
88,370
84,127
254,236
240,056
Software maintenance
3,893
1,788
7,689
5,700
Total cost of sales
92,263
85,915
261,925
245,756
Gross profit
215,861
254,527
656,909
739,991
Operating expenses:
Sales and marketing
109,774
113,922
330,939
352,340
Research and development
70,802
66,558
206,648
200,981
General and administrative
37,431
35,711
92,980
92,639
Total operating expenses
218,007
216,191
630,567
645,960
Gain on sale of business/asset
—
26,842
159,753
26,842
Operating (loss) income
(2,146)
65,178
186,095
120,873
Other (expense) income
(2,001)
2,249
(2,584)
5,379
Income before income taxes
(4,147)
67,427
183,511
126,252
Provision for income taxes
475
15,783
44,588
22,697
Net (loss) income
$
(4,622)
$
51,644
$
138,923
$
103,555
Basic (loss) earnings per share
$
(0.04)
$
0.39
$
1.06
$
0.79
Weighted average shares outstanding - basic
131,419
131,385
131,017
131,896
Diluted (loss) earnings per share
$
(0.04)
$
0.39
$
1.06
$
0.78
Weighted average shares outstanding - diluted
131,419
131,889
131,671
132,890
Dividends declared per share
$
0.26
$
0.25
$
0.78
$
0.75
The accompanying notes are an integral part of these financial statements.
4
NATIONAL INSTRUMENTS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net (loss) income
$
(4,622)
$
51,644
$
138,923
$
103,555
Other comprehensive income (loss), before tax and net of reclassification adjustments:
Foreign currency translation adjustment
8,483
(8,500)
6,507
(9,303)
Unrealized (loss) gain on securities available-for-sale
(163)
(419)
(317)
1,494
Unrealized (loss) gain on derivative instruments
(9,530)
1,627
(10,128)
1,359
Other comprehensive (loss) income, before tax
(1,210)
(7,292)
(3,938)
(6,450)
Tax (benefit) expense related to items of other comprehensive income
(2,335)
414
(2,268)
355
Other comprehensive income (loss), net of tax
1,125
(7,706)
(1,670)
(6,805)
Comprehensive (loss) income
$
(3,497)
$
43,938
$
137,253
$
96,750
The accompanying notes are an integral part of these financial statements.
5
NATIONAL INSTRUMENTS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2020
2019
Cash flow from operating activities:
Net income
$
138,923
$
103,555
Adjustments to reconcile net income to net cash provided by operating activities:
Disposal gain on sale of business/asset
(159,753)
(26,842)
Depreciation and amortization
61,228
54,546
Stock-based compensation
42,556
38,054
Deferred income taxes
(932)
(1,461)
Changes in operating assets and liabilities
26,762
(18,507)
Net cash provided by operating activities
108,784
149,345
Cash flow from investing activities:
Acquisitions, net of cash acquired
(334,981)
—
Capital expenditures
(36,573)
(47,183)
Proceeds from sale of assets/business, net of cash divested
160,266
32,492
Capitalization of internally developed software
(2,806)
(7,179)
Additions to other intangibles
(1,045)
(1,132)
Acquisitions of equity-method investments
(7,502)
(13,670)
Purchases of short-term investments
(206,330)
(141,074)
Sales and maturities of short-term investments
351,597
204,046
Net cash (used in) provided by investing activities
(77,374)
26,300
Cash flow from financing activities:
Proceeds from revolving line of credit
20,000
—
Proceeds from term loan
70,000
—
Payments on term loan
(875)
—
Debt issuance costs
(1,480)
—
Proceeds from issuance of common stock
24,971
25,823
Repurchase of common stock
(39,244)
(137,171)
Dividends paid
(102,396)
(99,083)
Net cash used in financing activities
(29,024)
(210,431)
Effect of exchange rate changes on cash
317
(1,827)
Net change in cash and cash equivalents
2,703
(36,613)
Cash and cash equivalents at beginning of period
194,616
259,386
Cash and cash equivalents at end of period
$
197,319
$
222,773
The accompanying notes are an integral part of these financial statements.
6
NATIONAL INSTRUMENTS CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share data and per share data)
(unaudited)
September 30, 2020
(Unaudited)
Common Stock Shares
Common Stock Amount
Additional-Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Income/(Loss)
Total Stockholders' Equity
Balance at June 30, 2020
131,436,108
$
1,314
$
993,058
$
299,132
$
(23,865)
$
1,269,639
Net loss
—
—
—
(4,622)
—
(4,622)
Other comprehensive income, net of tax
—
—
—
—
1,125
1,125
Issuance of common stock under employee plans, including tax benefits
256,034
2
7,715
—
—
7,717
Stock-based compensation
—
—
15,142
—
—
15,142
Repurchase of common stock
(446,502)
(4)
(3,259)
(12,300)
—
(15,563)
Dividends paid (1)
—
—
—
(34,240)
—
(34,240)
Balance at September 30, 2020
131,245,640
1,312
1,012,656
247,970
(22,740)
1,239,198
Common Stock Shares
Common Stock Amount
Additional-Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Total Stockholders' Equity
Balance at December 31, 2019
130,504,535
1,305
953,578
242,537
(21,070)
1,176,350
Net income
—
—
—
138,923
—
138,923
Other comprehensive loss, net of tax
—
—
—
—
(1,670)
(1,670)
Issuance of common stock under employee plans, including tax benefits
1,855,806
18
24,953
—
—
24,971
Stock-based compensation
—
—
42,264
—
—
42,264
Repurchase of common stock
(1,114,701)
(11)
(8,139)
(31,094)
—
(39,244)
Dividends paid (1)
—
—
—
(102,396)
—
(102,396)
Balance at September 30, 2020
131,245,640
$
1,312
$
1,012,656
$
247,970
$
(22,740)
$
1,239,198
(1) Cash dividends declared per share of common stock were $0.26 for the three months ended September 30, 2020, and $0.78 for the nine months ended September 30, 2020.
The accompanying notes are an integral part of these financial statements.
7
September 30, 2019
(Unaudited)
Common Stock Shares
Common Stock Amount
Additional-Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Income/(Loss)
Total Stockholders' Equity
Balance at June 30, 2019
131,884,775
$
1,319
$
924,801
$
264,484
$
(16,030)
$
1,174,574
Net income
—
—
—
51,644
—
51,644
Other comprehensive loss, net of tax
—
—
—
—
(7,706)
(7,706)
Issuance of common stock under employee plans, including tax benefits
230,400
3
8,175
—
—
8,178
Stock-based compensation
—
—
13,284
—
—
13,284
Repurchase of common stock
(1,056,078)
(11)
(7,139)
(37,647)
—
(44,797)
Dividends paid (1)
—
—
—
(33,016)
—
(33,016)
Balance at September 30, 2019
131,059,097
1,311
939,121
245,465
(23,736)
1,162,161
Common Stock Shares
Common Stock Amount
Additional-Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Income/(Loss)
Total Stockholders' Equity
Balance at December 31, 2018
132,655,941
1,327
897,544
356,418
(16,931)
1,238,358
Net income
—
—
—
103,555
—
103,555
Other comprehensive loss, net of tax
—
—
—
—
(6,805)
(6,805)
Issuance of common stock under employee plans, including tax benefits
1,608,832
16
25,807
—
—
25,823
Stock-based compensation
—
—
37,484
—
—
37,484
Repurchase of common stock
(3,205,676)
(32)
(21,714)
(115,425)
—
(137,171)
Dividends paid (1)
—
—
—
(99,083)
—
(99,083)
Balance at September 30, 2019
131,059,097
$
1,311
$
939,121
$
245,465
$
(23,736)
$
1,162,161
(1) Cash dividends declared per share of common stock were $0.25 for the three months ended September 30, 2019, and $0.75 for the nine months ended September 30, 2019.
The accompanying notes are an integral part of these financial statements.
8
NATIONAL INSTRUMENTS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Basis of presentation
The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2019, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 20, 2020 (the "Form 10-K"). In our opinion, the accompanying consolidated financial statements reflect all adjustments (consisting only of normal recurring items) considered necessary to present fairly our financial position at September 30, 2020 and December 31, 2019, the results of our operations and comprehensive income for three and nine months ended September 30, 2020 and 2019, our cash flows for the nine months ended September 30, 2020 and 2019 and our statement of stockholders' equity for the three and nine months ended September 30, 2020 and 2019. Our operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States.
Reclassifications
As further discussed below, certain prior period amounts have been reclassified to conform to the current period presentation. The reclassifications had no impact on our previously reported net income or cash flows:
•Before the second quarter of 2020, we included net sales attributable to our operations in India within the EMEIA region in Note 2 - Revenue of Notes to Consolidated Financial Statements. In the second quarter of 2020, we began including these amounts within the APAC (Australia, India, New Zealand, Southeast Asia, China, South Korea and Japan) geographic region, to reflect recent changes within our organizational structure. We have recast historical comparative information to conform to the September 30, 2020 presentation. Refer to Note 2 - Revenue of Notes to Consolidated Financial Statements for our revenue disaggregated by geographic region which now include the Americas (United States, Canada and Latin America), EMEA (Europe, Middle East, and Africa) and APAC.
•Before the second quarter of 2020, we presented “Interest income”, "Net foreign exchange gain (loss)", and "Other income (loss)" separately on the consolidated statements of income. In the second quarter of 2020, we began presenting these amounts within “Other (expense) income” in the consolidated statements of income for all periods presented. Refer to "Other (expense) income" in Note 1 - Basis of Presentation of Notes to Consolidated Financial Statements for additional information on the amounts that comprise "Other (expense) income".
Recently Adopted Accounting Pronouncements
Current Expected Credit Losses ("CECL")
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. Credit losses on available-for-sale debt securities with unrealized losses will be recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost. We adopted the new standard on January 1, 2020 and the impact of the adoption was not material to our consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. We will continue to actively monitor the impact of the recent coronavirus (COVID-19) pandemic on expected credit losses.
9
Implementation Costs Incurred in a Cloud Computing Arrangement
In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which clarifies the accounting for implementation costs in cloud computing arrangements. The new standard aligns the treatment of implementation costs incurred by customers in cloud computing arrangements that are service contracts with the treatment of similar costs incurred to develop or obtain internal-use software. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the condensed consolidated balance sheet as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the condensed consolidated income statement as the related fees of the arrangement. We adopted the new standard on January 1, 2020. The new standard did not have a material impact on our consolidated financial statements and related disclosures.
Fair Value Measurements
In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. We adopted the new standard on January 1, 2020. The new standard did not have a material impact on our consolidated financial statements and related disclosures.
Income Taxes
In December 2019, the FASB issued ASU 2019-12, “Income Taxes — Simplifying the Accounting for Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments in this ASU also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. An entity is permitted to early adopt the guidance, and we early adopted ASU 2019-12 as of January 1, 2020. The adoption did not have a material impact on our consolidated financial statements and related disclosures.
Disclosures about Acquired and Disposed Businesses
In May 2020, the SEC adopted Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses" ("Release No. 33-10786") which includes amendments to certain of its rules and forms related to the disclosure of financial information regarding acquired or disposed businesses. Among other changes, the amendments impact SEC rules relating to (1) the definition of “significant” subsidiaries, (2) requirements to provide financial statements for “significant” acquisitions, and (3) revisions to the formulation and usage of pro forma financial information. Release No. 33-10786 is effective on January 1, 2021, however, voluntary early adoption is permitted as long as all amendments are adopted in their entirety. We elected to early adopt all provisions of Release No. 33-10786 during the second quarter of 2020.
Summary of Significant Accounting Policies
As discussed above, we adopted the new expected credit loss standard as of January 1, 2020. There were no other significant changes in our accounting policies during the three and nine months ended September 30, 2020 compared to the significant accounting policies described in our Form 10-K.
Divestitures
AWR
On January 15, 2020, we completed the sale of our AWR Corporation subsidiary ("AWR") for approximately $161 million. We recognized a gain of approximately $160 million on the sale. The gain is included within "Gain on sale of business/asset" in the consolidated statements of income, which also included approximately $1 million of transaction costs.
10
The divestiture of AWR resulted in the derecognition of the following assets and liabilities (in thousands):
Cash
$
1,027
Accounts receivable, net
7,233
Prepaid and other current assets
283
Goodwill
7,221
Other non-current assets
556
Total Assets
16,320
Deferred revenue
15,296
Other current liabilities
940
Cumulative translation adjustment
(660)
Total liabilities and stockholders' equity
15,576
Total assets divested, net (including cash)
$
744
Other (Expense) Income
Other (expense) income, net consisted of the following amounts (in thousands):
Three Months Ended September 30,
Nine Months Ended September 30,
(Unaudited)
(Unaudited)
2020
2019
2020
2019
Interest income
$
414
$
1,930
$
3,724
$
6,187
Interest expense
(973)
—
(1,115)
—
Loss from equity-method investments
(627)
(239)
(2,559)
(406)
Net foreign exchange loss
(676)
(378)
(2,019)
(1,623)
Other
(139)
936
(615)
1,221
Other (expense) income, net
$
(2,001)
$
2,249
$
(2,584)
$
5,379
Earnings Per Share
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes restricted stock units ("RSUs"), is computed using the treasury stock method.The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and nine months ended September 30, 2020 and 2019, are as follows (in thousands):