10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

FORM 10-Q

______________________________________

(Mark one)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from             to             

Commission file number 0-21918

______________________________________

FLIR Systems, Inc.

(Exact name of Registrant as specified in its charter)

______________________________________

Oregon	93-0708501
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
27700 SW Parkway Avenue, Wilsonville, Oregon	97070
(Address of principal executive offices)	(Zip Code)

(503) 498-3547

(Registrant’s telephone number, including area code)

______________________________________

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

At July 31, 2012, there were 151,051,546 shares of the Registrant’s common stock, $0.01 par value, outstanding.

INDEX

	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Income — Three Months and Six Months Ended June 30, 2012 and 2011 (unaudited)	1
	Consolidated Statements of Comprehensive Income — Three Months and Six Months Ended June 30, 2012 and 2011 (unaudited)	1
	Consolidated Balance Sheets —June 30, 2012 and December 31, 2011 (unaudited)	1
	Consolidated Statements of Cash Flows — Six Months Ended June 30, 2012 and 2011 (unaudited)	1
	Notes to the Consolidated Financial Statements (unaudited)	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	16
Item 4.	Controls and Procedures	16
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	17
Item 1A.	Risk Factors	17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3.	Defaults Upon Senior Securities	17
Item 4.	Mine Safety Disclosures	17
Item 5.	Other Information	17
Item 6.	Exhibits	18
	Signature	19

PART 1. FINANCIAL INFORMATION

Item 1. Financial Statements

FLIR SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Revenue	$	338,291		$	391,555		$	686,743		$	767,524
Cost of goods sold	168,262			186,144			333,988			365,601
Gross profit	170,029			205,411			352,755			401,923
Operating expenses:
Research and development	37,510			39,481			74,080			77,070
Selling, general and administrative	71,798			124,127			149,658			206,735
Total operating expenses	109,308			163,608			223,738			283,805
Earnings from operations	60,721			41,803			129,017			118,118
Interest expense	2,768			435			5,834			786
Interest income	(377		)	(86		)	(805		)	(350		)
Other expense (income), net	240			(2,124		)	(984		)	(1,272		)
Earnings from continuing operations before income taxes	58,090			43,578			124,972			118,954
Income tax provision	15,685			13,755			33,742			37,528
Earnings from continuing operations	42,405			29,823			91,230			81,426
Loss from discontinued operations, net of tax	(1,312		)	(514		)	(1,998		)	(802		)
Net earnings	$	41,093		$	29,309		$	89,232		$	80,624
Basic earnings per share:
Continuing operations	$	0.28		$	0.19		$	0.59		$	0.51
Discontinued operations	(0.01		)	(0.00		)	(0.01		)	(0.01		)
Basic earnings per share	$	0.27		$	0.18		$	0.58		$	0.51
Diluted earnings per share:
Continuing operations	$	0.27		$	0.18		$	0.58		$	0.50
Discontinued operations	(0.01		)	(0.00		)	(0.01		)	(0.00		)
Diluted earnings per share	$	0.27		$	0.18		$	0.57		$	0.50
Weighted average shares outstanding:
Basic	153,172			159,796			153,829			159,599
Diluted	155,033			162,550			155,983			162,427

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

FLIR SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Net earnings	$	41,093		$	29,309	$	89,232		$	80,624
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(24,020		)	1,591		(6,881		)	31,800
Comprehensive income	$	17,073		$	30,900	$	82,351		$	112,424

FLIR SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	June 30, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	429,771		$	440,846
Accounts receivable, net	268,550			325,370
Inventories	350,791			336,051
Prepaid expenses and other current assets	124,794			104,285
Deferred income taxes, net	27,023			27,443
Total current assets	1,200,929			1,233,995
Property and equipment, net	193,594			186,269
Deferred income taxes, net	31,857			31,644
Goodwill	497,728			498,343
Intangible assets, net	152,274			164,440
Other assets	38,424			32,338
	$	2,114,806		$	2,147,029
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	79,611		$	84,190
Deferred revenue	23,446			24,046
Accrued payroll and related liabilities	44,794			49,475
Accrued product warranties	13,232			13,370
Advance payments from customers	10,425			13,219
Accrued expenses	32,862			41,183
Accrued income taxes	—			2,161
Other current liabilities	4,057			3,886
Total current liabilities	208,427			231,530
Long-term debt	248,090			247,861
Deferred income taxes	17,294			17,237
Accrued income taxes	18,138			17,537
Pension and other long-term liabilities	58,082			53,835
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at June 30, 2012, and December 31, 2011	—			—
Common stock, $0.01 par value, 500,000 shares authorized, 151,769 and 154,969 shares issued at June 30, 2012, and December 31, 2011, respectively, and additional paid-in capital	277,037			352,157
Retained earnings	1,306,613			1,238,866
Accumulated other comprehensive earnings	(18,875		)	(11,994		)
Total shareholders’ equity	1,564,775			1,579,029
	$	2,114,806		$	2,147,029

FLIR SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities:
Net earnings	$	89,232		$	80,624
Income items not affecting cash:
Depreciation and amortization	30,016			43,631
Deferred income taxes	95			(1,324		)
Stock-based compensation plans	13,400			13,876
Other non-cash items	(1,350		)	(629		)
Changes in operating assets and liabilities, net of acquisitions:
Decrease in accounts receivable	54,741			18,950
Increase in inventories	(17,143		)	(24,204		)
Increase in prepaid expenses and other current assets	(21,520		)	(11,924		)
Increase in other assets	(423		)	(3,246		)
Decrease in accounts payable	(4,296		)	(418		)
(Decrease) increase in deferred revenue	(437		)	1,861
Decrease in accrued payroll and other liabilities	(17,580		)	(31,382		)
Decrease in accrued income taxes	(2,940		)	(3,572		)
Increase (decrease) in pension and other long-term liabilities	4,436			(452		)
Cash provided by operating activities	126,231			81,791
Cash flows from investing activities:
Additions to property and equipment	(26,429		)	(18,730		)
Business acquisitions, net of cash acquired	—			(2,351		)
Other investments	(3,000		)	—
Cash used by investing activities	(29,429		)	(21,081		)
Cash flows from financing activities:
Repurchase of common stock	(90,201		)	(23,801		)
Dividends paid	(21,485		)	(19,168		)
Proceeds from shares issued pursuant to stock-based compensation plans	5,656			14,281
Excess tax benefit of stock options exercised	552			2,326
Other financing activities	(140		)	(27		)
Cash used by financing activities	(105,618		)	(26,389		)
Effect of exchange rate changes on cash	(2,259		)	8,164
Net (decrease) increase in cash and cash equivalents	(11,075		)	42,485
Cash and cash equivalents, beginning of period	440,846			193,137
Cash and cash equivalents, end of period	$	429,771		$	235,622

The accompanying notes are an integral part of these consolidated financial statements.

1

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the “Company”) are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the year ending December 31, 2012.

The amounts shown in the Consolidated Statements of Income for the three and six months ended June 30, 2011 have been adjusted to reflect the reclassification of certain business units that were previously reported as discontinued operations to continued operations.

Note 2. Stock-based Compensation

Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cost of goods sold	$	917		$	881		$	1,621		$	1,522
Research and development	1,298			1,358			2,474			2,844
Selling, general and administrative	5,650			5,349			9,305			9,510
Stock-based compensation expense before income taxes	7,865			7,588			13,400			13,876
Income tax benefit	(2,389		)	(2,201		)	(4,063		)	(3,991		)
Total stock-based compensation expense after income taxes	$	5,476		$	5,387		$	9,337		$	9,885

Stock-based compensation costs capitalized in inventory are as follows (in thousands):

	June 30,
	2012		2011
Capitalized in inventory	$	697	$	943

As of June 30, 2012, the Company had $52.1 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 2.3 years.

2

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 2. Stock-based Compensation - (Continued)

The fair value of the stock-based awards, as determined under the Black-Scholes model, granted in the three and six months ended June 30,2012 and 2011 was estimated with the following weighted-average assumptions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock option awards:
Risk-free interest rate	0.4	%	1.0	%	0.4	%	1.0	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	4.2 years		4.3 years		4.2 years		4.3 years
Expected volatility	39.7	%	42.3	%	39.7	%	42.3	%
Employee stock purchase plan:
Risk-free interest rate	0.2	%	0.1	%	0.2	%	0.1	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	6 months		6 months		6 months		6 months
Expected volatility	27.4	%	21.3	%	27.4	%	21.3	%

The fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock Option Awards:
Weighted average grant date fair value per share	$	6.43	$	11.68	$	6.43	$	11.68
Total fair value of awards granted	$	4,104	$	4,513	$	4,104	$	4,513
Total fair value of awards vested	$	5,970	$	5,030	$	5,985	$	7,962
Total intrinsic value of options exercised	$	939	$	5,798	$	2,358	$	13,153
Restricted Stock Unit Awards:
Weighted average grant date fair value per share	$	17.21	$	34.50	$	17.22	$	34.48
Total fair value of awards granted	$	30,471	$	21,337	$	30,522	$	21,524
Total fair value of awards vested	$	11,763	$	18,083	$	12,103	$	18,933
Employee Stock Purchase Plan:
Weighted average grant date fair value per share	$	5.02	$	7.36	$	5.02	$	7.36
Total fair value of shares estimated to be issued	$	1,106	$	1,051	$	1,106	$	1,051

The total amount of cash received from the exercise of stock options in the three months ended June 30,2012 and 2011 was $0.8 million and $3.2 million, respectively, and the related tax impact realized from the exercise of the stock options was an expense of $1.0 million and a benefit of $2.4 million, respectively. The total amount of cash received from the exercise of stock options in the six months ended June 30,2012 and 2011 was $1.7 million and $10.3 million, respectively, and the related tax impact realized from the exercise of the stock options was an expense of $0.7 million and a benefit of $4.1 million, respectively.

3

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 2. Stock-based Compensation - (Continued)

 Information with respect to stock option activity is as follows:

	Shares (in  thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2011	6,570		$	20.73	5.0
Granted	638		22.30
Exercised	(169	)	9.90
Forfeited	(97	)	26.10
Outstanding at June 30, 2012	6,942		$	21.06	5.1	$	17,527
Exercisable at June 30, 2012	6,027		$	20.17	4.4	$	17,526
Vested and expected to vest at June 30, 2012	6,896		$	21.02	5.1	$	17,527

Information with respect to restricted stock unit activity is as follows:

	Shares (in  thousands)		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2011	1,305		$	30.89
Granted	1,775		17.22
Vested and distributed	(548	)	29.27
Forfeited	(70	)	32.58
Outstanding at June 30, 2012	2,462		$	21.44

During the six months ended June 30,2012 and 2011, the Company granted approximately 980,000 and 624,000 time-vested restricted stock units, respectively. The fair value of time-vested restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested restricted stock units granted during the six months ended June 30,2012 and 2011 were $21.68 and $34.50, respectively.

During the six months ended June 30, 2012, the Company also granted approximately 795,000 market-based restricted stock units. These units may be earned based upon the Company's total shareholder return compared to the total shareholder return of the S&P 500 Index over a three year period. The fair value of the market-based restricted units was determined and fixed on the date of the grant using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation and considered the likelihood of the Company achieving the market-based condition. The fair value of the market-based restricted stock units granted during the six months ended June 30, 2012 was $11.73.

There were 208,383 shares issued under the 2011 Employee Stock Purchase Plan ("ESPP") during the six months ended June 30, 2012 and 4,072,134 shares remain available under the ESPP at June 30, 2012 for future issuance. Shares issued for ESPP purchases are new shares.

4

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 3. Net Earnings Per Share

The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Numerator for earnings per share:
Earnings from continuing operations	$	42,405		$	29,823		$	91,230		$	81,426
Loss from discontinued operations	(1,312		)	(514		)	(1,998		)	(802		)
Net earnings for basic and diluted earnings per share	$	41,093		$	29,309		$	89,232		$	80,624
Denominator for earnings per share:
Weighted average number of common shares outstanding	153,172			159,796			153,829			159,599
Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method	1,861			2,754			2,154			2,828
Weighted average diluted shares outstanding	155,033			162,550			155,983			162,427

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

The effect of stock-based compensation awards for the three and six months ended June 30, 2012, which aggregated 3,582,000 shares and 3,302,000 shares, respectively, and for the three and six months ended June 30, 2011, which aggregated 130,000 shares and 277,000 shares, respectively, has been excluded for purposes of calculating diluted earnings per share since including such stock-based compensation awards would have been anti-dilutive.

Note 4. Fair Value of Financial Instruments

The Company had $72.2 million and $192.6 million of cash equivalents at June 30, 2012 and December 31, 2011, respectively, which were primarily investments in money market funds. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets. The fair value of the Company’s forward currency contracts as of June 30, 2012 and December 31, 2011 was not significant. The fair value of the Company’s long-term debt is approximately $261.0 million based upon Level 2 inputs at June 30, 2012. The Company does not have any other significant financial assets or liabilities that are measured at fair value.

Note 5. Foreign Currency Exchange Rate Risk

The gains and losses related to outstanding derivative instruments recorded in other income are offset by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of these gains and losses for the three and six months ended June 30, 2012 were a loss of $1.4 million and a gain of $0.3 million, respectively. The net amount of these gains and losses for the three and six months ended June 30, 2011 were a loss of less than $0.1 million and a loss of $4.5 million, respectively.

The net notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

5

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 5. Foreign Currency Exchange Rate Risk - (Continued)

	June 30, 2012		December 31, 2011
Euro	$	2,196	$	19,640
Swedish kronor	7,042		18,091
British pound sterling	3,541		3,050
Australian dollar	1,570		609
Danish kroner	—		174
Japanese yen	6,112		3,581
Norwegian krone	1,169		—
	$	21,630	$	45,145

At June 30, 2012, all of the Company’s foreign currency forward contracts had maturities of 45 days or less.

On June 29, 2012, the Company entered into two zero-cost collar options to limit the Company's exposure to changes in the US Dollar/Euro and the US Dollar/Swedish Kronor exchange rates. The zero-cost collar option hedges are designed to protect the Company as the US Dollar strengthens, but also provide the Company with some flexibility if the US Dollar weakens. The foreign exchange hedging structure is set up, generally, on a six month time horizon. These options are not designated as hedging instruments and accordingly, gains and losses related to these options will be recorded as a component of net income.

Note 6. Accounts Receivable

Accounts receivable are net of an allowance for doubtful accounts of $4.8 million and $5.6 million at June 30, 2012 and December 31, 2011, respectively.

Note 7. Inventories

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw material and subassemblies	$	232,674	$	225,573
Work-in-progress	55,377		55,886
Finished goods	62,740		54,592
	$	350,791	$	336,051

Note 8. Property and Equipment

Property and equipment are net of accumulated depreciation of $178.5 million and $164.6 million at June 30, 2012 and December 31, 2011, respectively.

Note 9. Goodwill

As of June 30, 2012, the Company had not yet completed its annual review of goodwill for possible impairment but believes that there have been no triggering events or indicators of impairment on its recorded goodwill. The carrying value of goodwill by reporting segment and the activity for the six months ended June 30, 2012 are as follows (in thousands):

	Thermal Vision and Measurement			Raymarine		Surveillance			Detection		Integrated Systems		Total
Balance, December 31, 2011	$	251,187		$	98,364	$	90,501		$	38,162	$	20,129	$	498,343
Currency translation adjustments	(1,204		)	617		(28		)	—		—		(615		)
Balance, June 30, 2012	$	249,983		$	98,981	$	90,473		$	38,162	$	20,129	$	497,728

6

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 10. Intangible Assets

Intangible assets are net of accumulated amortization of $109.6 million and $98.2 million at June 30, 2012 and December 31, 2011, respectively.

Note 11. Credit Agreements

At June 30, 2012, the Company had no borrowings outstanding under its Credit Agreement, dated February 8, 2011, with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other Lenders, and $10.1 million of letters of credit outstanding, which reduces the total available credit under the Credit Agreement to $189.9 million.

Note 12. Accrued Product Warranties

The following table summarizes the Company’s warranty liability and activity (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Accrued product warranties, beginning of period	$	15,994		$	18,960		$	16,046		$	18,686
Amounts paid for warranty services	(2,090		)	(2,193		)	(4,257		)	(5,181		)
Warranty provisions for products sold	1,299			2,319			3,134			5,027
Currency translation adjustments and other	119			128			399			682
Accrued product warranties, end of period	$	15,322		$	19,214		$	15,322		$	19,214
Current accrued product warranties, end of period							$	13,232		$	15,941
Long-term accrued product warranties, end of period							$	2,090		$	3,273

Note 13. Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Unsecured notes	$	250,000		$	250,000
Unamortized issuance costs	(1,910		)	(2,139		)
	$	248,090		$	247,861

In August 2011, the Company issued $250 million aggregate principal amount of its 3.750% senior unsecured notes due September 1, 2016 (the “Notes”). The net proceeds from the issuance of the Notes were approximately $247.7 million, after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years. Interest is payable on the Notes semiannually in arrears on March 1 and September 1, which commenced March 1, 2012. The proceeds from the Notes are being used for general corporate purposes, which may include working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock.

7

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 14. Shareholders’ Equity

The following table summarizes the common stock and additional paid-in capital activity during the six months ended June 30, 2012 (in thousands):

Common stock and additional paid-in capital, December 31, 2011	$	352,157
Income tax expense of common stock options exercised	(658		)
Common stock issued pursuant to stock-based compensation plans, net	2,462
Stock-based compensation expense	13,277
Repurchase of common stock	(90,201		)
Common stock and additional paid in capital, June 30, 2012	$	277,037

During the six months ended June 30, 2012, the Company repurchased 4.0 million shares of the Company’s common stock under the February 2011 repurchase authorization by the Company’s Board of Directors pursuant to which the Company is authorized to repurchase up to 20.0 million shares of the Company’s outstanding common stock. This authorization expires in February 2013.

On February 9, 2011, the Company’s Board of Directors adopted a dividend policy under which the Company intends to pay quarterly cash dividends on its common stock. Accordingly, a dividend of $0.07 per share of outstanding common stock was paid on June 8, 2012 to shareholders of record as of the close of business on May 21, 2012. The total cash payments for dividends in the six months ended June 30, 2012 were $21.5 million.

Note 15. Contingencies

The Company and its subsidiary, Indigo Systems Corporation (now known as FLIR Commercial Systems, Inc.) (together, the “FLIR Parties”), were named in a lawsuit filed by Raytheon Company (“Raytheon”) on March 2, 2007, in the United States District Court for the Eastern District of Texas. Raytheon's complaint, as amended, asserted claims for tortious interference, patent infringement, trade secret misappropriation, unfair competition, breach of contract and fraudulent concealment. The FLIR Parties filed an answer to the complaint on September 2, 2008, in which they denied all material allegations. On August 31, 2009, the court entered an order granting the FLIR Parties' motion for summary judgment on Raytheon's trade secret misappropriation claim based on the FLIR Parties' statute of limitations defense. Raytheon abandoned all of its other claims except its claims relating to four patents (the “Patent Claims”). On August 11, 2010, the FLIR Parties and Raytheon entered into an agreement in principle to resolve the remaining Patent Claims, which resulted in a payment of $3 million by the FLIR Parties to Raytheon and entitles the FLIR Parties to certain license rights in the patents that were the subject of the Patent Claims. The parties appealed certain rulings of the District Court to the United States Court of Appeals for the Federal Circuit which on August 1, 2012, reversed the judgment of the District Court and remanded the case for further proceedings consistent with the appellate court's opinion.  The Company intends to vigorously defend itself in this matter and is unable to estimate the amount or range of potential loss, if any, which might result if the outcome in this matter is unfavorable.

Note 16. Income Taxes

As of June 30, 2012, the Company had approximately $29.9 million of net unrecognized tax benefits of which $18.1 million would affect the Company’s effective tax rate if recognized. The Company anticipates a portion of its net unrecognized tax benefits will be recognized within 12 months as the result of settlements or effective settlements with various tax authorities, the closure of certain audits and the lapse of the applicable statute of limitations.

The Company classifies interest and penalties related to uncertain tax positions as income tax expense. As of June 30, 2012, the Company had approximately $2.4 million of net accrued interest and penalties related to uncertain tax positions.

8

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 16. Income Taxes - (Continued)

The Company currently has the following tax years open to examination by major taxing jurisdictions:

	Tax Years:
US Federal	2008 – 2011
State of Oregon	2007 – 2011
State of Massachusetts	2008 – 2011
State of California	2008 – 2011
Sweden	2007 – 2011
United Kingdom	2006 – 2011
Germany	2005 – 2011
France	2009 – 2011

Note 17. Operating Segments and Related Information

Operating Segments

The Company has two business divisions: Commercial Systems and Government Systems.

Commercial Systems Division

The Commercial Systems division is focused on the design, manufacture, and marketing of instrument, sensor, and electronics solutions that facilitate improved situational awareness and environmental analytics for commercial customers. The division is comprised of two operating segments: Thermal Vision and Measurement and Raymarine. The Thermal Vision and Measurement segment provides advanced thermal imaging solutions for emerging commercial and industrial markets that enable people to see at night or through adverse weather conditions and to capture, measure, and analyze temperature data. The Raymarine segment provides electronics for the maritime market and is a leading global provider of fully integrated “stem to stern” networked electronic systems for boats of all sizes.

Government Systems Division

The Government Systems division designs, manufactures, and markets advanced imaging and detection systems for government markets where high performance is required. The division is comprised of three operating segments: Surveillance, Detection, and Integrated Systems. The Surveillance segment provides enhanced imaging and recognition solutions to a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. The Detection segment produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives (“CBRNE”) threats for military force protection, homeland security, and commercial applications. The Integrated Systems segment develops platform solutions for combating sophisticated security threats and incorporates multiple sensor systems in order to deliver actionable intelligence for wide area surveillance, intrusion detection, and facility security.

9

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 17.    Operating Segments and Related Information - (Continued)

Operating Segments - (Continued)

Operating segment information is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Revenue – External Customers:
Thermal Vision and Measurement	$	142,641		$	164,838		$	298,381		$	309,803
Raymarine	47,181			50,190			93,785			100,726
Surveillance	119,493			141,479			234,090			291,336
Detection	15,713			17,221			35,066			35,092
Integrated Systems	13,263			17,827			25,421			30,567
	$	338,291		$	391,555		$	686,743		$	767,524
Revenue – Intersegments:
Thermal Vision and Measurement	$	4,403		$	5,705		$	9,451		$	10,398
Raymarine	—			4			4			7
Surveillance	7,083			6,764			11,986			17,021
Detection	326			1,478			776			1,478
Integrated Systems	473			1,221			1,047			1,902
Eliminations	(12,285		)	(15,172		)	(23,264		)	(30,806		)
	$	—		$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	27,394		$	47,109		$	66,736		$	84,285
Raymarine	5,728			7,243			9,569			14,653
Surveillance	40,821			46,475			75,722			97,799
Detection	(1,767		)	(3,014		)	(330		)	(6,875		)
Integrated Systems	331			161			(66		)	(172		)
Other	(11,786		)	(56,171		)	(22,614		)	(71,572		)
	$	60,721		$	41,803		$	129,017		$	118,118

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

	June 30, 2012		December 31, 2011
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	211,420	$	233,888
Raymarine	70,667		60,093
Surveillance	289,143		316,615
Detection	26,966		32,447
Integrated Systems	21,145		17,774
Discontinued Operations	—		604
	$	619,341	$	661,421

10

FLIR SYSTEMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(Unaudited)

Note 17.    Operating Segments and Related Information - (Continued)

Revenue and Long-Lived Assets by Geographic Area

Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
United States	$	152,032	$	196,087	$	350,929	$	392,386
Europe	89,152		99,222		169,866		191,694
Other international	97,107		96,246		165,948		183,444
	$	338,291	$	391,555	$	686,743	$	767,524

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

Long-lived assets by significant geographic locations are as follows (in thousands):

	June 30, 2012		December 31, 2011
United States	$	579,612	$	587,592
Europe	292,570		284,171
Other international	9,838		9,627
	$	882,020	$	881,390

Major Customers

Revenue derived from major customers is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
US Government	$	75,758	$	111,765	$	174,262	$	230,285

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

Note 18. Discontinued Operations

During the three months ended June 30, 2012, the Company sold the two remaining business units that had been classified as discontinued operations. The operating losses of those operations up to the time of sale and the net losses on the sales of the units, net of tax, are reflected in the Consolidated Statements of Income for the three and six months ended June 30, 2012.

Note 19. Subsequent Events

On July 19, 2012, the Company’s Board of Directors declared a quarterly dividend of $0.07 per share on its common stock, payable on September 7, 2012, to shareholders of record as of the close of business on August 20, 2012. The total cash payment of this dividend will be approximately $10.6 million.

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q (the “Report”), including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and the future results of FLIR Systems, Inc. and its consolidated subsidiaries (“FLIR” or the “Company”) that are based on management’s current expectations, estimates, projections, and assumptions about the Company’s business. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “sees,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors including, but not limited to, those discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed for the fiscal year ended December 31, 2011, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2, and elsewhere in this Report as well as those discussed from time to time in the Company’s other Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions. Such forward-looking statements speak only as of the date of this Report or, in the case of any document incorporated by reference, the date of that document, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this Report, or for changes made to this document by wire services or Internet service providers. If we update or correct one or more forward-looking statements, investors and others should not conclude that we will make additional updates or corrections with respect to other forward-looking statements.

Results of Operations

The following discussion of operating results provides an overview of our operations by addressing key elements in our Consolidated Statements of Income. The “Segment Operating Results” section that follows describes the contributions of each of our business segments to our consolidated revenue and earnings from operations. Given the nature of our business, we believe revenue and earnings from operations (including operating margin percentage) are most relevant to an understanding of our performance at a segment level as revenue levels are the most significant indicators of business conditions for each of the respective segments and earnings from operations reflect our ability to manage each of our segments as revenue levels change. Additionally, at the segment level we disclose backlog, which represents orders received for products or services for which a sales agreement is in place and delivery is expected within twelve months.

Revenue. Consolidated revenue for the three months ended June 30, 2012decreased by 13.6 percent, from $391.6 million in the second quarter of 2011 to $338.3 million in the second quarter of 2012. Consolidated revenue for the six months ended June 30, 2012decreased by 10.5 percent, from $767.5 million in the first six months of 2011 to $686.7 million in the first six months of 2012. Each of our operating segments reported decreases in year over year revenues for both the three and six month periods primarily due to continued reductions in demand for our products from the US Government and Middle East government agencies and weaker world-wide economic conditions.

The timing of orders, scheduling of backlog and fluctuations in demand in various regions of the world can give rise to quarter-to-quarter and year-over-year fluctuations in the mix of revenue. Consequently, year-over-year comparisons for any given quarter may not be indicative of comparisons using longer time periods. While we currently expect total annual revenue for 2012 to be between 3 percent to 9 percent lower than 2011 revenue, unexpected changes in economic conditions from key customer markets or other major unanticipated events may cause total revenue, and the mix of revenue between our segments, to vary from quarter to quarter during the year.

International sales accounted for 55.1 percent and 49.9 percent of total revenue for the quarters ended June 30,2012 and 2011, respectively and 48.9 percent for both the six months ended June 30,2012 and 2011. The increase in international revenue as a percentage of the total for the three months ended June 30, 2012 compared to the same period in 2011 was primarily the result of lower revenues from US Government customers. Of the $53.3 million decrease in total revenue for the period, $36.0 million, or 67.6 percent, was related to lower revenues from US Government customers. The proportion of our international revenue compared to total revenue will fluctuate from quarter to quarter due to normal variation in order activity across various regions as well as specific factors that may affect one region and not another, but overall we anticipate that revenue from international sales will continue to comprise a significant percentage of total revenue.

Cost of goods sold. Cost of goods sold for the three and six months ended June 30, 2012 was $168.3 million and $334.0 million, respectively, compared to cost of goods sold for the three and six months ended June 30, 2011 of $186.1 million and $365.6 million, respectively. The year over year decreases in cost of goods sold primarily relate to the lower year over year revenues. In the three and six months ended June 30, 2012, costs of goods sold included restructuring charges of $3.4 million

12

primarily for force reductions in our Thermal Vision and Measurement and Detection segments. For the three and six months ended June 30, 2011, costs of goods sold included charges of $3.6 million and $7.3 million, respectively, for the amortization of fair value adjustments on inventory acquired through the acquisition of ICx Technologies in 2010.

Gross profit. Gross profit for the quarter ended June 30, 2012 was $170.0 million compared to $205.4 million for the same quarter last year. Gross profit for the six months ended June 30, 2012 was $352.8 million compared to $401.9 million for the same period of 2011. The decrease in gross profit was due to the lower revenue year over year. Gross margin, defined as gross profit divided by revenue, decreased from 52.5 percent in the second quarter of 2011 to 50.3 percent in the second quarter of 2012, and from 52.4 percent in the first six months of 2011 to 51.4 percent in the first six months of 2012. The decrease in gross margin was primarily due to the product mix and lower factory costs absorption in our Thermal Vision and Measurement segment and restructuring costs in the 2012 periods partially offset by the elimination of 2011 amortization expenses related to fair value adjustments on inventory acquired through the acquisition of ICx Technologies in 2010.

Research and development expenses. Research and development expenses for the second quarter of 2012 totaled $37.5 million, compared to $39.5 million in the second quarter of 2011. Research and development expenses for the first six months of 2012 and 2011 were $74.1 million and $77.1 million, respectively. While research and development expenses declined on an absolute dollar basis for the 2012 periods compared to 2011, as a percentage of revenue, research and development expenses increased to 11.1 percent and 10.8 percent for the three and six month periods ended June 30, 2012, respectively, compared to 10.1 percent and 10.0 percent for the three and six months ended June 30, 2011, respectively. Research and development expenses are expected to remain at the upper end of our anticipated long-term research and development spending relative to sales due to the current sluggish revenue environment. Over the five annual periods through December 31, 2011, our annual research and development expenses have varied between 8.0 and 9.5 percent of revenue.

Selling, general and administrative expenses. Selling, general and administrative expenses were $71.8 million for the quarter ended June 30, 2012, compared to $124.1 million for the quarter ended June 30, 2011. Selling, general and administrative expenses for the first six months of 2012 and 2011 were $149.7 million and $206.7 million, respectively. The decrease in selling, general and administrative expenses for the second quarter of 2012 was attributable to a $39.0 million litigation settlement incurred in 2011, decreased spending in each of our business segments, including lower expenses as a result of cost reduction efforts taken in the third quarter of 2011, and lower corporate legal expenses, partially offset by restructuring costs of approximately $3.4 million incurred in the second quarter of 2012. Selling, general and administrative expenses as a percentage of revenue were 21.2 percent and 31.7 percent for the quarters ended June 30,2012 and 2011, respectively and 21.8 percent and 26.9 percent for the six months ended June 30,2012 and 2011, respectively. Over the past five years, our annual selling, general and administrative expenses have varied between 19.2 and 23.8 percent of revenue.

Interest expense. Interest expense for the second quarter and first six months of 2012 was $2.8 million and $5.8 million, respectively, compared to $0.4 million and $0.8 million for the same periods of 2011. The increase in interest expense for the second quarter of 2012 was due to interest expense associated with the $250 million aggregate principal amount of 3.750% senior unsecured notes due September 1, 2016 issued in August 2011.

Income taxes. The income tax provision of $15.7 million for the three months ended June 30, 2012, represents a quarterly effective tax rate of 27.0 percent, which is consistent with the first quarter. We expect the annual effective tax rate for the full year of 2012 to be 26 percent to 28 percent. The effective tax rate is lower than the US Federal tax rate of 35 percent because of the mix of lower foreign jurisdiction tax rates and the effect of federal, foreign and state tax credits.

Segment Operating Results

Thermal Vision and Measurement

Thermal Vision and Measurement operating results are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	142.6		$	164.8		$	298.4		$	309.8
Earnings from operations	27.4			47.1			66.7			84.3
Operating margin	19.2		%	28.6		%	22.4		%	27.2		%
Backlog, end of period							158			160

13

Revenue for the three and six months ended June 30, 2012decreased by 13.5 percent and 3.7 percent, respectively, compared to the same periods of 2011 primarily due to lower revenues from the cores and components product line and products for the predictive maintenance and building markets. The revenue decline was experienced in all geographies due to world-wide economic weaknesses and lower demand from cores and components customers in the United States. The decline in earnings from operations for both the three months and six months ended June 30, 2012 compared to the same periods in 2011 was primarily due to the flow through of lower revenues combined with the adverse impact of changes in product mix, lower absorption of factory costs and the incurrence of approximately $3.2 million of restructuring costs in the second quarter of 2012. Backlog at June 30, 2012 was essentially flat compared to June 30, 2011; however, backlog increased by $20 million during the three months ended June 30, 2012.

Raymarine

Raymarine operating results are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	47.2		$	50.2		$	93.8		$	100.7
Earnings from operations	5.7			7.2			9.6			14.7
Operating margin	12.1		%	14.4		%	10.2		%	14.5		%
Backlog, end of period							6			7

Revenue for the three and six months ended June 30, 2012decreased by 6.0 percent and 6.9 percent, respectively, compared to the same periods of 2011, primarily due to lower revenue in Europe markets partially offset by higher sales in the United States. The decrease in earnings from operations for the three months ended June 30, 2012 compared to the same period in the prior year was primarily due to the reduced sales and approximately $1.4 million of restructuring costs incurred in the second quarter of 2012; for the six month period ended June 30, 2012, the decrease in earnings was primarily due to the reduced sales, the second quarter restructuring costs, expenses incurred in the first quarter of 2012 related to changes made in our European sales organization and costs associated with a building move.

Surveillance

Surveillance operating results are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	119.5		$	141.5		$	234.1		$	291.3
Earnings from operations	40.8			46.5			75.7			97.8
Operating margin	34.2		%	32.8		%	32.3		%	33.6		%
Backlog, end of period							249			254

Revenue for the three and six months ended June 30, 2012decreased by 15.5 percent and 19.6 percent, respectively, compared to the same periods of 2011, primarily due to decreases in revenue from US government customers and Middle Eastern government customers. The decline in revenues and the change in product mix of the segment, partially offset by a decrease in operating expenses, resulted in the decline in earnings from operations for both the three and six month periods ended June 30, 2012, compared to the same periods in 2011.

14

Detection

Detection operating results are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	15.7		$	17.2		$	35.1		$	35.1
Loss from operations	(1.8		)	(3.0		)	(0.3		)	(6.9		)
Operating margin	(11.2		)%	(17.5		)%	(0.9		)%	(19.6		)%
Backlog, end of period							23			22

Revenue for three months ended June 30, 2012decreased by 8.8 percent compared to the same period of 2011, primarily due to lower research and development contract revenues, partially offset by a slight increase in product revenues. The loss from operations for the three and six months ended June 30, 2011 included the amortization of fair value adjustments on inventory of $2.1 million and $4.2 million, respectively. The elimination of the inventory adjustment and lower operating expenses partially offset by restructuring costs of approximately $2.2 million incurred in the second quarter of 2012, were the main factors contributing to the lower year over year loss from operations and the improved operating margins.

Integrated Systems

Integrated Systems operating results are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	13.3		$	17.8		$	25.4		$	30.6
Earnings (loss) from operations	0.3			0.2			(0.1		)	(0.2		)
Operating margin	2.5		%	0.9		%	(0.3		)%	(0.6		)%
Backlog, end of period							62			46

Revenue for the three and six months ended June 30, 2012decreased by 25.6 percent and 16.8 percent, respectively, compared to the same periods of 2011, primarily due to a large program contract that was recognized in the second quarter of 2011. Backlog at June 30, 2012 reflects an increase of approximately $16 million compared to both June 30, 2011 and March 31, 2012 due to several large program contracts booked in the second quarter of 2012.

Liquidity and Capital Resources

At June 30, 2012, we had a total of $429.8 million in cash and cash equivalents, $238.1 million of which was in the United States and $191.7 million at our foreign subsidiaries, compared to $263.6 million in the United States and $177.2 million at our foreign subsidiaries at December 31, 2011. The increase in cash and cash equivalents was primarily due to cash provided from operations and cash proceeds from our stock-based compensation programs, partially offset by $90.2 million spent for the repurchase of 4.0 million shares of our common stock, capital expenditures of $26.4 million, and dividends paid of $21.5 million during the period.

Cash provided by operating activities totaled $126.2 million for the six months ended June 30, 2012 primarily due to net earnings, adjusted for non-cash charges for depreciation and amortization and stock-based compensation, and net collections of our accounts receivable, partially offset by net increases in other working capital components.

On February 8, 2011, we signed a Credit Agreement (“Credit Agreement”) with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other Lenders. The Credit Agreement provides for a $200 million, five-year revolving line of credit. We have the right, subject to certain conditions including approval of additional commitments by qualified lenders, to increase the line of credit by an additional $150 million until October 8, 2016. The Credit Agreement allows us and certain designated subsidiaries to borrow in US dollars, euro, Swedish Kronor, pound sterling and other agreed upon currencies. The Credit Agreement requires us to pay a commitment fee on the amount of unused credit at a rate, based on the Company’s leverage ratio, which ranges from 0.25 percent to 0.40 percent. The Credit Agreement contains two financial covenants that require the maintenance of certain leverage ratios with which we were in compliance at June 30, 2012. The five-year revolving line of credit available under the Credit Agreement is not secured by any of our assets.

15

At June 30, 2012, we had no amounts outstanding under the Credit Agreement and the commitment fee on the amount of unused credit was 0.25 percent. We had $10.1 million of letters of credit outstanding at June 30, 2012, which reduced the total available credit under the Credit Agreement.

On August 19, 2011, we issued $250 million aggregate principal amount of our 3.750% senior unsecured notes due September 1, 2016 (the "Notes"). The net proceeds from the issuance of the Notes were approximately $247.7 million, after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years. Interest is payable on the Notes semiannually in arrears on March 1 and September 1, which commenced March 1, 2012. The proceeds from the Notes are being used for general corporate purposes, which may include working capital and capital expenditure needs, business acquisitions and repurchases of our common stock.

A Swedish subsidiary has a 30 million Swedish Kronor (approximately $4.3 million) line of credit. At June 30, 2012, the Company had no amounts outstanding on this line of credit. The 30 million Swedish Kronor line of credit is secured primarily by accounts receivable and inventories of the Sweden subsidiary and is subject to automatic renewal on an annual basis.

Cash used by financing activities of $105.6 million for the six months ended June 30, 2012 primarily related to the repurchase of 4.0 million shares of our common stock and the payment of dividends, partially offset by cash provided from our stock-based compensation plans.

On February 9, 2011, our Board of Directors authorized the repurchase of up to 20.0 million shares of our outstanding common stock. As of June 30, 2012, there were approximately 9.9 million shares still authorized for repurchase under this authorization, which expires on February 9, 2013.

We believe that our existing cash combined with the cash we expect to generate from operating activities and our available credit facilities and financing available from other sources will be sufficient to meet our cash requirements for the foreseeable future. We do not have any significant capital commitments for the current year nor are we aware of any significant events or conditions that are likely to have a material impact on our liquidity.

Critical Accounting Policies and Estimates

The Company reaffirms the critical accounting policies and our use of estimates as reported in our Form 10-K for the year ended December 31, 2011. As described in Note 1 to the Consolidated Financial Statements included in the Form 10-K, the determination of fair value for stock-based compensation awards requires the use of management’s estimates and judgments.

Contractual Obligations

As of June 30, 2012, there have been no material changes to our contractual obligations outside the ordinary course of our business since December 31, 2011.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As of June 30, 2012, the Company has not experienced any changes in market risk exposure that would materially affect the quantitative and qualitative disclosures about market risk presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of June 30, 2012, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as such term is defined in Rule 13a-15(e). Based on the evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Changes in Internal Control Over Financial Reporting

There was no change in the Company’s internal control over financial reporting that occurred during the Company’s fiscal quarter ended June 30, 2012 that materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.

16

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to legal proceedings, claims and litigation arising in the ordinary course of its business. See Note 15, “Contingencies,” of the Notes to the Consolidated Financial Statements for additional information on the Company’s legal proceedings.

Item 1A. Risk Factors

There has been no material change in the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which was filed with the Securities and Exchange Commission on February 29, 2012.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended June 30, 2012, the Company repurchased the following shares:

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
May 1 to May 31, 2012	2,213,148	$	21.69	2,213,148
June 1 to June 30, 2012	786,852	$	21.35	786,852
Total	3,000,000	$	21.60	3,000,000	9,864,755

⁽¹⁾  All shares were purchased in open market transactions.

All share repurchases are subject to applicable securities law, and are at times and in amounts as management deems appropriate. On February 9, 2011, our Board of Directors authorized the repurchase of up to 20.0 million shares of our outstanding common stock. This authorization will expire on February 9, 2013.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

17

Item 6. Exhibits

Number	Description
31.1	Principal Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302.
31.2	Principal Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 302.
32.1	Principal Executive Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906.
32.2	Principal Financial Officer Certification Pursuant to Sarbanes-Oxley Act of 2002, Section 906.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema 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

18

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FLIR SYSTEMS, INC.
Date August 6, 2012	/s/ ANTHONY L. TRUNZO
	Anthony L. Trunzo
	Sr. Vice President, Finance and Chief Financial Officer
	(Duly Authorized and Principal Financial Officer)

19

EX-31.1

Exhibit 31.1

I, Earl R. Lewis, certify that:

1.		I have reviewed this quarterly report on Form 10-Q of FLIR Systems, Inc.;
2.		Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.		The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.		The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control of financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date August 6, 2012	/s/ EARL R. LEWIS
	Earl R. Lewis
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Anthony L. Trunzo, certify that:

1.		I have reviewed this quarterly report on Form 10-Q of FLIR Systems, Inc.;
2.		Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.		Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.		The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.		The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control of financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date August 6, 2012	/s/ ANTHONY L. TRUNZO
	Anthony L. Trunzo
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of FLIR Systems, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Earl R. Lewis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date August 6, 2012	/s/ EARL R. LEWIS
	Earl R. Lewis
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of FLIR Systems, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Earl R. Lewis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date August 6, 2012	/s/ ANTHONY L. TRUNZO
	Anthony L. Trunzo
	Chief Financial Officer

XML

Stock-based Compensation Stock-based Compensation (Details 3)	3 Months Ended		6 Months Ended
	Jun. 30, 2012 Years	Jun. 30, 2011 Years	Jun. 30, 2012 Years	Jun. 30, 2011 Years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.40%	1.00%	0.40%	1.00%
Expected dividend yield	1.30%	0.70%	1.30%	0.70%
Expected term	4.2	4.3	4.2	4.3
Expected volatility	39.70%	42.30%	39.70%	42.30%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.20%	0.10%	0.20%	0.10%
Expected dividend yield	1.30%	0.70%	1.30%	0.70%
Expected term	6	6	6	6
Expected volatility	27.40%	21.30%	27.40%	21.30%

XML

Credit Agreements Credit Agreements (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012
Line of Credit Facility [Abstract]
Letters of credit outstanding	$ 10.1
Total available credit	$ 189.9

XML

Foreign Currency Exchange Rate Risk Foreign Currency Exchange Rate Risk (Details textual) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended		3 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2011 Maximum
Derivative [Line Items]
Net gain (loss)	$ (1.4)	$ 0.3	$ (4.5)	$ (0.1)
Maturities of foreign currency forward contracts	45 days or less	45 days or less

XML

Accrued Product Warrenties Accrued Product Warrenties (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Movement in Standard Product Warranty Accrual [Roll Forward]
Accrued product warranties, beginning of period	$ 15,994	$ 18,960	$ 16,046	$ 18,686
Amounts paid for warranty services	(2,090)	(2,193)	(4,257)	(5,181)
Warranty provisions for products sold	1,299	2,319	3,134	5,027
Currency translation adjustments and other	119	128	399	682
Accrued product warranties, end of period	15,322	19,214	15,322	19,214
Current accrued product warranties, end of period	13,232	15,941	13,232	15,941	13,370
Long-term accrued product warranties, end of period	$ 2,090	$ 3,273	$ 2,090	$ 3,273

XML

Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Level 1
Schedule of Trading Securities and Other Trading Assets [Line Items]
Cash equivalents	$ 72.2	$ 192.6
Level 2
Schedule of Trading Securities and Other Trading Assets [Line Items]
Fair value of long-term debt	$ 261.0

XML

Long-Term Debt Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Unsecured notes	$	250,000		$	250,000
Unamortized issuance costs	(1,910		)	(2,139		)
	$	248,090		$	247,861

XML

Shareholders' Equity Shareholders' Equity (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Stockholders' Equity Note [Abstract]
Common stock and additional paid-in capital, beginning of period	$ 352,157
Income tax benefit of common stock options exercised	(658)
Common stock issued pursuant to stock-based compensation plans, net	2,462
Stock-based compensation expense	13,277
Repurchase of common stock	(90,201)
Common stock and additional paid-in capital, end of period	$ 277,037

XML

Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 19, 2012, the Company’s Board of Directors declared a quarterly dividend of $0.07 per share on its common stock, payable on September 7, 2012, to shareholders of record as of the close of business on August 20, 2012. The total cash payment of this dividend will be approximately $10.6 million.

XML

Inventories Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Raw material and subassemblies	$ 232,674	$ 225,573
Work-in-progress	55,377	55,886
Finished goods	62,740	54,592
Total inventories	$ 350,791	$ 336,051

XML

Stock-based Compensation Stock-based Compensation (Details 6) (Restricted stock unit, USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Restricted stock unit
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Outstanding, beginning of period (in shares)			1,305
Granted (in shares)			1,775
Vested and distributed (in shares)			(548)
Forfeited (in shares)			(70)
Outstanding, end of period (in shares)	2,462		2,462
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Outstanding, beginning of period (in dollars per share)			$ 30.89
Granted (in dollars per share)	$ 17.21	$ 34.50	$ 17.22	$ 34.48
Vested and distributed (in dollars per share)			$ 29.27
Forfeited (in dollars per share)	$ 32.58		$ 32.58
Outstanding, end of period (in dollars per share)	$ 21.44		$ 21.44

XML

Stock-based Compensation Stock-based Compensation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before income taxes	$ 7,865	$ 7,588	$ 13,400	$ 13,876
Income tax benefit	(2,389)	(2,201)	(4,063)	(3,991)
Total stock-based compensation expense after income taxes	5,476	5,387	9,337	9,885
Cost of goods sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	917	881	1,621	1,522
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,298	1,358	2,474	2,844
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 5,650	$ 5,349	$ 9,305	$ 9,510

XML

Goodwill Goodwill (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 498,343
Currency translation adjustments	(615)
Goodwill, end of period	497,728
Thermal Vision and Measurement
Goodwill [Roll Forward]
Goodwill, beginning of period	251,187
Currency translation adjustments	(1,204)
Goodwill, end of period	249,983
Raymarine
Goodwill [Roll Forward]
Goodwill, beginning of period	98,364
Currency translation adjustments	617
Goodwill, end of period	98,981
Surveillance
Goodwill [Roll Forward]
Goodwill, beginning of period	90,501
Currency translation adjustments	(28)
Goodwill, end of period	90,473
Detection
Goodwill [Roll Forward]
Goodwill, beginning of period	38,162
Currency translation adjustments	0
Goodwill, end of period	38,162
Integrated Systems
Goodwill [Roll Forward]
Goodwill, beginning of period	20,129
Currency translation adjustments	0
Goodwill, end of period	$ 20,129

XML

Operating Segments and Related Information Operating Segments and Related Information (Details 6) (US Government, USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
US Government
Revenue, Major Customer [Line Items]
Revenues	$ 75,758	$ 111,765	[1]	$ 174,262	$ 230,285	[1]

[1] Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

XML

Income Taxes Income Taxes 2 (Details)	6 Months Ended
	Jun. 30, 2012
Minimum [Member] | US Federal
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2008
Minimum [Member] | State of Oregon
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2007
Minimum [Member] | State of Massachusetts
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2008
Minimum [Member] | State of California
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2008
Minimum [Member] | Sweden
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2007
Minimum [Member] | United Kingdom
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2006
Minimum [Member] | Germany
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2005
Minimum [Member] | France
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2009
Maximum | US Federal
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | State of Oregon
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | State of Massachusetts
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | State of California
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | Sweden
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | United Kingdom
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | Germany
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011
Maximum | France
Income Tax Examination [Line Items]
Tax years open to examination by major taxing jurisdictions	2011

XML

Foreign Currency Exchange Rate Risk Foreign Currency Exchange Rate Risk (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Notional amount of foreign currency derivatives	$ 21,630	$ 45,145
Euro
Notional amount of foreign currency derivatives	2,196	19,640
Swedish kronor
Notional amount of foreign currency derivatives	7,042	18,091
British pound sterling
Notional amount of foreign currency derivatives	3,541	3,050
Australian dollar
Notional amount of foreign currency derivatives	1,570	609
Danish kroner
Notional amount of foreign currency derivatives	0	174
Japanese yen
Notional amount of foreign currency derivatives	6,112	3,581
Norwegian krone
Notional amount of foreign currency derivatives	$ 1,169	$ 0

XML

Net Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Net Earnings Per Share

Net Earnings Per Share

The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Numerator for earnings per share:
Earnings from continuing operations	$	42,405		$	29,823		$	91,230		$	81,426
Loss from discontinued operations	(1,312		)	(514		)	(1,998		)	(802		)
Net earnings for basic and diluted earnings per share	$	41,093		$	29,309		$	89,232		$	80,624
Denominator for earnings per share:
Weighted average number of common shares outstanding	153,172			159,796			153,829			159,599
Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method	1,861			2,754			2,154			2,828
Weighted average diluted shares outstanding	155,033			162,550			155,983			162,427

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

The effect of stock-based compensation awards for the three and six months ended June 30, 2012, which aggregated 3,582,000 shares and 3,302,000 shares, respectively, and for the three and six months ended June 30, 2011, which aggregated 130,000 shares and 277,000 shares, respectively, has been excluded for purposes of calculating diluted earnings per share since including such stock-based compensation awards would have been anti-dilutive.

XML

Operating Segments and Related Information Operating Segments and Related Information (Details)	Jun. 30, 2012 business_segments
Segment Reporting Information [Line Items]
Business divisions	2
Commercial Systems division
Segment Reporting Information [Line Items]
Operating segments	2
Government Systems division
Segment Reporting Information [Line Items]
Operating segments	3

XML

Stock-based Compensation Stock-based Compensation (Details textual) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012 Years	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Unrecognized stock-based compensation costs, net of estimated forfeitures	$ 52.1		$ 52.1
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeitures	2.3
Cash received from the exercise of stock options	0.8	3.2	1.7	10.3
Related tax benefit realized from the exercise of the stock options	$ (1.0)	$ 2.4	$ (0.7)	$ 4.1
Restricted stock unit
Awards granted			1,775,000
Weighted average grant date fair value per share	$ 17.21	$ 34.50	$ 17.22	$ 34.48
Vesting period for market-based RSUs			3 years
Time-vested restricted stock unit
Awards granted			980,000	624,000
Weighted average grant date fair value per share			$ 21.68	$ 34.50
Market-based restricted stock unit
Awards granted			795,000
Weighted average grant date fair value per share			$ 11.73
Employee Stock Purchase Plan
Weighted average grant date fair value per share	$ 5.02	$ 7.36	$ 5.02	$ 7.36
Number of common stock shares issued	208,383
Shares of common stock reserved for future issuance under all of the stock incentive plans	4,072,134		4,072,134

XML

Foreign Currency Exchange Rate Risk Foreign Currency Exchange Rate Risk (Tables)

6 Months Ended

Jun. 30, 2012

Foreign Currency [Abstract]

Notional amounts of outstanding foreign currency forward contracts by currency

The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

Note 5. Foreign Currency Exchange Rate Risk - (Continued)

	June 30, 2012		December 31, 2011
Euro	$	2,196	$	19,640
Swedish kronor	7,042		18,091
British pound sterling	3,541		3,050
Australian dollar	1,570		609
Danish kroner	—		174
Japanese yen	6,112		3,581
Norwegian krone	1,169		—
	$	21,630	$	45,145

XML

Net Earnings Per Share Net Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share

The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Numerator for earnings per share:
Earnings from continuing operations	$	42,405		$	29,823		$	91,230		$	81,426
Loss from discontinued operations	(1,312		)	(514		)	(1,998		)	(802		)
Net earnings for basic and diluted earnings per share	$	41,093		$	29,309		$	89,232		$	80,624
Denominator for earnings per share:
Weighted average number of common shares outstanding	153,172			159,796			153,829			159,599
Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method	1,861			2,754			2,154			2,828
Weighted average diluted shares outstanding	155,033			162,550			155,983			162,427

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

XML

Long-Term Debt Long-Term Debt (Details) (USD $)			1 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Aug. 31, 2011 3.75 % senior unsecured notes due September 1, 2016
Debt Instrument [Line Items]
Unsecured notes	$ 250,000,000	$ 250,000,000
Unamortized issuance costs	(1,910,000)	(2,139,000)
Total long-term debt	248,090,000	247,861,000
Senior unsecured notes, issued amount			250,000,000
Senior unsecured notes, interest rate			3.75%
Senior unsecured notes, maturity date			Sep. 01, 2016
Senior unsecured notes, proceeds			$ 247,700,000
Senior unsecured notes, term (in years)			5 years
Senior unsecured notes, interest payments			semiannually
Senior unsecured notes, interest payment dates			March 1 and September 1

XML

Net Earnings Per Share Net Earnings Per Share (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
Numerator for earnings per share:
Earnings from continuing operations	$ 42,405	$ 29,823	[1]	$ 91,230	$ 81,426	[1]
Loss from discontinued operations	(1,312)	(514)	[1]	(1,998)	(802)	[1]
Net earnings for basic and diluted earnings per share	$ 41,093	$ 29,309	[1]	$ 89,232	$ 80,624	[1]
Denominator for earnings per share:
Weighted average number of common shares outstanding (in shares)	153,172	159,796	[1]	153,829	159,599	[1]
Assumed exercises of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method (in shares)	1,861	2,754	[1]	2,154	2,828	[1]
Weighted average diluted shares outstanding (in shares)	155,033	162,550	[1]	155,983	162,427	[1]

[1] Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

XML

Inventories Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventories

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw material and subassemblies	$	232,674	$	225,573
Work-in-progress	55,377		55,886
Finished goods	62,740		54,592
	$	350,791	$	336,051

XML

Goodwill Goodwill (Tables)

6 Months Ended

Jun. 30, 2012

Disclosure - Goodwill - Additional Information [Abstract]

Carrying value of goodwill by reporting segment and the activity

The carrying value of goodwill by reporting segment and the activity for the six months ended June 30, 2012 are as follows (in thousands):

	Thermal Vision and Measurement			Raymarine		Surveillance			Detection		Integrated Systems		Total
Balance, December 31, 2011	$	251,187		$	98,364	$	90,501		$	38,162	$	20,129	$	498,343
Currency translation adjustments	(1,204		)	617		(28		)	—		—		(615		)
Balance, June 30, 2012	$	249,983		$	98,981	$	90,473		$	38,162	$	20,129	$	497,728

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Stock-based Compensation

6 Months Ended

Jun. 30, 2012

Share-based Compensation [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cost of goods sold	$	917		$	881		$	1,621		$	1,522
Research and development	1,298			1,358			2,474			2,844
Selling, general and administrative	5,650			5,349			9,305			9,510
Stock-based compensation expense before income taxes	7,865			7,588			13,400			13,876
Income tax benefit	(2,389		)	(2,201		)	(4,063		)	(3,991		)
Total stock-based compensation expense after income taxes	$	5,476		$	5,387		$	9,337		$	9,885

Stock-based compensation costs capitalized in inventory are as follows (in thousands):

	June 30,
	2012		2011
Capitalized in inventory	$	697	$	943

As of June 30, 2012, the Company had $52.1 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 2.3 years.

Note 2. Stock-based Compensation - (Continued)

The fair value of the stock-based awards, as determined under the Black-Scholes model, granted in the three and six months ended June 30,2012 and 2011 was estimated with the following weighted-average assumptions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock option awards:
Risk-free interest rate	0.4	%	1.0	%	0.4	%	1.0	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	4.2 years		4.3 years		4.2 years		4.3 years
Expected volatility	39.7	%	42.3	%	39.7	%	42.3	%
Employee stock purchase plan:
Risk-free interest rate	0.2	%	0.1	%	0.2	%	0.1	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	6 months		6 months		6 months		6 months
Expected volatility	27.4	%	21.3	%	27.4	%	21.3	%

The fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock Option Awards:
Weighted average grant date fair value per share	$	6.43	$	11.68	$	6.43	$	11.68
Total fair value of awards granted	$	4,104	$	4,513	$	4,104	$	4,513
Total fair value of awards vested	$	5,970	$	5,030	$	5,985	$	7,962
Total intrinsic value of options exercised	$	939	$	5,798	$	2,358	$	13,153
Restricted Stock Unit Awards:
Weighted average grant date fair value per share	$	17.21	$	34.50	$	17.22	$	34.48
Total fair value of awards granted	$	30,471	$	21,337	$	30,522	$	21,524
Total fair value of awards vested	$	11,763	$	18,083	$	12,103	$	18,933
Employee Stock Purchase Plan:
Weighted average grant date fair value per share	$	5.02	$	7.36	$	5.02	$	7.36
Total fair value of shares estimated to be issued	$	1,106	$	1,051	$	1,106	$	1,051

The total amount of cash received from the exercise of stock options in the three months ended June 30,2012 and 2011 was $0.8 million and $3.2 million, respectively, and the related tax impact realized from the exercise of the stock options was an expense of $1.0 million and a benefit of $2.4 million, respectively. The total amount of cash received from the exercise of stock options in the six months ended June 30,2012 and 2011 was $1.7 million and $10.3 million, respectively, and the related tax impact realized from the exercise of the stock options was an expense of $0.7 million and a benefit of $4.1 million, respectively.

Note 2. Stock-based Compensation - (Continued)

 Information with respect to stock option activity is as follows:

	Shares (in  thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2011	6,570		$	20.73	5.0
Granted	638		22.30
Exercised	(169	)	9.90
Forfeited	(97	)	26.10
Outstanding at June 30, 2012	6,942		$	21.06	5.1	$	17,527
Exercisable at June 30, 2012	6,027		$	20.17	4.4	$	17,526
Vested and expected to vest at June 30, 2012	6,896		$	21.02	5.1	$	17,527

Information with respect to restricted stock unit activity is as follows:

	Shares (in  thousands)		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2011	1,305		$	30.89
Granted	1,775		17.22
Vested and distributed	(548	)	29.27
Forfeited	(70	)	32.58
Outstanding at June 30, 2012	2,462		$	21.44

During the six months ended June 30,2012 and 2011, the Company granted approximately 980,000 and 624,000 time-vested restricted stock units, respectively. The fair value of time-vested restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested restricted stock units granted during the six months ended June 30,2012 and 2011 were $21.68 and $34.50, respectively.

During the six months ended June 30, 2012, the Company also granted approximately 795,000 market-based restricted stock units. These units may be earned based upon the Company's total shareholder return compared to the total shareholder return of the S&P 500 Index over a three year period. The fair value of the market-based restricted units was determined and fixed on the date of the grant using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation and considered the likelihood of the Company achieving the market-based condition. The fair value of the market-based restricted stock units granted during the six months ended June 30, 2012 was $11.73.

There were 208,383 shares issued under the 2011 Employee Stock Purchase Plan ("ESPP") during the six months ended June 30, 2012 and 4,072,134 shares remain available under the ESPP at June 30, 2012 for future issuance. Shares issued for ESPP purchases are new shares.

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Accrued Product Warrenties Accrued Product Warrenties (Tables)

6 Months Ended

Jun. 30, 2012

Product Warranties Disclosures [Abstract]

Summay of warranty liability and activity

The following table summarizes the Company’s warranty liability and activity (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Accrued product warranties, beginning of period	$	15,994		$	18,960		$	16,046		$	18,686
Amounts paid for warranty services	(2,090		)	(2,193		)	(4,257		)	(5,181		)
Warranty provisions for products sold	1,299			2,319			3,134			5,027
Currency translation adjustments and other	119			128			399			682
Accrued product warranties, end of period	$	15,322		$	19,214		$	15,322		$	19,214
Current accrued product warranties, end of period							$	13,232		$	15,941
Long-term accrued product warranties, end of period							$	2,090		$	3,273

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Stock-based Compensation Stock-based Compensation (Details 4) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share	$ 6.43	$ 11.68	$ 6.43	$ 11.68
Total fair value of awards granted	$ 4,104	$ 4,513	$ 4,104	$ 4,513
Total fair value of awards vested	5,970	5,030	5,985	7,962
Total intrinsic value of options exercised	939	5,798	2,358	13,153
Restricted Stock Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share	$ 17.21	$ 34.50	$ 17.22	$ 34.48
Total fair value of awards granted	30,471	21,337	30,522	21,524
Total fair value of awards vested	11,763	18,083	12,103	18,933
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share	$ 5.02	$ 7.36	$ 5.02	$ 7.36
Total fair value of shares estimated to be issued	$ 1,106	$ 1,051	$ 1,106	$ 1,051

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Intangible Assets Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Intangible Assets [Abstract]
Accumulated amortization	$ 109.6	$ 98.2

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Revenue	$ 338,291	$ 391,555	[1]	$ 686,743	$ 767,524	[1]
Cost of goods sold	168,262	186,144	[1]	333,988	365,601	[1]
Gross profit	170,029	205,411	[1]	352,755	401,923	[1]
Operating expenses
Research and development	37,510	39,481	[1]	74,080	77,070	[1]
Selling, general and administrative	71,798	124,127	[1]	149,658	206,735	[1]
Total operating expenses	109,308	163,608	[1]	223,738	283,805	[1]
Earnings from operations	60,721	41,803	[1]	129,017	118,118	[1]
Interest expense	2,768	435		5,834	786	[1]
Interest income	(377)	(86)		(805)	(350)	[1]
Other expense (income), net	240	(2,124)	[1]	(984)	(1,272)	[1]
Earnings from continuing operations before income taxes	58,090	43,578	[1]	124,972	118,954	[1]
Income tax provision	15,685	13,755	[1]	33,742	37,528	[1]
Earnings from continuing operations	42,405	29,823	[1]	91,230	81,426	[1]
Loss from discontinued operations, net of tax	(1,312)	(514)	[1]	(1,998)	(802)	[1]
Net earnings	$ 41,093	$ 29,309		$ 89,232	$ 80,624
Basic earnings per share:
Continuing operations (in dollars per share)	$ 0.28	$ 0.19		$ 0.59	$ 0.51
Discontinued operations (in dollars per share)	$ (0.01)	$ 0.00		$ (0.01)	$ (0.01)
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.18		$ 0.58	$ 0.51
Diluted earnings per share:
Continuing operations (in dollars per share)	$ 0.27	$ 0.18		$ 0.58	$ 0.50
Discontinued operations (in dollars per share)	$ (0.01)	$ 0.00		$ (0.01)	$ 0.00
Diluted earnings per share (in dollars per share)	$ 0.27	$ 0.18		$ 0.57	$ 0.50
Weighted average shares outstanding:
Basic (in shares)	153,172	159,796	[1]	153,829	159,599	[1]
Diluted (in shares)	155,033	162,550	[1]	155,983	162,427	[1]

[1] Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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Net Earnings Per Share Net Earnings Per Share (Details textual) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings Per Share [Abstract]
Effect of stock-based compensation awards, shares excluded for purposes of diluted earnings per share	3,582	130	3,302	277

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net earnings	$ 89,232	$ 80,624
Income items not affecting cash:
Depreciation and amortization	30,016	43,631
Deferred income taxes	95	(1,324)
Stock-based compensation plans	13,400	13,876
Other non-cash items	(1,350)	(629)
Changes in operating assets and liabilities, net of acquisitions:
Decrease in accounts receivable	54,741	18,950
Increase in inventories	(17,143)	(24,204)
Increase in prepaid expenses and other current assets	(21,520)	(11,924)
Increase in other assets	(423)	(3,246)
Decrease in accounts payable	(4,296)	(418)
(Decrease) increase in deferred revenue	(437)	1,861
Decrease in accrued payroll and other liabilities	(17,580)	(31,382)
Decrease in accrued income taxes	(2,940)	(3,572)
Increase (decrease) in pension and other long-term liabilities	4,436	(452)
Cash provided by operating activities	126,231	81,791
Cash flows from investing activities:
Additions to property and equipment	(26,429)	(18,730)
Business acquisitions, net of cash acquired	0	(2,351)
Other investments	(3,000)	0
Cash used by investing activities	(29,429)	(21,081)
Cash flows from financing activities:
Repurchase of common stock	(90,201)	(23,801)
Dividends paid	(21,485)	(19,168)
Proceeds from shares issued pursuant to stock-based compensation plans	5,656	14,281
Excess tax benefit of stock options exercised	552	2,326
Other financing activities	(140)	(27)
Cash used by financing activities	(105,618)	(26,389)
Effect of exchange rate changes on cash	(2,259)	8,164
Net (decrease) increase in cash and cash equivalents	(11,075)	42,485
Cash and cash equivalents, beginning of period	440,846	193,137
Cash and cash equivalents, end of period	$ 429,771	$ 235,622

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Contingencies Contingencies (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Oct. 27, 2010
Loss Contingency [Abstract]
Litigation settlement payment	$ 3

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Income Taxes Income Taxes (Tables)

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Tax years open to examination by major taxing jurisdictions

The Company currently has the following tax years open to examination by major taxing jurisdictions:

	Tax Years:
US Federal	2008 – 2011
State of Oregon	2007 – 2011
State of Massachusetts	2008 – 2011
State of California	2008 – 2011
Sweden	2007 – 2011
United Kingdom	2006 – 2011
Germany	2005 – 2011
France	2009 – 2011

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Operating Segments and Related Information Operating Segments and Related Information (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 338,291	$ 391,555	[1]	$ 686,743	$ 767,524	[1]
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	152,032	196,087	[1]	350,929	392,386	[1]
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	89,152	99,222	[1]	169,866	191,694	[1]
Other international
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 97,107	$ 96,246	[1]	$ 165,948	$ 183,444	[1]

[1] Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

As of June 30, 2012, the Company had approximately $29.9 million of net unrecognized tax benefits of which $18.1 million would affect the Company’s effective tax rate if recognized. The Company anticipates a portion of its net unrecognized tax benefits will be recognized within 12 months as the result of settlements or effective settlements with various tax authorities, the closure of certain audits and the lapse of the applicable statute of limitations.

The Company classifies interest and penalties related to uncertain tax positions as income tax expense. As of June 30, 2012, the Company had approximately $2.4 million of net accrued interest and penalties related to uncertain tax positions.

Note 16. Income Taxes - (Continued)

The Company currently has the following tax years open to examination by major taxing jurisdictions:

	Tax Years:
US Federal	2008 – 2011
State of Oregon	2007 – 2011
State of Massachusetts	2008 – 2011
State of California	2008 – 2011
Sweden	2007 – 2011
United Kingdom	2006 – 2011
Germany	2005 – 2011
France	2009 – 2011

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Operating Segments and Related Information Operating Segments and Related Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Operating Segment Information

Note 17.    Operating Segments and Related Information - (Continued)

Operating Segments - (Continued)

Operating segment information is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Revenue – External Customers:
Thermal Vision and Measurement	$	142,641		$	164,838		$	298,381		$	309,803
Raymarine	47,181			50,190			93,785			100,726
Surveillance	119,493			141,479			234,090			291,336
Detection	15,713			17,221			35,066			35,092
Integrated Systems	13,263			17,827			25,421			30,567
	$	338,291		$	391,555		$	686,743		$	767,524
Revenue – Intersegments:
Thermal Vision and Measurement	$	4,403		$	5,705		$	9,451		$	10,398
Raymarine	—			4			4			7
Surveillance	7,083			6,764			11,986			17,021
Detection	326			1,478			776			1,478
Integrated Systems	473			1,221			1,047			1,902
Eliminations	(12,285		)	(15,172		)	(23,264		)	(30,806		)
	$	—		$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	27,394		$	47,109		$	66,736		$	84,285
Raymarine	5,728			7,243			9,569			14,653
Surveillance	40,821			46,475			75,722			97,799
Detection	(1,767		)	(3,014		)	(330		)	(6,875		)
Integrated Systems	331			161			(66		)	(172		)
Other	(11,786		)	(56,171		)	(22,614		)	(71,572		)
	$	60,721		$	41,803		$	129,017		$	118,118

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

Segment Assets

	June 30, 2012		December 31, 2011
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	211,420	$	233,888
Raymarine	70,667		60,093
Surveillance	289,143		316,615
Detection	26,966		32,447
Integrated Systems	21,145		17,774
Discontinued Operations	—		604
	$	619,341	$	661,421

By Significant Geographical Area

Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
United States	$	152,032	$	196,087	$	350,929	$	392,386
Europe	89,152		99,222		169,866		191,694
Other international	97,107		96,246		165,948		183,444
	$	338,291	$	391,555	$	686,743	$	767,524

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

Long-lived assets by significant geographic locations are as follows (in thousands):

	June 30, 2012		December 31, 2011
United States	$	579,612	$	587,592
Europe	292,570		284,171
Other international	9,838		9,627
	$	882,020	$	881,390

Revenue Derived from Major Customers

Revenue derived from major customers is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
US Government	$	75,758	$	111,765	$	174,262	$	230,285

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations

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Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the three months ended June 30, 2012, the Company sold the two remaining business units that had been classified as discontinued operations. The operating losses of those operations up to the time of sale and the net losses on the sales of the units, net of tax, are reflected in the Consolidated Statements of Income for the three and six months ended June 30, 2012.

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Subsequent Events Subsequent Events (Details) (Dividend declared, USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Jun. 30, 2012
Dividend declared
Subsequent Event [Line Items]
Quarterly dividend, date declared	Jul. 19, 2012
Quarterly dividend, value per share (in dollars per share)	$ 0.07
Quarterly dividend, date to be paid	Sep. 07, 2012
Quarterly dividend, date of record	Aug. 20, 2012
Quarterly dividend, amount declared	$ 10.6

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Basis of Presenation

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the “Company”) are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the year ending December 31, 2012.

The amounts shown in the Consolidated Statements of Income for the three and six months ended June 30, 2011 have been adjusted to reflect the reclassification of certain business units that were previously reported as discontinued operations to continued operations.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Statement of Income and Comprehensive Income [Abstract]
Net earnings	$ 41,093	$ 29,309	$ 89,232	$ 80,624
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(24,020)	1,591	(6,881)	31,800
Comprehensive income	$ 17,073	$ 30,900	$ 82,351	$ 112,424

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Credit Agreements

6 Months Ended

Jun. 30, 2012

Line of Credit Facility [Abstract]

Credit Agreements

Credit Agreements

At June 30, 2012, the Company had no borrowings outstanding under its Credit Agreement, dated February 8, 2011, with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other Lenders, and $10.1 million of letters of credit outstanding, which reduces the total available credit under the Credit Agreement to $189.9 million.

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Document and Entity Information Document	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document And Entity Information [Abstract]
Entity Registrant Name	FLIR SYSTEMS INC
Entity Central Index Key	0000354908
Trading Symbol	FLIR
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		151,051,546

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Accrued Product Warrenties

6 Months Ended

Jun. 30, 2012

Product Warranties Disclosures [Abstract]

Accrued Product Warranties

Accrued Product Warranties

The following table summarizes the Company’s warranty liability and activity (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Accrued product warranties, beginning of period	$	15,994		$	18,960		$	16,046		$	18,686
Amounts paid for warranty services	(2,090		)	(2,193		)	(4,257		)	(5,181		)
Warranty provisions for products sold	1,299			2,319			3,134			5,027
Currency translation adjustments and other	119			128			399			682
Accrued product warranties, end of period	$	15,322		$	19,214		$	15,322		$	19,214
Current accrued product warranties, end of period							$	13,232		$	15,941
Long-term accrued product warranties, end of period							$	2,090		$	3,273

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 429,771	$ 440,846
Accounts receivable, net	268,550	325,370
Inventories	350,791	336,051
Prepaid expenses and other current assets	124,794	104,285
Deferred income taxes, net	27,023	27,443
Total current assets	1,200,929	1,233,995
Property and equipment, net	193,594	186,269
Deferred income taxes, net	31,857	31,644
Goodwill	497,728	498,343
Intangible assets, net	152,274	164,440
Other assets	38,424	32,338
Assets, Total	2,114,806	2,147,029
Current liabilities:
Accounts payable	79,611	84,190
Deferred revenue	23,446	24,046
Accrued payroll and related liabilities	44,794	49,475
Accrued product warranties	13,232	13,370
Advance payments from customers	10,425	13,219
Accrued expenses	32,862	41,183
Accrued income taxes	0	2,161
Other current liabilities	4,057	3,886
Total current liabilities	208,427	231,530
Long-term debt	248,090	247,861
Deferred income taxes	17,294	17,237
Accrued income taxes	18,138	17,537
Pension and other long-term liabilities	58,082	53,835
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at June 30, 2012, and December 31, 2011	0	0
Common stock, $0.01 par value, 500,000 shares authorized, 151,769 and 154,969 shares issued at June 30, 2012, and December 31, 2011, respectively, and additional paid-in capital	277,037	352,157
Retained earnings	1,306,613	1,238,866
Accumulated other comprehensive earnings	(18,875)	(11,994)
Total shareholders’ equity	1,564,775	1,579,029
Total Liabilities and Shareholders' Equity	$ 2,114,806	$ 2,147,029

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Accounts Receivable

6 Months Ended

Jun. 30, 2012

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable are net of an allowance for doubtful accounts of $4.8 million and $5.6 million at June 30, 2012 and December 31, 2011, respectively.

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Foreign Currency Exchange Rate Risk

6 Months Ended

Jun. 30, 2012

Foreign Currency [Abstract]

Foreign Currency Exchange Rate Risk

Foreign Currency Exchange Rate Risk

The gains and losses related to outstanding derivative instruments recorded in other income are offset by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of these gains and losses for the three and six months ended June 30, 2012 were a loss of $1.4 million and a gain of $0.3 million, respectively. The net amount of these gains and losses for the three and six months ended June 30, 2011 were a loss of less than $0.1 million and a loss of $4.5 million, respectively.

The net notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

Note 5. Foreign Currency Exchange Rate Risk - (Continued)

	June 30, 2012		December 31, 2011
Euro	$	2,196	$	19,640
Swedish kronor	7,042		18,091
British pound sterling	3,541		3,050
Australian dollar	1,570		609
Danish kroner	—		174
Japanese yen	6,112		3,581
Norwegian krone	1,169		—
	$	21,630	$	45,145

At June 30, 2012, all of the Company’s foreign currency forward contracts had maturities of 45 days or less.

On June 29, 2012, the Company entered into two zero-cost collar options to limit the Company's exposure to changes in the US Dollar/Euro and the US Dollar/Swedish Kronor exchange rates. The zero-cost collar option hedges are designed to protect the Company as the US Dollar strengthens, but also provide the Company with some flexibility if the US Dollar weakens. The foreign exchange hedging structure is set up, generally, on a six month time horizon. These options are not designated as hedging instruments and accordingly, gains and losses related to these options will be recorded as a component of net income.

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Operating Segments and Related Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Operating Segments and Related Information

Operating Segments and Related Information

Operating Segments

The Company has two business divisions: Commercial Systems and Government Systems.

Commercial Systems Division

The Commercial Systems division is focused on the design, manufacture, and marketing of instrument, sensor, and electronics solutions that facilitate improved situational awareness and environmental analytics for commercial customers. The division is comprised of two operating segments: Thermal Vision and Measurement and Raymarine. The Thermal Vision and Measurement segment provides advanced thermal imaging solutions for emerging commercial and industrial markets that enable people to see at night or through adverse weather conditions and to capture, measure, and analyze temperature data. The Raymarine segment provides electronics for the maritime market and is a leading global provider of fully integrated “stem to stern” networked electronic systems for boats of all sizes.

Government Systems Division

The Government Systems division designs, manufactures, and markets advanced imaging and detection systems for government markets where high performance is required. The division is comprised of three operating segments: Surveillance, Detection, and Integrated Systems. The Surveillance segment provides enhanced imaging and recognition solutions to a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. The Detection segment produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives (“CBRNE”) threats for military force protection, homeland security, and commercial applications. The Integrated Systems segment develops platform solutions for combating sophisticated security threats and incorporates multiple sensor systems in order to deliver actionable intelligence for wide area surveillance, intrusion detection, and facility security.

Note 17.    Operating Segments and Related Information - (Continued)

Operating Segments - (Continued)

Operating segment information is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011(1)			2012			2011(1)
Revenue – External Customers:
Thermal Vision and Measurement	$	142,641		$	164,838		$	298,381		$	309,803
Raymarine	47,181			50,190			93,785			100,726
Surveillance	119,493			141,479			234,090			291,336
Detection	15,713			17,221			35,066			35,092
Integrated Systems	13,263			17,827			25,421			30,567
	$	338,291		$	391,555		$	686,743		$	767,524
Revenue – Intersegments:
Thermal Vision and Measurement	$	4,403		$	5,705		$	9,451		$	10,398
Raymarine	—			4			4			7
Surveillance	7,083			6,764			11,986			17,021
Detection	326			1,478			776			1,478
Integrated Systems	473			1,221			1,047			1,902
Eliminations	(12,285		)	(15,172		)	(23,264		)	(30,806		)
	$	—		$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	27,394		$	47,109		$	66,736		$	84,285
Raymarine	5,728			7,243			9,569			14,653
Surveillance	40,821			46,475			75,722			97,799
Detection	(1,767		)	(3,014		)	(330		)	(6,875		)
Integrated Systems	331			161			(66		)	(172		)
Other	(11,786		)	(56,171		)	(22,614		)	(71,572		)
	$	60,721		$	41,803		$	129,017		$	118,118

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

	June 30, 2012		December 31, 2011
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	211,420	$	233,888
Raymarine	70,667		60,093
Surveillance	289,143		316,615
Detection	26,966		32,447
Integrated Systems	21,145		17,774
Discontinued Operations	—		604
	$	619,341	$	661,421

Note 17.    Operating Segments and Related Information - (Continued)

Revenue and Long-Lived Assets by Geographic Area

Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
United States	$	152,032	$	196,087	$	350,929	$	392,386
Europe	89,152		99,222		169,866		191,694
Other international	97,107		96,246		165,948		183,444
	$	338,291	$	391,555	$	686,743	$	767,524

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

Long-lived assets by significant geographic locations are as follows (in thousands):

	June 30, 2012		December 31, 2011
United States	$	579,612	$	587,592
Europe	292,570		284,171
Other international	9,838		9,627
	$	882,020	$	881,390

Major Customers

Revenue derived from major customers is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011(1)		2012		2011(1)
US Government	$	75,758	$	111,765	$	174,262	$	230,285

_______________

(1)    Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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Long-Term Debt

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of the following (in thousands):

	June 30, 2012			December 31, 2011
Unsecured notes	$	250,000		$	250,000
Unamortized issuance costs	(1,910		)	(2,139		)
	$	248,090		$	247,861

In August 2011, the Company issued $250 million aggregate principal amount of its 3.750% senior unsecured notes due September 1, 2016 (the “Notes”). The net proceeds from the issuance of the Notes were approximately $247.7 million, after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years. Interest is payable on the Notes semiannually in arrears on March 1 and September 1, which commenced March 1, 2012. The proceeds from the Notes are being used for general corporate purposes, which may include working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock.

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Goodwill

6 Months Ended

Jun. 30, 2012

Disclosure - Goodwill - Additional Information [Abstract]

Goodwill

Goodwill

As of June 30, 2012, the Company had not yet completed its annual review of goodwill for possible impairment but believes that there have been no triggering events or indicators of impairment on its recorded goodwill. The carrying value of goodwill by reporting segment and the activity for the six months ended June 30, 2012 are as follows (in thousands):

	Thermal Vision and Measurement			Raymarine		Surveillance			Detection		Integrated Systems		Total
Balance, December 31, 2011	$	251,187		$	98,364	$	90,501		$	38,162	$	20,129	$	498,343
Currency translation adjustments	(1,204		)	617		(28		)	—		—		(615		)
Balance, June 30, 2012	$	249,983		$	98,981	$	90,473		$	38,162	$	20,129	$	497,728

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Income Taxes Income Taxes (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 29.9
Unrecognized tax benefits which would affect the effective tax rate if recognized	18.1
Accrued interest and penalties	$ 2.4

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Inventories

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following (in thousands):

	June 30, 2012		December 31, 2011
Raw material and subassemblies	$	232,674	$	225,573
Work-in-progress	55,377		55,886
Finished goods	62,740		54,592
	$	350,791	$	336,051

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Property and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment are net of accumulated depreciation of $178.5 million and $164.6 million at June 30, 2012 and December 31, 2011, respectively.

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Intangible Assets

6 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

Intangible Assets

Intangible Assets

Intangible assets are net of accumulated amortization of $109.6 million and $98.2 million at June 30, 2012 and December 31, 2011, respectively.

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Operating Segments and Related Information Operating Segments and Related Information (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	$ 619,341	$ 661,421
Discontinued Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	0	604
Thermal Vision and Measurement | Continuing Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	211,420	233,888
Raymarine | Continuing Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	70,667	60,093
Surveillance | Continuing Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	289,143	316,615
Detection | Continuing Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	26,966	32,447
Integrated Systems | Continuing Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Segment assets (accounts receivable, net and inventories)	$ 21,145	$ 17,774

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Operating Segments and Related Information Operating Segments and Related Information (Details 5) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 882,020	$ 881,390
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	579,612	587,592
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	292,570	284,171
Other international
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 9,838	$ 9,627

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Operating Segments and Related Information Operating Segments and Related Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011		Jun. 30, 2012	Jun. 30, 2011
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	$ 338,291	$ 391,555	[1]	$ 686,743	$ 767,524	[1]
Revenue - Intersegments	0	0	[1]	0	0	[1]
Earnings (loss) from operations	60,721	41,803	[1]	129,017	118,118	[1]
Thermal Vision and Measurement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	142,641	164,838	[1]	298,381	309,803	[1]
Revenue - Intersegments	4,403	5,705	[1]	9,451	10,398	[1]
Earnings (loss) from operations	27,394	47,109	[1]	66,736	84,285	[1]
Raymarine
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	47,181	50,190	[1]	93,785	100,726	[1]
Revenue - Intersegments	0	4	[1]	4	7	[1]
Earnings (loss) from operations	5,728	7,243	[1]	9,569	14,653	[1]
Surveillance
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	119,493	141,479	[1]	234,090	291,336	[1]
Revenue - Intersegments	7,083	6,764	[1]	11,986	17,021	[1]
Earnings (loss) from operations	40,821	46,475	[1]	75,722	97,799	[1]
Detection
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	15,713	17,221	[1]	35,066	35,092	[1]
Revenue - Intersegments	326	1,478	[1]	776	1,478	[1]
Earnings (loss) from operations	(1,767)	(3,014)	[1]	(330)	(6,875)	[1]
Integrated Systems
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - External Customers	13,263	17,827	[1]	25,421	30,567	[1]
Revenue - Intersegments	473	1,221	[1]	1,047	1,902	[1]
Earnings (loss) from operations	331	161	[1]	(66)	(172)	[1]
Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue - Intersegments	(12,285)	(15,172)	[1]	(23,264)	(30,806)	[1]
Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Earnings (loss) from operations	$ (11,786)	$ (56,171)	[1]	$ (22,614)	$ (71,572)	[1]

[1] Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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Shareholders' Equity Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Common stock and additional paid-in capital activity

The following table summarizes the common stock and additional paid-in capital activity during the six months ended June 30, 2012 (in thousands):

Common stock and additional paid-in capital, December 31, 2011	$	352,157
Income tax expense of common stock options exercised	(658		)
Common stock issued pursuant to stock-based compensation plans, net	2,462
Stock-based compensation expense	13,277
Repurchase of common stock	(90,201		)
Common stock and additional paid in capital, June 30, 2012	$	277,037

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Property and Equipment Property and Equipment (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Property, Plant and Equipment [Abstract]
Accumulated depreciation	$ 178.5	$ 164.6

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Contingencies

6 Months Ended

Jun. 30, 2012

Loss Contingency [Abstract]

Contingencies

Contingencies

The Company and its subsidiary, Indigo Systems Corporation (now known as FLIR Commercial Systems, Inc.) (together, the “FLIR Parties”), were named in a lawsuit filed by Raytheon Company (“Raytheon”) on March 2, 2007, in the United States District Court for the Eastern District of Texas. Raytheon's complaint, as amended, asserted claims for tortious interference, patent infringement, trade secret misappropriation, unfair competition, breach of contract and fraudulent concealment. The FLIR Parties filed an answer to the complaint on September 2, 2008, in which they denied all material allegations. On August 31, 2009, the court entered an order granting the FLIR Parties' motion for summary judgment on Raytheon's trade secret misappropriation claim based on the FLIR Parties' statute of limitations defense. Raytheon abandoned all of its other claims except its claims relating to four patents (the “Patent Claims”). On August 11, 2010, the FLIR Parties and Raytheon entered into an agreement in principle to resolve the remaining Patent Claims, which resulted in a payment of $3 million by the FLIR Parties to Raytheon and entitles the FLIR Parties to certain license rights in the patents that were the subject of the Patent Claims. The parties appealed certain rulings of the District Court to the United States Court of Appeals for the Federal Circuit which on August 1, 2012, reversed the judgment of the District Court and remanded the case for further proceedings consistent with the appellate court's opinion.  The Company intends to vigorously defend itself in this matter and is unable to estimate the amount or range of potential loss, if any, which might result if the outcome in this matter is unfavorable.

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Basis of Presenation Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated.

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Accounts Receivable Accounts Receivable (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Allowance for doubtful accounts receivable	$ 4.8	$ 5.6

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Stock-based Compensation Stock-based Compensation (Details 5) (Stock options, USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012 Years
Stock options
Shares
Outstanding, beginning of period (in shares)	6,570
Granted (in shares)	638
Exercised (in shares)	(169)
Forfeited (in shares)	(97)
Outstanding, end of period (in shares)	6,942
Exercisable, end of period (in shares)	6,027
Vested and expected to vest, end of period (in shares)	6,896
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 20.73
Granted (in dollars per share)	$ 22.30
Exercised (in dollars per share)	$ 9.90
Forfeited (in dollars per share)	$ 26.10
Outstanding, end of period (in dollars per share)	$ 21.06
Exercisable, end of period (in dollars per share)	$ 20.17
Vested and expected to vest, end of period (in dollars per share)	$ 21.02
Weighted-Average Remaining Contractual Term (in years)
Outstanding, beginning of period (in years)	5.0
Outstanding, end of period (in years)	5.1
Exercisable, end of period (in years)	4.4
Vested and expected to vest, end of period (in years)	5.1
Aggregate Intrinsic Value
Outstanding, end of period	$ 17,527
Exercisable, end of period	17,526
Vested and expected to vest, end of period	$ 17,527

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CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	151,769,000	154,969,000

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company had $72.2 million and $192.6 million of cash equivalents at June 30, 2012 and December 31, 2011, respectively, which were primarily investments in money market funds. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets. The fair value of the Company’s forward currency contracts as of June 30, 2012 and December 31, 2011 was not significant. The fair value of the Company’s long-term debt is approximately $261.0 million based upon Level 2 inputs at June 30, 2012. The Company does not have any other significant financial assets or liabilities that are measured at fair value.

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Shareholders' Equity Shareholders' Equity (Details textual) (USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended		6 Months Ended	3 Months Ended
	Jun. 09, 2012	Feb. 28, 2011	Jun. 30, 2012 Common Stock and Additional Paid-in Capital	Jun. 30, 2012 Retained Earnings
Stockholders Equity Note [Line Items]
Common stock repurchased, shares			4.0
Common stock authorized to be repurchased, number of shares (in shares)		20.0
Common stock dividends, paid per share (in dollars per share)	$ 0.07
Common stock dividends, total cash paid				$ 21.5

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Stock-based Compensation Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Share-based Compensation [Abstract]

Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets

Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cost of goods sold	$	917		$	881		$	1,621		$	1,522
Research and development	1,298			1,358			2,474			2,844
Selling, general and administrative	5,650			5,349			9,305			9,510
Stock-based compensation expense before income taxes	7,865			7,588			13,400			13,876
Income tax benefit	(2,389		)	(2,201		)	(4,063		)	(3,991		)
Total stock-based compensation expense after income taxes	$	5,476		$	5,387		$	9,337		$	9,885

Stock-based compensation costs capitalized in inventory are as follows (in thousands):

	June 30,
	2012		2011
Capitalized in inventory	$	697	$	943

Fair value of the stock-based awards, as determined under the Black-Scholes model, granted weighted-average assumptions

The fair value of the stock-based awards, as determined under the Black-Scholes model, granted in the three and six months ended June 30,2012 and 2011 was estimated with the following weighted-average assumptions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock option awards:
Risk-free interest rate	0.4	%	1.0	%	0.4	%	1.0	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	4.2 years		4.3 years		4.2 years		4.3 years
Expected volatility	39.7	%	42.3	%	39.7	%	42.3	%
Employee stock purchase plan:
Risk-free interest rate	0.2	%	0.1	%	0.2	%	0.1	%
Expected dividend yield	1.3	%	0.7	%	1.3	%	0.7	%
Expected term	6 months		6 months		6 months		6 months
Expected volatility	27.4	%	21.3	%	27.4	%	21.3	%

Weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised

The fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Stock Option Awards:
Weighted average grant date fair value per share	$	6.43	$	11.68	$	6.43	$	11.68
Total fair value of awards granted	$	4,104	$	4,513	$	4,104	$	4,513
Total fair value of awards vested	$	5,970	$	5,030	$	5,985	$	7,962
Total intrinsic value of options exercised	$	939	$	5,798	$	2,358	$	13,153
Restricted Stock Unit Awards:
Weighted average grant date fair value per share	$	17.21	$	34.50	$	17.22	$	34.48
Total fair value of awards granted	$	30,471	$	21,337	$	30,522	$	21,524
Total fair value of awards vested	$	11,763	$	18,083	$	12,103	$	18,933
Employee Stock Purchase Plan:
Weighted average grant date fair value per share	$	5.02	$	7.36	$	5.02	$	7.36
Total fair value of shares estimated to be issued	$	1,106	$	1,051	$	1,106	$	1,051

Information with respect to stock option activity

 Information with respect to stock option activity is as follows:

	Shares (in  thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2011	6,570		$	20.73	5.0
Granted	638		22.30
Exercised	(169	)	9.90
Forfeited	(97	)	26.10
Outstanding at June 30, 2012	6,942		$	21.06	5.1	$	17,527
Exercisable at June 30, 2012	6,027		$	20.17	4.4	$	17,526
Vested and expected to vest at June 30, 2012	6,896		$	21.02	5.1	$	17,527

Information with respect to restricted stock unit activity

Information with respect to restricted stock unit activity is as follows:

	Shares (in  thousands)		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2011	1,305		$	30.89
Granted	1,775		17.22
Vested and distributed	(548	)	29.27
Forfeited	(70	)	32.58
Outstanding at June 30, 2012	2,462		$	21.44

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Stock-based Compensation Stock-based Compensation (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Disclosure Stock based Compensation Costs Capitalized in Inventory [Abstract]
Capitalized in inventory	$ 697	$ 943

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Shareholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

The following table summarizes the common stock and additional paid-in capital activity during the six months ended June 30, 2012 (in thousands):

Common stock and additional paid-in capital, December 31, 2011	$	352,157
Income tax expense of common stock options exercised	(658		)
Common stock issued pursuant to stock-based compensation plans, net	2,462
Stock-based compensation expense	13,277
Repurchase of common stock	(90,201		)
Common stock and additional paid in capital, June 30, 2012	$	277,037

During the six months ended June 30, 2012, the Company repurchased 4.0 million shares of the Company’s common stock under the February 2011 repurchase authorization by the Company’s Board of Directors pursuant to which the Company is authorized to repurchase up to 20.0 million shares of the Company’s outstanding common stock. This authorization expires in February 2013.

On February 9, 2011, the Company’s Board of Directors adopted a dividend policy under which the Company intends to pay quarterly cash dividends on its common stock. Accordingly, a dividend of $0.07 per share of outstanding common stock was paid on June 8, 2012 to shareholders of record as of the close of business on May 21, 2012. The total cash payments for dividends in the six months ended June 30, 2012 were $21.5 million.