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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Advanced Energy Industries Inc | NASDAQ:AEIS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 97.99 | 96.81 | 110.00 | 0 | 13:31:50 |
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K
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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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For the fiscal year ended December 31, 2018.
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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For the transition period from
to
.
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Delaware
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84-0846841
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1625 Sharp Point Drive, Fort Collins, CO
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80525
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.001 par value
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NASDAQ Global Select Market
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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Page
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EX-21.1
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EX-23.1
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EX-31.1
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EX-31.2
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EX-32.1
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EX-32.2
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ITEM 1.
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BUSINESS
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Years ended December 31,
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||||||||||
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2018
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2017
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2016
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||||||
Sales to external customers:
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||||||||||
United States
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$
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370,839
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$
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375,907
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$
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327,397
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Other North American countries
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1,995
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1,440
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161
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North America
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372,834
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377,347
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327,558
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||||||
Republic of Korea
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74,542
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83,899
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43,359
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People's Republic of China
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61,927
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46,099
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16,207
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Other Asian countries
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114,105
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91,692
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34,279
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Asia
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250,574
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221,690
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93,845
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|||
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||||||
Germany
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39,710
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30,517
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48,589
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Other European countries
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55,083
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41,279
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13,712
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Europe
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94,793
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71,796
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62,301
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||||||
Other countries
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691
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179
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—
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|||
Total
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$
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718,892
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$
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671,012
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$
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483,704
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•
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selecting and qualifying alternate suppliers for key parts using rigorous technical and commercial evaluation of suppliers' products and business processes including testing their components' performance, quality, and reliability on our power conversion product at our customers' and their customer's processes. The qualification process for our process power products, particularly as it pertains to semiconductor customers, follows semiconductor industry standard practices, such as “copy exact”;
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•
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monitoring the financial condition and overall performance of key suppliers;
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•
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maintaining appropriate inventories of key parts, including making last time purchases of key parts when notified by suppliers that they are ending the supply of those parts;
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•
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qualifying new parts on a timely basis and in geographies that reduce costs without degradation in quality;
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•
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locating certain manufacturing operations in areas that are closer to suppliers and customers; and
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•
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competitively sourcing parts through electronic bidding tools to ensure the lowest total cost is achieved for the parts needed in our products.
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•
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our future revenues;
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•
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our future sales, including backlog orders;
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•
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our ability to be successful in the design win process with our OEM customers;
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•
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unanticipated costs in fulfilling our warranty obligations for solar inverters;
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•
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our future gross profit;
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•
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our competition;
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•
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market acceptance of, and demand for, our products;
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•
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the fair value of our assets and financial instruments;
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•
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research and development expenses;
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•
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selling, general, and administrative expenses;
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•
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sufficiency and availability of capital resources;
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•
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capital expenditures;
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•
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our production and factory strategy;
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•
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our share repurchase program;
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•
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our tax assets and liabilities;
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•
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our other commitments and contingent liabilities;
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•
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adequacy of our reserve for excess and obsolete inventory;
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•
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adequacy of our warranty reserves;
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•
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restructuring activities and expenses;
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•
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the integration of our acquisitions;
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•
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general global political and economic conditions; and
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•
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industry trends.
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ITEM 1A.
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RISK FACTORS
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•
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the inability to obtain an adequate supply of required parts, components, or subassemblies;
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•
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supply shortages, if a sole or limited source provider ceases operations;
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•
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the need to fund the operating losses of a sole or limited source provider;
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•
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reduced control over pricing and timing of delivery of raw materials and parts, components, or subassemblies;
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•
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the need to qualify alternative suppliers;
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suppliers that may provide parts, components or subassemblies that are defective, contain counterfeit goods or are otherwise misrepresented to us in terms of form, fit or function;
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•
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the inability of our suppliers to develop technologically advanced products to support our growth and development of new products; and
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•
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the impact of geopolitical issues or tariffs that could affect the cost and availability of required parts, components, or subassemblies.
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issue stock that would dilute our current stockholders' percentage ownership;
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pay cash that would decrease our working capital;
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incur debt;
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assume liabilities; or
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incur expenses related to impairment of goodwill and amortization.
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problems combining or separating the acquired/divested operations, systems, technologies, or products;
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an inability to realize expected sales forecasts, operating efficiencies or product integration benefits;
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difficulties in coordinating and integrating geographically separated personnel, organizations, systems, and facilities;
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difficulties integrating business cultures;
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unanticipated costs or liabilities;
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diversion of management's attention from our core business;
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adverse effects on existing business relationships with suppliers and customers;
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potential loss of key employees, particularly those of purchased organizations;
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incurring unforeseen obligations or liabilities in connection with either acquisitions or divestitures; and
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the failure to complete acquisitions even after signing definitive agreements which, among other things, would result in the expensing of potentially significant professional fees and other charges in the period in which the acquisition or negotiations are terminated.
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•
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our ability to effectively manage our employees at remote locations who are operating in different business environments from the United States;
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•
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our ability to develop and maintain relationships with suppliers and other local businesses;
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compliance with product safety requirements and standards that are different from those of the United States;
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variations and changes in laws applicable to our operations in different jurisdictions, including enforceability of intellectual property and contract rights;
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trade restrictions, political instability, disruptions in financial markets, and deterioration of economic conditions;
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customs regulations and the import and export of goods (including customs audits in various countries that occur from time to time);
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the ability to provide sufficient levels of technical support in different locations;
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our ability to obtain business licenses that may be needed in international locations to support expanded operations;
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timely collecting accounts receivable from foreign customers including
$23.2 million
in accounts receivable from foreign customers as of
December 31, 2018
; and
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•
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changes in tariffs, taxes, and foreign currency exchange rates.
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substantial costs in the form of legal fees, fines, and royalty payments;
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restrictions on our ability to sell certain products or in certain markets;
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an inability to prevent others from using technology we have developed; and
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a need to redesign products or seek alternative marketing strategies.
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we could be subject to fines and penalties;
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our production or shipments could be suspended; and
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we could be prohibited from offering particular products in specified markets.
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negatively impact global demand for our products, which could result in a reduction of sales, operating income and cash flows;
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•
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make it more difficult or costly for us to obtain financing for our operations or investments or to refinance our debt in the future;
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•
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cause our lenders to depart from prior credit industry practice and make more difficult or expensive the granting of any technical or other waivers under our debt agreements to the extent we may seek them in the future;
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decrease the value of our investments; and
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•
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impair the financial viability of our insurers.
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ITEM 2.
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PROPERTIES
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Location
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Principal Activity
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Ownership
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Fort Collins, CO
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Corporate headquarters, research and development, distribution, sales, and service
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Leased
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Lockport, NY
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Manufacturing, distribution, service, and research and development
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Leased
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Milpitas, CA
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Research and development, sales, and service
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Leased
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Santa Clara, CA
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Research and development, manufacturing, distribution, sales, and service
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Leased
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Ronkonkoma, NY
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Manufacturing, distribution, service, and research and development
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Leased
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Vancouver, WA
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Research and development, manufacturing, distribution, sales, and service
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Leased
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Denver, CO
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General and administrative
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Leased
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Georgetown, MA
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Sales
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Leased
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Hancock, MI
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Sales
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Leased
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Baton Rouge, LA
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Sales
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Leased
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Beijing, China
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Sales
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Leased
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Shanghai, China
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Sales and distribution
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Leased
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Shenzhen, China
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Manufacturing, distribution, service, and research and development
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Leased
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Xian, China
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Service
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Leased
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Metzingen, Germany
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Distribution, sales, and service
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Leased
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Warstein-Belecke, Germany
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Research and development, distribution, sales, and service
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Leased
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Frankfurt, Germany
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Manufacturing, distribution, sales, service, and research and development
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Leased
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Magdeburg, Germany
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Manufacturing and distribution
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Leased
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Ballerup, Denmark
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Manufacturing, distribution, sales, service, and research and development
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Leased
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Erstein, France
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Sales
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Leased
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Pune, India
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Sales and distribution
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Leased
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Mumbai, India
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Sales
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Leased
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Cork, Ireland
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Sales, service, and research and development
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Leased
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Caesarea, Israel
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Research and development and service
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Leased
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Tokyo, Japan
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Sales and distribution
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Leased
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Singapore, Singapore
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Sales and service
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Leased
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Hwasung Kyunggi-do, South Korea
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Distribution, sales, and service
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Leased
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Sungnam City, South Korea
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Distribution, sales, service and research and development
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Leased
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Villaz-St-Pierre, Switzerland
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Research and development
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Leased
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Taipei, Taiwan
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Sales, distribution, and service
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Leased
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Littlehampton, United Kingdom
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Manufacturing, distribution, sales, service, and research and development
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Leased
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ITEM 3.
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LEGAL PROCEEDINGS
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ITEM 4.
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MINE SAFETY DISCLOSURES
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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12/13
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12/14
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12/15
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12/16
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12/17
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12/18
|
||||||||||||
Advanced Energy Industries, Inc.
|
|
$
|
100.00
|
|
|
$
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103.67
|
|
|
$
|
123.49
|
|
|
$
|
239.50
|
|
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$
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295.19
|
|
|
$
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187.80
|
|
NASDAQ Composite
|
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100.00
|
|
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114.62
|
|
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122.81
|
|
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133.19
|
|
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172.11
|
|
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165.84
|
|
||||||
PHLX Semiconductor
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100.00
|
|
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129.03
|
|
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120.80
|
|
|
159.29
|
|
|
223.53
|
|
|
203.91
|
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ITEM 6.
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SELECTED FINANCIAL DATA
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ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
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Years Ended December 31,
|
||||||||||
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2018
|
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2017
|
|
2016
|
||||||
Sales, net
|
|
$
|
718,892
|
|
|
$
|
671,012
|
|
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$
|
483,704
|
|
Gross profit
|
|
365,607
|
|
|
356,381
|
|
|
253,147
|
|
|||
Operating expenses
|
|
194,054
|
|
|
155,611
|
|
|
126,290
|
|
|||
Operating income
|
|
171,553
|
|
|
200,770
|
|
|
126,857
|
|
|||
Other income (expense)
|
|
823
|
|
|
(2,579
|
)
|
|
1,219
|
|
|||
Income from continuing operations before income taxes
|
|
172,376
|
|
|
198,191
|
|
|
128,076
|
|
|||
Provision for income taxes
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25,227
|
|
|
62,090
|
|
|
11,128
|
|
|||
Income from continuing operations, net of income taxes
|
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$
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147,149
|
|
|
$
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136,101
|
|
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$
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116,948
|
|
|
|
Years Ended December 31,
|
|||||||
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2018
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2017
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2016
|
|||
Sales, net
|
|
100.0
|
%
|
|
100.0
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%
|
|
100.0
|
%
|
Gross profit
|
|
50.9
|
|
|
53.1
|
|
|
52.3
|
|
Operating expenses
|
|
27.0
|
|
|
23.1
|
|
|
26.2
|
|
Operating income
|
|
23.9
|
|
|
30.0
|
|
|
26.1
|
|
Other income (expense)
|
|
0.1
|
|
|
(0.4
|
)
|
|
0.3
|
|
Income from continuing operations before income taxes
|
|
24.0
|
|
|
29.6
|
|
|
26.4
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|
Provision for income taxes
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3.5
|
|
|
9.3
|
|
|
2.3
|
|
Income from continuing operations, net of income taxes
|
|
20.5
|
%
|
|
20.3
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%
|
|
24.1
|
%
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||||||||
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2018
|
|
2017
|
|
2016
|
|
2018 v. 2017
|
|
2017 v. 2016
|
||||||||||||||||
Semiconductor capital equipment
|
|
$
|
443,141
|
|
|
$
|
461,701
|
|
|
$
|
326,316
|
|
|
$
|
(18,560
|
)
|
|
(4.0
|
)%
|
|
$
|
135,385
|
|
|
41.5
|
%
|
Industrial technology capital equipment
|
|
167,185
|
|
|
116,949
|
|
|
84,263
|
|
|
50,236
|
|
|
43.0
|
%
|
|
32,686
|
|
|
38.8
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%
|
|||||
Global Support
|
|
108,566
|
|
|
92,362
|
|
|
73,125
|
|
|
16,204
|
|
|
17.5
|
%
|
|
19,237
|
|
|
26.3
|
%
|
|||||
Total
|
|
$
|
718,892
|
|
|
$
|
671,012
|
|
|
$
|
483,704
|
|
|
$
|
47,880
|
|
|
7.1
|
%
|
|
$
|
187,308
|
|
|
38.7
|
%
|
|
|
Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
Semiconductor capital equipment
|
|
61.6
|
%
|
|
68.8
|
%
|
|
67.5
|
%
|
Industrial technology capital equipment
|
|
23.3
|
|
|
17.4
|
|
|
17.4
|
|
Global Support
|
|
15.1
|
|
|
13.8
|
|
|
15.1
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Research and development
|
|
$
|
76,008
|
|
|
10.6
|
%
|
|
$
|
57,999
|
|
|
8.6
|
%
|
|
$
|
44,445
|
|
|
9.2
|
%
|
Selling, general, and administrative
|
|
108,033
|
|
|
15.0
|
|
|
93,262
|
|
|
13.9
|
|
|
77,678
|
|
|
16.1
|
|
|||
Amortization of intangible assets
|
|
5,774
|
|
|
0.8
|
|
|
4,350
|
|
|
0.6
|
|
|
4,167
|
|
|
0.9
|
|
|||
Restructuring charges
|
|
4,239
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
|
$
|
194,054
|
|
|
27.0
|
%
|
|
$
|
155,611
|
|
|
23.1
|
%
|
|
$
|
126,290
|
|
|
26.2
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Sales, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of sales
|
(88
|
)
|
|
234
|
|
|
154
|
|
|||
Total operating (income) expenses
|
96
|
|
|
(1,576
|
)
|
|
(3,894
|
)
|
|||
Operating income (loss) from discontinued operations
|
(8
|
)
|
|
1,342
|
|
|
3,740
|
|
|||
Other income (expense)
|
(24
|
)
|
|
337
|
|
|
2,636
|
|
|||
Income (loss) discontinued operations before income taxes
|
(32
|
)
|
|
1,679
|
|
|
6,376
|
|
|||
Income tax expense (benefit)
|
6
|
|
|
(81
|
)
|
|
(4,130
|
)
|
|||
Income (loss) from discontinued operations, net of income taxes
|
$
|
(38
|
)
|
|
$
|
1,760
|
|
|
$
|
10,506
|
|
Reconciliation of Non-GAAP measure - operating expenses and operating income from continuing operations, excluding certain items
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Gross profit from continuing operations, as reported
|
$
|
365,607
|
|
|
$
|
356,381
|
|
|
$
|
253,147
|
|
Adjustments to gross profit:
|
|
|
|
|
|
||||||
Stock-based compensation
|
742
|
|
|
1,394
|
|
|
351
|
|
|||
Facility expansion and relocation costs
|
1,328
|
|
|
—
|
|
|
—
|
|
|||
Acquisition-related costs
|
569
|
|
|
—
|
|
|
—
|
|
|||
Non-GAAP gross profit
|
368,246
|
|
|
357,775
|
|
|
253,498
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses from continuing operations, as reported
|
194,054
|
|
|
155,611
|
|
|
126,290
|
|
|||
Adjustments:
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
(5,774
|
)
|
|
(4,350
|
)
|
|
(4,167
|
)
|
|||
Stock-based compensation
|
(8,961
|
)
|
|
(11,155
|
)
|
|
(5,981
|
)
|
|||
Acquisition-related costs
|
(1,726
|
)
|
|
(150
|
)
|
|
—
|
|
|||
Facility expansion and relocation costs
|
(518
|
)
|
|
—
|
|
|
—
|
|
|||
Restructuring charges
|
(4,239
|
)
|
|
—
|
|
|
—
|
|
|||
Non-GAAP operating expenses
|
172,836
|
|
|
139,956
|
|
|
116,142
|
|
|||
Non-GAAP operating income
|
$
|
195,410
|
|
|
$
|
217,819
|
|
|
$
|
137,356
|
|
Reconciliation of Non-GAAP measure - operating expenses and operating income from continuing operations, excluding certain items
|
Years Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Gross profit from continuing operations, as reported
|
50.9
|
%
|
|
53.1
|
%
|
|
52.3
|
%
|
Adjustments to gross profit:
|
|
|
|
|
|
|||
Stock-based compensation
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
Facility expansion and relocation costs
|
0.1
|
|
|
—
|
|
|
—
|
|
Acquisition-related costs
|
0.1
|
|
|
—
|
|
|
—
|
|
Non-GAAP gross profit
|
51.2
|
|
|
53.3
|
|
|
52.4
|
|
|
|
|
|
|
|
|||
Operating expenses from continuing operations, as reported
|
27.0
|
|
|
23.2
|
|
|
26.1
|
|
Adjustments:
|
|
|
|
|
|
|||
Amortization of intangible assets
|
(0.8
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
Stock-based compensation
|
(1.3
|
)
|
|
(1.8
|
)
|
|
(1.2
|
)
|
Acquisition-related costs
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
Facility expansion and relocation costs
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
Restructuring charges
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
Non-GAAP operating expenses
|
24.0
|
|
|
20.8
|
|
|
24.0
|
|
Non-GAAP operating income
|
27.2
|
%
|
|
32.5
|
%
|
|
28.4
|
%
|
Reconciliation of Non-GAAP measure - income from continuing operations, excluding certain items
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income from continuing operations, less noncontrolling interest, net of income taxes
|
$
|
147,063
|
|
|
$
|
136,101
|
|
|
$
|
116,948
|
|
Adjustments:
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
5,774
|
|
|
4,350
|
|
|
4,167
|
|
|||
Stock-based compensation
|
9,703
|
|
|
12,549
|
|
|
6,332
|
|
|||
Acquisition-related costs
|
2,295
|
|
|
150
|
|
|
—
|
|
|||
Facility expansion and relocation costs
|
1,846
|
|
|
—
|
|
|
—
|
|
|||
Restructuring charges
|
4,239
|
|
|
—
|
|
|
—
|
|
|||
Nonrecurring tax (benefit) expense associated with inverter business
|
—
|
|
|
(33,837
|
)
|
|
—
|
|
|||
Loss on foreign exchange hedge
|
—
|
|
|
3,489
|
|
|
—
|
|
|||
Incremental expense associated with start-up of the Asia regional headquarters
|
—
|
|
|
1,133
|
|
|
—
|
|
|||
Tax Cuts and Jobs Act Impact
|
5,703
|
|
|
72,867
|
|
|
—
|
|
|||
Tax effect of non-GAAP adjustments
|
(4,626
|
)
|
|
(5,264
|
)
|
|
(2,854
|
)
|
|||
Non-GAAP income from continuing operations, net of income taxes
|
$
|
171,997
|
|
|
$
|
191,538
|
|
|
$
|
124,593
|
|
Non-GAAP diluted earnings per share
|
$4.37
|
|
$4.77
|
|
$3.11
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net cash provided by operating activities from continuing operations
|
|
$
|
151,427
|
|
|
$
|
189,956
|
|
|
$
|
127,144
|
|
Net cash used in operating activities from discontinued operations
|
|
(156
|
)
|
|
(7,255
|
)
|
|
(7,857
|
)
|
|||
Net cash provided by operating activities
|
|
151,271
|
|
|
182,701
|
|
|
119,287
|
|
|||
|
|
|
|
|
|
|
||||||
Net cash (used in) provided by investing activities from continuing operations
|
|
(113,592
|
)
|
|
(28,082
|
)
|
|
300
|
|
|||
Net cash used in investing activities from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
|
(113,592
|
)
|
|
(28,082
|
)
|
|
300
|
|
|||
|
|
|
|
|
|
|
||||||
Net cash (used in) provided by financing activities from continuing operations
|
|
(97,134
|
)
|
|
(31,307
|
)
|
|
2,171
|
|
|||
Net cash used in financing activities from discontinued operations
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(97,134
|
)
|
|
(31,307
|
)
|
|
2,142
|
|
|||
|
|
|
|
|
|
|
||||||
EFFECT OF CURRENCY TRANSLATION ON CASH
|
|
(1,030
|
)
|
|
2,208
|
|
|
(1,932
|
)
|
|||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(60,485
|
)
|
|
125,520
|
|
|
119,797
|
|
|||
CASH AND CASH EQUIVALENTS, beginning of period
|
|
415,037
|
|
|
289,517
|
|
|
169,720
|
|
|||
CASH AND CASH EQUIVALENTS, end of period
|
|
354,552
|
|
|
415,037
|
|
|
289,517
|
|
|||
Less cash and cash equivalents from discontinued operations
|
|
5,251
|
|
|
7,754
|
|
|
7,564
|
|
|||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period
|
|
$
|
349,301
|
|
|
$
|
407,283
|
|
|
$
|
281,953
|
|
|
|
|
|
Less than 1 year
|
|
|
|
|
|
More than 5 years
|
||||||||||
|
|
Total
|
|
|
1-3 years
|
|
3-5 years
|
|
||||||||||||
Operating lease obligations
|
|
$
|
49,251
|
|
|
$
|
9,093
|
|
|
$
|
14,499
|
|
|
$
|
7,310
|
|
|
$
|
18,349
|
|
Purchase obligations
|
|
121,918
|
|
|
121,918
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income tax obligations
|
|
12,677
|
|
|
953
|
|
|
2,234
|
|
|
3,211
|
|
|
6,279
|
|
|||||
Pension funding commitment
|
|
21,036
|
|
|
828
|
|
|
1,656
|
|
|
1,656
|
|
|
16,896
|
|
|||||
Total
|
|
$
|
204,882
|
|
|
$
|
132,792
|
|
|
$
|
18,389
|
|
|
$
|
12,177
|
|
|
$
|
41,524
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
||
|
||
|
||
Consolidated Statements o
f Comprehensive Income
|
|
|
|
||
|
||
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|||
Current assets:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
349,301
|
|
|
$
|
407,283
|
|
Marketable securities
|
|
2,470
|
|
|
3,104
|
|
||
Accounts and other receivable, net of allowances of $1,856 and $1,748 respectively
|
|
100,442
|
|
|
87,429
|
|
||
Inventories
|
|
97,987
|
|
|
78,450
|
|
||
Income taxes receivable
|
|
2,220
|
|
|
1,295
|
|
||
Other current assets
|
|
10,173
|
|
|
8,129
|
|
||
Current assets from discontinued operations
|
|
5,855
|
|
|
9,535
|
|
||
Total current assets
|
|
568,448
|
|
|
595,225
|
|
||
Property and equipment, net
|
|
31,269
|
|
|
17,795
|
|
||
Deposits and other assets
|
|
6,874
|
|
|
3,051
|
|
||
Goodwill
|
|
101,900
|
|
|
53,812
|
|
||
Intangible assets, net
|
|
54,910
|
|
|
33,499
|
|
||
Deferred income tax assets
|
|
47,099
|
|
|
18,841
|
|
||
Non-current assets from discontinued operations
|
|
5,984
|
|
|
11,085
|
|
||
TOTAL ASSETS
|
|
$
|
816,484
|
|
|
$
|
733,308
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
39,646
|
|
|
$
|
48,177
|
|
Income taxes payable
|
|
13,258
|
|
|
5,365
|
|
||
Accrued payroll and employee benefits
|
|
21,775
|
|
|
18,412
|
|
||
Other accrued expenses
|
|
22,999
|
|
|
19,913
|
|
||
Customer deposits and other
|
|
7,345
|
|
|
6,402
|
|
||
Current liabilities from discontinued operations
|
|
5,286
|
|
|
7,850
|
|
||
Total current liabilities
|
|
110,309
|
|
|
106,119
|
|
||
|
|
|
|
|
||||
Deferred income tax liabilities
|
|
6,988
|
|
|
4,556
|
|
||
Uncertain tax positions
|
|
14,318
|
|
|
17,031
|
|
||
Long-term deferred revenue
|
|
29,108
|
|
|
33,402
|
|
||
Other long-term liabilities
|
|
37,744
|
|
|
36,282
|
|
||
Non-current liabilities from discontinued operations
|
|
10,715
|
|
|
15,277
|
|
||
Total liabilities
|
|
209,182
|
|
|
212,667
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
|
||||
Preferred stock, $0.001 par value, 1,000 shares authorized, none issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 70,000 shares authorized; 38,164 and 39,604 issued and outstanding, respectively
|
|
38
|
|
|
40
|
|
||
Additional paid-in capital
|
|
97,418
|
|
|
184,843
|
|
||
Accumulated other comprehensive income (loss)
|
|
(3,449
|
)
|
|
2,533
|
|
||
Retained earnings
|
|
512,783
|
|
|
333,225
|
|
||
Advanced Energy stockholders' equity
|
|
606,790
|
|
|
520,641
|
|
||
Noncontrolling interest
|
|
512
|
|
|
—
|
|
||
Total stockholders’ equity
|
|
607,302
|
|
|
520,641
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
816,484
|
|
|
$
|
733,308
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Sales, net:
|
|
|
|
|
|
|
||||||
Product
|
|
$
|
610,326
|
|
|
$
|
578,650
|
|
|
$
|
410,580
|
|
Services
|
|
108,566
|
|
|
92,362
|
|
|
73,124
|
|
|||
Total sales, net
|
|
718,892
|
|
|
671,012
|
|
|
483,704
|
|
|||
Cost of sales:
|
|
|
|
|
|
|
||||||
Product
|
|
298,597
|
|
|
267,587
|
|
|
192,694
|
|
|||
Services
|
|
54,688
|
|
|
47,044
|
|
|
37,863
|
|
|||
Total cost of sales
|
|
353,285
|
|
|
314,631
|
|
|
230,557
|
|
|||
Gross profit
|
|
365,607
|
|
|
356,381
|
|
|
253,147
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|||
Research and development
|
|
76,008
|
|
|
57,999
|
|
|
44,445
|
|
|||
Selling, general and administrative
|
|
108,033
|
|
|
93,262
|
|
|
77,678
|
|
|||
Amortization of intangible assets
|
|
5,774
|
|
|
4,350
|
|
|
4,167
|
|
|||
Restructuring expense
|
|
4,239
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
|
194,054
|
|
|
155,611
|
|
|
126,290
|
|
|||
Operating income
|
|
171,553
|
|
|
200,770
|
|
|
126,857
|
|
|||
Other income (expense), net
|
|
823
|
|
|
(2,579
|
)
|
|
1,219
|
|
|||
Income from continuing operations before income taxes
|
|
172,376
|
|
|
198,191
|
|
|
128,076
|
|
|||
Provision for income taxes
|
|
25,227
|
|
|
62,090
|
|
|
11,128
|
|
|||
Income from continuing operations
|
|
147,149
|
|
|
136,101
|
|
|
116,948
|
|
|||
Income (loss) from discontinued operations, net of income taxes
|
|
(38
|
)
|
|
1,760
|
|
|
10,506
|
|
|||
Net Income
|
|
$
|
147,111
|
|
|
$
|
137,861
|
|
|
$
|
127,454
|
|
Income from continuing operations attributable to noncontrolling interest
|
|
86
|
|
|
—
|
|
|
—
|
|
|||
Net income attributable to Advanced Energy Industries, Inc.
|
|
$
|
147,025
|
|
|
$
|
137,861
|
|
|
$
|
127,454
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average common shares outstanding
|
|
39,081
|
|
|
39,754
|
|
|
39,720
|
|
|||
Diluted weighted-average common shares outstanding
|
|
39,352
|
|
|
40,176
|
|
|
40,031
|
|
|||
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||
Continuing operations:
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
3.76
|
|
|
$
|
3.42
|
|
|
$
|
2.94
|
|
Diluted earnings per share
|
|
$
|
3.74
|
|
|
$
|
3.39
|
|
|
$
|
2.92
|
|
Discontinued operations:
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.26
|
|
Diluted earnings per share
|
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.26
|
|
Net income:
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
|
$
|
3.76
|
|
|
$
|
3.47
|
|
|
$
|
3.21
|
|
Diluted earnings per share
|
|
$
|
3.74
|
|
|
$
|
3.43
|
|
|
$
|
3.18
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$
|
147,111
|
|
|
$
|
137,861
|
|
|
$
|
127,454
|
|
Other comprehensive income:
|
|
|
|
|
|
|
||||||
Foreign currency translation
|
|
(5,285
|
)
|
|
8,305
|
|
|
(3,631
|
)
|
|||
Unrealized gain (loss) on marketable securities
|
|
—
|
|
|
(2
|
)
|
|
5
|
|
|||
Minimum benefit retirement liability
|
|
(697
|
)
|
|
1,163
|
|
|
(3,841
|
)
|
|||
Comprehensive income
|
|
$
|
141,129
|
|
|
$
|
147,327
|
|
|
$
|
119,987
|
|
Comprehensive income attributable to noncontrolling interest
|
|
86
|
|
|
—
|
|
|
—
|
|
|||
Comprehensive income attributable to Advanced Energy Industries, Inc.
|
|
$
|
141,043
|
|
|
$
|
147,327
|
|
|
$
|
119,987
|
|
|
|
Common Stock
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Foreign Currency Translation
|
|
Unrealized Gain (Loss) on Marketable Securities
|
|
Minimum Benefit Retirement Liability
|
|
Retained Earnings
|
|
Non-controlling Interest
|
|
Total Stockholders’ Equity
|
|||||||||||||||||
Balances, January 1, 2016
|
|
39,756
|
|
|
$
|
40
|
|
|
$
|
195,096
|
|
|
$
|
21
|
|
|
$
|
(3
|
)
|
|
$
|
516
|
|
|
$
|
67,910
|
|
|
$
|
—
|
|
|
$
|
263,580
|
|
Stock issued from equity plans
|
|
299
|
|
|
—
|
|
|
2,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,175
|
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
6,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,332
|
|
||||||||
Stock buyback
|
|
(343
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,631
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,631
|
)
|
||||||||
Unrealized gain on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
Minimum benefit retirement liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,841
|
)
|
|
—
|
|
|
—
|
|
|
(3,841
|
)
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127,454
|
|
|
—
|
|
|
127,454
|
|
||||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,631
|
)
|
|
5
|
|
|
(3,841
|
)
|
|
127,454
|
|
|
—
|
|
|
119,987
|
|
||||||||
Balances, December 31, 2016
|
|
39,712
|
|
|
$
|
40
|
|
|
$
|
203,603
|
|
|
$
|
(3,610
|
)
|
|
$
|
2
|
|
|
$
|
(3,325
|
)
|
|
$
|
195,364
|
|
|
$
|
—
|
|
|
$
|
392,074
|
|
Stock issued from equity plans
|
|
314
|
|
|
—
|
|
|
(1,316
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,316
|
)
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
12,549
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,549
|
|
||||||||
Stock buyback
|
|
(422
|
)
|
|
—
|
|
|
(29,993
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,993
|
)
|
||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,305
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,305
|
|
||||||||
Unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||||
Minimum benefit retirement liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,163
|
|
|
—
|
|
|
—
|
|
|
1,163
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137,861
|
|
|
—
|
|
|
137,861
|
|
||||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,305
|
|
|
(2
|
)
|
|
1,163
|
|
|
137,861
|
|
|
—
|
|
|
147,327
|
|
||||||||
Balances, December 31, 2017
|
|
39,604
|
|
|
$
|
40
|
|
|
$
|
184,843
|
|
|
$
|
4,695
|
|
|
$
|
—
|
|
|
$
|
(2,162
|
)
|
|
$
|
333,225
|
|
|
$
|
—
|
|
|
$
|
520,641
|
|
Adoption of new accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,533
|
|
|
—
|
|
|
32,533
|
|
||||||||
Non-controlling interest from acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
|
426
|
|
||||||||
Stock issued from equity plans
|
|
256
|
|
|
—
|
|
|
(2,005
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,005
|
)
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
9,703
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,703
|
|
||||||||
Stock buyback
|
|
(1,696
|
)
|
|
(2
|
)
|
|
(95,123
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95,125
|
)
|
||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,285
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,285
|
)
|
||||||||
Minimum benefit retirement liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,025
|
|
|
86
|
|
|
147,111
|
|
||||||||
Total comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,285
|
)
|
|
—
|
|
|
(697
|
)
|
|
147,025
|
|
|
86
|
|
|
141,129
|
|
||||||||
Balances at December 31, 2018
|
|
38,164
|
|
|
$
|
38
|
|
|
$
|
97,418
|
|
|
$
|
(590
|
)
|
|
$
|
—
|
|
|
$
|
(2,859
|
)
|
|
$
|
512,783
|
|
|
$
|
512
|
|
|
$
|
607,302
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
147,111
|
|
|
$
|
137,861
|
|
|
$
|
127,454
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
(38
|
)
|
|
1,760
|
|
|
10,506
|
|
|||
Income from continuing operations, net of income taxes
|
|
147,149
|
|
|
136,101
|
|
|
116,948
|
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
|
13,592
|
|
|
9,424
|
|
|
7,813
|
|
|||
Stock-based compensation expense
|
|
9,703
|
|
|
12,549
|
|
|
6,332
|
|
|||
Provision for deferred income taxes
|
|
5,618
|
|
|
28,765
|
|
|
3,570
|
|
|||
Loss on foreign exchange hedge
|
|
—
|
|
|
3,489
|
|
|
—
|
|
|||
Net loss on disposal of assets
|
|
481
|
|
|
122
|
|
|
319
|
|
|||
Changes in operating assets and liabilities, net of assets acquired:
|
|
|
|
|
|
|
|
|||||
Accounts and other receivable, net
|
|
3,445
|
|
|
(7,497
|
)
|
|
(21,603
|
)
|
|||
Inventories
|
|
(11,276
|
)
|
|
(19,261
|
)
|
|
(6,359
|
)
|
|||
Other current assets
|
|
(2,975
|
)
|
|
(1,030
|
)
|
|
(1,358
|
)
|
|||
Accounts payable
|
|
(12,618
|
)
|
|
1,812
|
|
|
18,957
|
|
|||
Other liabilities and accrued expenses
|
|
(3,239
|
)
|
|
7,159
|
|
|
2,169
|
|
|||
Income taxes
|
|
1,547
|
|
|
18,323
|
|
|
356
|
|
|||
Net cash provided by operating activities from continuing operations
|
|
151,427
|
|
|
189,956
|
|
|
127,144
|
|
|||
Net cash used in operating activities from discontinued operations
|
|
(156
|
)
|
|
(7,255
|
)
|
|
(7,857
|
)
|
|||
Net cash provided by operating activities
|
|
151,271
|
|
|
182,701
|
|
|
119,287
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
||||
Purchases of marketable securities
|
|
(95
|
)
|
|
(107
|
)
|
|
(763
|
)
|
|||
Proceeds from sale of marketable securities
|
|
589
|
|
|
1,903
|
|
|
7,884
|
|
|||
Acquisitions, net of cash acquired
|
|
(93,756
|
)
|
|
(17,347
|
)
|
|
—
|
|
|||
Purchase of foreign exchange hedge
|
|
—
|
|
|
(3,489
|
)
|
|
—
|
|
|||
Purchases of property and equipment
|
|
(20,330
|
)
|
|
(9,042
|
)
|
|
(6,821
|
)
|
|||
Net cash (used in) provided by investing activities from continuing operations
|
|
(113,592
|
)
|
|
(28,082
|
)
|
|
300
|
|
|||
Net cash used in investing activities from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
|
(113,592
|
)
|
|
(28,082
|
)
|
|
300
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Purchase and retirement of common stock
|
|
(95,125
|
)
|
|
(29,993
|
)
|
|
—
|
|
|||
Net (payments) proceeds related to stock-based award activities
|
|
(2,009
|
)
|
|
(1,314
|
)
|
|
2,171
|
|
|||
Net cash (used in) provided by financing activities from continuing operations
|
|
(97,134
|
)
|
|
(31,307
|
)
|
|
2,171
|
|
|||
Net cash used in financing activities from discontinued operations
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(97,134
|
)
|
|
(31,307
|
)
|
|
2,142
|
|
|||
EFFECT OF CURRENCY TRANSLATION ON CASH
|
|
(1,030
|
)
|
|
2,208
|
|
|
(1,932
|
)
|
|||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(60,485
|
)
|
|
125,520
|
|
|
119,797
|
|
|||
CASH AND CASH EQUIVALENTS, beginning of period
|
|
415,037
|
|
|
289,517
|
|
|
169,720
|
|
|||
CASH AND CASH EQUIVALENTS, end of period
|
|
354,552
|
|
|
415,037
|
|
|
289,517
|
|
|||
Less cash and cash equivalents from discontinued operations
|
|
5,251
|
|
|
7,754
|
|
|
7,564
|
|
|||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period
|
|
$
|
349,301
|
|
|
$
|
407,283
|
|
|
$
|
281,953
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|||
Cash paid for interest
|
|
$
|
228
|
|
|
$
|
66
|
|
|
$
|
173
|
|
Cash paid for income taxes
|
|
16,190
|
|
|
5,314
|
|
|
5,647
|
|
|||
Cash received for refunds of income taxes
|
|
1,135
|
|
|
1,448
|
|
|
2,232
|
|
|||
Cash held in banks outside the United States
|
|
192,441
|
|
|
285,686
|
|
|
230,168
|
|
NOTE 1.
|
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balances at beginning of period
|
|
$
|
1,748
|
|
|
$
|
1,943
|
|
|
$
|
8,739
|
|
Additions from acquisition
|
|
416
|
|
|
—
|
|
|
—
|
|
|||
Additions - charged to expense
|
|
109
|
|
|
—
|
|
|
1,332
|
|
|||
Deductions - write-offs, net of recoveries
|
|
(417
|
)
|
|
(195
|
)
|
|
(8,128
|
)
|
|||
Balances at end of period
|
|
$
|
1,856
|
|
|
$
|
1,748
|
|
|
$
|
1,943
|
|
|
December 31, 2017
|
|
Impact of
|
|
Impact of
|
|
January 1, 2018
|
||||||||
|
as reported
|
|
ASC 606
|
|
ASU 2016-16
|
|
as adjusted
|
||||||||
Accounts and other receivable, net
|
$
|
87,429
|
|
|
$
|
8,251
|
|
|
$
|
—
|
|
|
$
|
95,680
|
|
Inventories
|
78,450
|
|
|
(3,561
|
)
|
|
—
|
|
|
74,889
|
|
||||
Total current assets
|
595,225
|
|
|
4,690
|
|
|
—
|
|
|
599,915
|
|
||||
Deferred income tax assets
|
18,841
|
|
|
—
|
|
|
29,907
|
|
|
48,748
|
|
||||
Total assets
|
733,308
|
|
|
4,690
|
|
|
29,907
|
|
|
767,905
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income taxes payable
|
5,365
|
|
|
—
|
|
|
921
|
|
|
6,286
|
|
||||
Deferred income tax liabilities
|
4,556
|
|
|
1,143
|
|
|
—
|
|
|
5,699
|
|
||||
Total liabilities
|
212,667
|
|
|
1,143
|
|
|
921
|
|
|
214,731
|
|
||||
Retained earnings
|
333,225
|
|
|
3,547
|
|
|
28,986
|
|
|
365,758
|
|
||||
Total stockholders’ equity
|
520,641
|
|
|
3,547
|
|
|
28,986
|
|
|
553,174
|
|
||||
Total liabilities and stockholders' equity
|
733,308
|
|
|
4,690
|
|
|
29,907
|
|
|
767,905
|
|
NOTE 2.
|
BUSINESS ACQUISITIONS
|
|
2018
|
|
|
|
2017
|
||||||||||||||
|
Trek
|
|
Electrostatic Product Line
|
|
LumaSense
|
|
Total
|
|
Excelsys
|
||||||||||
Cash paid for acquisition
|
$
|
11,723
|
|
|
$
|
3,000
|
|
|
$
|
94,946
|
|
|
$
|
109,669
|
|
|
$
|
18,512
|
|
Cash acquired
|
(5,651
|
)
|
|
—
|
|
|
(10,262
|
)
|
|
(15,913
|
)
|
|
(1,165
|
)
|
|||||
Total fair value of consideration transferred
|
$
|
6,072
|
|
|
$
|
3,000
|
|
|
$
|
84,684
|
|
|
$
|
93,756
|
|
|
$
|
17,347
|
|
|
2018
|
|
|
|
2017
|
||||||||||||||
|
Trek
|
|
Electrostatic Product Line
|
|
LumaSense
|
|
Total
|
|
Excelsys
|
||||||||||
Accounts and other receivable, net
|
$
|
2,818
|
|
|
$
|
77
|
|
|
$
|
7,167
|
|
|
$
|
10,062
|
|
|
$
|
1,930
|
|
Inventories
|
3,941
|
|
|
292
|
|
|
9,372
|
|
|
13,605
|
|
|
1,048
|
|
|||||
Property and equipment
|
594
|
|
|
50
|
|
|
1,353
|
|
|
1,997
|
|
|
256
|
|
|||||
Goodwill
|
—
|
|
|
1,220
|
|
|
48,032
|
|
|
49,252
|
|
|
8,929
|
|
|||||
Intangible assets
|
788
|
|
|
1,400
|
|
|
26,000
|
|
|
28,188
|
|
|
7,585
|
|
|||||
Deferred income tax assets
|
606
|
|
|
—
|
|
|
8,116
|
|
|
8,722
|
|
|
35
|
|
|||||
Other assets
|
854
|
|
|
—
|
|
|
5,126
|
|
|
5,980
|
|
|
605
|
|
|||||
Total assets acquired
|
9,601
|
|
|
3,039
|
|
|
105,166
|
|
|
117,806
|
|
|
20,388
|
|
|||||
Accounts payable
|
747
|
|
|
39
|
|
|
5,734
|
|
|
6,520
|
|
|
1,342
|
|
|||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
7,984
|
|
|
7,984
|
|
|
946
|
|
|||||
Other liabilities
|
2,782
|
|
|
—
|
|
|
6,764
|
|
|
9,546
|
|
|
753
|
|
|||||
Total liabilities assumed
|
3,529
|
|
|
39
|
|
|
20,482
|
|
|
24,050
|
|
|
3,041
|
|
|||||
Total fair value of net assets acquired
|
$
|
6,072
|
|
|
$
|
3,000
|
|
|
$
|
84,684
|
|
|
$
|
93,756
|
|
|
$
|
17,347
|
|
|
2018
|
|
2017
|
|
Method and Useful life
|
||||||||||||||
|
Trek
|
|
Electrostatic Product Line
|
|
LumaSense
|
|
Excelsys
|
|
Amortization Method
|
|
Useful Life
|
||||||||
Technology
|
$
|
671
|
|
|
$
|
1,200
|
|
|
$
|
20,000
|
|
|
$
|
5,808
|
|
|
Straight-line
|
|
10
|
Customer relationships
|
117
|
|
|
200
|
|
|
6,000
|
|
|
1,595
|
|
|
Straight-line
|
|
10
|
||||
Tradename
|
—
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
Straight-line
|
|
5
|
||||
Total
|
$
|
788
|
|
|
$
|
1,400
|
|
|
$
|
26,000
|
|
|
$
|
7,585
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
As reported
|
|
Pro forma
|
|
As reported
|
|
Pro forma
|
||||||||
Total sales
|
718,892
|
|
|
758,934
|
|
|
671,012
|
|
|
752,091
|
|
||||
Net income attributable to Advanced Energy Industries, Inc.
|
147,025
|
|
|
148,456
|
|
|
137,861
|
|
|
141,907
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
3.76
|
|
|
$
|
3.80
|
|
|
$
|
3.47
|
|
|
$
|
3.57
|
|
Diluted earnings per share
|
$
|
3.74
|
|
|
$
|
3.77
|
|
|
$
|
3.43
|
|
|
$
|
3.53
|
|
NOTE 3.
|
REVENUE
|
|
|
December 31, 2018
|
||||||||||
|
|
|
|
|
|
Balances without
|
||||||
|
|
|
|
|
|
adoption of
|
||||||
|
|
As Reported
|
|
Adjustments
|
|
ASC 606
|
||||||
Accounts and other receivable, net
|
|
$
|
100,442
|
|
|
$
|
(19,733
|
)
|
|
$
|
80,709
|
|
Inventories
|
|
97,987
|
|
|
8,218
|
|
|
106,205
|
|
|||
Total current assets
|
|
568,448
|
|
|
(11,515
|
)
|
|
556,933
|
|
|||
TOTAL ASSETS
|
|
816,484
|
|
|
(11,515
|
)
|
|
804,969
|
|
|||
|
|
|
|
|
|
|
||||||
Income taxes payable
|
|
13,258
|
|
|
(1,606
|
)
|
|
11,652
|
|
|||
Total current liabilities
|
|
110,309
|
|
|
(1,606
|
)
|
|
108,703
|
|
|||
Deferred income tax liabilities
|
|
6,988
|
|
|
(1,143
|
)
|
|
5,845
|
|
|||
Total liabilities
|
|
209,182
|
|
|
(2,749
|
)
|
|
206,433
|
|
|||
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
512,783
|
|
|
(8,766
|
)
|
|
504,017
|
|
|||
Advanced Energy stockholders’ equity
|
|
606,790
|
|
|
(8,766
|
)
|
|
598,024
|
|
|||
Total stockholders’ equity
|
|
607,302
|
|
|
(8,766
|
)
|
|
598,536
|
|
|||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
816,484
|
|
|
(11,515
|
)
|
|
804,969
|
|
|
|
Year Ended December 31, 2018
|
||||||||||
|
|
|
|
|
|
Balances without
|
||||||
|
|
|
|
|
|
adoption of
|
||||||
|
|
As Reported
|
|
Adjustments
|
|
ASC 606
|
||||||
Product sales
|
|
$
|
610,326
|
|
|
$
|
(11,482
|
)
|
|
$
|
598,844
|
|
Total sales, net
|
|
718,892
|
|
|
(11,482
|
)
|
|
707,410
|
|
|||
Product cost of sales
|
|
298,597
|
|
|
(4,657
|
)
|
|
293,940
|
|
|||
Total cost of sales
|
|
353,285
|
|
|
(4,657
|
)
|
|
348,628
|
|
|||
Gross profit
|
|
365,607
|
|
|
(6,825
|
)
|
|
358,782
|
|
|||
Operating income
|
|
171,553
|
|
|
(6,825
|
)
|
|
164,728
|
|
|||
Income from continuing operations, before income taxes
|
|
172,376
|
|
|
(6,825
|
)
|
|
165,551
|
|
|||
Provision (benefit) for income taxes
|
|
25,227
|
|
|
(1,606
|
)
|
|
23,621
|
|
|||
Income from continuing operations
|
|
147,149
|
|
|
(5,219
|
)
|
|
141,930
|
|
|||
Net income
|
|
147,111
|
|
|
(5,219
|
)
|
|
141,892
|
|
|||
Net income attributable to Advanced Energy Industries, Inc.
|
|
147,025
|
|
|
(5,219
|
)
|
|
141,806
|
|
|
|
Year Ended December 31, 2018
|
|||||||
|
|
|
|
|
|
Balances without
|
|||
|
|
|
|
|
|
adoption of
|
|||
|
|
As Reported
|
|
Adjustments
|
|
ASC 606
|
|||
Net income
|
|
147,111
|
|
|
(5,219
|
)
|
|
141,892
|
|
Income from continuing operations, net of income taxes
|
|
147,149
|
|
|
(5,219
|
)
|
|
141,930
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|||
Provision for deferred income taxes
|
|
5,618
|
|
|
(1,606
|
)
|
|
4,012
|
|
Changes in operating assets and liabilities, net of assets acquired:
|
|
|
|
|
|
|
|||
Accounts and other receivable, net
|
|
3,445
|
|
|
11,482
|
|
|
14,927
|
|
Inventories
|
|
(11,276
|
)
|
|
(4,657
|
)
|
|
(15,933
|
)
|
Net cash provided by operating activities from continuing operations
|
|
151,427
|
|
|
—
|
|
|
151,427
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Semiconductor capital market
|
$
|
443,141
|
|
|
$
|
461,701
|
|
|
$
|
326,316
|
|
Industrial technology capital market
|
167,185
|
|
|
116,949
|
|
|
84,263
|
|
|||
Global support
|
108,566
|
|
|
92,362
|
|
|
73,125
|
|
|||
Total
|
$
|
718,892
|
|
|
$
|
671,012
|
|
|
$
|
483,704
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Sales to external customers:
|
|
|||||||||||||||||||
United States
|
$
|
370,839
|
|
|
51.5
|
%
|
|
$
|
375,907
|
|
|
56.0
|
%
|
|
$
|
327,397
|
|
|
67.7
|
%
|
Other North American countries
|
1,995
|
|
|
0.3
|
|
|
1,440
|
|
|
0.2
|
|
|
161
|
|
|
—
|
|
|||
North America
|
372,834
|
|
|
51.8
|
|
|
377,347
|
|
|
56.2
|
|
|
327,558
|
|
|
67.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Republic of Korea
|
74,542
|
|
|
10.4
|
|
|
83,899
|
|
|
12.5
|
|
|
43,359
|
|
|
9.0
|
|
|||
People's Republic of China
|
61,927
|
|
|
8.6
|
|
|
46,099
|
|
|
6.9
|
|
|
16,207
|
|
|
3.4
|
|
|||
Other Asian countries
|
114,105
|
|
|
15.9
|
|
|
91,692
|
|
|
13.7
|
|
|
34,279
|
|
|
7.1
|
|
|||
Asia
|
250,574
|
|
|
34.9
|
|
|
221,690
|
|
|
33.1
|
|
|
93,845
|
|
|
19.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Germany
|
39,710
|
|
|
5.5
|
|
|
30,517
|
|
|
4.6
|
|
|
48,589
|
|
|
10.0
|
|
|||
Other European countries
|
55,083
|
|
|
7.7
|
|
|
41,279
|
|
|
6.1
|
|
|
13,712
|
|
|
2.8
|
|
|||
Europe
|
94,793
|
|
|
13.2
|
|
|
71,796
|
|
|
10.7
|
|
|
62,301
|
|
|
12.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other countries
|
691
|
|
|
0.1
|
|
|
179
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
718,892
|
|
|
100.0
|
%
|
|
$
|
671,012
|
|
|
100.0
|
%
|
|
$
|
483,704
|
|
|
100.0
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Product and service revenue recognized at point in time
|
$
|
715,055
|
|
|
$
|
667,440
|
|
|
$
|
480,696
|
|
Extended warranty and service contracts recognized over time
|
3,837
|
|
|
3,572
|
|
|
3,008
|
|
|||
Total
|
$
|
718,892
|
|
|
$
|
671,012
|
|
|
$
|
483,704
|
|
NOTE 4.
|
DISCONTINUED OPERATIONS
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Sales, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost of sales
|
(88
|
)
|
|
234
|
|
|
154
|
|
|||
Total operating expense (benefit)
|
96
|
|
|
(1,576
|
)
|
|
(3,894
|
)
|
|||
Operating income (loss) from discontinued operations
|
(8
|
)
|
|
1,342
|
|
|
3,740
|
|
|||
Other income (expense)
|
(24
|
)
|
|
337
|
|
|
2,636
|
|
|||
Income (loss) from discontinued operations before income taxes
|
(32
|
)
|
|
1,679
|
|
|
6,376
|
|
|||
Provision (benefit) for income taxes
|
6
|
|
|
(81
|
)
|
|
(4,130
|
)
|
|||
Income (loss) from discontinued operations, net of income taxes
|
$
|
(38
|
)
|
|
$
|
1,760
|
|
|
$
|
10,506
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash and cash equivalents
|
|
$
|
5,251
|
|
|
$
|
7,754
|
|
Accounts and other receivables, net
|
|
406
|
|
|
1,363
|
|
||
Inventories
|
|
198
|
|
|
418
|
|
||
Current assets of discontinued operations
|
|
$
|
5,855
|
|
|
$
|
9,535
|
|
|
|
|
|
|
||||
Other assets
|
|
$
|
67
|
|
|
$
|
72
|
|
Deferred income tax assets
|
|
5,917
|
|
|
11,013
|
|
||
Non-current assets of discontinued operations
|
|
$
|
5,984
|
|
|
$
|
11,085
|
|
|
|
|
|
|
||||
Accounts payable and other accrued expenses
|
|
$
|
350
|
|
|
$
|
545
|
|
Accrued warranty
|
|
4,936
|
|
|
7,305
|
|
||
Current liabilities of discontinued operations
|
|
$
|
5,286
|
|
|
$
|
7,850
|
|
|
|
|
|
|
||||
Accrued warranty
|
|
$
|
10,429
|
|
|
$
|
15,112
|
|
Other liabilities
|
|
286
|
|
|
165
|
|
||
Non-current liabilities of discontinued operations
|
|
$
|
10,715
|
|
|
$
|
15,277
|
|
NOTE 5.
|
INCOME TAXES
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Domestic
|
|
$
|
22,325
|
|
|
$
|
29,088
|
|
|
$
|
13,776
|
|
Foreign
|
|
150,051
|
|
|
169,103
|
|
|
114,300
|
|
|||
|
|
$
|
172,376
|
|
|
$
|
198,191
|
|
|
$
|
128,076
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
1,423
|
|
|
$
|
26,550
|
|
|
$
|
3,187
|
|
State
|
|
12
|
|
|
601
|
|
|
351
|
|
|||
Foreign
|
|
13,772
|
|
|
9,621
|
|
|
3,081
|
|
|||
Total current provision
|
|
$
|
15,207
|
|
|
$
|
36,772
|
|
|
$
|
6,619
|
|
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
4,021
|
|
|
$
|
28,297
|
|
|
$
|
3,110
|
|
State
|
|
2,363
|
|
|
(1,000
|
)
|
|
1,564
|
|
|||
Foreign
|
|
3,636
|
|
|
(1,979
|
)
|
|
(165
|
)
|
|||
Total deferred provision
|
|
10,020
|
|
|
25,318
|
|
|
4,509
|
|
|||
Total provision for income taxes
|
|
$
|
25,227
|
|
|
$
|
62,090
|
|
|
$
|
11,128
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income taxes per federal statutory rate
|
|
$
|
36,199
|
|
|
$
|
69,348
|
|
|
$
|
44,826
|
|
State income taxes, net of federal deduction
|
|
2,372
|
|
|
1,794
|
|
|
963
|
|
|||
Transition tax - U.S. Tax Reform
|
|
1,174
|
|
|
61,690
|
|
|
—
|
|
|||
Corporate tax rate change - U.S. Tax Reform
|
|
(652
|
)
|
|
11,177
|
|
|
—
|
|
|||
Tax benefit associated with inverter business wind down
|
|
—
|
|
|
(33,837
|
)
|
|
—
|
|
|||
Stock based compensation
|
|
(974
|
)
|
|
(5,263
|
)
|
|
1,117
|
|
|||
GILTI Tax
|
|
13,064
|
|
|
—
|
|
|
—
|
|
|||
Tax effect of foreign operations
|
|
(19,162
|
)
|
|
(47,482
|
)
|
|
(31,651
|
)
|
|||
Uncertain tax position
|
|
(3,088
|
)
|
|
4,948
|
|
|
1,636
|
|
|||
Unremitted earnings
|
|
2,564
|
|
|
—
|
|
|
—
|
|
|||
Tax credits
|
|
(9,844
|
)
|
|
(658
|
)
|
|
(4,495
|
)
|
|||
Other permanent items, net
|
|
3,574
|
|
|
373
|
|
|
(1,268
|
)
|
|||
|
|
$
|
25,227
|
|
|
$
|
62,090
|
|
|
$
|
11,128
|
|
|
|
Years Ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Deferred tax assets
|
|
|
|
|
||||
Stock based compensation
|
|
$
|
1,337
|
|
|
$
|
1,295
|
|
Net operating loss and tax credit carryforwards
|
|
38,622
|
|
|
40,572
|
|
||
Pension obligation
|
|
3,302
|
|
|
3,363
|
|
||
Excess and obsolete inventory
|
|
2,161
|
|
|
841
|
|
||
Deferred revenue
|
|
6,903
|
|
|
4,519
|
|
||
Employee bonuses and commissions
|
|
1,874
|
|
|
1,112
|
|
||
Depreciation and Amortization
|
|
29,525
|
|
|
—
|
|
||
Other
|
|
9,961
|
|
|
2,118
|
|
||
Deferred tax assets
|
|
93,685
|
|
|
53,820
|
|
||
Less: Valuation allowance
|
|
(30,924
|
)
|
|
(32,267
|
)
|
||
Net deferred tax assets
|
|
62,761
|
|
|
21,553
|
|
||
Deferred tax liabilities
|
|
|
|
|
||||
Depreciation and amortization
|
|
17,723
|
|
|
2,605
|
|
||
Foreign other
|
|
—
|
|
|
3,448
|
|
||
Unremitted earnings
|
|
3,529
|
|
|
—
|
|
||
Other
|
|
1,267
|
|
|
62
|
|
||
Deferred tax liabilities
|
|
22,519
|
|
|
6,115
|
|
||
Net deferred tax assets
|
|
$
|
40,242
|
|
|
$
|
15,438
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of period
|
|
$
|
15,990
|
|
|
$
|
11,401
|
|
|
$
|
10,049
|
|
Additions based on tax positions taken during a prior period
|
|
94
|
|
|
1,258
|
|
|
104
|
|
|||
Additions based on tax positions taken during a prior period - LumaSense
|
|
757
|
|
|
—
|
|
|
—
|
|
|||
Additions based on tax positions taken during the current period
|
|
—
|
|
|
4,433
|
|
|
2,318
|
|
|||
Reductions based on tax positions taken during a prior period
|
|
(153
|
)
|
|
—
|
|
|
—
|
|
|||
Reductions related to a lapse of applicable statute of limitations
|
|
(3,144
|
)
|
|
(1,102
|
)
|
|
(1,070
|
)
|
|||
Reductions related to a settlement with taxing authorities
|
|
(382
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at end of period
|
|
$
|
13,162
|
|
|
$
|
15,990
|
|
|
$
|
11,401
|
|
NOTE 6.
|
EARNINGS PER SHARE
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income from continuing operations
|
$
|
147,149
|
|
|
$
|
136,101
|
|
|
$
|
116,948
|
|
Income from continuing operations attributable to noncontrolling interest
|
86
|
|
|
—
|
|
|
—
|
|
|||
Income from continuing operations attributable to Advanced Energy Industries, Inc.
|
$
|
147,063
|
|
|
$
|
136,101
|
|
|
$
|
116,948
|
|
|
|
|
|
|
|
||||||
Basic weighted-average common shares outstanding
|
39,081
|
|
|
39,754
|
|
|
39,720
|
|
|||
Assumed exercise of dilutive stock options and restricted stock units
|
271
|
|
|
422
|
|
|
311
|
|
|||
Diluted weighted-average common shares outstanding
|
39,352
|
|
|
40,176
|
|
|
40,031
|
|
|||
Continuing operations:
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
3.76
|
|
|
$
|
3.42
|
|
|
$
|
2.94
|
|
Diluted earnings per share
|
$
|
3.74
|
|
|
$
|
3.39
|
|
|
$
|
2.92
|
|
|
|
Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
Restricted stock units
|
|
2
|
|
|
—
|
|
|
1
|
|
NOTE 7.
|
MARKETABLE SECURITIES AND ASSETS MEASURED AT FAIR VALUE
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
Certificates of deposit
|
$
|
2,463
|
|
|
$
|
2,470
|
|
|
$
|
3,103
|
|
|
$
|
3,104
|
|
|
|
Earliest
|
|
|
|
Latest
|
Certificates of deposit
|
|
3/18/2019
|
|
to
|
|
10/17/2019
|
December 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
2,470
|
|
|
$
|
—
|
|
|
$
|
2,470
|
|
|
|
||||||||||||||
December 31, 2017
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
3,104
|
|
|
$
|
—
|
|
|
$
|
3,104
|
|
NOTE 8.
|
DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Foreign currency loss from foreign currency exchange contracts
|
|
$
|
(750
|
)
|
|
$
|
(1,438
|
)
|
|
$
|
(569
|
)
|
NOTE 9.
|
ACCOUNTS AND OTHER RECEIVABLE
|
|
December 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Invoiced receivables, net
|
$
|
80,709
|
|
|
$
|
87,429
|
|
Uninvoiced receivables
|
19,733
|
|
|
—
|
|
||
Total receivables, net
|
$
|
100,442
|
|
|
$
|
87,429
|
|
NOTE 10.
|
INVENTORIES
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Parts and raw materials
|
$
|
76,647
|
|
|
$
|
58,567
|
|
Work in process
|
6,644
|
|
|
7,986
|
|
||
Finished goods
|
14,696
|
|
|
11,897
|
|
||
Total
|
$
|
97,987
|
|
|
$
|
78,450
|
|
NOTE 11.
|
PROPERTY AND EQUIPMENT, NET
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Buildings and land
|
$
|
1,737
|
|
|
$
|
1,788
|
|
Machinery and equipment
|
41,330
|
|
|
36,579
|
|
||
Computer and communication equipment
|
24,051
|
|
|
26,819
|
|
||
Furniture and fixtures
|
3,203
|
|
|
1,568
|
|
||
Vehicles
|
282
|
|
|
341
|
|
||
Leasehold improvements
|
20,593
|
|
|
17,286
|
|
||
Construction in process
|
867
|
|
|
802
|
|
||
|
92,063
|
|
|
85,183
|
|
||
Less: Accumulated depreciation
|
(60,794
|
)
|
|
(67,388
|
)
|
||
Total property and equipment, net
|
$
|
31,269
|
|
|
$
|
17,795
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Depreciation expense
|
|
$
|
7,818
|
|
|
$
|
5,074
|
|
|
$
|
3,646
|
|
NOTE 12.
|
GOODWILL
|
Goodwill
|
Beginning Balance
|
|
Additions
|
|
Effect of Changes in Exchange Rates
|
|
Ending Balance
|
||||||||
December 31, 2018
|
$
|
53,812
|
|
|
$
|
49,252
|
|
|
$
|
(1,164
|
)
|
|
$
|
101,900
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
$
|
42,125
|
|
|
$
|
8,929
|
|
|
$
|
2,758
|
|
|
$
|
53,812
|
|
NOTE 13.
|
INTANGIBLE ASSETS
|
|
|
December 31, 2018
|
||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
Technology
|
|
$
|
39,879
|
|
|
$
|
(7,927
|
)
|
|
$
|
31,952
|
|
Customer relationships
|
|
35,509
|
|
|
(13,484
|
)
|
|
22,025
|
|
|||
Trademarks and other
|
|
2,501
|
|
|
(1,568
|
)
|
|
933
|
|
|||
Total
|
|
$
|
77,889
|
|
|
$
|
(22,979
|
)
|
|
$
|
54,910
|
|
|
|
December 31, 2017
|
||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
Technology
|
|
$
|
18,702
|
|
|
$
|
(5,559
|
)
|
|
$
|
13,143
|
|
Customer relationships
|
|
30,034
|
|
|
(10,787
|
)
|
|
19,247
|
|
|||
Trademarks and other
|
|
2,623
|
|
|
(1,514
|
)
|
|
1,109
|
|
|||
Total
|
|
$
|
51,359
|
|
|
$
|
(17,860
|
)
|
|
$
|
33,499
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Amortization expense
|
|
$
|
5,774
|
|
|
$
|
4,350
|
|
|
$
|
4,167
|
|
NOTE 14.
|
RESTRUCTURING COSTS
|
|
Balance at December 31, 2017
|
|
Cost incurred and charged to expense
|
|
Cost paid or otherwise settled
|
|
Effect of change in exchange rates
|
|
Balance at December 31, 2018
|
|||||
Severance and related charges
|
—
|
|
|
4,239
|
|
|
433
|
|
|
—
|
|
|
3,806
|
|
NOTE 15.
|
WARRANTIES
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balances at beginning of period
|
|
$
|
2,312
|
|
|
$
|
2,329
|
|
|
$
|
1,633
|
|
Warranty liabilities acquired
|
|
305
|
|
|
118
|
|
|
—
|
|
|||
Increases to accruals
|
|
1,606
|
|
|
2,029
|
|
|
1,802
|
|
|||
Warranty expenditures
|
|
(2,127
|
)
|
|
(2,184
|
)
|
|
(1,058
|
)
|
|||
Effect of changes in exchange rates
|
|
(12
|
)
|
|
20
|
|
|
(48
|
)
|
|||
Balances at end of period
|
|
$
|
2,084
|
|
|
$
|
2,312
|
|
|
$
|
2,329
|
|
NOTE 16.
|
PENSION LIABILITY
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Interest cost
|
$
|
793
|
|
|
$
|
809
|
|
|
$
|
993
|
|
Expected return on plan assets
|
(670
|
)
|
|
(597
|
)
|
|
(527
|
)
|
|||
Amortization of actuarial gains and losses
|
478
|
|
|
503
|
|
|
264
|
|
|||
Net periodic pension cost
|
$
|
601
|
|
|
$
|
715
|
|
|
$
|
730
|
|
|
Years Ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Discount rate
|
2.8
|
%
|
|
2.6
|
%
|
|
2.8
|
%
|
Expected long-term return on plan assets
|
4.8
|
%
|
|
4.8
|
%
|
|
4.7
|
%
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
Projected benefit obligation, beginning of year
|
$
|
33,907
|
|
|
$
|
31,110
|
|
Acquisition
|
1,063
|
|
|
—
|
|
||
Service cost
|
839
|
|
|
—
|
|
||
Interest cost
|
793
|
|
|
809
|
|
||
Actuarial loss
|
(992
|
)
|
|
35
|
|
||
Benefits paid
|
(1,086
|
)
|
|
(944
|
)
|
||
Translation adjustment
|
(1,898
|
)
|
|
2,897
|
|
||
Projected benefit obligation, end of year
|
$
|
32,626
|
|
|
$
|
33,907
|
|
|
|
|
|
||||
Plan assets, beginning of year
|
$
|
14,110
|
|
|
$
|
12,274
|
|
Acquisitions
|
981
|
|
|
—
|
|
||
Actual return on plan assets
|
670
|
|
|
597
|
|
||
Contributions
|
828
|
|
|
877
|
|
||
Benefits paid
|
(1,086
|
)
|
|
(944
|
)
|
||
Actuarial gain
|
(1,357
|
)
|
|
179
|
|
||
Translation adjustment
|
(786
|
)
|
|
1,127
|
|
||
Plan assets, end of year
|
$
|
13,360
|
|
|
$
|
14,110
|
|
|
|
|
|
||||
Funded status of plan
|
$
|
(19,266
|
)
|
|
$
|
(19,797
|
)
|
|
December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Multi-Asset Fund
|
$
|
—
|
|
|
$
|
4,570
|
|
|
$
|
—
|
|
|
$
|
4,570
|
|
Diversified Growth Fund
|
—
|
|
|
4,649
|
|
|
—
|
|
|
4,649
|
|
||||
Index-Linked Gilts
|
—
|
|
|
2,044
|
|
|
—
|
|
|
2,044
|
|
||||
Corporate Bonds
|
—
|
|
|
2,044
|
|
|
—
|
|
|
2,044
|
|
||||
Cash
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||
Total
|
$
|
53
|
|
|
$
|
13,307
|
|
|
$
|
—
|
|
|
$
|
13,360
|
|
|
December 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Multi-Asset Fund
|
$
|
—
|
|
|
$
|
4,784
|
|
|
$
|
—
|
|
|
$
|
4,784
|
|
Diversified Growth Fund
|
—
|
|
|
5,009
|
|
|
—
|
|
|
5,009
|
|
||||
Index-Linked Gilts
|
—
|
|
|
2,102
|
|
|
—
|
|
|
2,102
|
|
||||
Corporate Bonds
|
—
|
|
|
2,173
|
|
|
—
|
|
|
2,173
|
|
||||
Cash
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||
Total
|
$
|
42
|
|
|
$
|
14,068
|
|
|
$
|
—
|
|
|
$
|
14,110
|
|
NOTE 17.
|
STOCK-BASED COMPENSATION
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Stock-based compensation expense
|
|
$
|
9,703
|
|
|
$
|
12,549
|
|
|
$
|
6,332
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Shares
|
|
Weighted-Average Grant Date Fair Value
|
|
Shares
|
|
Weighted-Average Grant Date Fair Value
|
|
Shares
|
|
Weighted-Average Grant Date Fair Value
|
|||||||||
RSUs outstanding at beginning of period
|
|
386
|
|
|
$
|
51.06
|
|
|
354
|
|
|
$
|
29.60
|
|
|
234
|
|
|
$
|
26.10
|
|
RSUs granted
|
|
245
|
|
|
64.48
|
|
|
252
|
|
|
63.63
|
|
|
297
|
|
|
30.37
|
|
|||
RSUs vested
|
|
(207
|
)
|
|
54.94
|
|
|
(211
|
)
|
|
30.62
|
|
|
(157
|
)
|
|
25.97
|
|
|||
RSUs forfeited
|
|
(72
|
)
|
|
50.79
|
|
|
(9
|
)
|
|
33.91
|
|
|
(20
|
)
|
|
28.32
|
|
|||
RSUs outstanding at end of period
|
|
352
|
|
|
58.17
|
|
|
386
|
|
|
51.06
|
|
|
354
|
|
|
29.60
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|||||||||
Options outstanding at beginning of period
|
|
317
|
|
|
$
|
18.97
|
|
|
474
|
|
|
$
|
17.47
|
|
|
642
|
|
|
$
|
17.11
|
|
Options granted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Options exercised
|
|
(83
|
)
|
|
14.41
|
|
|
(152
|
)
|
|
14.32
|
|
|
(156
|
)
|
|
15.28
|
|
|||
Options forfeited
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
26.32
|
|
|
(12
|
)
|
|
26.32
|
|
|||
Options expired
|
|
(4
|
)
|
|
11.97
|
|
|
(3
|
)
|
|
11.09
|
|
|
—
|
|
|
—
|
|
|||
Options outstanding at end of period
|
|
230
|
|
|
20.73
|
|
|
317
|
|
|
18.97
|
|
|
474
|
|
|
17.47
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Options vested during the year
|
|
2
|
|
|
|
|
9
|
|
|
|
|
11
|
|
|
|
Options Expected to Vest:
|
|
Number
|
|
Weighted-Average Exercise Price
|
|
Weighted-Average Remaining Contractual Life
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding
|
|
230
|
|
|
$
|
20.73
|
|
|
4.6 years
|
|
$
|
5,108
|
|
Options expected to vest
|
|
230
|
|
|
20.73
|
|
|
4.6 years
|
|
5,108
|
|
||
Options exercisable
|
|
230
|
|
|
20.73
|
|
|
4.6 years
|
|
5,108
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Prices
|
|
Number Outstanding
|
|
Weighted-Average Remaining Contractual Life
|
|
Weighted-Average Exercise Price
|
|
Number Exercisable
|
|
Weighted-Average Exercise Price
|
||||||
7.69 - 9.51
|
|
10
|
|
|
1.1 years
|
|
$
|
8.38
|
|
|
10
|
|
|
$
|
8.38
|
|
11.02 - 14.52
|
|
47
|
|
|
1.8 years
|
|
13.04
|
|
|
47
|
|
|
13.04
|
|
||
15.65 - 18.77
|
|
58
|
|
|
4.6 years
|
|
18.06
|
|
|
58
|
|
|
18.06
|
|
||
24.31 - 26.32
|
|
115
|
|
|
6.1 years
|
|
26.24
|
|
|
115
|
|
|
26.24
|
|
||
7.69 - 26.32
|
|
230
|
|
|
4.6 years
|
|
20.73
|
|
|
230
|
|
|
20.73
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Risk-free interest rates
|
|
2.10% - 2.56%
|
|
|
1.07% - 1.45%
|
|
|
0.49% - 0.60%
|
|
Expected dividend yield rates
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Expected term
|
|
0.5 years
|
|
|
0.5 years
|
|
|
0.5 years
|
|
Expected volatility
|
|
38.0
|
%
|
|
33.3
|
%
|
|
28.2
|
%
|
NOTE 18.
|
COMMITMENTS AND CONTINGENCIES
|
2019
|
$
|
9,093
|
|
2020
|
7,561
|
|
|
2021
|
6,938
|
|
|
2022
|
3,862
|
|
|
2023
|
3,448
|
|
|
Thereafter
|
18,349
|
|
|
Total
|
$
|
49,251
|
|
NOTE 19.
|
RELATED PARTY TRANSACTIONS
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Sales to related parties
|
$
|
1,028
|
|
|
$
|
1,425
|
|
|
$
|
616
|
|
Number of related party customers
|
1
|
|
|
1
|
|
|
2
|
|
|||
Purchases from related parties
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43
|
|
Number of related party vendors
|
—
|
|
|
—
|
|
|
1
|
|
|
December 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Accounts receivable from related parties
|
$
|
109
|
|
|
$
|
27
|
|
Number of related party customers
|
1
|
|
|
1
|
|
NOTE 20.
|
GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Applied Materials, Inc.
|
$
|
258,027
|
|
|
35.9
|
%
|
|
$
|
224,832
|
|
|
33.5
|
%
|
|
$
|
170,162
|
|
|
35.2
|
%
|
LAM Research
|
109,005
|
|
|
15.2
|
%
|
|
155,312
|
|
|
23.1
|
%
|
|
100,270
|
|
|
20.7
|
%
|
|
December 31,
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||||
Applied Materials, Inc.
|
$
|
34,301
|
|
|
34.2
|
%
|
|
$
|
36,755
|
|
|
42.0
|
%
|
LAM Research
|
12,181
|
|
|
12.1
|
%
|
|
5,421
|
|
|
6.2
|
%
|
NOTE 21.
|
CREDIT FACILITY
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Credit facility costs
|
$
|
228
|
|
|
$
|
66
|
|
|
$
|
346
|
|
NOTE 22.
|
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED)
|
|
|
Quarter Ended
|
||||||||||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
June 30, 2018
|
|
March 31, 2018
|
||||||||
Sales, net
|
|
$
|
154,161
|
|
|
$
|
173,082
|
|
|
$
|
196,032
|
|
|
$
|
195,617
|
|
Gross Profit
|
|
$
|
75,188
|
|
|
$
|
85,539
|
|
|
$
|
101,235
|
|
|
$
|
103,645
|
|
Restructuring Expense
|
|
$
|
3,836
|
|
|
$
|
403
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating income
|
|
$
|
19,570
|
|
|
$
|
39,862
|
|
|
$
|
56,018
|
|
|
$
|
56,103
|
|
Income from continuing operations, net of income taxes
|
|
$
|
19,222
|
|
|
$
|
35,157
|
|
|
$
|
46,400
|
|
|
$
|
46,370
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
$
|
188
|
|
|
$
|
(371
|
)
|
|
$
|
5
|
|
|
$
|
140
|
|
Net Income
|
|
$
|
19,410
|
|
|
$
|
34,786
|
|
|
$
|
46,405
|
|
|
$
|
46,510
|
|
Income from continuing operations attributable to noncontrolling interest
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
44
|
|
|
$
|
31
|
|
Net income attributable to Advanced Energy Industries, Inc.
|
|
$
|
19,406
|
|
|
$
|
34,779
|
|
|
$
|
46,361
|
|
|
$
|
46,479
|
|
Earnings (Loss) Per Share:
|
|
|
|
|
|
|
|
|
||||||||
Continuing Operations:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
0.50
|
|
|
$
|
0.90
|
|
|
$
|
1.18
|
|
|
$
|
1.17
|
|
Diluted earnings per share
|
|
$
|
0.50
|
|
|
$
|
0.90
|
|
|
$
|
1.17
|
|
|
$
|
1.16
|
|
Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Basic loss per share
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Diluted loss per share
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net Income:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
0.51
|
|
|
$
|
0.89
|
|
|
$
|
1.18
|
|
|
$
|
1.17
|
|
Diluted earnings per share
|
|
$
|
0.50
|
|
|
$
|
0.89
|
|
|
$
|
1.17
|
|
|
$
|
1.16
|
|
|
|
Quarter Ended
|
||||||||||||||
|
|
December 31, 2017
|
|
September 30, 2017
|
|
June 30, 2017
|
|
March 31, 2017
|
||||||||
Sales, net
|
|
$
|
179,214
|
|
|
$
|
176,575
|
|
|
$
|
165,872
|
|
|
$
|
149,351
|
|
Gross Profit
|
|
$
|
98,175
|
|
|
$
|
92,234
|
|
|
$
|
87,141
|
|
|
$
|
78,831
|
|
Operating income
|
|
$
|
58,062
|
|
|
$
|
51,673
|
|
|
$
|
47,767
|
|
|
$
|
43,268
|
|
Income (loss) from continuing operations, net of income taxes
|
|
$
|
(29,007
|
)
|
|
$
|
83,794
|
|
|
$
|
45,873
|
|
|
$
|
35,441
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
$
|
(583
|
)
|
|
$
|
70
|
|
|
$
|
179
|
|
|
$
|
2,094
|
|
Net income (loss) attributable to Advanced Energy Industries, Inc.
|
|
$
|
(29,590
|
)
|
|
$
|
83,864
|
|
|
$
|
46,052
|
|
|
$
|
37,535
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
||||||||
Continuing Operations:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
|
$
|
(0.73
|
)
|
|
$
|
2.11
|
|
|
$
|
1.15
|
|
|
$
|
0.89
|
|
Diluted earnings (loss) per share
|
|
$
|
(0.73
|
)
|
|
$
|
2.09
|
|
|
$
|
1.14
|
|
|
$
|
0.88
|
|
Discontinued Operations:
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.05
|
|
Diluted earnings (loss) per share
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.05
|
|
Net Income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
|
$
|
(0.75
|
)
|
|
$
|
2.11
|
|
|
$
|
1.16
|
|
|
$
|
0.94
|
|
Diluted earnings (loss) per share
|
|
$
|
(0.75
|
)
|
|
$
|
2.09
|
|
|
$
|
1.14
|
|
|
$
|
0.93
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
4.1
|
|
Form of Specimen Certificate for Common Stock. (1)
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
10.4
|
|
Form of Indemnification Agreement. (1)
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
10.19
|
|
Employee Stock Purchase Plan. (1)*
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
Attached as Exhibit 101 to this report are the following materials from Advanced Energy, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Stockholders’ Equity, and (vi) the Notes to the Consolidated Financial Statements.
|
(1)
|
Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 33-97188), filed September 21, 1995.
|
(2)
|
Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1999 (File No. 000-26966), filed July 28, 1999.
|
(3)
|
Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003 (File No. 000-26966), filed November 4, 2003.
|
(4)
|
Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 000-26966), filed February 24, 2004.
|
(5)
|
Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 (File No. 000-26966), filed November 7, 2005.
|
(6)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed December 14, 2009.
|
(7)
|
Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 000-26966), filed March 2, 2011.
|
(8)
|
Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 (File No. 000-26966), filed May 6, 2011.
|
(9)
|
Incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 000-26966), filed December 29, 2011.
|
(10)
|
Incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 000-26966) filed April 11, 2013.
|
(11)
|
Incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 000-26966) filed May 10, 2013.
|
(12)
|
Incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (File No. 000-26966), filed August 6, 2013.
|
(13)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966) filed October 1, 2014.
|
(14)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966) filed November 6, 2015.
|
(15)
|
Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 000-26966), filed February 24, 2017.
|
(16)
|
Incorporated by reference to Appendix A of the Registrant’s Proxy Statement for the Registrant’s 2017 Annual Meeting of Stockholders (File No. 000-26966), filed March 14, 2017.
|
(17)
|
Incorporated by reference to Appendix B of the Registrant’s Proxy Statement for the Registrant’s 2017 Annual Meeting of Stockholders (File No. 000-26966), filed March 14, 2017.
|
(18)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed July 31, 2017.
|
(19)
|
Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (File No. 000-26966), filed July 31, 2017.
|
(20)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed December 21, 2017.
|
(21)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed March 29, 2018.
|
(22)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed May 9, 2018.
|
(23)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed July 30, 2018.
|
(24)
|
Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26966), filed August 6, 2018.
|
*
|
Compensation Plan
|
|
|
**
|
Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Advanced Energy Industries, Inc. undertakes to furnish supplemental copies of any of the omitted schedules upon request by the Securities and Exchange Commission.
|
|
|
+
|
Confidential treatment has been granted for portions of this agreement.
|
ITEM 16.
|
FORM 10-K SUMMARY
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES, INC.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
/s/ Yuval Wasserman
|
|
|
|
|
Yuval Wasserman
|
|
|
|
|
Chief Executive Officer
|
|
|
Date:
|
|
February 21, 2019
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Yuval Wasserman
|
|
Chief Executive Officer and Director (Principal Executive Officer)
|
|
February 21, 2019
|
Yuval Wasserman
|
|
|
|
|
|
|
|
|
|
/s/ Paul Oldham
|
|
Chief Financial Officer & Executive Vice President (Principal Financial and Accounting Officer)
|
|
February 21, 2019
|
Paul Oldham
|
|
|
|
|
|
|
|
|
|
/s/ Grant H. Beard
|
|
Chairman of the Board
|
|
February 21, 2019
|
Grant H. Beard
|
|
|
|
|
|
|
|
|
|
/s/ Frederick A. Ball
|
|
Director
|
|
February 21, 2019
|
Frederick A. Ball
|
|
|
|
|
|
||||
/s/ Tina M. Donikowski
|
|
Director
|
|
February 21, 2019
|
Tina M. Donikowski
|
|
|
|
|
|
|
|
|
|
/s/ Ronald C. Foster
|
|
Director
|
|
February 21, 2019
|
Ronald C. Foster
|
|
|
|
|
|
|
|
|
|
/s/ Edward C. Grady
|
|
Director
|
|
February 21, 2019
|
Edward C. Grady
|
|
|
|
|
|
|
|
|
|
/s/ Thomas M. Rohrs
|
|
Director
|
|
February 21, 2019
|
Thomas M. Rohrs
|
|
|
|
|
|
|
|
|
|
/s/ John A. Roush
|
|
Director
|
|
February 21, 2019
|
John A. Roush
|
|
|
|
|
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